Part 6: Building a High-Performance Finance Team
This post continues my “learning in public” journey as a finance manager. All concepts and frameworks are attributed to their original creators, primarily David Parmenter and other thought leaders in the field.
The Finance Team Evolution
As finance functions transition from traditional accounting and reporting roles to strategic business partnership, the capabilities and culture of the finance team must evolve accordingly. David Parmenter, in “The Financial Controller and CFO’s Toolkit,” emphasises that “winning finance teams” are distinguished not just by technical competence but by their ability to influence business outcomes.
According to Parmenter, “The difference between an average finance team and a world-class one isn’t just knowledge—it’s how that knowledge is applied to create value for the organisation.”
This post explores how finance leaders can build high-performance teams capable of meeting the evolving demands of modern business.
Parmenter’s Team Development Framework
David Parmenter proposes a comprehensive framework for developing high-performance finance teams, structured around four key dimensions:
1. Team Structure and Roles
The traditional hierarchical structure of finance departments often impedes performance. Parmenter advocates for a flatter team structure with clear accountability:
- Finance business partners embedded within operational units
- Centers of excellence for specialised knowledge (tax, treasury, etc.)
- Shared service centers for transactional processes
- Small, agile teams focused on specific business outcomes
According to Parmenter, “Structure should follow strategy; organise your team around the outcomes you want to achieve, not historical departmental boundaries.”
2. Skills and Capabilities
Modern finance teams require a broader skill set than traditional accounting-focused departments. Parmenter identifies several critical competencies:
- Business acumen - Understanding the organisation’s business model and value drivers
- Data analytics - Ability to extract insights from complex data sets
- Communication - Translating financial concepts for non-financial audiences
- Change management - Implementing new processes and systems effectively
- Critical thinking - Moving beyond reporting to insight and recommendation
- Relationship building - Creating partnerships with operational teams
Parmenter notes, “Technical accounting skills are the price of entry—they get you a seat at the table. But influence skills are what allow you to make an impact once you’re there.”
3. Systems and Processes
High-performance teams leverage effective systems and processes to maximise productivity:
- Standardised workflows for routine activities
- Knowledge management systems to capture and share institutional knowledge
- Performance management frameworks aligned with organisational goals
- Continuous improvement mechanisms to identify and address inefficiencies
- Technology enablement to automate transactional work
As Parmenter states, “The goal is to automate the routine so your team can focus on the exceptional.”
4. Culture and Mindset
Perhaps most importantly, high-performance finance teams cultivate a distinctive culture:
- Forward-looking rather than historical focus
- Solution-oriented approach to problems
- Continuous learning and skill development
- Collaborative rather than siloed mentality
- Customer-centric orientation (both internal and external customers)
- Balanced scorecard perspective beyond just financial metrics
Parmenter emphasises, “Culture isn’t just how people behave when everything is going well—it’s how they respond when things get difficult.”
Identifying and Developing Talent Within Your Team
Building a high-performance team starts with understanding your current talent and systematically developing their capabilities.
Talent Assessment
Parmenter recommends a structured approach to evaluating team members:
- Skills inventory - Document current technical and soft skills
- Performance evaluation - Assess effectiveness in current roles
- Potential assessment - Identify capacity for growth and advancement
- Career aspirations - Understand individual goals and motivations
- Learning styles - Determine how each person best acquires new skills
This assessment provides the foundation for targeted development efforts.
Development Strategies
Based on talent assessments, Parmenter suggests several development approaches:
1. Structured Rotation Programs
- Cross-functional rotations within finance (accounting to FP&A, etc.)
- Business rotations into operational roles
- Project-based assignments to build specific skills
- “Shadow” programs with senior leaders
As Parmenter notes, “Experience is the best teacher—expose your team to diverse challenges to accelerate their development.”
2. Mentoring and Coaching
- Formal mentoring programs pairing junior and senior staff
- External coaching for high-potential individuals
- Peer coaching networks to share knowledge
- Regular feedback sessions beyond annual reviews
3. Targeted Training
- Technical skills training for new tools and methodologies
- Soft skills development (presentation, influence, etc.)
- Industry-specific knowledge building
- Professional certification support
4. Stretch Assignments
- Leading cross-functional projects
- Presenting to executive leadership
- Representing finance in operational meetings
- Conducting training for non-finance colleagues
Parmenter emphasises, “Development happens at the edge of comfort—provide challenges that stretch but don’t break your team members.”
Creating a Culture of Continuous Improvement
High-performance finance teams are never satisfied with the status quo. They continuously seek ways to improve processes, systems, and outcomes.
Kaizen in Finance
Borrowing from lean manufacturing principles, Parmenter advocates applying kaizen (continuous improvement) methodologies to finance:
- Make problems visible - Create visual management systems that highlight issues
- Standardise processes - Document standard procedures as the foundation for improvement
- Measure what matters - Establish KPIs for finance team performance (cycle times, accuracy, etc.)
- Create improvement mechanisms - Regular sessions to identify and address inefficiencies
- Celebrate small wins - Recognise incremental improvements to build momentum
Process Improvement Techniques
Specific tools that finance teams can apply include:
- Value stream mapping - Visualising end-to-end processes to identify waste
- 5 Whys analysis - Drilling to root causes of problems
- PDCA cycles (Plan-Do-Check-Act) - Structured approach to testing improvements
- Gemba walks - Observing processes firsthand to identify improvement opportunities
- Standard work - Documenting best practices to ensure consistency
As Parmenter states, “Continuous improvement isn’t a project with an end date—it’s a permanent mindset shift.”
Jack Stack’s Open-Book Management
Jack Stack, author of “The Great Game of Business,” developed the concept of open-book management, which has powerful applications for finance teams. The approach is based on three core principles:
1. Financial Transparency
- Sharing financial information broadly within the organisation
- Teaching employees to understand financial statements
- Connecting individual actions to financial outcomes
- Demystifying financial terminology and concepts
2. Employee Empowerment
- Involving team members in planning and forecasting
- Delegating decision authority with appropriate guardrails
- Creating ownership mentality through participation
- Soliciting improvement ideas from all levels
3. Shared Rewards
- Aligning incentives with organisational success
- Creating bonus systems tied to measurable outcomes
- Celebrating wins collectively
- Fostering mutual accountability for results
According to Stack, “When people understand the business and have a stake in the outcome, they make better decisions and take greater ownership.”
Implementing Open-Book Management in Finance
For finance teams specifically, open-book management can be implemented through:
- Weekly financial huddles - Brief meetings to review key metrics
- Visual scorecards - Prominently displayed performance indicators
- Financial literacy training - Ensuring all team members understand the numbers
- Collaborative forecasting - Involving the entire team in projections
- Shared performance goals - Team-based metrics and incentives
As Parmenter notes, “Open-book management transforms finance from a mysterious black box to a transparent enabler of performance.”
Training Strategies for Upskilling Your Finance Team
Developing a high-performance finance team requires systematic upskilling. Parmenter recommends a blended approach to training:
1. Technical Skills Development
- ERP and systems training - Ensuring proficiency with core tools
- Advanced Excel and data visualisation - Building analytical capabilities
- Accounting and regulatory updates - Maintaining technical foundation
- Financial modeling - Enhancing forecasting and scenario planning skills
- Process improvement methodologies - Teaching lean and six sigma techniques
2. Business Acumen Building
- Industry immersion - Understanding the organisation’s competitive landscape
- Business model training - Learning how the organisation creates value
- Strategy sessions - Participating in strategic planning discussions
- Customer exposure - Interacting directly with external customers
- Operational shadowing - Spending time in key operational areas
3. Leadership Development
- Communication workshops - Enhancing presentation and influence skills
- Change management training - Building capability to implement new initiatives
- Conflict resolution - Developing skills to navigate difficult conversations
- Project management - Leading cross-functional initiatives
- Coaching skills - Learning to develop others effectively
4. Learning Formats
Parmenter emphasises the importance of varied learning formats:
- Formal classroom training - For foundational knowledge
- On-the-job application - Immediate use of new skills
- Digital learning platforms - Self-paced skill development
- Community of practice - Peer learning groups
- External conferences - Exposure to industry best practices
- Stretch assignments - Learning through doing
As Parmenter notes, “The most effective learning combines instruction, application, and reflection in a continuous cycle.”
Case Study: Finance Transformation at a Global Manufacturer
This case study, based on a composite of organisations in Parmenter’s research, illustrates the principles of high-performance team building in action:
Background
A global manufacturing company with $3 billion in annual revenue had a finance team that was respected for accuracy but criticised for being reactive and transaction-focused. The newly appointed CFO aimed to transform the team into a strategic business partner.
Key Challenges
- 80% of finance time spent on transaction processing and reporting
- Limited business acumen among technically skilled accountants
- Siloed structure with poor cross-functional collaboration
- Resistance to change among long-tenured staff
- Outdated skills with minimal investment in development
Transformation Approach
Phase 1: Assessment and Vision (3 months)
- Conducted skills assessment of all finance staff
- Benchmarked team structure and processes against leading practices
- Created a compelling vision of the future finance function
- Established clear performance metrics for the transformation
Phase 2: Structural Changes (6 months)
- Reorganised from functional silos to business-aligned teams
- Created centers of excellence for specialised knowledge
- Established a shared service center for transactional activities
- Implemented business partner roles embedded in operational units
Phase 3: Capability Building (12 months)
- Launched comprehensive training program in business acumen
- Implemented rotational assignments across finance and operations
- Created mentoring pairs between senior and junior staff
- Established a finance academy with targeted learning paths
Phase 4: Cultural Transformation (18+ months)
- Introduced open-book management principles
- Implemented continuous improvement methodologies
- Changed performance evaluation criteria to emphasise business impact
- Celebrated and rewarded new behaviors aligned with vision
Results
After two years, the transformation delivered significant results:
- Transaction processing time reduced by 60%
- Finance headcount reallocated: from 20% to 60% in business partner roles
- Employee engagement scores increased from 65% to 88%
- Internal customer satisfaction increased from 3.2 to 4.7 (on 5-point scale)
- Finance-led initiatives delivered $45 million in cost savings and revenue enhancements
As the CFO commented, “We transformed from being financial record-keepers to true business partners driving organisational performance.”
Self-Assessment: How High-Performing Is Your Finance Team?
Rate your team on these dimensions from 1 (strongly disagree) to 5 (strongly agree):
- Our finance team is structured around business outcomes rather than functional silos
- Team members have strong business acumen beyond technical accounting skills
- We have effective systems for sharing knowledge across the team
- Our team consistently anticipates business needs rather than reacting to requests
- We have formal processes for continuous improvement
- Team members regularly rotate through different roles and assignments
- Our finance team is viewed as a valued business partner by operational leaders
- We have a structured approach to developing team capabilities
- Our performance metrics focus on business impact, not just technical accuracy
- Our team culture encourages innovation and appropriate risk-taking
Scoring:
- 40-50: High-performance team
- 30-39: Strong foundation with opportunity for enhancement
- 20-29: Traditional team with significant development needs
- 10-19: Fundamental transformation required
Action Items for Finance Leaders
- Assess your current state - Conduct a comprehensive skills inventory of your team
- Clarify your vision - Define what “high performance” means in your specific context
- Identify development needs - Map the gap between current and desired capabilities
- Create learning paths - Develop tailored development plans for team members
- Review team structure - Align organisational design with strategic priorities
- Implement mentoring - Create formal and informal knowledge-sharing mechanisms
- Measure and recognise - Establish metrics for team performance and celebrate progress
Conclusion
Building a high-performance finance team is not a one-time project but an ongoing journey of development and improvement. By applying Parmenter’s team development framework and Stack’s open-book management principles, finance leaders can create teams that deliver exceptional value to their organisations.
As David Parmenter emphasises, “The finance function of the future will be judged not by the accuracy of its reporting but by the impact of its insights.” By investing in your team’s capabilities, structure, processes, and culture, you can position your finance function as a true strategic partner in organisational success.
References
- Parmenter, D. (2017). The Financial Controller and CFO’s Toolkit: Lean Practices to Transform Your Finance Team. Wiley.
- Stack, J. (2013). The Great Game of Business, Expanded and Updated: The Only Sensible Way to Run a Company. Crown Business.
- Deloitte. (2022). Finance 2025: Digital transformation in finance. Deloitte Development LLC.
- McKinsey & Company. (2021). Building a high-performing finance function. McKinsey & Company.
- KPMG. (2023). Future of Finance: Transforming finance for the digital era. KPMG International.
- Ernst & Young. (2022). How to build a future-ready finance function. Ernst & Young Global Limited.