The ability to articulate a clear and compelling story is crucial for CFOs today, as their vision needs to be a guiding compass for the finance team during the complexities of transformation.
So says Myles Corson, EY’s global and Americas strategy and markets leader, financial accounting advisory services, based in New York City.
Corson spoke with CFO Leadership about how CFOs can best develop a well-defined vision to help their team understand the direction and goals of change—and thus contribute to its success.
How can CFOs best communicate with their finance teams and lead by example during technological transformations?
By actively adapting to new technologies, CFOs demonstrate leadership and set a standard for their teams to follow. This not only reinforces the importance of the transformation but also inspires team members to adopt a similar mindset.
When CFOs demonstrate their commitment to embracing change, it builds a culture of openness and adaptability, which is essential for successfully navigating technological transformations within the finance function.
How can CFOs balance short-term financial goals with long-term strategic investments/growth?
The business environment creates tensions between the need to deliver short-term financial performance while also needing to focus on strategic long-term investments and growth. The challenge lies in the ability to bring alignment and deliver both simultaneously.
CFOs play a vital role in navigating these competing priorities. By establishing a clear understanding of where the business is driving value, CFOs can facilitate informed decision-making that seeks to align immediate performance with future growth.
While short-term goals are important, they should not come at the expense of necessary investments for the future. Currently, we are witnessing increased positivity, with increasing confidence to make investments that may have been previously withheld, thereby restoring balance within organizations.
This balanced approach can enable CFOs to advocate for strategic adjustments that ensure immediate financial performance complements long-term initiatives, ultimately building sustainable success.
How do you envision the role of the CFO evolving over the next five to 10 years and how can CFOs best prepare their finance teams to tackle new challenges?
The role of the CFO will continue to evolve, and new technologies and ways of working will enable more time to be focused on value creation as activities supporting value protection and value optimization are automated.
Disruption is a constant and so transformation has become an ongoing 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 not only manage financial performance but also to influence strategic direction and foster collaboration across the organization, putting further importance on effective communication skills.
As technology advances, there will also be an increasing need for finance professionals to reskill and master new tools. AI is likely to have a major impact on the nature of work in finance, necessitating a strong understanding of technology among finance teams.
This presents a significant opportunity for CFOs to take on a pivotal role in mentoring and talent development, ensuring that their teams are equipped with the skills needed to thrive in this new environment. To prepare their finance teams for these challenges, CFOs should invest in training programs that enhance both technical skills, such as data analytics and digital tools, and soft skills, like leadership and communication.
By fostering a culture of continuous learning and adaptability, CFOs can empower their teams to navigate the complexities of the future and drive sustainable growth for the organization.
What role should CFOs play in developing and implementing data strategies and governance frameworks?
CFOs are increasingly positioned as pivotal leaders in developing and implementing data strategies and governance frameworks, particularly in the context of transforming finance analytics in the AI era. As the landscape of finance evolves, CFOs should understand the requirements of investors and create a compelling and achievable value creation narrative.
This can involve not only overseeing the collection and analysis of the financial data, but also making sure that data governance practices are in place to maintain data integrity.
In this role, CFOs should collaborate 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 wider organizations to utilize data analytics for strategic insights. Ultimately helping to enhance the financial performance of the organization and drive long-term value.
CFOs should also look to advocate for investments in advanced analytics tools and technologies that can deliver real-time data and reporting, so that their finance teams can make better informed decisions and respond to rapidly changing market conditions and stakeholder expectations.
