CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | EXECUTIVE SUMMARY
‘We look at value from a finance point of view of the numbers. But we realise over time there are many stakeholders who do not necessarily look at the monetary view or the value of the company in that way.’ CFO based in East Africa
Executive summary
Organisations are increasing being asked to consider, and to report upon, more value-centric aspects of their operations. There is also an increasing requirement being placed upon many organisations to report against non-financial aspects of their operations. With a focus for many organisations on purpose and value, there is a trend to asserting the need for a new C-level executive, the chief value officer, or CVO. Is this a role that the CFO is already fulfilling or is this a new role? Drawing on the opinions of nearly 100 CFOs and other senior business leaders from across the world, this report suggests conclusions on this debate. Before considering what the role of the CVO might embrace, it is important to consider what we may mean by the term ‘value’. The following model (Figure ES1) seeks to explain the fundamentals of the concept.
Three key messages from this report n The concept of value is fundamental to the management of performance in organisations and its adoption is a key element in their path to a sustainable future. n Chief financial officers are increasingly adopting a value centric approach in their work and this represents an evolution towards a chief value officer role away from a traditionally financially focused remit. n The development path for those aspiring to be chief financial officers requires an increasingly broad range of experience which embraces both formal and informal learning activities which professional bodies and practices need to engage with.
FIGURE ES1: A model of value
Investors and other financial stakeholders
Customers
Employees
Community
Regulators
Performance management and measurement
Operations and processes
Data
Technology
Social and relationship
Financial
Manufactured
Intellectual
Human
Natural
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