CFO Reimagined | CFO Global Research | Accenture

FROM BOTTOM LINE TO FRONT LINE CFOs have stepped out from the confines of their role. Exploiting data and creating value, they can now serve as innovator and disruptor in their business. #CFOReimagined

#CFOReimagined Contents Leading voices 3 Executive summary 6 Introduction 8 A close-up view of the evolved CFO 10 Challenges, gaps and opportunities 20 How CFOs can seize the moment 27 Developing future finance talent 36 Conclusion 43 About this research 45 2 The CFO Reimagined: from driving value to building the digital enterprise

#CFOReimagined Leading voices This research brings together the very latest primary research, rich insights from our leaders across Accenture, a wealth of information from Accenture Research and our practitioners working with clients around the world every day. Steve Culp Dr. Christian Campagna Cherene Powell Senior Managing Director, Senior Managing Director, Managing Director, Accenture CFO & Enterprise Accenture Strategy, Accenture Strategy, Value, Finance & Risk. CFO & Enterprise Value. CFO & Enterprise Value. He works with clients to help advance With more than 25 years of experience Partners with global CFOs to their business performance through in the development of advanced architect the next generation innovative strategies, processes and strategies for finance and other of finance capability focusing on change. He contributes to a regular general and administrative functions, digitialization, new operating models, Forbes blog and has authored he now focuses on the CFO agenda, and innovation in service delivery extensively on the changing role the finance function and its and employee experience. of the CFO, and the digitalization digitalization, digital economics of finance and risk. and enterprise operating models. 3 The CFO Reimagined: from driving value to building the digital enterprise

Leading voices #CFOReimagined David Axson Eric Noren on supply chain, digital and finance Senior Strategy Executive Principal, Managing Director, transformation, he has delivered Accenture CFO Strategies and Accenture Communications, complex transformation programs CFO & Enterprise Value, UKI. Media and Technology CFO across Asia encompassing China, With more than 30 years of advising & Enterprise Value Global Lead. Thailand, Malaysia, Indonesia, large global companies on strategy, With over 20 years of consulting and the Philippines and Singapore. finance, organization design and risk industry experience in finance and management, he is the author of Best accounting, he has focused his career Ambrose Shannon Practices in Planning & Performance on selling and delivering complex Managing Director, Accenture Management (Wiley 2003) and The solutions that assist multinational CFO & Enterprise Value, Management Mythbuster (Wiley 2010). companies with their finance function Financial Services. strategy, enterprise performance He has supported global clients Peggy Krendl management and re-engineering across banking, capital markets and Managing Director, Accenture finance organizations and processes. insurance specializing in finance CFO & Enterprise Value, Resources. transformation. He has extensive Based in Houston, she has extensive Paul Prendergast experience in operating model experience in finance transformation, Managing Director, Accenture design, finance vision and strategy, global business services, finance CFO & Enterprise Value, Products. business case development and strategy, ERP implementation, With extensive experience in consumer the use of ZBx approaches. process optimization and business goods and services, life science and solution delivery. industrial business segments focusing 4 The CFO Reimagined: from driving value to building the digital enterprise

Leading voices #CFOReimagined Athena Reilly Paul Nunes Haralds Robeznieks Managing Director, Global Managing Director Senior Principal, Accenture Enterprise Data of Thought Leadership, Accenture Research. & Analytics Strategy. Accenture Research. With more than 20 years of research Focusing on changing business He is a highly regarded thinker, author experience, he focuses on finance, models, competitive agility and digital and speaker on the topic of business operations, competitiveness and disruption, she helps clients streamline strategy. His research and writing risk management, as well as non-value-add activities, drive their focuses primarily on IT-led change inclusiveness issues. enterprises to create and capture in business and marketing strategy. more value through data and analytics, and define exciting next-generation operating models. With thanks to our research partners, Longitude Research, especially lead researchers Piers Tomlinson, Rosie Sutton and Laura Henriquez-Alvarez. 5 The CFO Reimagined: from driving value to building the digital enterprise

#CFOReimagined Executive summary Finance executives are uniquely well equipped to thrive in this era of unprecedented disruption. Their knowledge and expertise So, what’s the nexus of opportunity Simply put, the CFO’s role are increasingly sought after across for companies and how are CFOs is increasingly fast-paced, business functions, while CEOs and the wider finance function far-reaching and much are making them their most reinventing themselves to maximize broader in impact across trusted advisors. business performance and create the whole organization. sustainable growth? After years of moving beyond their traditional “back office” duties, CFOs Accenture’s research dives are positioned to be powerful digital deeply into the transforming— guardians who use data to drive value, and transformational—role of the improve efficiency and enable strategy. CFO to uncover trends, obstacles and best practices for organizations Many of them, however, must ready to pivot to the New. overcome significant challenges in order to seize these new opportunities and effectively play a broader role. 6 The CFO Reimagined: from driving value to building the digital enterprise

Executive summary #CFOReimagined Key findings: CFOs and their teams continue to make What’s more, this pivotal moment in the evolution of the a conscious and radical repositioning finance function is characterized by three main themes: of their role, the work they do and • Digitizing finance and harnessing the power of data: CFOs continue to how they do it. automate routine accounting, control and compliance tasks. They are increasing The evolution of the CFO’s role is their focus on value creation as digital technology empowers them to shape strategy. As a result, they can increasingly be relied upon for higher-level thinking, being driven by five forces: answering new questions in new ways and bringing the C-suite together to act • Increased expectations: boards, CEOs and on insights gleaned from data analysis. enterprises overall expect and need more from CFOs. • Leading digitalization efforts: CFOs play a critical role in the digitalization of • Pace of change keeps accelerating. their enterprises, with most starting in their own departments. In a virtuous circle, the data capabilities CFOs develop can help them make decisions about investing • Pressure to show growth and profits is constant. in digital and technology across the enterprise based on economic value, which • Power of data: there is a data-volume explosion, in turn empowers them to generate and combine even more useful data. requiring both focus and new capabilities. • Developing future finance talent: CFOs need to shift their hiring and talent • Expanded control and compliance expectations: development criteria so the next generation of finance leaders—who will more driven by regulation and consumer expectations. than likely follow different career paths than previous generations—can flourish in this expanded role. Knowing how to collaborate and innovate are requisite traits of the new CFO. Meanwhile, current CFO and senior-level finance professionals are gaining expertise at a faster rate than the overall function, creating a skills gap that must be addressed. 7 The CFO Reimagined: from driving value to building the digital enterprise

#CFOReimagined INTRODUCTION The new findings are driven from: 741 202 48 online surveys completed online surveys completed by in-depth discussions with CFOs, by CFOs and senior junior finance professionals for senior finance executives, CEOs finance executives. our “talent of the future” survey. and chief data officers, as well as Accenture’s own thought leaders. 8 The CFO Reimagined: from driving value to building the digital enterprise

Introduction #CFOReimagined Some of the most exciting work within companies is happening in the finance function. CFOs have long been responsible for The role of finance executives has “In virtually every company we look producing the numbers and managing greatly evolved in the last 60 years. at, the CFO is becoming the second technology investments. Yet today, From the 1950s to the 1980s, CFOs most important C-suite executive, they are increasingly harnessing the were essentially accountants. Then, sitting at the right hand of the CEO power of data to enhance their own from the 1990s to the 2010s, they and articulating a story about the departments. They are also looking ascended to the level of business financial results they expect to well beyond the borders of the finance partner. By 2020, CFOs will increasingly realize,” says David Axson, Senior function, proposing and shaping be the strategic enablers, going beyond Strategy Executive Principal, Accenture business models across the enterprise, a supportive role to a proactive one. CFO Strategies and CFO & Enterprise and, ideally, leading the charge in Value, UKI. “An effective leadership mapping out the investments required CFOs who have embraced the team depends on the CEO and to embrace digital and guide their opportunities that have come with CFO being a great double act.” organization into the next evolution. their unique bird’s-eye view of their They are creating new revenue streams organization are collaborating with Yet not all CFOs are filling the dynamic and managing down total costs. CEOs to drive strategy. The power roles available to them, and those and depth of insight that comes with who are face many challenges. data is not only expanding the role of Our study reveals how CFOs can the CFO—it is offering companies the leverage technologies, skills and chance to remake themselves and relationships to position themselves thrive in the new economy. and their companies for growth. 9 The CFO Reimagined: from driving value to building the digital enterprise

#CFOReimagined A close-up view of the evolved CFO FINANCE IS REINVENTING ITSELF 10 The CFO Reimagined: from driving value to building the digital enterprise

A close-up view of the evolved CFO #CFOReimagined Continuing to automate The standard to-do list of the finance department is shifting dramatically as automation continues to sweep in to reduce costs, improve productivity and allow employees to use critical thinking and creativity to drive value and profits. Christopher Weber, EVP and CFO of With automation as a foundational Our research shows just how the oilfield services group Halliburton, objective, CFOs are getting their own much the CFO has evolved from for instance, has a roadmap to push houses in order to free up the time accountant to analyzer to strategic transactional activities into his company’s they need to branch out and take on advisor. We drilled down to find out business service centers and increasingly entirely new tasks with broader impact. how CFOs are spending their days automate them. “This will free up time In fact, more than eight in ten of all and which projects and long-term for our people to be more focused on CFOs (81 percent) see identifying and higher value work such as analysis targeting areas of new value across goals they are prioritizing. and trendspotting,” he says. the business as one of their main responsibilities. Over three quarters (77 percent) believe it is within their purview to drive business-wide operational transformation. 11 The CFO Reimagined: from driving value to building the digital enterprise

A close-up view of the evolved CFO #CFOReimagined Today Tomorrow Plan Strategic planning, target setting, financial planning, forecasting, tax/treasury planning. Transact Supplier payments, employee payments, customer receipts, cash management. Account Transaction accounting, asset accounting, tax accounting. Control Account close/consolidation, account reconciliation, error processing, internal audit. Comply Statutory reporting, tax filing, statutory compliance, policy compliance. Report Enterprise performance reporting, financial reporting, management reporting. Analyze Portfolio analysis, performance analysis, investment analysis. Advise Business advisor, strategy execution support, M&A support, board of directors engagement. Focus of professional staff time Largely digitalized (>80%) 12 The CFO Reimagined: from driving value to building the digital enterprise

A close-up view of the evolved CFO #CFOReimagined Using data to drive value The ability to capture, structure and make better use of data in order to increase the efficiency and effectiveness of their own department and across the organization is the CFO’s greatest area of potential strength. What’s more, finance functions are a better understanding of the What is new is how the “one truth” already using a variety of emerging regional impact on future sales in concept is being realized across tools for better interpretation and a given area following a weather all industries and geographies. impact of the base data—from event, for example. We are making predictive analytics (74 percent) to more connections and learning Efficient compilation and extraction artificial intelligence (AI) (61 percent). all the time.” of financial data is essential, says Steven Young, Executive Vice President Rubens Batista, CFO of the Brazilian The catch? You must get your data in and CFO at Duke Energy in the US. supermarkets group Martins, is one order first, though, to use it effectively. “We have put together a financial finance leader keen to seize the Seventy six percent of CFOs agree hub that provides one version analytics initiative. “It’s early days that without “one version of the truth” of truth,” he says. “Which has cut for us, but we are using predictive across business units, their organization down on people getting different analytics to better understand our will struggle to meet its objectives. answers from the data because they cash flows,” he says. “This gives us extracted it from different sources.” 13 The CFO Reimagined: from driving value to building the digital enterprise

A close-up view of the evolved CFO #CFOReimagined FIGURE 1 Proportions of finance functions that are receiving Fielding growing requests for insight and analytics in key areas. Market data 52% (price and trade 74% requests for data related-data) Social media data 51% A CFO’s ability to synthesize rich and complex (sentiment analysis) 74% data sets, and develop rigorous analysis of potential Marketing (including 47% investments while managing risk, lets them assess web traffic) and 74% plans and strategies objectively. CRM data These capabilities are making CFOs where Bob McGee, CFO and Head Financial data 54% even more popular as the best source of Operations says, analytics tools 72% for data and insights. As Figure 1 are enabling finance to support the indicates, business requests for data business at large in many different Risk and 49% and analytics, beyond finance data, ways. “We’re giving the business a compliance data 72% are snowballing. Functions across the better understanding of how to solve enterprise know that finance can give liquidity issues,” he explains. “We’re Operational data 45% them the fundamental insights they helping them understand where there 69% need to create fresh business models. are greater productivity opportunities and how we can leverage them so Macroeconomic data 42% Consider the Canadian financial teams with weaker productivity 66% services group ATB Financial, can actually improve their results.” Rest of sample High-growth firms 14 The CFO Reimagined: from driving value to building the digital enterprise

A close-up view of the evolved CFO #CFOReimagined Taking charge of digitalization While CFOs are engineering ways to carry out their own tasks faster and better through automation, they are also increasingly ushering in the “digitalization” of their broader organizations—the diffusion of technologies to change business models and unlock new revenue streams. CFOs are advancing the enterprise- “Finance is taking the lead in my “In finance, we are downstream “ Finance is wide digital agenda, with 77 percent business,” says the CFO of a major of everything; we are always looking taking the lead heading up efforts to improve efficiency manufacturer based in Bangladesh. backward at what caused the in my business.” through adoption of digital technology, “Who else but finance should problem, and we know the rules so Kaushek Daas, CFO of RAK and 77 percent also exploring how be evaluating and prioritizing we know how things are supposed to Ceramics in Bangladesh. disruptive new technologies could investments in digital technologies? turn out. We love the deep detail and benefit the organization and the Who else understands the systems we often reach back to the beginning business ecosystem. end-to-end?” of a process to fix the issue,” says Daniel Gentili, General Manager Finance at INPEX Australia. 15 The CFO Reimagined: from driving value to building the digital enterprise

A close-up view of the evolved CFO #CFOReimagined Guarding the enterprise Finance aptitude with forecasting, investment evaluation, risk management and data stewardship qualifies them for meeting the significant new challenges around cyber-security, data aggregation and technology investment evaluation. Dr. Christian Campagna, Managing “Today, as transformation initiatives leaders and the “talent of the future” Director, Accenture Strategy, CFO like analytics, big data, new business (the group of younger finance & Enterprise Value, says there has and new operating models grow in professionals we surveyed), was been greater pressure on the CFO to importance, it’s time for CFOs to step identifying and managing control of the become the “economic guardian” of up and take even more responsibility.” enterprise’s most critical data and the the business since the global financial insights they yield. Our survey suggests crisis. “The CFO and the CEO are Asked where the finance function that the finance function is already the only board members who have should play a leading role in data expanding its governance activities, sight of, and responsibility for, governance, the most common which is crucial to anticipating the the whole enterprise,” he says. response from both finance regulatory risks attached to data. 16 The CFO Reimagined: from driving value to building the digital enterprise

A close-up view of the evolved CFO #CFOReimagined EMPOWERING COLLEAGUES Many CFOs think better collaboration, new technologies and changed working practices will facilitate an even more drastic change: the empowerment of other functions through the transfer of responsibility for routine finance tasks to them. Two-thirds (67 percent) of finance leaders believe they can and should train executives in non-finance functions to take on finance activities such as reporting, planning, budgeting and forecasting. Seventy eight percent believe that digitalization will facilitate a rise in self-service. 17 The CFO Reimagined: from driving value to building the digital enterprise

A close-up view of the evolved CFO #CFOReimagined By providing governance tools, controls and At a multinational chemicals business CFOs have the expert support, finance can help others serve headquarters in Europe, the financial controller opportunity and themselves, which in turn reduces cycle times, says non-finance people are extracting and responsibility to do provides more personalized service and frees analyzing reports to make better decisions. even more to harness up finance professionals for strategic planning. “We’re convincing them that it’s beneficial to “What finance is doing more of, is sitting side self-report, so finance people can spend their their unique position by side with the folks running the business time enhancing other areas of the business,” and help to ensure the as they face their different challenges, truly he says. “In the beginning, they resist it, continued success understanding the tactical and strategic but when you have the support from their of their companies. things they are working on and advising manager, it’s only a matter of time them on what will help them better achieve until they’re fully engaged.” their short-term and long-term objectives,” says ATB Financial’s Bob McGee. By bringing Vangelis Baltas, CFO of transport business Fraport together complementary skills and working Greece, agrees. “I would like other functions collaboratively with others, finance to be able to understand the finance aspects. adds real value. Not the fine detail, but a basic knowledge. Otherwise, it’s very hard to make decisions.” 18 The CFO Reimagined: from driving value to building the digital enterprise

A close-up view of the evolved CFO #CFOReimagined FIGURE 2 Finance’s non-traditional strengths Focusing on growth and their value to the business. (Figures do not add up to 100% due to rounding) These bolder and broader initiatives that CFOs are Guiding on the successful adoption of undertaking are all in service of one aim: growth. emerging and evolving technologies CFOs are focused on strategies that drive profitable 6% 14% 78% growth—top-line growth, bottom-line growth and growth in shareholder value. Managing cyber-related risk As Figure 2 shows, CFOs are largely CEOs report in turn that they are happy 7% 16% 76% confident that they are driving greater with a broad range of non-traditional value throughout their enterprises. activities carried out by their CFOs, Forecasting the long-term value and/ Three-quarters of them are satisfied such as leading organizational or lifespan of a specific technology with what they have achieved so far. transformation, monetizing digital 80% technology strategies and making 7% 12% 80% customer and pricing decisions. Combining different data sets And yet, 81 percent of all firms 7% 14% 77% report that they are preparing for an increasingly volatile future. CFOs have Effectively balancing investments in the opportunity and responsibility technology between core and new business to do even more to harness their 4% 17% 78% unique position and help to ensure the continued success of their companies. Finance is worse than Neutral Finance is better than other functions at this other functions at this 19 The CFO Reimagined: from driving value to building the digital enterprise

#CFOReimagined Challenges, gaps and opportunities REQUIRING A NEW ROLE 20 The CFO Reimagined: from driving value to building the digital enterprise

Challenges, gaps and opportunities #CFOReimagined As CFOs feel the The three hats of the modern CFO. ground moving beneath them, they are Accountant Business partner Strategic enabler grappling with several Account-centric Business-centric Transform finance common challenges. productivity Descriptive Predictive Retool and Generally speaking, they have to find ways to free up time retain talent through automation and leverage analytics to gain more Backward looking Forward looking Become a data insights. And they must also integrate and connect with driven organization other business units, moving at pace with them to offer Financial/ Applied digital the most value. Weathering this shift is possible if they Financial data Operational technology can develop new skills and practice new ways of working. In fact, there are key areas of opportunity for CFOs who Accounting skills Analytic skills Adopt an agile are still occupying a more traditional and narrower role. operating model Functionally siloed Business aligned Past Present Future 21 The CFO Reimagined: from driving value to building the digital enterprise

Challenges, gaps and opportunities #CFOReimagined A struggle to automate Not all CFOs are enacting (or are empowered to enact) necessary changes. Consider automation. Today, only 34 percent of finance tasks “Low value-added activities are automated. It is a low percentage, which can be done by technology since the goal of technology enabling have to be done by technology,” a “lights-out” back office is achievable. says Larry Reinhold, President and In fact, Accenture estimates that CEO of Systemax. “There is relentless 60 to 80 percent of backward-looking pressure to reduce cost and do things accounting activity can be automated in the most productive manner.” with limited to no human intervention. But, even by 2021, CFOs anticipate that CFOs have the added task of less than 50 percent of all finance tasks making the internal case for will be performed by machines. automation, as 38 percent worry about employee resistance to working with non-human colleagues. 22 The CFO Reimagined: from driving value to building the digital enterprise

Challenges, gaps and opportunities #CFOReimagined MASTERING DATA “One of the biggest challenges is locating the right data,” says Rubens Batista of Martins. “That’s what keeps me awake at night. We can collect data more easily now, partly due to the rise of social media. I think this is important and we are integrating this into business.” 23 The CFO Reimagined: from driving value to building the digital enterprise

Challenges, gaps and opportunities #CFOReimagined More than half (53 percent) of CFOs worry that the But our research suggests that the potential for deriving finance function is reactive or that data and information- untapped value from financial data alone is significant, sharing processes are not streamlined. In two years’ even before this information has been combined time, 46 percent expect to still feel this way. A notable with other enterprise data sets. Yet less than half the proportion of them also do not rate the finance functions finance leaders we surveyed are capturing six key they lead as strongly as they could on their data potential outcomes of data analysis: value creation, and analytics capabilities. increased connectivity with other areas of the business, Part of the issue stems from concern about information identification of future risks and opportunities, improved security, according to our survey respondents. After all, compliance, wider adoption of technology throughout if you automate an inefficient process you just get the business, and additional valuable insights. bad data faster. Such concerns go beyond just financial data as organizations look to combine internal and external, of CFOs worry that the finance structured and unstructured data to unlock the most function is reactive or that insightful reading of any given situation. In fact, almost three in ten CFOs see the need to combine financial 53%data and information-sharing data with other sources of information as a challenge. processes are not streamlined. 24 The CFO Reimagined: from driving value to building the digital enterprise

Challenges, gaps and opportunities #CFOReimagined Looking ahead and branching out CFOs are accustomed to historical analysis, but looking backwards is not sufficient for seamlessly bringing value to the rest of the enterprise. Predictive analytics tools allow finance Meanwhile, not everyone in finance driving enterprise-wide efficiency to exploit data and understand how the is convinced that empowering their by adopting digital technologies. business climate will play out across colleagues in other departments is Perhaps the finance function is not each area. The ability to provide worthwhile. A third of CFOs believe automating at the right pace, or does roadmaps for responding to such either that finance activities should not have confidence in its data, or is insights is an invaluable skill for CFOs be split 50:50 with other functions encountering employee resistance. to possess. Yet our survey respondents or that finance should continue These factors create the sensation report a 50:50 split between the to carry out all such work. of moving at the wrong speed proportion of their activities that for the business. focus on reporting the past and those Most CFOs (64 percent) are concerned focused on the future. The balance about being out of sync with the rest needs to tip forward. of their company when it comes to 25 The CFO Reimagined: from driving value to building the digital enterprise

Challenges, gaps and opportunities #CFOReimagined of young finance professionals are eager to embrace new digital skills that will be 51%critical for keeping up and succeeding in the years to come. While we believe digitalization is to come, an additional 44 percent say “ If we believe that essential, it appears that CFOs need they are willing to embrace new digital 80 percent of the more reassurance that they are on the skills if they are given the right training. finance function could right long-term track. Less than half of The onus, then, is on CFOs to seize be digitalized in some those surveyed say their investments upon their employees’ enthusiasm in digitalization are matching or with effective upskilling programs. way, CFOs have to ask exceeding anticipated returns. the question, ‘what’s While some say attractive business In broad terms, CFOs have to think about left?’ They have to cases are emerging, others note the life after automation. “If we believe that reinvent themselves.” difficulty of defining returns or say 80 percent of the finance function they are not seeing any at all. could be digitalized in some way, Athena Reilly, Managing Director, CFOs have to ask the question, Accenture Enterprise Data & While 51 percent of up-and-coming ‘what’s left?’” says Athena Reilly, Analytics Strategy. young finance professionals from our Managing Director, Accenture Enterprise “talent of the future” survey are eager Data & Analytics Strategy. “They have to embrace new digital skills that will to reinvent themselves.” be critical for succeeding in the years 26 The CFO Reimagined: from driving value to building the digital enterprise

#CFOReimagined How CFOs can seize the moment ACCELERATE DIGITAL TRANSFORMATION 27 The CFO Reimagined: from driving value to building the digital enterprise

How CFOs can seize the moment #CFOReimagined Finance leaders are concentrating on the risk of digital failure and are preoccupied with the challenges of transformation. 28 The CFO Reimagined: from driving value to building the digital enterprise

How CFOs can seize the moment #CFOReimagined There are concrete steps CFOs can take to move beyond these concerns. Their primary concerns are: Employees across The emergence of new, The technology Combining different Investments not being functions struggling cyber-related risks that becoming outdated data sets proving to be suitably balanced to adopt emerging make the investment before the return on very time-consuming. between core and and evolving redundant. investment is realized. new business. technologies. 29 The CFO Reimagined: from driving value to building the digital enterprise

How CFOs can seize the moment #CFOReimagined Digital transformation is now a competitive necessity for most organizations. The pace of digital Look across the enterprise to prioritize digital Focus on how to innovate and scale disruption is such investments. Test cases with rapid paybacks at speed. Deploy agile methods and that CFOs are can help self-fund the transformation. outcome-based design principles. looking for ways Find common ground with other business Build stewardship and governance to accelerate it. units on the scope of digitalization for structures to measure performance The following finance and the pace at which to pursue it. and ensure accountability for outcomes. recommendations can help: Clearly connect the investments being made Constantly evaluate the portfolio of with the commercial returns the business digital investments to ensure continued expects to realize. This allows for immediate relevance and value. re-prioritization and increased confidence in the return on investment. Encourage teams to pursue innovation and support them so they are not afraid Seek out the financial value that digital of taking risks. investments in the rest of the business can deliver. For example, can sensors on equipment Recognize that success is not linear serve as an input to capital planning and and that change requires patience. maintenance budgeting by providing predictive information on asset performance? 30 The CFO Reimagined: from driving value to building the digital enterprise

How CFOs can seize the moment #CFOReimagined Step up How, then, can CFOs overcome challenges, fill in skills gaps and combat attitudes that are holding them and their functions back from becoming strategic enablers? During analysis of our survey data, they are implementing real-time we isolated a leader group of 349 or near-real-time monitoring of “high-growth” firms—organizations business performance. 76% that greatly exceeded their targets Pushing through the difficult parts for revenue growth last year. It is of disruption is the best—and really of CFOs agree that without worth noting that in these firms, the only—option. We believe the “one version of the truth” CFOs are more likely to be driving CFO is the right person in the C-suite across business units, their transformation, planning disruption to oversee the ecosystem of data organization will struggle and targeting value, suggesting a and analytics that other functions possible correlation between business are feeding. The CFO is poised to to meet its objectives. performance and the expansion of own enterprise data and analytics the CFO’s remit. They are also more alongside the CEO. likely to say their data and analytics capabilities are strong, and that 31 The CFO Reimagined: from driving value to building the digital enterprise

How CFOs can seize the moment #CFOReimagined Take the reins If CFOs commit to change and withstand transition, with data and they will eventually see the benefits of both mobilizing data and of large-scale digitalization digitalization. Consider how when finance leverages It is critical for the CFO digital automation investments being made in other parts of the organization, to help its organization it can provide real value. Or when achieve growth objectives a company implements automated through smart, rapid performance monitoring of its capital investment in digital equipment, finance can use the technologies. same data to provide more accurate estimates of planned and unplanned maintenance, rather than relying on generic replacement cycles. 32 The CFThe CFO RO Reimagined: eimagined: frfrom driving vom driving value to building the digitalue to building the digital enterpriseal enterprise

How CFOs can seize the moment #CFOReimagined In another example, at a Greek telecom through smart, rapid investment in Technology itself won’t lead to company, the CFO says the move to digital technologies. As such, digital improvement, of course. Managing the rapid reporting is enhancing agility. value stewardship is essential, to ensure proliferation of digital programs across “Ten years ago, it took 30 days for me accountability. The CFO is the person the business forces CFOs to craft clear to get the month-end results, now it’s who can understand and measure end goals, which in turn ensures that more like four or five days,” he says. digital interventions, what they mean new technologies are fully exploited. “It means I can make decisions faster for the organization and whether they CFOs need to connect the dots between if something needs to change.” are having an impact. CFOs understand various pilot programs and technologies the economic rationale for technology to avoid duplication and redundancy, A senior finance executive at one of the investments and can sequence activities. and ensure investments are productive. world’s most successful e-commerce brands says her focus is also on “If you have a seat at the table As Daniel Gentili at INPEX Australia real-time analytics. “Our promotions on technology investments, you says, “Finance should be all are short-term, based on traffic have to be able to contribute in a over anything tied to enterprise flows and managed in real time,” meaningful way,” adds Alan Foster, technology—right from the design she explains. “So, finance has to CFO of National Grid UK. “Not just phase. Any technology in the back be able to provide its feedback in in working out what to say yes to, office needs to interface with real time too, to make sure those but also in understanding what finance efficiently. Otherwise promotions pass our criteria.” needs to be done to ensure those your data and outputs are a mess.” investments are successful. These It is critical for the CFO to help the are areas that require engagement organization achieve growth objectives and involvement from the CFO.” 33 The CFO Reimagined: from driving value to building the digital enterprise

How CFOs can seize the moment #CFOReimagined BUILDB RIDGES Making the most of the CFO’s unique position is more about human connection than technology or process. Effectively communicating the benefits of automation is one vital skill for CFOs who wish to shepherd much-needed disruption. Automation technologies, after all, can increase finance professionals’ levels of fulfillment by eliminating dull and repetitive work. In countries where demographic trends are impacting the availability of key skills, automation can also alleviate the pressure and struggle for organizations to recruit people for manual processing. 34 The CFO Reimagined: from driving value to building the digital enterprise

How CFOs can seize the moment #CFOReimagined CFOs will likely be welcomed by their partners and other leaders another list of problems that “ Finance leaders in other functions if they are open-minded they have to solve, or you take a more proactive who understand that and collaborative. “People are realizing that stance and try to solve the problems. The most people are really they can’t do things alone, and that finance successful CFOs will provide the solutions.” at the core of this isn’t there just to stop them from spending “Think of this as finance moving to the edges,” money,” says Martin Fritsch, CFO CSI at DHL. says Steve Culp, Senior Managing Director, change will have the “But it depends on the character of the Accenture CFO & Enterprise Value, Finance greatest success.” finance person: if you act like a cost controller, & Risk. “The function will be involved at Athena Reilly, Managing Director, then the doors aren’t going to open for you.” the beginning, working with the rest of the Accenture Enterprise Data & CFOs can no longer be the obstructors they business to set those objectives, as well as Analytics Strategy. once were. They must be “yes” men and women. at the end, to provide a verdict on whether Alan Foster of National Grid UK says CFOs need the targets were met. This is where the to ensure that the business delivers on what the finance function of the future will really CEO is promising. “The role used to be about add value, rather than in the middle.” stewardship and saying no to frivolous ideas, Consider the wider organizational culture, how but that’s a given now,” he says. “You don’t get finance has worked with other functions in the any merit for that anymore. You can either past and what needs to change for the future. choose to point out problems and give the CEO 35 The CFO Reimagined: from driving value to building the digital enterprise

#CFOReimagined Developing future finance talent REQUIRING A DIFFERENT TALENT PROFILE 36 The CFO Reimagined: from driving value to building the digital enterprise

Developing future finance talent #CFOReimagined The CFO’s role has been evolving for decades and is now in the midst of an even more radical change. As finance’s responsibilities continue is limiting the pace and outcomes “It feels like there are two camps to stretch, so too must the skills and of transformation programs within for what people look for in a CFO,” knowledge of CFOs themselves and finance—it is the human talent challenge explains Christopher Weber of of prospective talent. In the past, young of finding people with all the right skills. Halliburton. “The control or accounting people who simply showed a reliable “As the DNA of finance talent pools background versus a more strategic and detail-oriented nature might have evolves at pace, many CFOs are finance role who partners with the sufficed, but now CFOs need employees establishing hubs of deep expertise, CEO. Over time, I think the shift has with a wide range of capabilities, from in markets where there is competency been towards this second role, even data visualization to flexible thinking. at scale,” says Ambrose Shannon, if that means the candidate isn’t Typically, the CFO and very senior Managing Director, Accenture CFO an accountant by training.” finance executives have advanced these & Enterprise Value, Financial Services. Organizations need to be able to pivot newly required skills at a much greater CFOs recognize the need for change between looking backward and looking rate than the department at large has, and accept that traditional roles may forward, and be strategic and focused on creating a gap in knowledge between soon become obsolete. More than getting the books closed while ensuring the top and bottom of the organization. three-quarters (78 percent) say the all the proper controls have rigor. It takes Whatever their attendant challenges change must be rapid and drastic. talented leaders to strike this balance. are, it is not technology or data that 37 The CFO Reimagined: from driving value to building the digital enterprise

Developing future finance talent #CFOReimagined e alu V y Professional Intelligent t skills finance i l i b i s on p s e d r de pan x Finance and Business E accounting insight e c n a n Fi Transact Use of digital technology Analyze 38 The CFO Reimagined: from driving value to building the digital enterprise

Developing future finance talent #CFOReimagined C.V. must-haves Which skills are critical for future financial executives to continue leading and transforming organizations? Consider the ability to innovate and “The CFO still needs to be somebody “It needs to be outward-facing,” “ We are looking analyze, and how important they that you can trust implicitly to cut he says. “In tune with the marketplace, for people who are to enabling strategy. through all the bias and be the visiting customers with sales are inquisitive.” “What you’re looking for is people honest broker in decision-making people, and building relationships and running financial analysis. and bridges to other functions.” Daniel Gentili, who are adaptable and resilient,” None of that is particularly new,” adds INPEX Australia. says INPEX Australia’s Daniel Gentili. Larry Reinhold of Systemax. “What is The biggest challenge is recruiting “We are looking for people who different today is that process and or training the talent necessary to are inquisitive. They need to ask: automation across the board is understand how to collect data ‘Is there a better way to do this? completely different, even in financial and gain insight from data. Finance Can I get this information differently? areas, so you also have to be IT savvy.” professionals need the right skillset How did that information come out to communicate with the rest of the once I pushed that?’ They must be The former managing director of a enterprise, working with other functions prepared to bounce if they fail global consumer goods business based to drive the right conclusions and and go back and look again.” in Europe believes that finance needs to actions out of the insights. understand the drivers of the business. 39 The CFO Reimagined: from driving value to building the digital enterprise

Developing future finance talent #CFOReimagined A new CFO culture For all their great qualities, some CFOs need to commit to self-transformation and champion conditions for workplace cultural change. “It’s not easy making progress toward As finance takes on more strategic providing predictive reporting responsibilities across the enterprise, because people in finance are much it needs to become better at supporting more concrete,” says Rubens Batista fresh thinking, collaborative working of Martins. “Talking about the future and strategic insight. CFOs agree with takes a little bit of imagination and a this analysis, emphasizing that their certain degree of dreaming as well. own mindsets need to adapt and Having your feet on the ground evolve, and that their expectations of while dreaming of the future is new recruits are set to change. Eight in the main challenge.” ten (81 percent) confirm, for instance, that data storytelling is an essential skill for today’s finance professionals. 40 The CFO Reimagined: from driving value to building the digital enterprise

Developing future finance talent #CF#CFOROReimaginedeimagined At a global e-commerce business, how I interact with the organization, the senior finance executive we spoke and the openness, candor and to is using a different (and increasingly perspective I provide.” popular) job title to reflect the CFO’s Nonetheless, tomorrow’s CFOs are very new role. “We call ourselves optimistic about finance’s prospects, business finance partners rather with more than 80 percent of future than advisors or controllers,” she finance executives agreeing that explains. “Things change with that the work will be meaningful and that word: we have to build relationships employees will be encouraged to and work as part of the group develop their own skills and will have around the table.” a clear route to career progression. 78% The cultural shift must start at the In light of the increased responsibilities CFO level, says Christopher Weber, given to finance and the availability of more junior EVP and CFO of the oilfield services of data, tools and technologies, finance practitioners group Halliburton. He says changing 78 percent of more junior finance say that there has the mindset takes time and constant practitioners say that there has never never been a more attention. “The culture starts with my been a more exciting time to be leadership team, my direct reports a finance professional. exciting time to be a and myself all leading by example,” finance professional. he says. “It’s how I conduct myself, 41 The CFO Reimagined: from driving value to building the digital enterprise

Developing future finance talent #CFOReimagined Voices from the future Our survey of tomorrow’s CFOs reveals that: Forward-looking finance leaders are energized by the potential of digital transformation. 92% 78% Automation of dull and mundane tasks, richer and more timely datasets, access to sophisticated analytic models and deployment of advanced say that if they were say the future finance visualization tools can all combine to make finance one of the most CFO, they would spend a function, led by the CFO, exciting and most value-adding places to work in the enterprise. In fact, significant amount of time will champion a new way young people looking to drive change through digital innovation should on value creation across the of operating across consider finance over IT or research and development units. wider business ecosystem. the business. In an environment where the boundaries between finance and the rest of the organization are blurred, and where collaborative working is the norm, there will be plenty of chances for finance employees to grow 77% 66% and build new competencies. And as finance becomes known as believe the finance function believe that finance a function that is actively enabling the future, it will likely be a place should be proactive and should empower other in which many more talented young professionals aspire to work. connected in its operations functions to take on alongside business partners all finance activities. across the wider business ecosystem. 42 The CFO Reimagined: from driving value to building the digital enterprise

#CFOReimagined Conclusion The findings of this report mark the most dramatic shift we have seen in almost 20 years of research into high-performing finance teams. The evidence is clear: CFOs are now strategy For this research, we set out to ask select The CFO will create more players who are expected to use their knowledge clients about their ambitions, priorities meaningful and impactful of data, analytics and finance to forge new and challenges as CFOs. As hypothesized, roles for finance professionals, strategies across their organizations while we discovered that the CFO has an expanded such as leading digitalization influencing and guiding existing business units. remit to be more efficient and effective, transformations, ensuring As accounting and other routine tasks are improve risk and compliance, increase automated, the CFO will create more meaningful enterprise value and steward the their organizations pivot and impactful roles for finance professionals, digitalization of the entire enterprise. wisely in this radically such as leading digitalization transformations, At the same time, we also found that many different marketplace. ensuring their organizations pivot wisely in CFOs have yet to drive insight through data this radically different marketplace. and talent, and automate or spread out the Ultimately, CFOs will embed finance into all traditional finance function to make room for other areas of the business, further eliminating new ways of achieving value. An enormous their own traditional functions so they can opportunity exists, then, for CFOs and develop ever more sophisticated ways of aspiring CFOs. mining data for growth-driving insights. 43 The CFO Reimagined: from driving value to building the digital enterprise

Conclusion #CFOReimagined The CFO of today—and of the high-performing Finance must build on its strengths in order to move digital business of the future—is, above all: business at the right speed for the whole organization. • Focused on securing critical business outcomes This could include: and economics by enabling strategy. • Building and clearly communicating the economic case • Partnering with the CEO to deliver those outcomes, for change, with data and analytics tools that calculate helping lead the way for functions throughout the enterprise. ROI through facts, figures, and examples. • Embracing new technologies and evaluating • Leading by example, proving the case for investment enterprise-wide investment to support the velocity with a more effective finance function than ever before. required for tomorrow’s business. • Building a broader range of skills within finance to • Owning the data agenda and wielding the power of data, support the rest of its function in its expanding role. not least by controlling the one version of the truth. • Acting in concert with other functions, rather than • Building new talent with the agility, skills and experience as a gatekeeper or approver. needed to deliver in the New. • Working across the business to create new structures and processes for better cross-functional working. • Articulating the vision to a broad range of stakeholders, including investors and analysts. The CFO is in an elevated position, serving as an innovator and a disruptor who can harness data to unleash new value. Never has the CFO been better positioned to be the CEO’s chief business partner. Now is the time for CFOs to wield the power of digital and secure their organization’s growth objectives. 44 The CFO Reimagined: from driving value to building the digital enterprise

#CFOReimagined About this research Country United States 27% Our research is based on online surveys with more than 700 finance leaders from around the United Kingdom 17% globe and more than 200 up-and-coming finance professionals (the “talent of the future”). Japan 11% We also conducted almost 50 qualitative interviews with CFOs, senior finance Germany 9% executives, CEOs and chief data officers. We selected interviewees on the basis that they worked for global, billion-dollar enterprises that reflected Italy 8% a good mix of sectors and geographies worldwide. France 7% Respondent company size 8 Australia 7% % $1bn to $4.99bn Brazil 5% $5bn to $9.99bn % $10bn to $19.99bn 59% 29 Spain 5% $20bn + 4 Singapore 5% % 45 The CFO Reimagined: from driving value to building the digital enterprise

About this research #CFOReimagined Industry Respondent job title 18% 20% Banking Chief financial officer 14% Consumer goods 16% Finance director 49% Head of finance 13% Insurance 7% Finance controller Director of treasury 11% Retail 5% Head of treasury 5% 9% Oil and gas 8% Metals and mining 8% Utilities About the high-growth firms During analysis of the data, we isolated a leader group of 349 8% High-tech high-growth firms—organizations that greatly exceeded their targets for revenue growth last year. The finance function in these firms is routinely more mature and advanced in its role 8% Comms and media as a strategic enabler for the enterprise as a whole. (Note: Figures do not add up to 100% due to rounding) 46 The CFO Reimagined: from driving value to building the digital enterprise

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