CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 2. THE CHANGING CFO ROLE
Figure 2.2 provides an alternative view of the CFO role as the guardian against the risks the organisation faces and the steward of its assets. In both cases, the CFO is not necessarily the owner but is strategically involved. The CFO is the reporter of performance in its broadest sense of both financial and operational performance and, in this role, provides information to others, both internally and externally, enabling them to form considered and evidence- based opinions on the relative strengths and opportunities for the organisation. In presenting this information, the CFO
perception that they are two different roles (see the commentary in the section ‘Responses to three questions’) rather than that the CVO role is either a natural evolution or a reality of the CFO role as it currently exists. The danger is that the traditional attitudes expressed in ‘Responses to three questions’ reflect the general public’s view of the CFO role, which is significantly different from the perception of the roundtable participants. A CFO from the Middle East commented, ‘from my perspective, the role of finance is definitely transforming towards more business support, business value add[ing], rather than just finance retrospective reporting’. 2.2 The evolving trend A CFO from Canada commented: ‘I think as the CFO we must recognise that we are now becoming a contortionist. The world is changing, and the expectations of our roles are likewise evolving’. ACCA has conducted several pieces of research on the development of the CFO role. In 2020 it published jointly a paper with the Institute of Management Accountants (IMA), The CFO of the Future (ACCA / IMA 2020). That report appraised the role of the CFO and concluded that, among other things, the role had evolved in breadth to include several key activities (Figure 2.1). At the core of this model of the CFO role is financial acumen, the level of trust and integrity referred to in section 2.1. That core value remains indisputable. It is what additional responsibilities the role carries and, indeed, how that core role is discharged, that is the focus of the discussion on the CVO role. One aspect of the CFO role which was highlighted in the ACCA / IMA (2020) report was the range of stakeholders with whom the CFO engages. This is highlighted in Figure 2.1. Both internally and externally to the organisation, the CFO role is a voice for the organisation, building upon the inherent trust in, and ethical perspective of, the role.
is the strategic adviser, often monitoring the organisation’s performance in line with its strategic objectives. At the core of this is the role of ‘change agent’: the person charged with supporting, or driving, change within the organisation. For some organisations this may be transformational change, for others it might be strategic change. It means being a key focal point and super-connector for the organisation. How much of this role embraces the leadership role over what we might consider as creating and maintaining value?
FIGURE 2.1: The role of the CFO – as defined in ACCA / IMA 2020
FIGURE 2.2: An alternative view of the CFO role
Guardian of risks
Steward of assets
Strategy & business acumen
Risk & control
Transactions
Financial acumen
Technology & data
Change agent
Consulting
Investor management
Leadership
Supply chain
Reporter of performance
Strategic advisor
17
Made with FlippingBook - professional solution for displaying marketing and sales documents online