This article was originally published in the Municipal Journal
Considering being a local authority director of finance? If so, that’s good! If you are already there that’s even better!
Much has been written about the role of the modern day director of finance and how the role is changing. Indeed, CIPFA has recently established a panel which focuses on exactly that. Whilst this is a positive move and should be applauded, little has been made of the significant and very positive attractions that this role offers to candidates and why now is possibly the best time to become a director of finance in local government.
Reform of the public services has catapulted directors of finance into leadership positions in their organisations. Nowhere is this more evident than local government. The finance director as a leader in their organisation marks a real transformation and whilst massively attractive, this development now enables them to make a real impact both corporately and to positively improve the lives of the people in the communities that they serve in ways that they have not been able to previously.
However, let’s be candid; not every budding or current local authority director of finance is cut out for this modern multidisciplinary/ leadership based approach which they now have to take forward in their work.
This has thrown up suitability challenges and issues of recruitment and retention; which means that if you are good, then the value of your stock will be high and your phone line hot with calls from head-hunters like me! Whilst this will appeal most to the egocentrics amongst you, the message is undeniably clear: the role of local authority director of finance is good for your career prospects.
Interestingly, effective and co-ordinated succession planning in terms of the development of the next generation of potential directors of finance has been largely neglected by local authorities.
What an opportunity now exists for directors of finance to play a lead role in developing the finance talent of the future from within their own organisations and also to actively pool their collective resources. This can help develop some form of co-ordinated approach to the development of an effective talent management strategy to better identify, nurture and train the future finance leaders for local government. No other role would appear to offer such a unique one off opportunity that needs desperately to be collectively grasped.
If you are ambitious and most of the directors and budding directors of finance that I have met in local government are, then what about your prospects for promotion to the top job?
Never have local authority finance directors been in a better position to successfully secure the top job in a local authority. There has been an initially slow but now much more rapid move by local authorities to appoint finance based CEOs. The London borough of Hammersmith and Fulham started this process which has been followed more recently by the likes of the London boroughs of Barking and Dagenham, Tower Hamlets and Hackney.
In short, directors of finance, if your ambition is to be a chief executive, then you are in the best place possible to be successful.
The demand for finance-based CEOs has never been higher. The demands of the ever expanding efficiency agenda, changes to the prudential code, the move to IFRS in 2010, tightening central and grant based funding, shared services and the place-shaping agenda have made it imperative that finance is placed at the top of the tree in local authorities. However, as shrewd as you are, I know that you will not be complacent and will certainly not expect this situation to last forever.
My advice is to get in quick while you hold the ‘whip-hand’ because what with the Olympics, LAA, place–shaping, regeneration and environmental issues coming to the fore in local authorities, it will not be too long before we see existing directors of regeneration, environment and partnerships becoming the local authority chief executives of the future – now there’s a thought
About the author
Darren Meeks is a consultant at Veredus who specialises in senior appointments within the local authority finance and corporate resources portfolio across London and the South East.