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Today’s businesses face rapid economic, technological and social changes. CFOs need to provide decision support that will help their organizations outmaneuver competition whilst managing risk, volatility and uncertainty. The pace of risk and the degree of risk is unparalleled and will only increase and this creates tremendous opportunities for organizations. Ash will share what the American Institute of CPAs and their Joint Venture partners the Chartered Institute of Management Accountants are hearing from Finance Leaders around the world as to how the Finance is evolving and how the CFOs of the future are preparing themselves and their teams – not just to navigate but to actually help steer their organizations to create sustainable value. Speaker: Ash Noah, VP, External Relations — Management Accounting, AICPA Presentation delivered at ProformaTECH 2014 - http://www.proformatech.com Track: xxx | Session: yyy
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CFOThe Chief Future Officer?Ash Noah CPA, FCMA, CGMA
VP External Relations, Management Accounting, American Institute of CPAs
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The future business paradigm?
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Of Global CFOs do not believe that the ‘CFO’ title adequately covers the diversity in the
role
Chief Future Officer?
Finance Forte Survey 2011 Ernst & Young
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Report the ability to find the right skills is progressively more difficult the higher the
roles are within the organization
Chief Future Officer?
Plugging the skills gap 2012EIU
68%
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Chief Future Officer?
Turning the Tide; Accenture
40%
Reported high-end analytical skills as being
the future success of their organization
But only
15% Of those have these skills available
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6 Talent Pipeline Draining Growth 2012CGMA
Developer of talent pipeline
Of c-suite respondents agreed that the ability to attract, retain and deploy the right talent is ‘the’ main competitive advantage
over a
third
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Measures and focuses on non-financial value
Rebooting Business - 2012 CGMA
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Recognizes value in non-financial measures*
* Extent of value provided - % of respondents selecting 8-10 on a scale of 10.
Rebooting Business - 2012 CGMA
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Big Data enabled
From insight to impact - 2013 CGMA
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Big Data enabled finance
• A minority (23%) report no role in anlaytics
• Another minority (21%) claim a leading role
• A 55% majority say finance partners with others (55% = 37% + 9% + 9%)
• Interviews agree on a collaborative role
From insight to impact - 2013 CGMA
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Overcoming impediments to harnessing Big Data
From insight to impact - 2013 CGMA
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Big Data – the role of finance
From insight to impact - 2013 CGMA
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Five traits of the data enabled CFO
Able to identify which data points
are useful in understanding what drives the business.
Have a clear sense of what customers care about most,
and ideas about how to track this.
Embrace new forms of data, and
incorporating this into business
decision-making.
Comfortable with uncertainty,
including the reality that big data may
not provide definitive answers.
Explore new ways to interpret data to
better inform management.
From insight to impact - 2013 CGMA
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Turns data to insights to action
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Shared Service Centers
Technology SCALE BENEFITS
Focus on Process and Technology
Finance function has delivered scale benefits
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INCREASED INSIGHTS
BUSINESS SUPPORT
REAL BUSINESS BENEFITS
Focus on People and Products
The future is about delivering value
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The catalyst for Innovation
Garners C-suite support for innovationPromotes a culture of innovation permeating the whole company, not just
R&DDevices employee incentives to both encourage innovation and innovative
cultureCFOs drive for predictability and reliability - an obstacle to innovationFlexibility and tolerance of failure are necessaryFinancial processes and metrics need to be aligned with innovation lifecycleLearns to ‘live with ambiguity’
Managing Innovation- 2013 CGMA
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The innovation imperative
Average tenure of a company in the S&P500 has fallen to 18 years from 61 years in 1950s
Managing Innovation- 2013 CGMA
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Leading innovation and managing risk
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Chief Future Officer?
Leading through Connections: IBM
75%
Collaborative67%Communicative
% of CEOs that identified these skills as CRITICAL for future success
61%
Creativity
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Chief Future Officer?
Turning the Tide; Accenture
52%
Report international skills as being critical for the future success of their
organization
But only
18%Of those have these skills available
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Of the global respondents identified ‘strategic vision’ as the hardest skill to find
for executive roles within their organizations
Chief Future Officer?
Plugging the skills gap 2012EIU
55%
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CFO of the Future Will Create Strategic Impact
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Striking the Right Balance
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CFO of the Future Builds Business Capabilities
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Importance of Various Skills for Finance – As Rated By Non-finance Personnel
The inside track ; Partnering for value- 2012 CGMA
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Skills Most in Need of Improvement by Finance Personnel
The inside track ; Partnering for value- 2012 CGMA
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Collaboration and Decision Support
The inside track ; Partnering for value- 2012 CGMA
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IBMs Chief Future Officer
SOURCE: IBM Institute for Business Value, The New Value Integrator: Insights from the
Global Chief Financial Officer Study
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Collaboration and decision support
SOURCE: IBM – The New CFO: Chief Future Officer
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Applying principles to management process & practice
SOURCE: CIMA- Building World Class Businesses
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FURTHER READING
http://www.cgma.org/Pages/default.aspx?token=d34b4679-bbb6-4f45-8ca0-ceb79ee5f318
http://www.cgma.org/Resources/Reports/DownloadableDocuments/CGMA-managing_innovation.pdf
http://www.cgma.org/Resources/Reports/DownloadableDocuments/inside-track.pdf
http://www.cgma.org/Resources/Reports/DownloadableDocuments/CGMA_launch_report.pdf
http://www.cgma.org/Resources/Reports/DownloadableDocuments/From_insight_to_impact-unlocking_the_opportunities_in_big_data.pdf
http://www.cgma.org/Resources/Reports/DownloadableDocuments/CGMA_Talent_pipeline_report.pdf
http://www.cgma.org/Resources/Reports/Pages/building-world-class-businesses.aspx
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Q&A