Typically, control in the workplace is seen as stifling, limiting autonomy, creativity, and initiative. An overly controlling environment leads to high staff turnover and frustrating bureaucratic processes.
However, control and forward-thinking can actually go hand in hand.
When control is implemented effectively, it can bring structure, trust, and transparency to the work culture - particularly in spend management. Control not only keeps everyone aligned but also ensures the company's finances are in order.
Approaching financial control with a forward-thinking mindset
Initially, control may not seem conducive to a progressive or people-centric environment. However, having complete control over expense management is crucial, and it doesn't have to be accompanied by excessive bureaucracy. Forward-thinking leaders can introduce control and regulations into their expense management through clear individual spending limits and spending policies that align everyone. Control is not the enemy: it is simply a necessary task.
Why spend control benefits everyone
With clear-cut expense reporting and processes that work for everyone, finance teams can have peace of mind, knowing where exactly the company's money is being spent. Moreover, the team members are not burdened with out-of-pocket expenses or confusion regarding permissible purchases for their work.
An effective spending policy ensures everyone is on the same page. Since budgets vary across projects, flights, accommodations, and other categories, it is essential to have a customized spending policy that clearly outlines these specifics. Such a policy empowers the team to acquire necessary work-related items without having to seek approval or justify their purchases, thereby avoiding overspending incidents.
Unprecedented spending oversight
Knowing precisely how company funds are allocated, what they are spent on, and how much is being spent has become more important than ever. Control involves not only setting guidelines but also implementing various measures such as assigning individual spending limits even before providing company cards to the team. Transparent business expenditure leads to enhanced spending visibility, enabling a closer examination of spending habits that can be modified, and providing an opportunity to reassess budgets.
Building trust and empowering the team
Control should not create a power imbalance. By establishing clear spending expectations and rules, the team members are always informed and trusted to make necessary work-related purchases, thereby minimizing out-of-pocket expenses. It is well-documented that happy teams contribute to the success of a business. Trust, not excessive monitoring, is what fosters success. Setting clear guidelines with spending limits empowers the team to make confident decisions, eliminating the need for constant approval or denial of each purchase, akin to a parent overseeing their children.
Enhancing workflows between finance and other departments
Improved cross-functional workflows are a result of teamwork and collaboration. When finance has control over all spending across departments, teams work harmoniously and efficiently. With predefined budgets and the opportunity to reassess where funds are best allocated, the job is likely to be done more effectively.
Finance teams and CFOs are often overlooked in terms of setting business strategy and direction. However, they are increasingly becoming essential partners to the CEO, providing data and insights that form the basis for future business strategies.
As we continue to redefine what it means to be forward-thinking in the workplace, it is crucial to reassess the perception of control, particularly in business spending. Forward-thinking finance leaders understand that control does not have to be restrictive; in fact, it can be quite the opposite. Control is an essential aspect of the job, enabling companies to achieve readiness, agility, and peace of mind. It is a perfect partnership.
