How the CFO can balance competing demands and drive future growth

CFOs should evolve and become inspirational agents for change to drive organizational transformation.

The EY 2020 DNA of the CFO survey explores how the CFO role is being transformed, and the steps finance leaders can take to embrace the disruption, shape their role and build the future finance function. This data insights article offers a deeper look into the data behind the DNA of the CFO survey and lets you explore the perspectives of more than 800 CFOs and senior finance executives, on these issues. 

To look more deeply at how different CFO profiles perceive key aspects of their role and finance priorities, three cohorts were identified as part of the research:

• CFOs who are inspirational people leaders: working seamlessly across the organization and driving the talent and culture agenda in finance (motivational change agents)
• CFOs who are digital leaders: driving bold, cohesive and innovative strategies to accelerate the digitization of finance
• CFOs who are long-term value leaders: leading fundamental change on the measurement and communication of corporate value — from a narrow or short-termism perspective to creating long-term value for multiple stakeholders

The insights in this article have been classified according to these three cohorts to show how the survey respondents who exemplify these three profiles view the long-term future of the CFO role and the finance function, and how their views compare against the overall survey sample. For a more detailed explanation of these groupings, see the “Methodology” section.

The data is grouped under three major themes: 

1. Balancing the competing demands of the CFO  
2. Balancing the need to grow, optimize and protect value 
3. Balancing the potential of talented people with the capabilities of smart machines

Find further information about the EY 2020 DNA of the CFO survey and methodology used to conduct the analysis under “Methodology” at the end of this article. 

1. Balancing the competing demands of the CFO 

The transformation of the CFO role is accelerating as it is disrupted by digital acceleration, increased volatility and intense scrutiny.

Balancing competing demands

Finance leaders may be enthusiastic about the challenges ahead but they should look at how they balance competing demands and reimagine their teams.

Note: this includes only respondents who “strongly agreed” with the statement and does not include those who “agreed”.

Driving the C-suite agenda

Trust is likely to be critical in creating and maintaining effective C-suite relationships, but a significant number of respondents say they do not have a strong partnership with their peers.

Balancing the old and the new

As the adoption of digital technologies continues to accelerate and organizations look to drive business model innovation, CFOs are likely to be increasingly involved in tech-focused mergers and acquisitions (M&As) and ecosystem development.

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2. Balancing the need to grow, optimize and protect value

Growing value

CFOs should look to balance long-term value with demands for short-term results, and drive performance against purpose.

Reinventing corporate reporting

As organizations move toward driving long-term value for multiple stakeholders, they should look at how performance is measured and communicated.

Optimizing value

CFOs are deeply involved in driving enterprise-wide efficiency and effectiveness, including adoption of new technologies such as artificial intelligence (AI).

Protecting value

As CFOs look to protect value, their focus should be on balancing the drive for digital innovation and the ability to manage digital risk.

Finance culture shift

Finance leaders are prioritizing culture change as they see it as a key driver toward their ambitions for the future of the finance function.

Rewiring finance skills

Many finance roles are under significant threat of displacement by automation and AI over the next three years.

Accelerating finance digitization

CFOs should look to accelerate the digitization of finance if they are going to turn data into a competitive advantage.

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