The CFO of the Future

CFOThe Chief Future Officer?Ash Noah CPA, FCMA, CGMA

VP External Relations, Management Accounting, American Institute of CPAs

© 2014 Proformative

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The future business paradigm?


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Of Global CFOs do not believe that the ‘CFO’ title adequately covers the diversity in the

role

Chief Future Officer?

Finance Forte Survey 2011 Ernst & Young


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Report the ability to find the right skills is progressively more difficult the higher the

roles are within the organization


Plugging the skills gap 2012EIU

68%


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Turning the Tide; Accenture

40%

Reported high-end analytical skills as being

the future success of their organization

But only

15% Of those have these skills available


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6 Talent Pipeline Draining Growth 2012CGMA

Developer of talent pipeline

Of c-suite respondents agreed that the ability to attract, retain and deploy the right talent is ‘the’ main competitive advantage

over a

third


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Measures and focuses on non-financial value

Rebooting Business - 2012 CGMA


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Recognizes value in non-financial measures*

* Extent of value provided - % of respondents selecting 8-10 on a scale of 10.

Rebooting Business - 2012 CGMA


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Big Data enabled

From insight to impact - 2013 CGMA


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Big Data enabled finance

• A minority (23%) report no role in anlaytics

• Another minority (21%) claim a leading role

• A 55% majority say finance partners with others (55% = 37% + 9% + 9%)

• Interviews agree on a collaborative role



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Overcoming impediments to harnessing Big Data



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Big Data – the role of finance



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Five traits of the data enabled CFO

Able to identify which data points

are useful in understanding what drives the business.

Have a clear sense of what customers care about most,

and ideas about how to track this.

Embrace new forms of data, and

incorporating this into business

decision-making.

Comfortable with uncertainty,

including the reality that big data may

not provide definitive answers.

Explore new ways to interpret data to

better inform management.



14 Source: IBM CEO Survey - Leading Through Connections

Turns data to insights to action


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Shared Service Centers

Technology SCALE BENEFITS

Focus on Process and Technology

Finance function has delivered scale benefits


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INCREASED INSIGHTS

BUSINESS SUPPORT

REAL BUSINESS BENEFITS

Focus on People and Products

The future is about delivering value


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The catalyst for Innovation

Garners C-suite support for innovationPromotes a culture of innovation permeating the whole company, not just

R&DDevices employee incentives to both encourage innovation and innovative

cultureCFOs drive for predictability and reliability - an obstacle to innovationFlexibility and tolerance of failure are necessaryFinancial processes and metrics need to be aligned with innovation lifecycleLearns to ‘live with ambiguity’

Managing Innovation- 2013 CGMA


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The innovation imperative

Average tenure of a company in the S&P500 has fallen to 18 years from 61 years in 1950s

Managing Innovation- 2013 CGMA


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Leading innovation and managing risk


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Leading through Connections: IBM

75%

Collaborative67%Communicative

% of CEOs that identified these skills as CRITICAL for future success

61%

Creativity


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Turning the Tide; Accenture

52%

Report international skills as being critical for the future success of their

organization

But only

18%Of those have these skills available


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Of the global respondents identified ‘strategic vision’ as the hardest skill to find

for executive roles within their organizations


Plugging the skills gap 2012EIU

55%


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CFO of the Future Will Create Strategic Impact


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Striking the Right Balance


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CFO of the Future Builds Business Capabilities


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Importance of Various Skills for Finance – As Rated By Non-finance Personnel

The inside track ; Partnering for value- 2012 CGMA


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Skills Most in Need of Improvement by Finance Personnel



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Collaboration and Decision Support



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IBMs Chief Future Officer

SOURCE: IBM Institute for Business Value, The New Value Integrator: Insights from the

Global Chief Financial Officer Study


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Collaboration and decision support

SOURCE: IBM – The New CFO: Chief Future Officer


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Applying principles to management process & practice

SOURCE: CIMA- Building World Class Businesses


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FURTHER READING

http://www.cgma.org/Pages/default.aspx?token=d34b4679-bbb6-4f45-8ca0-ceb79ee5f318

http://www.cgma.org/Resources/Reports/DownloadableDocuments/CGMA-managing_innovation.pdf

http://www.cgma.org/Resources/Reports/DownloadableDocuments/inside-track.pdf

http://www.cgma.org/Resources/Reports/DownloadableDocuments/CGMA_launch_report.pdf

http://www.cgma.org/Resources/Reports/DownloadableDocuments/From_insight_to_impact-unlocking_the_opportunities_in_big_data.pdf

http://www.cgma.org/Resources/Reports/DownloadableDocuments/CGMA_Talent_pipeline_report.pdf

http://www.cgma.org/Resources/Reports/Pages/building-world-class-businesses.aspx

http://www.cgma.org/Pages/default.aspx?token=d34b4679-bbb6-4f45-8ca0-ceb79ee5f318

















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Q&A

CFOThe Chief Future Officer…

[email protected]

Thank You For Attending

The CFO of the Future

Business

future success

future business paradigm

business value

ibms chief future officer29

culture of innovation

right skills

innovation flexibility

innovation lifecycle24