CFO
The Chief Future
Officer?
Ash Noah CPA, FCMA, CGMA
VP External Relations,
Management Accounting,
American Institute of...
The future business paradigm?

2

2

© 2014 Proformative
Chief Future Officer?

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

3

...
Chief Future Officer?

68%
Report the ability to find the right skills is
progressively more difficult the higher the role...
Chief Future Officer?

40%
Reported high-end
analytical skills as being
the future success of
their organization

But only...
Developer of talent pipeline

over a

third
Of c-suite respondents agreed that the
ability to attract, retain and deploy t...
Measures and focuses on
non-financial value

7

© 2014 Proformative

Rebooting Business - 2012
CGMA

7
Recognizes value in non-financial measures*

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

9

© 2014 Proformative

From insight to impact - 2013
CGMA

9
Big Data enabled finance
• A minority (23%) report no role
in anlaytics

• Another minority (21%) claim a
leading role
• A...
Overcoming impediments to harnessing Big Data

11

© 2014 Proformative

From insight to impact - 2013
CGMA

11
Big Data – the role of finance

12

© 2014 Proformative

From insight to impact - 2013
CGMA

12
Five traits of the data enabled CFO

13

© 2014 Proformative

From insight to impact - 2013
CGMA

13
Turns data to insights to action

14

© 2014 Proformative

Source: IBM CEO Survey - Leading Through Connections
Finance function has delivered scale benefits

Shared Service
Centers
Focus on Process and Technology

15

© 2014 Proforma...
The future is about delivering value

Shared
Service
Centers

Technology

SCALE
BENEFITS

INCREASED
INSIGHTS
Focus on Peop...
The catalyst for Innovation
 Garners C-suite support for innovation
 Promotes a culture of innovation permeating the who...
The innovation imperative
 Average tenure of a company in the
S&P500 has fallen to 18 years from 61
years in 1950s

18

©...
Leading innovation and managing risk

19

© 2014 Proformative
Chief Future Officer?

75%
Collaborative

67%
Communicative

61%
Creativity

% of CEOs that identified these skills as CRI...
Chief Future Officer?

52%
Report international skills
as being critical for the
future success of their
organization

But...
Chief Future Officer?

55%
Of the global respondents identified ‘strategic
vision’ as the hardest skill to find for execut...
CFO of the Future Will Create Strategic Impact

23

© 2014 Proformative
Striking the Right Balance

24

24

© 2014 Proformative
CFO of the Future Builds Business Capabilities

25

25

© 2014 Proformative
Importance of Various Skills for Finance – As Rated By
Non-finance Personnel

26

© 2014 Proformative

The inside track ; ...
Skills Most in Need of Improvement by Finance Personnel

27

© 2014 Proformative

The inside track ; Partnering for value-...
Collaboration and Decision Support

28

© 2014 Proformative

The inside track ; Partnering for value- 2012
CGMA

28
IBMs Chief Future Officer

29

© 2014 Proformative

SOURCE: IBM Institute for Business Value, The New Value Integrator: In...
Collaboration and decision support

30

30

© 2014 Proformative

SOURCE: IBM – The New CFO: Chief Future Officer
Applying principles to management process & practice

31

© 2014 Proformative

SOURCE: CIMA- Building World Class Business...
Greatest value coming from
non-financial sources*

Developer of talent pipeline

CFO of the Future will create strategic i...
FURTHER READING

http://www.cgma.org/Pages/default.aspx?token=d34b4679-bbb6-4f45-8ca0-ceb79ee5f318
http://www.cgma.org/Res...
&
34

© 2014 Proformative
Thank You For Attending

CFO
The Chief Future
Officer…
anoah@aicpa.org
www.cgma.org
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The CFO of the Future

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Today’s businesses face rapid economic, technological and social changes. CFOs need to provide decision support that will help their organizations outmaneuver competition whilst managing risk, volatility and uncertainty. The pace of risk and the degree of risk is unparalleled and will only increase and this creates tremendous opportunities for organizations. Ash will share what the American Institute of CPAs and their Joint Venture partners the Chartered Institute of Management Accountants are hearing from Finance Leaders around the world as to how the Finance is evolving and how the CFOs of the future are preparing themselves and their teams – not just to navigate but to actually help steer their organizations to create sustainable value.

Speaker: Ash Noah, VP, External Relations — Management Accounting, AICPA

Presentation delivered at ProformaTECH 2014 - http://www.proformatech.com
Track: xxx | Session: yyy

Published in: Business
  • very nice presentation. CFOs are now sitting alongside CEOs in an advisory and strategic capacity. They are expected to possess extensive knowledge about how the business works and farsightedness to visualize its future and navigate it towards success. Besides the acumen to perform traditional number-crunching with ease, they are also expected to create corporate strategies and detailed working plans.
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The CFO of the Future

  1. 1. CFO The Chief Future Officer? Ash Noah CPA, FCMA, CGMA VP External Relations, Management Accounting, American Institute of CPAs
  2. 2. The future business paradigm? 2 2 © 2014 Proformative
  3. 3. Chief Future Officer? Of Global CFOs do not believe that the ‘CFO’ title adequately covers the diversity in the role 3 © 2014 Proformative Finance Forte Survey 2011 Ernst & Young 3
  4. 4. Chief Future Officer? 68% Report the ability to find the right skills is progressively more difficult the higher the roles are within the organization 4 © 2014 Proformative Plugging the skills gap 2012 EIU 4
  5. 5. Chief Future Officer? 40% Reported high-end analytical skills as being the future success of their organization But only 15% Of those have these skills available 5 5 © 2014 Proformative Turning the Tide; Accenture
  6. 6. Developer of talent pipeline over a third Of c-suite respondents agreed that the ability to attract, retain and deploy the right talent is ‘the’ main competitive advantage 6 © 2014 Proformative Talent Pipeline Draining Growth 2012 CGMA 6
  7. 7. Measures and focuses on non-financial value 7 © 2014 Proformative Rebooting Business - 2012 CGMA 7
  8. 8. Recognizes value in non-financial measures* * Extent of value provided - % of respondents selecting 8-10 on a scale of 10. 8 © 2014 Proformative Rebooting Business - 2012 CGMA 8
  9. 9. Big Data enabled 9 © 2014 Proformative From insight to impact - 2013 CGMA 9
  10. 10. 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 10 © 2014 Proformative From insight to impact - 2013 CGMA
  11. 11. Overcoming impediments to harnessing Big Data 11 © 2014 Proformative From insight to impact - 2013 CGMA 11
  12. 12. Big Data – the role of finance 12 © 2014 Proformative From insight to impact - 2013 CGMA 12
  13. 13. Five traits of the data enabled CFO 13 © 2014 Proformative From insight to impact - 2013 CGMA 13
  14. 14. Turns data to insights to action 14 © 2014 Proformative Source: IBM CEO Survey - Leading Through Connections
  15. 15. Finance function has delivered scale benefits Shared Service Centers Focus on Process and Technology 15 © 2014 Proformative Technology SCALE BENEFITS
  16. 16. The future is about delivering value Shared Service Centers Technology SCALE BENEFITS INCREASED INSIGHTS Focus on People and Products 16 © 2014 Proformative BUSINESS SUPPORT REAL BUSINESS BENEFITS
  17. 17. The catalyst for Innovation  Garners C-suite support for innovation  Promotes a culture of innovation permeating the whole company, not just R&D  Devices employee incentives to both encourage innovation and innovative culture  CFOs drive for predictability and reliability - an obstacle to innovation  Flexibility and tolerance of failure are necessary  Financial processes and metrics need to be aligned with innovation lifecycle  Learns to ‘live with ambiguity’ 17 17 © 2014 Proformative Managing Innovation- 2013 CGMA
  18. 18. The innovation imperative  Average tenure of a company in the S&P500 has fallen to 18 years from 61 years in 1950s 18 © 2014 Proformative Managing Innovation- 2013 CGMA 18
  19. 19. Leading innovation and managing risk 19 © 2014 Proformative
  20. 20. Chief Future Officer? 75% Collaborative 67% Communicative 61% Creativity % of CEOs that identified these skills as CRITICAL for future success 20 20 © 2014 Proformative Leading through Connections: IBM
  21. 21. Chief Future Officer? 52% Report international skills as being critical for the future success of their organization But only 18% Of those have these skills available 21 21 © 2014 Proformative Turning the Tide; Accenture
  22. 22. Chief Future Officer? 55% Of the global respondents identified ‘strategic vision’ as the hardest skill to find for executive roles within their organizations 22 © 2014 Proformative Plugging the skills gap 2012 EIU 22
  23. 23. CFO of the Future Will Create Strategic Impact 23 © 2014 Proformative
  24. 24. Striking the Right Balance 24 24 © 2014 Proformative
  25. 25. CFO of the Future Builds Business Capabilities 25 25 © 2014 Proformative
  26. 26. Importance of Various Skills for Finance – As Rated By Non-finance Personnel 26 © 2014 Proformative The inside track ; Partnering for value- 2012 CGMA 26
  27. 27. Skills Most in Need of Improvement by Finance Personnel 27 © 2014 Proformative The inside track ; Partnering for value- 2012 CGMA 27
  28. 28. Collaboration and Decision Support 28 © 2014 Proformative The inside track ; Partnering for value- 2012 CGMA 28
  29. 29. IBMs Chief Future Officer 29 © 2014 Proformative SOURCE: IBM Institute for Business Value, The New Value Integrator: Insights from the Global Chief Financial Officer Study 29
  30. 30. Collaboration and decision support 30 30 © 2014 Proformative SOURCE: IBM – The New CFO: Chief Future Officer
  31. 31. Applying principles to management process & practice 31 © 2014 Proformative SOURCE: CIMA- Building World Class Businesses
  32. 32. Greatest value coming from non-financial sources* Developer of talent pipeline CFO of the Future will create strategic impact * Extent of value provided - % of respondents selecting 8-10 on a scale of 10. 7 Talent Pipeline Draining Growth 2012 6 CGMA CFO – Striking the right balance Will be data enabled Leading innovation and managing risk The role of finance throughout the innovation lifecycle 24 8 22 32 © 2014 Proformative
  33. 33. 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 33 33 © 2014 Proformative
  34. 34. & 34 © 2014 Proformative
  35. 35. Thank You For Attending CFO The Chief Future Officer… anoah@aicpa.org www.cgma.org

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