How do today’s CFOs prepare to take on the increasingly broad range of demands placed upon them? Think about it … formative professional training remains focussed largely on auditing company performance, checking results are reported in accordance with the latest technical guidance and ensuring that the business meets regulatory requirements. And whilst keeping abreast of the numbers is still regarded as a key responsibility of the Finance team, in an increasingly digitised economy Boards are demanding that the CFO also provides greater analysis of what the numbers imply, supporting the business to meet its strategic goals. The potential to automate and outsource control and governance procedures could arguably lead to these skills becoming a commodity, with the CFO increasingly expected to devote more time to ‘being on the pitch’, supporting the Chief Executive in leading the drive for growth, change and transformation. Blockchain technology and the rise of Artificial Intelligence could revolutionise not only the automation of transactional processes but also the ability to transform corporate reporting, enabling transactions to be recorded and reported in real time. But these changes will have a profound impact on not only the traditional career trajectory of finance professionals, but on the skills and expertise that the finance function will need to deploy, including talent with significant data and digital expertise. It’s no longer enough for Finance leaders to oversee a team that assimilates and reports information, but instead, they must develop the capability to identify, interpret and communicate the most valuable data, in the right language, at the right time. The proliferation of data and analysis means little if the capacity to derive relevance from it is absent. With an accelerating shift in focus of today’s CFO away from control and governance towards the increasing use of analytics and business partnering, the CFO has an enhanced role in shaping the company’s future rather than reporting on the past. In our latest CFO paper ‘Time to shift focus’, we explore the three main areas of influence where a CFO’s impact on a business is felt most.”

1. CHIEF FINANCIAL OFFICERS:
TIME TO SHIFT FOCUS
www.normanbroadbent.com
Neil Holmes & David Bailey
CFO Practice

2. Much has been written about the ever changing role of the Chief Financial Officer. From score-keeper
and steward, to business enabler and catalyst for change, the CFO is often challenged to ensure that
the finance operating model is aligned with the business and able to flex to adapt to increasing digital
change and global competition. Whilst change is a constant, the need to stay on top of the numbers
and provide accurate guidance to the business and shareholders, at the same time as adapting to
new strategic initiatives, can make the CFO role one of the most precarious. It is no coincidence that
almost 50% of FTSE 250 CFOs move on within two years of a new Chief Executive being appointed.
The role of finance is changing and the CFO is at the vanguard of this change, increasingly expected to sit
alongside the Chief Executive in driving the business forward. CFOs have traditionally been regarded by some
as great at looking in the rear view mirror but, in an increasingly digitised economy, Boards are demanding that
the CFO also provides greater analysis and commentary of what the numbers imply, supporting the business
to meet its strategic goals. At the same time, finance is increasingly embracing advances in data capture and
analytics, enabling increased automation of previously mundane procedures.
Today’s CFOs must balance the challenges of avoiding the potholes that lie ahead, including: political, economic,
technological and global change, shifts in consumer behaviour and the rise of activist investors; with ensuring
that data generated is more than ‘just noise’ and succeeds in simultaneously informing the business about
historic achievements and providing look-forward predictions and interpretation.
So, how are CFOs adapting to these circumstances and does the conventional route through which many rise to
the top, provide the optimum blend of training and experience to succeed in the number one role in finance?
EXECUTIVE SUMMARY
“The evolution of the role of the CFO has been achieved despite the best efforts of the accountancy
profession to stop it”
FTSE 100 CFO
“77% of CEOs believe that technological advances are the top global trend which will transform
wider stakeholder expectations in the next five years”
PwC 19th Annual CEO Survey

3. Formative professional training remains focussed largely on auditing company performance, checking results
are reported in accordance with the latest technical guidance, and ensuring that the business meets regulatory
requirements.
Whilst keeping abreast of the numbers is of course still valued as a key responsibility of the finance
team, in an increasingly digitised economy Chief Executives are demanding that the CFO also provides
greater analysis of what the numbers imply, supporting the business to meet its strategic goals.
The potential to automate and outsource control and governance procedures could arguably lead to these
skills becoming a commodity, with the CFO increasingly expected to devote more time to ‘being on the pitch’,
supporting the Chief Executive in leading the drive for growth, change and transformation. Blockchain technology
and the rise of Artificial Intelligence could revolutionise not only the automation of transactional processes but
also the ability to transform corporate reporting, enabling transactions to be recorded and reported in real time.
These changes will have a profound impact on not only the traditional career trajectory of finance professionals,
but on the skills and expertise that the finance function will need to deploy, including talent with significant data
and digital expertise. It’s no longer enough for finance leaders to oversee a team that assimilates and reports
information, but instead, they must develop the capability to identify, analyse, interpret and communicate the
most valuable data, in the right language, at the right time. The proliferation of data and analysis means little if
the capacity to derive relevance from it is absent.
THE SHIFTING FOCUS OF THE CFO
“The CFO role is being disrupted by digital innovation, the proliferation of data, a volatile risk
environment, increasing regulation and a growing circle of demanding stakeholders.”
E&Y The DNA of the CFO, 2016
“Finance functions are often struggling to provide CEOs with the support that they need”
PwC Breaking Away: How leading finance functions are redefining excellence

4. The finance profession benefits from the proliferance of support, advice and technical expertise and there are
of course a number of models on the nature of the finance function and the changes that they are undergoing.
Building on a number of conversations that Norman Broadbent has held with CFOs and business leaders, we
like to think that the CFOs expertise is more three dimensional than two dimensional boxes, segments or faces.
CFOs need to demonstrate effectiveness in a range of areas, deploying expertise whilst also ensuring strong
bench-strength in areas where they are less at home. As a CFO, you will need to ensure that your talent pipeline
and succession gains the necessary experience and expertise to flourish rather than becoming siloed, ensuring
that your technical experts are close to your business whilst your business finance partners don’t “go native”.
Communication skills become increasingly paramount throughout the CFO function to ensure success as a data
analyst interpreter and business partner through to effectively outlining the organisations strategy with a broad
range of stakeholders.
We consider that the CFOs expertise ranges across six key areas of expertise, namely Control, Governance,
Operational Integrity, Strategy, Communication and Motivation; reflecting the CFOs impact and influence in
Technical, Commercial and Leadership arenas – we call these the “Axis of Influence”.
HOW DO YOU MEASURE UP?
“It’s my job to get us to a better operating model, to add precision and laser focus…”
FTSE 100 CFO
Catalyst
Steward Operator
Strategist
Four Faces of the CFO
THE 4-BOX
FINANCE MODEL
BUSINESS SKILLS
VALUE ADDING ACTIVITIES
ACCOUNTING SKILLS
MANDATORY ACTIVITIES
PROACTIVEREACTIVE
Execution
Efficiency
C
ontrol
Perform
ance
Finance
Function
THE CFOS
CONTRIBUTION
communication
score keeper
business partner
diligent caretaker
leading key
initiatives in finance
that support
strategic goals
funding, enabling
and executing
strategy set
by ceo
providing insight
and analysis to
support ceo and
other senior
managers
developing and
defining the
overall strategy
for your
organisation
representing the
organisation’s
progress on
strategic goals
to external
stakeholders
developing and
defining the
overall strategy
for your
organisation
1
25
3
6
4
ENABLEMENT
DEVELOPM
E
N
T E
XECUTION
TRUSTING THE
N
U
M
B
ERS
PROVIDINGINSIGHT
BUSINESSSTRATEGY
EXTE
R
N
AL
M
ARKETPLACE
CO
M
M
U
N
ICATION TO THE
DEVELOPMENTOF
FUN
D
IN
G
O
RG
ANISATIONAL GETTING YOUR
H
O
U
SE
I
N
O
RD
ER
STRATEGY

5. In our view there are three main areas of influence where a CFO’s impact on a business is felt most. These are in
their Technical Acumen, their Commercial Acumen, and in their Leadership Acumen.
As a truly effective CFO, you will need to be able to draw upon and deploy these skills at different times
depending upon circumstances. Your focus will naturally flex and change as you grapple with the range of issues
that fall at the lap of today’s CFO.
Your ability to effect change and influence as a CFO will also be restricted if your skills are lacking along any one
of these axes and even the most naturally gifted technical accountants will struggle to influence if they find it
difficult to communicate and engage with others.
Equally, the capabilities and expertise required will change depending on the nature of the business, its size,
sector, scope and complexity; as well as the nature of the relationship with the CEO and the Board who may be
more comfortable restricting finance to its more traditional remit.
CFO AXIS OF INFLUENCE
COMMUNICATION
LEADERSHIP ACUMEN
GOVERNANCE
TECHNICAL ACUMEN
STRATEGY
COMMERICIAL ACUMEN
MOTIVATION
CONTROL
OPERATIONAL
INTEGRITY

6. Technical
Acumen
Commercial
Acumen
What is generally agreed is that there is an increasing shift in focus of today’s CFO away from Control and
Governance towards the increasing use of analytics and business partnering, requiring the CFO to play an
enhanced role in shaping the company’s future rather than reporting on the past.
CFO AXIS OF INFLUENCE
Drawing on experience and
expertise gained leading control
and governance functions,
ensuring that the business
is provided with an accurate
record of business performance
whilst ensuring it meets latest
technical, legal and regulatory
requirements. Demonstrate an
ability to delve into the detail
when required and appreciate
the interplay between the
“wiring” of the business.
Increasingly this involves the
effective management of
outsourced providers and the
utilisation of technology to
automate processes.
Broad technical experience
is often taken as a given
prerequisite and enables the
CFO the right to play at the top
table.
The CFO’s commercial acumen
underpins their influence on
the operations and strategic
direction of the business. Is the
finance function regarded as a
true business partner, are they
measuring the right KPI’s and is
finance helping the operations
grow and develop as well as
measuring performance?
How involved is the CFO in the
development of the corporate
strategy? What is the corporate
objective, how will technology
influence the business and does
the balance sheet support the
future growth and development
of the company?
The CFO’s role is one of
leadership and effective
communication. CFOs are
increasingly leading functional
areas outside of their expertise
and need to swiftly assimilate
the key issues and understand
the priorities.
Is the CFO a natural leader,
comfortable leading from the
front, at home outlining the
strategy to shareholders and
stakeholders whilst developing
the bench-strength of the team
supporting them? Are they fully
engaged with and aligned with
the direction that the CEO and
the Board are steering or just
going along for the ride?
“In order to drive change it is necessary to be unreasonable, to demand more, to disrupt the
status quo. You have to know when to push”
FTSE 100 CFO
“Businesses are looking to create advantage by innovating and taking risks, and need the finance
team’s support on insight generation, smarter operating capability and robust stewardship”
PwC / ACCA September 2016
LEADERSHIP
Acumen

7. So is there still a disconnect between the evolution of the CFO role and how CFOs are appointed?
Understandably, Chairmen and Chief Executives will typically require a qualified accountant as the default
starting criteria, together with a strong academic background and a proven track record. Whilst experience
provides more than half the value of what a CFO will bring, are Boards biased to looking backwards at what a
CFO has done in the past, rather than considering more deeply how today’s finance leaders can contribute to
defining future strategy and delivering growth and profitability?
Clearly there will be circumstances where sector expertise will be a necessary requirement, yet are Boards too
risk adverse in their appointment strategies and potentially influenced by external scrutiny, preferring proven
individuals with a strong control and governance background rather than truly strategic commercial business
partners who can drive performance?
When a CEO asks for a “commercial sparring partner”, how often do they really mean a “punch-bag” rather
than a truly effective and commercially enriching Board confidante?
How often do Boards ask CFO candidates to demonstrate an understanding of business challenges and priorities,
and to offer solutions to develop sustainable future strategies?
THE CFO PARADOX
“Is the future of finance new technology or new people?”
E&Y The DNA of the CFO, 2016
“A Board who looks for a CFO who is a “safe pair of hands” is starting entirely in the wrong place”
FTSE 250 CFO

8. The digital revolution is a thing of the present and enlightened Boards are increasingly moving away from
prioritising reactive expertise demonstrated through strong technical ability, and towards the appointment of a
commercially savvy CFO, able to apply new perspectives and experiences regardless of sector provenance. Job
specifications based on history are unlikely to attract the talent to shape the future. The career path to CFO must
embrace technological driven change, demonstrate an ability to turn data into meaningful insight and analysis,
and the aptitude to influence and communicate effectively.
Strategic thinking and execution skills, together with hard-won front-line business experience has become the
baseline criteria for successful CFOs. Creating a robust, reliable and trusted finance function requires continual
investment in skills, processes and technology able to keep pace with business change. Developing commercial
acumen through taking on roles outside of finance whilst introducing new data analysis skills to the finance
armoury will enable the CFO to build a strong platform and partnership with the CEO as a trusted advisor,
challenging assumptions and putting into action initiatives that enable businesses to succeed in increasingly
competitive environments.
THE FUTURE?
“CFOs are only as good as the people supporting them, so they can in turn, support the
CEO’s vision”
KPMG, The Rise of the Renaissance CFO, June 2016

9. CONTRIBUTORS
Neil Holmes | Managing Director
Neil brings over 20 years’ experience in executive search and leads Norman
Broadbent’s CFO practice in addition to his role within the Board Practice. Neil has
considerable experience covering listed and private companies across all sectors
ranging from small and medium sized businesses to FTSE 100 and FTSE 250 corporates
and has successfully placed over 200 Chairman, Non-Executive Directors, CEO’s and
CFOs across industrial, support services, technology, consumer and financial services
businesses. An economics graduate, Neil initially worked in the City as a Eurobond
Trader with CIBC and was a Consultant within PwC’s Global Advisory Practice advising
clients on a variety of strategic resourcing issues.
neil.holmes@normanbroadbent.com | 020 7484 0116
David Bailey | Director
David specialises in Board level and senior finance leadership assignments, including
CFO talent and succession management projects, Divisional FD roles, Audit, Risk, IR
and other related control functions. He operates across the full spectrum of industry
sectors within publicly and privately owned companies, or private equity backed
businesses. Whilst David’s core focus is on the UK market, he has also delivered
assignments in Europe and Asia. He gained direct international experience working
for two and a half years in Istanbul, prior to returning to the UK in 2007 with Norman
Broadbent.
david.bailey@normanbroadbent.com | 020 7484 0020
Finally, we are tremendously grateful for the support, contribution, challenge and encouragement from a number
of experienced CFOs, HR Directors and Chief Executives in the creation and development of this paper. Your
combined experience and perspectives spanning FTSE 100, FTSE 250, Small Cap and Private Equity backed
businesses was invaluable.
The CFO Practice at Norman Broadbent brings significant experience working with a range of clients through all
phases of the business cycle. From growth, diversification and international expansion, through consolidation,
divestment and restructuring, Norman Broadbent’s CFO Practice is a trusted advisor to boards, acknowledged
as providing an exceptional level of insight, advice and access to talent. We bring first-hand expertise recruiting
FTSE 100 key succession hires, FTSE 250 and Small Cap / AIM CFOs together with finance professionals for
privately owned and Private Equity backed businesses built on decades of experience. To find out why Boards
are increasingly turning to Norman Broadbent, please speak to either Neil Holmes or David Bailey.

10. NORMAN BROADBENT GROUP
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The Norman Broadbent Group is an established and trusted provider of Talent Acquisition & Advisory services.
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If you’d like to learn more about The Norman Broadbent Group please contact our Chief Executive Officer,
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11. NOTES

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