As the pace of business reinvention accelerates, finance is under pressure to reassess its role and relevance within the wider enterprise. Forward-looking Chief Financial Officers (CFOs) are adopting a transformative new vision for the next decade.
In a new report with the ACCA and Chartered Accountants ANZ we take a deep dive into the future of the finance function. The report is based on personal insights from 150 global finance leaders and 2,300 responses to a global survey, examining emerging trends and making recommendations for CFOs to consider in preparing their teams for the future.
At the heart of this shift is the emergence of the CFO as the Chief Value Officer; leading with change rather than playing a supporting role; understanding the fast-evolving levers of value; providing proactive and predictive insights to the business.
Read the report - Finance Evolution: Thriving in the next decade
Foundations for reinvention
A critical component of building the future finance function lies in getting the foundations right. That means having the right processes and controls in place, embracing the opportunities presented by AI and machine learning, leveraging trusted data to provide proactive and forward-thinking insights and – critically – building an adaptive workforce with the right skills and capabilities.
Simon Seymour, Partner, PwC UK
Finance Evolution
Learn how CFOs can thrive in the next decade
Five ways to get fit for the future
Disruption, change, uncertainty and risk – these are the watchwords of the new normal facing CFOs and their businesses. But rather than waiting for the calm that may never come, successful CFOs are taking action now to equip their businesses for these challenging conditions and create long-term, sustainable value.
How are they making a difference? We see five leadership positions which you can take to help accelerate your reinvention.
George Markellos, Director, PwC UK
- Lead with value
- Lead with performance
- Lead with data
- Lead with tech-powered processes
- Lead with change
Lead with value
Over a third of respondents (38%) view the main barrier to enhancing the finance function as a 'lack of understanding of where finance can add value.'
This is where we see the emergence of the CFO as the Chief Value Officer – an orchestrator of value creation and preservation - and a shift in the role towards broader outcomes.
Ultimately, it’s about delivering sustainable value to stakeholders - at a time when there is greater conflict between priorities and organisations are grappling with rising capital costs, the increased speed of innovation and new competitive threats.
Lead with performance
68% of respondents think that the generation of business insights will increase over the next three to five years.
Trustworthy and high quality information will become more critical than ever, but an abundance of poor and conflicting information will just limit visibility of what matters most.
Finance can take a leadership position on identifying who owns critical decisions, the information they need and how this powers the business.
Lead with data
Almost 70% of respondents think that GenAI will improve data mining and analysis over the next three to five years.
Poor data will erode trust and create conflict. Not all data has equivalent value and there is a need to define and protect the golden data sources which underpin trust most.
Sustainability is just one example; expect business leaders, Tax authorities, governments and society to all demand more. Finance can take a lead position, ensuring there is governance, control and accountability in maintaining data quality, moving to more continuous policy compliance and anomaly detection to ‘nudge’ the business to a right-first-time approach.
Lead with tech-powered processes
While only 30% of survey respondents consider their core applications (e.g. ERP, finance, sales and procurement) as integrated right now, this will double to over 60% in three to five years.
It’s critical to take an enterprise wide, business lens on technology to ensure it supports how the business works, not just creating a new source of technical debt.
We will see the pace of technological innovation only increase (GenAI, Cloud and analytics) and this needs a strong business process foundation to build on.
Lead with change
45% of global CEOs believe their company won’t be viable in ten years if it stays on its current path.
Leadership is key, but change can’t be entirely top-down. Organisations and people share the accountability for skills development in a way which elevates the organisation as a whole.
Identifying the right people and engaging your teams with meaningful experiences to build a momentum that lasts is key. Be prepared to look for talent beyond traditional channels and across generations.
“We are starting to see a shifting expectation around where the finance function must play a very distinct role in driving and modernising the business. We need to have a bigger picture of the macroeconomic indicators, the internal complexities and as finance we bring everything together.”
CFO from Southern Africa
By Leigh Bates and Trishia Ani
Guardians of responsible AI
Trust is critical in unlocking the full potential of AI. As a CFO, you’re ideally positioned to instil confidence in AI models and ensure they’re used ethically and responsibly. From embedding risk awareness within your organisation to evaluating the real return on investment, how can you take the lead in building trust in AI?
By Ben Clarke
Next-gen finance business partnering
From automating routine activities to analysing vast and diverse datasets, AI can help power the reinvention of finance business partnering. How can you make the most of its potential?
By Carolyn Cole and Max Young
Seeing ahead: Reimagining commercial finance
In an intensely disruptive business environment the past is an increasingly poor guide to the future. The role of Commercial Finance must pivot to refocus on analysing emerging risks and opportunities and guiding key strategic decisions. So what does the future look like?
By Roz Burke and Katherine Bell
Workforce transformation: Making the most of AI
The skill sets and ways of working within tax and wider finance teams are evolving at pace. How can you get up to speed?
Contact us
Simon Seymour
Eminence and Innovation Leader, Finance and Business Transformation, Partner, PwC United Kingdom
Tel: +44 (0)7725 706220
