CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 3. DEVELOPING THE RELEVANT SKILL SETS
3.2 For the current CFOs For those who are already in CFO roles, the development pathways to embracing the concept of value are less complex. For many, the route is through a series of evolutions which can be enhanced by using continuous learning opportunities to ensure that they maintain their skill sets in areas such as sustainability, technology and data, among others. Networking with other CFOs who are progressing along the same path can also be beneficial. A CFO from mainland China commented that not just the finance leader, but also the entire finance team should be moving in a direction, asking ‘What is this direction?’ This participant argued that it is towards being able to manage the business as a CEO at any time. 3.3 The next generation For those who now aspire to be CFOs the challenges are greater than in the past. The gap in the pathway between a more junior role and the CFO role may now be harder to bridge than it was. It is important to reiterate a comment made by many of the roundtable participants – bridging that gap is worthwhile. The CFO role is one that offers tremendous satisfaction and reward. The roundtable participants made several observations that reinforce the value of many of the traditional steps in the pathway, as summarised in Table 3.1. One consideration on which several roundtable participants commented was that even with the T-shape progression of the CFO (Figure 2.4) there is a need for strong technical accountants to manage the data flows. This is also an area of developing expertise. One that should not be ignored. ‘I always feel exploratory learning is critical, especially in the finance function. I used to work previously at an organisation that supported those who were incarcerated. I have been inside correctional facilities, I got to go home at the end of the night. I wasn’t a resident, …but it helped me understand what we [were] doing as a business’. CFO based in the US
TABLE 3.1: Reinforcing the development opportunities
MENTORING There is significant value in finding a mentor who can assist in developing one’s personal career path. Each career path is unique and many senior finance professionals are very willing to mentor aspiring CFOs. Being part of a network of peers helps one to share experiences and gain fresh insights. COURSES Courses such as MBAs have value in giving understanding of some of the broader operational aspects of organisations. Some of these may be more marketing focused, but there are sufficient synergies between an accountancy qualification and an MBA to make them a sound basis for a CFO role. A CFO commented, ‘I did my MBA because I thought my accounting qualification was too narrowly focused’. LEARNING Undertake relevant continuous learning programmes, not only those focusing upon technical skills, such as those related to sustainability, data and technology, but also embracing the ‘softer’ skills, such as influencing and conflict management as well as persuasion and stakeholder management OPERATIONS Seek opportunities for operational experience to gain a deep understanding of the sector, which can be applied in the CFO role. INTERNATIONAL Where possible, gain international experience because the connectivity of the global economy and the resulting risks heavily influence the work of the CFO. CRISIS Experience of crisis management is essential. As a CFO from Argentina commented, ‘you have to learn how to
surf in every kind of crisis’. BUSINESS PARTNERING
Undertake business partnering roles, focusing especially upon the analysis and interpretation phases of stakeholder engagement. A CFO from the US commented that, ‘I preach all the time about this necessary skill, that we have [to be] storytellers. It is not one that you teach in a class, but it is how do you get people with more of those skills because we deal with all the different facets of the organisation, and it all comes back to how do you define value?’ TECHNICAL Ensure that your technical accountancy skills remain relevant and avoid the ‘computer says yes’ syndrome. Several CFOs commented that when interviewing candidates for senior roles they were astounded by those who failed to demonstrate an understanding of the core accounting fundamentals that a qualification inculcates.
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