Technology has evolved by leaps and bounds over the past few decades, and it continues to move forward at light speed. It’s an exciting time, as changes in how we do business quickly become dated or obsolete, and are replaced by newer approaches that help us do our work more efficiently and effectively, and in many cases saving considerable time and money.
As these changes have continued to take place, it’s been interesting to observe how the role of the Chief Financial Officer has evolved. Having spent more than two decades in the financial industry, I’ve watched and experienced firsthand how today’s CFO, as well as other financial professionals, work far differently than we did even 10 years ago. New technology has completely redefined what constitutes a “typical day” for the financial leader. From blockchain and fintech, to real-time data and beyond, it’s a brave new world. Fortunately, many financial organizations are realizing the need to stay current with processes and practices. That’s not only smart, but it’s also crucial if they’re going to continue to survive and compete into even the near future. On the other hand, some in our industry have been a little slower to jump on board. This is a problem because being even a little behind the curve could present real problems for them and place them at a competitive disadvantage. So here’s the deal: CFOs will need to acclimate to changes or risk falling behind. As an example, we already see how rapidly automation is beginning to replace human capital, and how artificial intelligence (AI) has been making its presence known and felt (even in our homes!) The CFO of the 2020s needs to stay aware of, understand and ultimately embrace these changes. Now. This means that financial leaders will need to adapt to learning new programming, analytical, communication, and other skills relevant to their positions. Because the CFO is expected to play an integral role in the company’s success, the modern CFO must be able to master a number of new tasks and processes so he or she can continue to facilitate business development. Their company’s shareholders are depending on them. I mentioned the importance of developing strong communication skills. These are absolutely key, as part of a CFO’s job is to convey vital information to a number of constituencies including the CEO, executive team, possibly clients, and even board members. It’s easy to perceive the CFO as a bean counter huddled over his or her adding machine, but today’s CFO is far, far away from that archaic stereotype. No, today’s CFO has a much higher profile and more visible role in the corporate hierarchy, and it’s now necessary for him or her to relay complex information to current customers and potential prospects. The CFO is also expected to guide business decisions with a more reasoned approach, backed by hard data, than ever before. The company’s financial priorities have shifted from addressing departmental needs to taking a wider, and much more educated, view of what will most effectively serve the company as a whole. Lest you think I’m only talking about the CFO’s new role, I’m not. The new paradigm means increased demands on the company’s entire finance function. It’s a given that CFOs can’t accomplish these tasks by themselves, so the truly smart ones will, out of necessity, surround themselves with a talented team and make developing and mentoring them a top priority. Technology has certainly brought forth new challenges, but it has also allowed the CFO and other financial leaders to move away from mundane day-to-day tasks needed to keep a business running and to take on a more diverse role. Today’s (and tomorrow’s) CFOs need to have a range of skills that are vital for future growth and success. |
Robert MortonToronto Executive and Principal at RLM Consulting Archives
January 2020
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