NEW GENERATION OF CFOs ADOPTING A VALUE CENTRIC APPROACH TO WORK, ACCORDING TO NEW STUDY FROM BDO
TORONTO, July 6, 2023 /CNW/ - In a move towards establishing sustainable organizations, today's CFOs are evolving their role beyond finance to include economic, environmental and sustainable equity aspects of their operations. A new report by BDO, the international network of public accounting, tax and advisory firms, and the Association of Chartered Certified Accountants (ACCA), titled Chief value officer – the important evolution of the CFO, reveals how the role of the CFO is shifting to include driving business decisions and reporting on non-financial areas of operations.
"Our research uncovered that CFOs are increasingly adopting a value centric approach to their work, representing an evolution towards a Chief Value Officer (CVO) role," says Barbara Palmegiani, Partner and National CFO Service Leader at BDO Canada. "They are becoming strategic advisors who work closely with their CEO to deliver on organizational goals while simultaneously creating value for stakeholders by looking at a broader view of the business' performance."
More than 100 CFOs and business leaders from around the world, including Canada, took part in roundtables and in-depth interviews to contribute their insights.
To be successful and sustainable, businesses and other organizations increasingly need to combine economic, environmental and social equity in their operations. Using the breadth of drivers (financial, manufactured, intellectual, human, social and relationship, and nature) generates benefit for a wide range of stakeholders. Those that do not leverage these opportunities will face new risks since there is a strong link between value creation and strategy.
With a focus for many organizations on purpose and value, research participants were asked to consider whether there is a trend to asserting the need for a new role of chief value officer and whether this is a role that the CFO is already fulfilling.
Key takeaways from the report include:
- The concept of value is fundamental to the management of performance in organizations and its adoption is a key element in their path to a sustainable future.
- The development path for those aspiring to be CFOs requires an increasingly broad range of experience which embraces both formal and informal learning activities: professional bodies and practices need to engage with this.
- The new definition of value is unique to each organization but must be created and defined by the executive leadership team. The CFO/CVO is instrumental in establishing the metrics through which an organization will measure its success at achieving its defined value.
"Value for an organization no longer refers to an increase of the bottom line alone. It is tied to goals and efforts beyond financial results that are also measured and reported on from an ESG perspective," adds Palmegiani. "We're already seeing many of the CFOs we work with expand their purview from a traditional financial focus to one that considers the interaction and interception of several elements including human capital."
"We already know that CFOs are increasingly acting as strategic leaders and advisers in their organizations," says Helen Brand, ACCA chief executive. "The CFO role is one that has moved significantly from the traditional view, while retaining the core responsibilities. Now there's a real opportunity for them to satisfy the value agenda and evolve the role for the next generation of CFOs."
Author Clive Webb, Head of Business Management at ACCA said: "Creating a sustainable workplace and future is a key priority for all organizations and CFOs have a fundamental role to play in delivering this. The perception of the CFO and the finance team needs to change from being Dr No to Dr How. It is pleasing to see how many finance teams are working towards this agenda".
For more information, read the full report here.
BDO Canada LLP is a leading provider of professional services to clients across a variety of sectors and segments. For over 100 years, our team has served communities across Canada through a comprehensive range of assurance, tax, and consulting services, complemented by deep industry knowledge. With over 5000 people across 100 offices in Canada, and more than 1,800 offices in 164 countries, BDO is well-positioned to assist clients with both domestic and global needs.
BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO member Firms. For more information, visit: www.bdo.ca.
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants.
We're a thriving global community of 241,000 members and 542,000 future members based in 178 countries and regions, who work across a wide range of sectors and industries. We uphold the highest professional and ethical values.
We offer everyone everywhere the opportunity to experience a rewarding career in accountancy, finance and management. Our qualifications and learning opportunities develop strategic business leaders, forward-thinking professionals with the financial, business and digital expertise essential for the creation of sustainable organisations and flourishing societies.
Since 1904, being a force for public good has been embedded in our purpose. In December 2020, we made commitments to the UN Sustainable Development Goals which we are measuring and will report on in our annual integrated report.
We believe that accountancy is a cornerstone profession of society and is vital helping economies, organisations and individuals to grow and prosper. It does this by creating robust trusted financial and business management, combating corruption, ensuring organisations are managed ethically, driving sustainability, and providing rewarding career opportunities.
And through our cutting-edge research, we lead the profession by answering today's questions and preparing for the future. We're a not-for-profit organisation. Find out more at accaglobal.com
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SOURCE BDO Canada LLC
Media Contact: Tara MacPherson, Consultant, Proof Strategies Inc., [email protected], 905-870-1771
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