The need for more talented managers in finance is a growing problem and not enough is being done to improve the situation. We are all aware that strong leadership skills are hard to find, and now, more than ever, employers are crying out for them. Finance functions have – in some places – become increasingly lean and the department is under increased pressure to tackle the challenge of improving performance and cutting costs with reduced resources, particularly in public services. According to the Hays Public Services Leadership Survey, public sector chief executives and managers believe they lack the skills needed to deliver services when funding cuts start impacting in 2010 and beyond. Only 16% of managers said their organisations had the resources to manage a reduced budget in 2010, and even fewer junior staff (13%) thought that was the case.

Finance departments are unlikely to achieve their objectives without effective leadership skills in place.

Today, the majority of employers want candidates to have a marriage of both strong technical and leadership skills. It is commonplace for someone to excel in one area or the other, but not often enough in both. Prior to the recession, employers may have been willing to overlook a shortfall of management skills providing that the candidate was particularly talented technically, but not any more. the line has been drawn and expectations are higher than ever. As the role of the accountant has branched into something more diverse and all encompassing, the level of skills required has increased. Number crunchers just won’t do these days; talented accountants who advise on numbers and lead with them are seen as crucial to the survival and growth of any business.

As employers look to improve management and leadership training internally, accountants should also consider ways of ‘up-skilling’ themselves. Although an MBA is traditionally recognised as the most popular management qualification, in truth, an MBA will only hold real weight with an employer if it has been completed at a recognised university or if the accountant has taken it on while in full-time employment. The discipline required to complete an MBA while in a permanent role is often seen by an employer as a strong indication of the jobseeker’s strong work ethic and discipline.

Proven management experience and evidence of strong leadership is often more important to employers than a qualification. Accountants will typically be required to provide examples of their experience in performance management and employers will often want to know where they have built knowledge and expertise within their teams and the wider business. This is of particular interest given the difficult two years the economy has been through.

The trick, for an accountancy professional, is in understanding the management qualities they possess and how these can be improved upon. The recession has meant that training is an area that has been significantly cut back in some organisations, but there are other ways for professionals to develop management skills. Many senior accountants now work with external leadership mentors, but, this can be costly and many employers have adapted similar programmes internally. Identifying and working with a strong leader within your business, whether in your department or outside of it, is an excellent way of improving your own management skills. If the business cannot provide you with funded training or support the costs of an external mentor, the internal mentor is often the most practical alternative.

Management skills can, and must be, developed within the business. Many FTSE 250 companies have excellent fast track management schemes to identify and promote talent, employing a similar programme internally is often a successful route to first finding out where these skills exist and then focusing on ways of nurturing them. For some finance functions, initial conversations with employees who may demonstrate natural or inherent leadership and management skills can pro voke answers to what might be needed to take that talent to the next level. Strong managers will need recognition for their skills and will need support and encouragement to push their development.

What makes a leader?

* Finance professionals that make the best leaders possess strong communications skills, integrity and are forward-thinking.

* Talented leaders will successfully engage with staff and gain support for change that is needed, therefore creating the necessary momentum to move forward.

* Every business is different and professionals must gain an understanding of what good leadership looks like within their business, or within the business where they are looking to start work.

* Working with an established leader or manager can help you improve your own management skills.

Teresa Thorrington-Allen is national director at Hays Senior Finance