FTI Consulting Survey: New World for CFOs Includes Shorter Tenure, Increased Responsibilities and Evolving Workforce Dynamics
In a survey of corporate finance executives, nearly half of the respondents expect the CFO at their company to have a tenure of less than five years. This points to increased job options for CFOs, but also potentially having less time to deliver high-impact value in their roles.
“This year’s survey results aligns to what we’re hearing from our CFO clients,” said
The survey unveiled six other key insights about CFO priorities over the next year:
- CFOs are optimizing workforce models and redefining office spaces. The survey respondents indicate that some remote workers will return to the office, with 59% anticipating a hybrid work model and 23% expecting to return to the office full time.
- A finance talent shortage is causing CFOs to be more interested in outsourcing models for the back office, with the goal of better managing business volatility and having readily available talent at lower and more variable costs. Experience with working in a hybrid model for more than a year has made adoption for many, including mid-size organizations, less daunting.
- Companies have significantly increased the adoption of cloud-based systems, with remote work triggering a reexamination of data security and cost mitigation. The survey showed that 67% of finance functions have implemented or are using cloud-based general ledgers, and enterprise resource planning (“ERP”) and enterprise performance management (“EPM”) systems are also shifting to the cloud.
- Delivering real-time insights persists as a significant financial planning and analysis (“FP&A”) gap. Nearly all (95%) of the survey respondents strongly agree their CFO and finance functions perform accurate, real-time planning, reporting and data analysis. Yet nearly 30% of CFOs say delivering real-time information to make business decisions is a critical priority, and 50% say developing predictive analytics capabilities is a high priority.
- Cybersecurity has moved up the CFO priority list. More than 70% of the surveyed finance executives are involved in their organization’s incident response plan. In third-party supplier risk, one of the highest areas of cybersecurity focus for CFOs, respondents showed that they are proactively implementing cyber risk-mitigation processes, as 76% of respondents assess cybersecurity risks of third-party suppliers during procurement.
- CFOs are increasingly considering environmental, social and governance (“ESG”) initiatives. More than half (57%) of respondents noted that establishing and making progress toward ESG objectives was of “high” importance, with 18.9% noting it as being of “critical” importance. Top challenges and concerns were measuring return on investment for ESG initiatives, as well as sourcing, warehousing, analyzing and visualizing underlying ESG data.
“As we’ve witnessed the CFO role pivot to be an enterprise value creator, expectations have heightened to also be a change leader that must achieve lofty financial performance goals,” said
Read the complete survey report, It’s A
555 12th Street NW
Source: FTI Consulting, Inc.