LONDON, Nov. 30, 2016
/PRNewswire/ -- The chief financial officer (CFO) of the
future will change according to an EY global survey of 769 finance
leaders. Aspiring CFOs must develop leadership and team-building
skills, including strong relationships with the chief executive
officer (CEO) and board, if they are to transition to a CFO role in
the next five years said more than half of respondents (57%). The
changes are in response to a role that is increasingly becoming
more diverse in scope and focus as incumbents respond to a full
range of pressures, including digital, data, heightened scrutiny
and ongoing uncertainty and volatility, finds the third part of
The DNA of the CFO series.
Hanne Jesca Bax, EY EMEIA
Managing Partner Markets & Accounts, says:
"The CFO role, like many other roles, is at a turning point. As
finance organizations face a more connected, globalized and heavily
scrutinized future, tomorrow's finance leaders need to think
strategically about the know-how and experiences they will need to
succeed in the future. Only those who will be quick and versatile
in adapting the profiles, experiences and skills to the strategy,
culture and maturity of a particular business or industry will have
access to finance leadership roles."
Developing the next-generation of CFOs
Finance leaders will increasingly be characterized by more
right-brain attributes — such as empathy, innovation and
imagination — that will help them inspire and generate loyalty,
according to the study. Communication styles will also need to
change to become highly adaptive. Digital channels and formats —
from tweets to blogs and beyond — will be important elements of the
CFO's communication toolkit to reach internal and external
stakeholders effectively. Measuring performance against purpose
will also increasingly become part of the CFO role, as
organizations look to demonstrate to internal and external
stakeholders the impact of purpose-led organizations.
Defining a career path that encompasses a wide range of
experiences and roles to build capability in key areas in addition
to finance will be a key success for the future CFO, according to
the study. CFOs interviewed identified key initiatives to enable
the development of next-generation finance leaders. Offering
emerging leaders the opportunity to lead a major transformation
project has been recognized as the top initiative for developing
the next-generation of CFOs by almost half of respondents (42%).
Mentoring and coaching from group CFO or other senior finance
executives (38%) and making talent development a key performance
indicator for CFOs (38%) were cited among the key initiatives by
respondents.
When looking at the breadth of skills, abilities such as
"strategy design and planning" and "commercial experience and
understanding of the drivers of business value", emerged among the
top three elements in equipping future finance leaders to
transition to the CFO role, being cited as "critical" by the 47%
and the 43% of respondents interviewed respectively. These new
skills exceeded other more traditional skills associated to finance
leaders, such as a breadth of core finance skills, from control to
tax and audit.
Fast-forwarding female finance leaders
As the DNA of the CFO changes, so too will its gender makeup.
According to two-thirds (66%) of the finance leaders surveyed,
organizations will need to recruit from diverse pools of talent to
find the next-generation of finance leaders.
More than half of female respondents (57%) and almost half of
male respondents (49%) believe that not enough female future
finance leaders are emerging; according to 62% of the respondents
"visibility for women leaders who can act as role models for more
junior employees" is the top strategy to increase appointments of
female finance executives to the CFO position.
Bax says: "Diversity is key to high-performance and when it
comes to the finance function women are still highly outnumbered.
However companies are increasingly becoming aware of the importance
of having a more balanced finance leadership. Creating development
paths will be crucial for making the finance senior leadership
accessible for women. We are optimistic that awareness around the
issue will encourage more future women CFOs."
Notes to editors
About EY
EY is a global leader in assurance, tax, transaction and
advisory services. The insights and quality services we deliver
help build trust and confidence in the capital markets and in
economies the world over. We develop outstanding leaders who team
to deliver on our promises to all of our stakeholders. In so doing,
we play a critical role in building a better working world for our
people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or
more, of the member firms of Ernst & Young Global Limited, each
of which is a separate legal entity. Ernst & Young Global
Limited, a UK company limited by guarantee, does not provide
services to clients. For more information about our organization,
please visit ey.com.
This news release has been issued by EYGM Limited, a member of
the global EY organization that also does not provide any services
to clients.
About the survey
The DNA of the CFO series surveyed 769 finance leaders
across the Americas, Europe, the
Middle East and Asia-Pacific from December 2015 to February
2016, and conducted one-on-one interviews with 22 CFOs.
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SOURCE EY