FINANCIAL LEADERSHIP:
THE CFO OF TOMORROW
LEADERSHIP
THE FINANCE
LEADER
ADDING VALUE
OPTIMISATION
Strategic direction and understanding to the
organisation to drive shareholder value
Business Profile & Strategy
1
Finance Influence
Finance IT
Business Model
Analysis
Skills
Regulatory
Custodial
Protects and controls assets,
driving asset returns, managing risks
Finance Leadership
Business Environment
Finance Strategy
Operation
s
Business Size and Lifecycle
3
Strateg
y
Key:
2
Business Drivers
Finance Enhancers
Dynamic Value-Added
Strateg
y
Operation
s
Regulatory
Analysis
Skills
Custodial
The 5 domains of finance
can be used to identify
where finance adds most
value. From this a target
operating model for finance
can be developed, at the
heart of which is the skills,
competencies, knowledge
profile of professional
accountants in the
organisation
NOW
Strategy Regulatory Custodial Operations Analysis
-
Perceived Value (Weighted)
+
KEY ROLES
TOP 5 FINANCE ROLES THAT ADD
MOST VALUE TO ORGANISATIONS
Finance Director
/ CFO
Financial
Controller
Management
Accountant
Financial
Accountant
Head of Risk
Management
65%
44%
34%
22%
18%
What have been the major outcomes for your and/or your clients' organisations as a result of the changes to the global
economy? (Please tick all that apply to your organisation/your clients' organisations.)
How the top 5 roles add value strategically
100%
CFO
91%
FC
81%
MA
FA
RM
61%
47%
38%
86%
78%
77%
59%
54%
48%
66%
64%
67%
57%
51%
47%
54%
53%
47%
66%
60%
55%
45%
44%
76%
72%
69%
57%
74%
68%
53%
52%
48%
38%
71%
58%
57%
38%
65%
64%
53%
38%
28%
0%
Provides Links finance
Aligns
Shapes the
effective
activities to resources to
finance
leadership
drive
service
model
shareholder outcomes
value
Acts as a
change
agent,
shaping
business
structures
Aids
strategic
decision
making
Drives
Builds
Drives the
forward
financial
people
commercial management agenda
strategy
capacity
across the
organisation
Base: those rating the Finance Director / CFO as one of the top 3 most important roles
How the top 5 roles add value operationally
100%
CFO
FC
MA
FA
78%
77%
68%
53%
50%
84%
77%
74%
61%
57%
75%
73%
70%
51%
47%
RM
75%
71%
69%
59%
51%
48%
47%
55%
49%
39%
66%
65%
57%
51%
49%
0%
ChampioningEnsuring core Ensuring
financial
financial
effective
operational processes arebalance sheet
excellence undertaken management
efficiently
Effectively
Driving
Achieving
managing improvements value for
cash and in Finance IT money
treasury
systems
operations
Base: those rating the Finance Director / CFO as one of the top 3 most important roles
How the top 5 roles add value - analytics
100%
CFO
FC
MA
FA
86%
84%
73%
77%
76%
77%
78%
74%
68%
58%
73%
72%
68%
63%
40%
82%
82%
80%
78%
57%
49%
46%
43%
38%
46%
RM
0%
Provides Ensures the Helps reduce Helps grow Effectively
decision
effective
costs
organisationcommunicates
support management of
revenue
financial
analysis
finance
information
projects
Base: those rating the Finance Director / CFO as one of the top 3 most important roles
How the top 5 roles add value - custodial
100%
92%
CFO
FC
79%
76%
75%
68%
MA
41%
FA
74%
66%
63%
56%
51%
48%
64%
55%
46%
69%
63%
62%
31%
71%
54%
48%
79%
75%
74%
56%
72%
66%
60%
59%
44%
29%
RM
0%
Protects the Drives better Ensures the Ensures
Ensure the Strengthems Ensures
organisation'sreturns on the organisation organisational organisation
internal
performance
financial organisation's manages its tax efficient
has an
financial and targets are
assets
assets risk effectively
effective
busines
achieved
capital
controls
structure
Base: those rating the Finance Director / CFO as one of the top 3 most important roles
How the top 5 roles add value regulatory
100%
CFO
FC
78%
69%
62%
MA
FA
37%
26%
74%
59%
49%
43%
78%
75%
73%
74%
73%
71%
65%
33%
24%
83%
82%
80%
50%
39%
49%
41%
40%
26%
46%
31%
78%
78%
74%
40%
33%
RM
0%
Ensures the Improves
Ensures
Ensures
Champions Ensures tax Ensures
organisation investor
governance statutory
corporate regulations
effective
maintains confidence requirements accounting
social
are met management
effective and relations are met
obligations responsibility
of the
banking
are met
issues
external audit
relationships
relationship
Base: those rating the Finance Director / CFO as one of the top 3 most important roles
THE CFO:
ADDED-VALUE
VALUE OF A FINANCE DIRECTOR / CFO
Strategic
5%
75%
Analytical
7%
Operational
7%
Custodial
6%
72%
Regulatory
7%
73%
100%
72%
70%
0%
Low value
100%
High value
Base: those rating the Finance Director / CFO as one of the top 3 most important roles
VALUE OF A FINANCE DIRECTOR / CFO
– STRATEGIC
100%
91%
86%
78%
77%
66%
74%
68%
66%
65%
0%
Provides Links finance
Aligns
Shapes the
effective
activities to resources to
finance
leadership
drive
service
model
shareholder outcomes
value
Acts as a
change
agent,
shaping
business
structures
Aids
strategic
decision
making
Drives
Builds
Drives the
forward
financial
people
commercial management agenda
strategy
capacity
across the
organisation
Base: those rating the Finance Director / CFO as one of the top 3 most important roles
VALUE OF A FINANCE DIRECTOR / CFO
– ANALYTICAL
Effectively communicates financial information
82%
Helps grow organisation revenue
57%
Helps reduce costs
68%
Ensures the effective management of finance projects
77%
Provides decision support analysis
77%
0%
Base: those rating the Finance Director / CFO as one of the top 3 most important roles
100%
VALUE OF A FINANCE DIRECTOR / CFO
– OPERATIONAL
Achieves value for money
66%
Drives improvements in Finance IT systems
55%
Effectively manages cash and treasury operations
71%
Ensures effective balance sheet management
73%
Ensures core financial processes are undertaken efficiently
74%
Champions financial operational excellence
78%
0%
Base: those rating the Finance Director / CFO as one of the top 3 most important roles
100%
VALUE OF A FINANCE DIRECTOR / CFO
– CUSTODIAL
Ensures performance targets are achieved
72%
Strengthems internal financial and busines controls
75%
Ensure the organisation has an effective capital structure
71%
Ensures organisational tax efficient
69%
Ensures the organisation manages its risk effectively
74%
Drives better returns on the organisation's assets
66%
Protects the organisation's financial assets
76%
0%
Base: those rating the Finance Director / CFO as one of the top 3 most important roles
100%
VALUE OF A FINANCE DIRECTOR / CFO
– REGULATORY
Ensures effective management of the external audit relationship
78%
Ensures tax regulations are met
73%
Champions corporate social responsibility issues
49%
Ensures statutory accounting obligations are met
80%
78%
Ensures governance requirements are met
74%
Improves investor confidence and relations
Ensures the organisation maintains effective banking
relationships
78%
0%
Base: those rating the Finance Director / CFO as one of the top 3 most important roles
100%
THE CFO:
SKILLS &
BEHAVIOURS
TOP 5 MOST IMPORTANT BUSINESS
SKILLS OF A FINANCE DIRECTOR / CFO
Leadership
79%
Communication
61%
Strategic
business
Analysis &
modeling
Change
management
51%
40%
37%
What have been the major outcomes for your and/or your clients' organisations as a result of the changes to the global
economy? (Please tick all that apply to your organisation/your clients' organisations.)
MOST IMPORTANT BUSINESS SKILLS
OF A FINANCE DIRECTOR / CFO
Leadership
Communication
Strategic business
Analysis & modeling
Change management
Ethics
Business culture
Problem solving
Influencing
Negotiation
Team building
Conflict management
Client relationship
Presentation
Networking
Coaching
Time management
Project management
Managing upwards
IT/ data / computer
Consulting
Report writing
Facilitation
Line management
79%
61%
51%
40%
37%
Top 5
31%
25%
24%
24%
17%
15%
13%
12%
11%
10%
9%
8%
8%
5%
5%
4%
4%
3%
3%
0%
Base: those rating the Finance Director / CFO as one of the top 3 most important roles
100%
TOP 3 MOST IMPORTANT BEHAVIOURS
OF A FINANCE DIRECTOR / CFO
Integrity
Objective /
unbiased
Visionary
51%
44%
42%
What have been the major outcomes for your and/or your clients' organisations as a result of the changes to the global
economy? (Please tick all that apply to your organisation/your clients' organisations.)
MOST IMPORTANT BEHAVIOURS OF A
FINANCE DIRECTOR / CFO
Integrity
51%
Objective / unbiased
44%
Visionary
42%
Top 3
36%
Ethically minded
Empowering
26%
Practical
20%
Logical
19%
Approachable
17%
15%
Flexible
Authoritative
13%
Creative
10%
Controlled
6%
Intuitive
5%
4%
Meritocratic
Sensitive
3%
0%
100%
Base: those rating the Finance Director / CFO as one of the top 3 most important roles
What have been the major outcomes for your and/or your clients' organisations as a result of the changes to the global
economy? (Please tick all that apply to your organisation/your clients' organisations.)
THE CFO:
VALUE ENABLERS
71%
Effective finance leaders
Finance structures aligned to the business
65%
Support from senior management / the board
62%
52%
Clear and visible finance strategy
Superior IT systems
35%
Visibility of value drivers within the business
33%
31%
Standardised finance processes
27%
Effective financial support from the business
Leading analysis tools
24%
Documented, accessible, visible finance policies
22%
Balanced scorecards to measure finance performance
21%
Visibility of the total cost of finance - system, process, people
20%
Centres of excellence for specialist finance areas
13%
Global owners of end-to-end finance processes
10%
External benchmarking of its processes
10%
Outsourcing of routine finance processes
3%
0%
Base : all respondents answering
100%
THE CFO:
BARRIERS TO
VALUE
BARRIERS TO ADDING VALUE
35%
No support for finance by senior management or the board
7%
No belief in the value of external advice or consultancy
15%
Ineffective line management
Being viewed as "back office" and administrative by the rest of
the business
Insufficient financial support for the finance function
57%
17%
25%
Too much regulation and compliance requirements
Inadequate performance management and career development
programmes
No finance strategy
25%
31%
Ineffective Finance IT systems
38%
Inadequate analysis tools
24%
No control / visibility of the costs fo the finance function
11%
No clear ownership of finance processes
25%
Ineffective finance leaders
41%
Non-standard finance processes
24%
Multiple stakeholder demands
35%
Complexity of business operations
32%
Finance structures not aligned to business
45%
0%
Base : all respondents answering
100%
THE CFO:
TRAINING AND
DEVELOPMENT
Technical
foundation
Broad experience
Networking
Timing
IN SUMMARY
Don’t leave leadership development
until you are at CFO level
Experience is our best
master and our best
servant.
Bringing your brain and
calculator to work is not
enough – you need to
bring your heart and ears
as well.
MORE
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