Skip to main content

‘Expectations for CFOs are accelerating’, new report by ACCA & IMA finds


Findings of “The CFO of the Future” report show that the global pandemic is changing the role of the CFO

 

A report by ACCA (the Association of Chartered Certified Accountants) and IMA® (Institute of Management Accountants) finds the COVID-19 pandemic is accelerating the shifting of the CFO role.

 

The CFO of the Future report, with data from global surveys and virtual roundtable discussions, shows that the CFO role is continuing to evolve with additional responsibilities and that the global pandemic has brought these changes on faster than expected.

 

To evaluate the extent of this evolution, IMA and ACCA developed six hypotheses for participants to consider for their organisations’ CFO roles:

 

·       The CFO will become predominantly focused on stakeholder and investor management rather than safeguarding and reporting

·       The CFO will have a leading responsibility for business strategy formulation, validation, and execution

·       The focus of the role is shifting from principally historic-based cost control to growth optimisation

·       The role will encompass measurement of all aspects of the strategic objectives of the organisations

·       The CFO will provide the greatest value to the organisation through forward insight rather than retrospective reporting

·       CFOs will increasingly have the CEO role as the next progression in their career development

 

‘The events of the past few months have changed several finance and accounting fundamentals and will continue to do so, especially as it relates to the CFO role, said Raef Lawson, Ph.D., CMA, CPA, IMA vice president of research and policy. ‘Our research concluded that CFOs are no longer viewed solely as finance leaders. They are being looked to for governance and risk management, business change, business resilience, and technology advancement.’

 

The survey respondents, 1,152 ACCA and IMA members, as well as global roundtable participants that included CFOs and CEOs, saw most of the hypotheses already enacted. Respondents most strongly agreed with the hypothesis that CFOs will play an increasingly important role in strategy execution. The least supported hypothesis was the career progression of the CFO towards a CEO role; however, most felt that this trend would increase.

 

 

Additionally, 72 percent of respondents felt that the role of the CFO will either “increase or increase significantly” in importance over the next three to five years. With this increased responsibility, finance and accounting executives must focus on building a talent pipeline in their organisations that can satisfy the needs of the future.

 

‘Our CFOs of today are strategic and forward-looking, and no longer limited by their organisation’s financial agenda,” said Clive Webb, ACCA head of business management.

“They have broad agendas and are contributing to their organisations in ways that we identified back in 2012, even during this global pandemic. Our CFOs are more well-rounded than ever and will continue to enhance their skillsets as many take on more responsibility and possibly become CEOs in the future.’

 

Other key findings in the report include:

 

·       82 percent of CEO respondents felt that the role of CFO would increase or significantly increase in importance

·       78 percent of respondents assessed that the ethical lens was a differentiating factor for the CFO in comparison to other executives

·       68 percent of CEO respondents felt that people highly value the strategic insights of CFOs

Comments

Post a Comment

Popular posts from this blog

Peshawar Zalmi Releases "Zalmi Raalal" Official Anthem Powered by TCL

             TCL, Pakistan's No.1 LED TV Brand, in collaboration with Peshawar Zalmi, has released their most awaited anthem for PSL 8, " Zalmi Raalal ". Directed by the maestro Hassan Dawar himself, "Zalmi Raalal" is a star-studded, power-packed amalgamation of music, fashion, and sports, the three foremost passion points of Peshawar Zalmi. Produced by Naughty Boy, who has worked in the global music industry with the likes of Beyoncé, Wiz Khalifa, and Sam Smith, the music video features cricket's biggest superstars Darren Sammy and Babar Azam, as well as Pakistan's biggest celebrities Mahira Khan and Hamza Ali Abbasi. Peshawar Zalmi's official anthem for 2023, "Zalmi Raalal", is an ode to passion, a story entailing the beauty and power of the KP region and its people. The anthem has crossed one million views on all online platforms since its release, and the number is increasing fast.   The star-studded and narrative-centric anthem feature...
Post a Comment
Read more

Alibaba.com Hosts First Lahore Seller Summit

            Alibaba.com, a leading platform for global business-to-business (B2B) trade, today hosted its first seller summit in Lahore to highlight export opportunities available to local businesses in the e-commerce space. Titled “Go Export with Alibaba.com”, the event brought together existing and potential exporters in Lahore to offer tips and advice on how to start and grow an online export business. It is the first event of its type held by Alibaba.com in Lahore, signifying the platform’s enhanced efforts to support suppliers in the region and increase the city’s visibility as an online supplier base. Various experts in the export and e-commerce fields took part as speakers in the event, including   Mr Sheharyar Tahir , Head of External Relations of SMEDA, and  Mr Mian Rehman Aziz , Senior Vice President of Lahore Chamber of Commerce & Industries, who shed light on government support and infrastructure available to assist exporters ...
Post a Comment
Read more

A Look Back on the Spectacular Lineup of realme’s 828 Fan Fest Activities

             realme, as the most prominent brand of Gen Z, had a remarkable month of August, in which it held a plethora of activities for its fans and in return received an overwhelmingly good response for the brand. The purpose behind such activities was to inform the core values of realme and to provide the fans with a better insight into the defining spirit of realme which is to Dare to Leap, be adventurous, and break ground where others have not tread before. Moreover, through these events, it has ensured how it is different from its competitors. Fans are the backbone of any good brand as they are the ones who provide consistent support to the brand’s new endeavors. It is for this reason that it is very important for brands to cultivate a strong fan community much like realme does. The end goal for realme with all of its 828 Fan Fest celebrations was to bring something unique and exciting for the fans and through such activities develop a deeper s...
Post a Comment
Read more