CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | CONCLUSION
The concept of value is an important one for organisations. It is an increasing area of focus for many stakeholders, whom this report defines as the recipients of value. Being able to report upon and achieve value-based objectives is essential for organisations now and in the future.
While value itself may be a concept that is unique in detail to each organisation, there are several principles that we can agree upon: how value is enabled, how it is converted and the identity of the recipients of the value among the range of stakeholders to whom an organisation is increasingly accountable. Sustainable organisations have a long-term role in society which balances the economic, environmental and social dimensions and is crucial to how they add value. Finance teams increasingly need to demonstrate how this is being achieved from the organisation’s strategic direction, looking towards the future to the external reporting and highlighting the progress made. The concept of a CVO seeks to embrace many of these notions as longer-term concepts in the leadership of organisations. In reality, creating value is a collective responsibility of the board and senior management. Yet the role that CFOs already play in organisations means that they are acting as CVOs. Whether that implies a need to ‘rebrand’ the CFO role is a matter of personal choice, but the inherent values integral to the CFO role are attributes that should be cherished in relation to value, and not lost. In creating value, CFOs are the key players for many organisations.
It is important that CFOs, as leaders of finance teams and in their own roles, seize the opportunity presented to them. Increasingly, finance teams are being asked to become more forward looking, to embrace operational as well as financial performance measures and to deliver decision support when needed. Organisations are increasingly being held accountable for their actions in society, well beyond generating profits. As the balance between these aspects continues to alter, so the role of CFO will continue to grow. Failure to adapt will marginalise the function and the individual.
The CVO role is an important evolution of the CFO role.
‘Regardless of our title as “CXO”, it ultimately originates from our mindset, where we position ourselves, what we think we can do, and what we are willing to do. I think mindset is very important, and most importantly, from a mindset perspective, we should not limit ourselves. Regardless of whether I am a “CXO”, I am responsible for the company’s business development and future, which is the most important thing. With this kind of mindset, regardless of whether I am a “CXO”, I can create value in my position’. CFO from mainland China
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