September 5, 2023 • 13 mins
Have you ever stopped to consider the gravity of your role as a finance or accounting professional? We're the guardians of our organizations' critical resources, the moral compass guiding our teams, and the defenders of ethical conduct. In this thought-provoking episode of the Finance Leader Podcast, we explore the significance of character and integrity in our field. We delve into the crucial expectations of high ethics, the importance of trustworthiness, and the vital systems of internal controls acting as safeguards against misuse of assets.
As we challenge conventional wisdom, we pose the question: can strong character be taught, or is it inherent? This episode urges you to reflect on your own character, integrity, and the implications of your actions on your team and your organization. We discuss effective ways to communicate and uphold expectations of character and ethics within our teams. Of course, ethics is not just about preaching - it's about practicing. You'll find out why the most influential leaders are those who display high character and how they shape the culture and practices of their teams. Tune in to gain valuable insights into maintaining high ethical standards in our professions, and how we can continually strive to be better leaders.
Episode outline:
- Why a high level of character is expected,
- Internal controls are still a must, and
- The great leaders display the highest character.
Please connect with me on:
1. Instagram: stephen.mclain
2. Twitter: smclainiii
3. Facebook: stephenmclainconsultant
4. LinkedIn: stephenjmclainiii
For more resources, please visit Finance Leader Academy: financeleaderacademy.com.
- On the website, you can download the Become a Finance Leader Guide. You can use this guide to build your Finance Leadership skills so you can help senior leaders develop and execute the strategy.
- I also offer a course, Advance Your Finance and Accounting Career: Developing a Promotion Strategy that Sets You Apart.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Stephen McLain (00:05):
The finance and accounting fields need
professionals of high character.
We are trusted to safeguard thecompany's critical resources
cash, cash equivalents,investments, other physical
assets and many balance sheetassets so we must ensure we hire
for character as well as skills.
(00:25):
We talk about integrity, buthow do we ensure our team is
honest, reliable and trustworthy?
Do you talk about and test forcharacter and integrity during
applicant screening and hiring?
I expect our profession topractice and live by a high code
of values and character toensure proper internal controls
(00:46):
are in place to safeguardlimited resources.
Please enjoy the episode.
Welcome to the Finance LeaderPodcast, where leadership is
bigger than the numbers.
I am your host, Stephen McLain.
This is the podcast fordeveloping leaders in finance
and accounting.
Please consider following me onTwitter, facebook, instagram
(01:08):
and LinkedIn.
My usernames and the links arein this episode's show notes.
This is episode number 11, andI'll be talking about why
character matters to the financeand accounting fields, and I
will highlight the followingtopics Number 1 why a high level
of character is expected.
Number 2 Internal controls arestill a must.
(01:30):
And 3 the great leaders displaythe highest character.
Motivational speaker Les Brownsaid our ability to handle
life's challenges is a measureof our strength of character.
I want to talk about ourpersonal character.
Today we are in a professionthat demands strong personal
character, but we don't talkabout it enough.
(01:52):
We are the guardians of ourorganization's critical
resources.
We oversee cash, investments,credit and other financial
resources and asset management,so we need to make sure we have
people in place who aretrustworthy and honest to manage
and protect those assets.
It's not only required, butit's expected.
(02:13):
We have to ensure internalcontrols are in place so the
temptation and ability to takefrom the company is eliminated.
If you have not listened to thelast few episodes, here is a
short list so you can go back.
Episode 110 I talked aboutexcellence and leadership with
the finance and accountingprofessions.
Episode 109 I talked about theTreasury Manager role and how it
(02:38):
may be a great opportunity foryou.
Episode 108 I talked aboutovercoming obsessive-compulsive
tendencies, so it may help incareer success.
Please go back and listen ifyou missed them.
I believe they can definitelyhelp you in your career growth
and skills development.
Now let's continue to discusscharacter.
(02:59):
Our character comes down to ourlevel of honesty and
trustworthiness, especially whenpeople are not watching you.
Do you do the right thing whenothers are not watching or do
you cut corners or even stealfrom the company and leaders?
Are you watching out for yourteam?
Are you taking care of them?
For example, are you approvingtime cards on time?
(03:22):
Are you counseling them tobetter performance?
Are you helping your team togrow?
Are you giving opportunities tothose who have earned it?
And are you aware of yourpersonal biases so you treat
everyone fairly?
I have high expectations forall of you in this community and
I have high expectations formyself.
(03:44):
Our profession demands requiresthat we follow values and
practice a high level of ethics.
We are expected to act withhigh regard in protecting the
company's assets and forprotecting our team.
If we don't have a high levelof ethics, who will?
It comes down to the financeand accounting professionals to
(04:05):
protect company assets.
Internal controls are stillrequired.
We still need a system toensure no one can take from the
company.
Our internal controls are asgood as we follow them.
We need double checks,especially on our most risky
assets, like physical cash andother similar assets, and people
need to take their PTO sosystems can run while people are
(04:28):
out.
We can trust, but we need toverify also and verify
everything.
I have been an internal reviewofficer and ensuring we had
systems in place to record andcount for large purchases like
equipment was essential tostopping fraud, waste and abuse.
How can you test for characterwhen you are hiring?
(04:50):
You can use personality testingand screening to help you get a
little closer to understandingyour applicants, but be aware
that bias can be built into suchtests.
I ask you to look beyond justtechnical skills and take the
time to test character andpersonality.
I know you want people withgreat excel skills, but don't
bring on someone of questionablecharacter and someone lacking
(05:13):
in critical soft skills.
It's just not worth it.
Do you believe that people havecharacter naturally, or can it
be taught?
We can definitely teachexpectations and hold people
accountable.
Each person has to decide forthemselves on the matter of
character, values, integrity,honor and trustworthiness.
(05:33):
We can measure results to seeif our team adheres to these,
but what about the inside?
Each person must take actionfor themselves on how they want
to or refuse to shift theirpoint of view and moral compass.
I am asking you to self-exploreand make those shifts yourself,
because what we do is importantthan that.
(05:54):
We must live by a higher codeof ethics and values, and it is
what true leadership is based on.
Now, to help you in yourfinance leadership development
journey, I have a written guidefor you called Become a Finance
Leader.
You can download it for free atthe link in the show notes or
go to financeleaderscademycomand download it there.
(06:15):
This guide will help you withyour mindset and other finance
leadership related topics so youcan help leaders throughout the
organization.
Many of you already know that Iserved in the US Army as a
finance officer.
I had an oath and an obligationto protect US Army assets,
which were actually the assetsof the American people.
They owned it.
(06:36):
As finance professionals in themilitary, we called ourselves
guardians of those resources andwe were diligent in holding
ourselves accountable.
We always asked ourselves whois guarding the guardians?
Meaning, are we holdingourselves to a high level of
character and ethics so we don'twaste or even steal assets that
(06:58):
don't belong to us?
Now let's talk about whycharacter matters to the finance
and accounting fields.
Number one why a high level ofcharacter is expected.
Our profession expects us topractice a high level of ethics.
If we don't, the risk for fraud, waste and abuse rises
exponentially.
Our character is critical andwe need to hire and develop
(07:22):
finance and accountingprofessionals who have
demonstrated high character,ethics and integrity.
We are the guardians of thecompany's critical resources and
we have to ensure we will riseto that expectation.
I believe that training andgreat counseling can minimize
the risk and improve our values.
Standing within the team.
(07:43):
You can use character andpersonality tests in your hiring
process to find suitablecandidates, as long as you don't
solely rely on them.
With any tool, bias can bebuilt in, so you must be aware.
Additionally, candidates cananswer based on what they think
you are looking for.
It's one tool you can use likeany other tool, but should be
(08:03):
considered along with many othertools and systems to evaluate
the best candidates.
Number two internal controls arestill a must.
Even though I'm advocating andencouraging that our finance and
accounting professionals be ofhigh moral and ethical character
, that is not always the case.
So we must ensure we have arobust set of internal controls
(08:26):
be in place.
And, by the way, internalcontrols aren't just for our
profession, they are neededcompany-wide.
Internal controls ensure wehave established systems and
double checks in case ethicsfail and sometimes it will fail.
Always practice your internalcontrols, perform the checks and
double checks with our mostvulnerable resources.
(08:47):
We must practice good checks onthe system so resources are not
lost to fraud, waste and abuse.
Number three the great leadersdisplay the highest character.
I believe that many seniorleaders are really just managers
because they fall short in onekey area Making others around
them better.
(09:08):
I believe every executiveleader has this responsibility
to, from the chairman of theboard and CEO down to each
first-line manager.
They will always have theincredible task of making sure
their teams are growing,developing and getting better.
The greatest leaders do this.
They put others first.
Now, how can you expect yourteam to have character and
(09:29):
integrity if you don't conveyvalues and ethics?
If you take shortcuts, theywill, too.
Your behavior and your attitudeset the tone and standard for
everyone on their team and forall your direct reports.
Now, as finance and accountingprofessionals, great character
is expected and is the minimumfor what we need to be doing
(09:51):
regarding our workresponsibilities.
Am I being idealistic here?
Yes, probably, because somepeople will not measure up.
That is why we also set inplace and enforce internal
controls.
I want to encourage you to beteaching and talking about
character as much as you can Inevery team meeting and in every
(10:11):
one-on-one session with yourteam members.
It's that important.
Now for action.
Today, two things for you toconsider.
The first have you consideredyour own level of character and
integrity?
Do you practice great ethics orare you a questionable
character?
Next, if you are leading a team, what are you doing to
communicate expectationsregarding character and ethics?
(10:35):
Ultimately, our behavior andconduct measuring out to our
expectations of character?
If not, then we need to make acourse correction.
Also, please check outfinanceleaderacademycom when you
get a chance, where you want tohelp you with your goal
planning and career advancement.
You can find all the previousepisodes of the Finance Leader
(10:56):
podcast and the Finance LeaderGuide I mentioned earlier.
Please sign up for the weeklyemails so I can share a short
suggestion each week.
I promise that my emails areshort and can be read and easily
understood quickly.
Today I talked about whycharacter matters in the finance
and accounting fields and Ihighlighted the following points
(11:16):
1.
Why a high level of characteris expected.
2.
Internal controls are still amust.
3.
The great leaders display thehighest character.
Finance and accountingprofessionals are the last line
for defending the company'sassets.
As leaders, we have a greatresponsibility to set a high
(11:37):
example of character, ethics,values and integrity.
We also should strive to helpmake the people around us better
.
If not, then we become nothingbut a manager of tasks.
Leadership skills are thepathway to advancement and
greater responsibility.
It takes a leader to take amediocre organization to become
(11:59):
a great one.
It takes leadership to bring ateam together so they can
accomplish team goals, and ittakes leadership to solve
problems that enable theorganization to achieve its
long-term strategy.
Great leaders grow other greatleaders.
If you solely focus on thenumbers and not your people, you
(12:19):
miss out on your greatestopportunity to shape the future
for the long term.
That is why I say at thebeginning of my episodes that
leadership is bigger than thenumbers.
I have high expectations formyself and I have high
expectations for those who workaround me, and I believe that
the people who are listening tome now believe the same thing.
(12:42):
Next episode, I will be talkingabout communicating to your team
how much of an impact they haveand how they can help shape the
company.
I believe that as leaders, wehave a huge impact on the
execution of strategy and noteveryone understands that, so we
get to convey how it may changeyour people.
I hope you enjoyed the FinanceLeader Podcast.
(13:03):
I am dedicated to helping yougrow your leadership skills, to
change your mindset and toclarify your goals so you
advance your career.
You can find this episodewherever you listen to podcasts.
If this episode helped youtoday, please share and leave a
quick review so that others mayfind the podcast.
Until next time, you can checkout more resources at
(13:23):
financeleaderacademycom and signup for my weekly updates so you
don't miss an episode of thepodcast.
And now go lead your team andI'll see you next time.
Thank you.
The finance and accounting fields need
professionals of high character.
We are trusted to safeguard thecompany's critical resources
cash, cash equivalents,investments, other physical
assets and many balance sheetassets so we must ensure we hire
for character as well as skills.
(00:25):
We talk about integrity, buthow do we ensure our team is
honest, reliable and trustworthy?
Do you talk about and test forcharacter and integrity during
applicant screening and hiring?
I expect our profession topractice and live by a high code
of values and character toensure proper internal controls
(00:46):
are in place to safeguardlimited resources.
Please enjoy the episode.
Welcome to the Finance LeaderPodcast, where leadership is
bigger than the numbers.
I am your host, Stephen McLain.
This is the podcast fordeveloping leaders in finance
and accounting.
Please consider following me onTwitter, facebook, instagram
(01:08):
and LinkedIn.
My usernames and the links arein this episode's show notes.
This is episode number 11, andI'll be talking about why
character matters to the financeand accounting fields, and I
will highlight the followingtopics Number 1 why a high level
of character is expected.
Number 2 Internal controls arestill a must.
(01:30):
And 3 the great leaders displaythe highest character.
Motivational speaker Les Brownsaid our ability to handle
life's challenges is a measureof our strength of character.
I want to talk about ourpersonal character.
Today we are in a professionthat demands strong personal
character, but we don't talkabout it enough.
(01:52):
We are the guardians of ourorganization's critical
resources.
We oversee cash, investments,credit and other financial
resources and asset management,so we need to make sure we have
people in place who aretrustworthy and honest to manage
and protect those assets.
It's not only required, butit's expected.
(02:13):
We have to ensure internalcontrols are in place so the
temptation and ability to takefrom the company is eliminated.
If you have not listened to thelast few episodes, here is a
short list so you can go back.
Episode 110 I talked aboutexcellence and leadership with
the finance and accountingprofessions.
Episode 109 I talked about theTreasury Manager role and how it
(02:38):
may be a great opportunity foryou.
Episode 108 I talked aboutovercoming obsessive-compulsive
tendencies, so it may help incareer success.
Please go back and listen ifyou missed them.
I believe they can definitelyhelp you in your career growth
and skills development.
Now let's continue to discusscharacter.
(02:59):
Our character comes down to ourlevel of honesty and
trustworthiness, especially whenpeople are not watching you.
Do you do the right thing whenothers are not watching or do
you cut corners or even stealfrom the company and leaders?
Are you watching out for yourteam?
Are you taking care of them?
For example, are you approvingtime cards on time?
(03:22):
Are you counseling them tobetter performance?
Are you helping your team togrow?
Are you giving opportunities tothose who have earned it?
And are you aware of yourpersonal biases so you treat
everyone fairly?
I have high expectations forall of you in this community and
I have high expectations formyself.
(03:44):
Our profession demands requiresthat we follow values and
practice a high level of ethics.
We are expected to act withhigh regard in protecting the
company's assets and forprotecting our team.
If we don't have a high levelof ethics, who will?
It comes down to the financeand accounting professionals to
(04:05):
protect company assets.
Internal controls are stillrequired.
We still need a system toensure no one can take from the
company.
Our internal controls are asgood as we follow them.
We need double checks,especially on our most risky
assets, like physical cash andother similar assets, and people
need to take their PTO sosystems can run while people are
(04:28):
out.
We can trust, but we need toverify also and verify
everything.
I have been an internal reviewofficer and ensuring we had
systems in place to record andcount for large purchases like
equipment was essential tostopping fraud, waste and abuse.
How can you test for characterwhen you are hiring?
(04:50):
You can use personality testingand screening to help you get a
little closer to understandingyour applicants, but be aware
that bias can be built into suchtests.
I ask you to look beyond justtechnical skills and take the
time to test character andpersonality.
I know you want people withgreat excel skills, but don't
bring on someone of questionablecharacter and someone lacking
(05:13):
in critical soft skills.
It's just not worth it.
Do you believe that people havecharacter naturally, or can it
be taught?
We can definitely teachexpectations and hold people
accountable.
Each person has to decide forthemselves on the matter of
character, values, integrity,honor and trustworthiness.
(05:33):
We can measure results to seeif our team adheres to these,
but what about the inside?
Each person must take actionfor themselves on how they want
to or refuse to shift theirpoint of view and moral compass.
I am asking you to self-exploreand make those shifts yourself,
because what we do is importantthan that.
(05:54):
We must live by a higher codeof ethics and values, and it is
what true leadership is based on.
Now, to help you in yourfinance leadership development
journey, I have a written guidefor you called Become a Finance
Leader.
You can download it for free atthe link in the show notes or
go to financeleaderscademycomand download it there.
(06:15):
This guide will help you withyour mindset and other finance
leadership related topics so youcan help leaders throughout the
organization.
Many of you already know that Iserved in the US Army as a
finance officer.
I had an oath and an obligationto protect US Army assets,
which were actually the assetsof the American people.
They owned it.
(06:36):
As finance professionals in themilitary, we called ourselves
guardians of those resources andwe were diligent in holding
ourselves accountable.
We always asked ourselves whois guarding the guardians?
Meaning, are we holdingourselves to a high level of
character and ethics so we don'twaste or even steal assets that
(06:58):
don't belong to us?
Now let's talk about whycharacter matters to the finance
and accounting fields.
Number one why a high level ofcharacter is expected.
Our profession expects us topractice a high level of ethics.
If we don't, the risk for fraud, waste and abuse rises
exponentially.
Our character is critical andwe need to hire and develop
(07:22):
finance and accountingprofessionals who have
demonstrated high character,ethics and integrity.
We are the guardians of thecompany's critical resources and
we have to ensure we will riseto that expectation.
I believe that training andgreat counseling can minimize
the risk and improve our values.
Standing within the team.
(07:43):
You can use character andpersonality tests in your hiring
process to find suitablecandidates, as long as you don't
solely rely on them.
With any tool, bias can bebuilt in, so you must be aware.
Additionally, candidates cananswer based on what they think
you are looking for.
It's one tool you can use likeany other tool, but should be
(08:03):
considered along with many othertools and systems to evaluate
the best candidates.
Number two internal controls arestill a must.
Even though I'm advocating andencouraging that our finance and
accounting professionals be ofhigh moral and ethical character
, that is not always the case.
So we must ensure we have arobust set of internal controls
(08:26):
be in place.
And, by the way, internalcontrols aren't just for our
profession, they are neededcompany-wide.
Internal controls ensure wehave established systems and
double checks in case ethicsfail and sometimes it will fail.
Always practice your internalcontrols, perform the checks and
double checks with our mostvulnerable resources.
(08:47):
We must practice good checks onthe system so resources are not
lost to fraud, waste and abuse.
Number three the great leadersdisplay the highest character.
I believe that many seniorleaders are really just managers
because they fall short in onekey area Making others around
them better.
(09:08):
I believe every executiveleader has this responsibility
to, from the chairman of theboard and CEO down to each
first-line manager.
They will always have theincredible task of making sure
their teams are growing,developing and getting better.
The greatest leaders do this.
They put others first.
Now, how can you expect yourteam to have character and
(09:29):
integrity if you don't conveyvalues and ethics?
If you take shortcuts, theywill, too.
Your behavior and your attitudeset the tone and standard for
everyone on their team and forall your direct reports.
Now, as finance and accountingprofessionals, great character
is expected and is the minimumfor what we need to be doing
(09:51):
regarding our workresponsibilities.
Am I being idealistic here?
Yes, probably, because somepeople will not measure up.
That is why we also set inplace and enforce internal
controls.
I want to encourage you to beteaching and talking about
character as much as you can Inevery team meeting and in every
(10:11):
one-on-one session with yourteam members.
It's that important.
Now for action.
Today, two things for you toconsider.
The first have you consideredyour own level of character and
integrity?
Do you practice great ethics orare you a questionable
character?
Next, if you are leading a team, what are you doing to
communicate expectationsregarding character and ethics?
(10:35):
Ultimately, our behavior andconduct measuring out to our
expectations of character?
If not, then we need to make acourse correction.
Also, please check outfinanceleaderacademycom when you
get a chance, where you want tohelp you with your goal
planning and career advancement.
You can find all the previousepisodes of the Finance Leader
(10:56):
podcast and the Finance LeaderGuide I mentioned earlier.
Please sign up for the weeklyemails so I can share a short
suggestion each week.
I promise that my emails areshort and can be read and easily
understood quickly.
Today I talked about whycharacter matters in the finance
and accounting fields and Ihighlighted the following points
(11:16):
1.
Why a high level of characteris expected.
2.
Internal controls are still amust.
3.
The great leaders display thehighest character.
Finance and accountingprofessionals are the last line
for defending the company'sassets.
As leaders, we have a greatresponsibility to set a high
(11:37):
example of character, ethics,values and integrity.
We also should strive to helpmake the people around us better
.
If not, then we become nothingbut a manager of tasks.
Leadership skills are thepathway to advancement and
greater responsibility.
It takes a leader to take amediocre organization to become
(11:59):
a great one.
It takes leadership to bring ateam together so they can
accomplish team goals, and ittakes leadership to solve
problems that enable theorganization to achieve its
long-term strategy.
Great leaders grow other greatleaders.
If you solely focus on thenumbers and not your people, you
(12:19):
miss out on your greatestopportunity to shape the future
for the long term.
That is why I say at thebeginning of my episodes that
leadership is bigger than thenumbers.
I have high expectations formyself and I have high
expectations for those who workaround me, and I believe that
the people who are listening tome now believe the same thing.
(12:42):
Next episode, I will be talkingabout communicating to your team
how much of an impact they haveand how they can help shape the
company.
I believe that as leaders, wehave a huge impact on the
execution of strategy and noteveryone understands that, so we
get to convey how it may changeyour people.
I hope you enjoyed the FinanceLeader Podcast.
(13:03):
I am dedicated to helping yougrow your leadership skills, to
change your mindset and toclarify your goals so you
advance your career.
You can find this episodewherever you listen to podcasts.
If this episode helped youtoday, please share and leave a
quick review so that others mayfind the podcast.
Until next time, you can checkout more resources at
(13:23):
financeleaderacademycom and signup for my weekly updates so you
don't miss an episode of thepodcast.
And now go lead your team andI'll see you next time.
Thank you.
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