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FMI
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IGF JOURNAL
VOLUME 25, NO. 1
to leading their organizations to improved
quality and better service outcomes. Some
were less comfortable with managing
change to cut back on services. Both
austerity and the ability to flex leadership
styles were barriers to innovation. Linked
to this was evidence that a number of
leaders had little in the way of training and
experience in strategic leadership which
ultimately meant that they were fulfilling a
managerial role.
More specifically, the contribution of
the strategic role of finance to dealing
with the austerity measures was seen
as critical. In many cases it was at the
forefront of strategic planning and in
many cases the organizational strategy was
financially led. Some organizations had
managed to shed their responsibilities for
operational financial management, such
as transactional payments and payroll,
either by outsourcing or by delegation.
This allowed the Director of Finance to
focus on strategic financial management
as opposed to being embroiled in day-
to-day operations. An effective working
relationship between the Chief Executive
and the Director of Finance also set the
tone of a dynamic approach to financial
management as opposed to a passive one.
This appeared helpful in communicating
to service managers the true nature of
the challenges faced and has resulted, in
most cases, in non-finance professionals
being more aware of their responsibilities
for budget constraint and the costs of
services. In some cases it was noted that
organizations were focusing on improving
the financial skills and literacy of their
non-finance professionals.
Multi-agency working at a strategic
level is an important goal for public sector
organizations for better service outcomes
and use of financial resources. However, in
practice the research found that there was
limited engagement on the co-ordination
of strategies. It was often the case that it was
thought “just too difficult”; improvements
in service outcomes just didn’t stack up to
the time and resource spent, according to a
number of leaders.
In terms of the barriers to effective
strategic financial leadership that were
encountered it was clear that the absence
of political direction can inhibit the
role of strategic finance managers, since
there was no clear narrative to work
with. Research conducted by Deloitte
in Canada “Innovation in Government?
Conversations with Canada’s Public
Service Leaders” also concluded that
political direction was necessary for
successful innovation to occur. The lack of
corporate support, particularly from Chief
Executives was also a barrier. Other barriers
were inadequate skills as well as a lack of
resources for strategic finance. Specifically
in relation to central government when
compared to the private sector, an
Institute of Government Report (2011))
(http://www.instituteforgovernment.org.
uk/publications/financial-leadership-
government) highlighted that: the strategic
financial roles were often weaker at the
centre of Government compared to the
private sector; the structure of financial
leadership is more fragmented across
government then the private sector; and
supporting performance management
roles were underdeveloped.
In conclusion, austerity and the need
to achieve more for less will continue to
dominate the public sector landscape and
there is little doubt that leadership skills of
a different kind will be needed. The lack of
long-termvision is aworrying factor asmany
of the strategies being developed today are
IS THE PUBLIC SECTOR BEREFT OF STRATEGIC FINANCIAL LEADERSHIP?
