The ability to articulate a clear and compelling story is critical for today's CFOs. Because the CFO's vision must serve as a compass to guide finance teams through the complexity of transformation.
says Miles Corson, global and Americas strategy and market leader for EY's Financial Accounting Advisory Services division, based in New York.
Colson spoke with CFO Leadership about how CFOs can best develop a clearly defined vision so their teams understand the direction and goals of change and can contribute to its success.
How can CFOs best communicate with their finance teams and lead by example during technology transformation?
By proactively adapting to new technology, CFOs demonstrate leadership and set standards for their teams to follow. This not only emphasizes the importance of change, but also encourages team members to adopt a similar mindset.
When CFOs are open to change, they build a culture of openness and adaptability. This is essential to successfully navigating technology transformation within the finance function.
How can a CFO balance short-term financial goals with long-term strategic investment/growth?
The business environment creates tension between the need to achieve short-term financial performance and the need to focus on strategic long-term investment and growth. The challenge lies in bringing about alignment and being able to achieve both at the same time.
CFOs play a critical role in resolving these competing priorities. With a clear understanding of where the business is delivering value, CFOs can facilitate informed decision-making to align immediate performance with future growth.
Short-term goals are important, but they should not be achieved at the expense of necessary investments for the future. We are now seeing increased positivity and increased confidence to make investments that may have previously been put on hold, thereby restoring balance within the organization.
This balanced approach allows CFOs to advocate for strategic alignment so that immediate financial performance complements long-term initiatives and ultimately builds sustainable success.
How do you think the CFO role will evolve over the next 5-10 years, and how can CFOs best prepare their finance teams to take on new challenges?
The role of the CFO continues to evolve, with new technologies and ways of working automating activities that support value protection and value optimization, freeing up more time to focus on value creation.
Disruption is constant, making transformation a continuous journey. CFOs must be ready to embrace innovation and lead their teams through ongoing transitions.
Over the next five to 10 years, this evolution will require CFOs to go beyond managing financial performance to influencing strategic direction, fostering collaboration across the organization, and placing greater emphasis on effective communication skills.
As technology advances, so too does the need for financial professionals to relearn and master new tools. AI is likely to have a significant impact on the nature of work in the finance industry, and finance teams need a deep understanding of the technology.
This is a key opportunity for CFOs to play a pivotal role in mentoring and developing talent, ensuring their teams have the skills they need to succeed in this new environment. To prepare finance teams for these challenges, CFOs should invest in training programs that strengthen both technical skills, such as data analytics and digital tools, and soft skills, such as leadership and communication.
By fostering a culture of continuous learning and adaptability, CFOs can enable their teams to navigate future complexities and drive sustainable growth for their organizations.
What role should the CFO play in developing and implementing a data strategy and governance framework?
CFOs are increasingly positioning themselves as pivotal leaders in the development and implementation of data strategies and governance frameworks, especially in the context of transforming financial analytics in the age of AI. As the financial landscape evolves, CFOs must understand investor requirements and create a compelling and achievable value creation story.
This includes not only overseeing the collection and analysis of financial data, but also ensuring that data governance practices are in place to maintain data integrity.
In this role, the CFO must work with IT and risk and data management teams to establish clear data governance policies that define data ownership, access controls, and usage guidelines.
By building a culture of data-driven decision-making, CFOs can empower their teams and the broader organization to leverage data analytics to gain strategic insights. Ultimately, it helps organizations improve their financial performance and increase long-term value.
CFOs should also seek to advocate for investments in advanced analytical tools and technology that can provide real-time data and reporting to help finance teams make better-informed decisions and respond to rapidly changing market conditions and stakeholder expectations.
