CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 1. WHAT DO WE MEAN BY ‘VALUE’
1.1 Defining value
1. What do we mean by ‘ value ’
value / ' vælju ː / The noun ‘value’ is defined in three relevant ways by the Oxford Learner’s Dictionary: n ‘how much something is worth in money or other goods for which it can be exchanged n ‘how much something is worth compared with its price, and n ‘the quality of being useful or important’ (Oxford Learner’s Dictionary 2023). As a verb it is defined as: n ‘to think that somebody/something is important; and n ‘to decide that something is worth a particular amount of money’ (ibid). From these definitions it can be surmised that the term ‘value’ relates to the relative importance of an item or service that might, or might not, be measured in financial terms. What one individual may perceive as the value of an item or service may be different from another’s view. The laws of economics dictate that the scarcity of an item and its usefulness to an individual or organisation dictate their perception of value. In the second definition of the noun, above, the concept of a premium of value over price (or cost) is introduced. In defining the term itself the subjective nature of the discussion is inescapable. This report seeks to identify the role of the CVO as the latest C-suite role in an organisation and to determine whether the emergence of this role represents an extension of the CFO role or is indeed unique. Whichever view you, as an individual, may take, there is a clear element of overlap, as indeed there are in many C-suite roles. Often, the execution of the activities that any individual might associate with a particular job title is more important than the role itself.
‘VALUE IS IN THE EYE OF THE BEHOLDER.’ UK CFO
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