The CFO As Change Manager: Mastering The 21st Century Finance Role

At the same time as CFOs within the 2020s are grappling with a bunch of comparatively latest new points and duties, from sustainable enterprise to digital transformation, they’re additionally having to be taught a deeper and broader reality: they aren’t the finance leaders that they initially have been. The expectations of finance leaders have advanced virtually past recognition over the previous couple many years, requiring a shift in considering moderately than only a new set of expertise. I lately spoke about this with Robert Bendetti, CFO of Life Cycle Engineering and founding father of the International CFO Council, which helps CFOs share knowledge on tips on how to method – and grasp – their 21^st century roles.

Jeff Thomson: As CFO of Life Cycle Engineering, you might be accountable for all monetary operations of the corporate in addition to accounting, finance, contracts, buying, safety, amenities, course of automation and IT. More and more, the CFO is anticipated to have at the least some function in all these areas, however this requires that extra conventional finance leaders adapt and upskill. How have you ever seen the CFO function evolve and diversify over your profession and the way did you evolve together with it? What are your insights for different CFOs?

Robert Bendetti: Once I graduated from school, the CFO function was targeted on transactions and the previous. Now the CFO function is targeted on transformation and the longer term. We’re “Chief Future Officers.” To achieve success going ahead, CFOs should be agile change administration specialists. Certifications just like the CMA [Certified Management Accountant], and coaching in Lean Six Sigma, will help enhance your effectiveness and speed up your profession. However, to dramatically enhance the effectiveness of your change administration initiatives, you need to develop into a grasp within the folks aspect of change.

I’ve discovered success utilizing the ADKAR mannequin developed by Prosci as an enabling framework for managing the folks aspect of change. ADKAR stands for Consciousness, Need, Information, Skill, and Reinforcement:

A – Consciousness of the necessity for change.

D – Need to take part and help the change.

Okay – Information of tips on how to change.

A – Skill to implement desired expertise and behaviors.

R – Reinforcement to maintain the change.

We should help folks within the group by means of their transitions from the present state to the longer term state, and perceive what is required to affect every particular person to embrace and undertake the change. On this method, organizations can considerably enhance the possibilities of venture success and their venture investments paying off.

Thomson: Course of automation and IT are of specific significance to the finance perform, given tendencies towards automating lower-level finance duties and the elevated significance of understanding tech points for finance leaders. What are crucial expertise focus areas for future finance and accounting professionals? How ought to accounting packages and departments higher put together employees for these tech tendencies?

Bendetti: All companies have gotten digital companies and CFOs want to remain on the reducing fringe of expertise. Two areas of non-public curiosity to me are knowledge analytics and course of automation. I’m within the early levels of my private journey to develop into a power-user of instruments like Energy BI, Tableau and Amazon QuickSight. However, I’m very excited with the facility of those instruments to investigate, visualize, extract, and share to drive leads to actual time.

I’m additionally fascinated with course of automation and the influence I’ve seen over the previous 20 years. Company operations (accounting, HR, buying, and so on.) are virtually unrecognizable from once I began. Course of automation, robotic course of automation, synthetic intelligence and machine studying are revolutionizing enterprise. However it is very important do not forget that Peter Drucker famously stated, “there’s nothing so ineffective as doing effectively that which shouldn’t be accomplished in any respect.” Don’t use RPA [to] automate a job that shouldn’t be accomplished. Use the principals of Lean Six Sigma to scale back waste and variance; then automate what stays.

Thomson: With a lot change and disruption, it’s extra vital than ever that CFOs work collaboratively on sharing perception and expertise. That’s why along with being CFO of Life Cycle Engineering, you might be additionally founding father of the International CFO Council. What led you to provide again to the finance occupation on this method? What are the advantages for CFOs of networking and perception sharing?

Bendetti: The International CFO Council is an academic and networking discussion board for senior monetary executives. The aim of the International CFO Council is to supply an academic and networking discussion board for Senior Monetary Executives (SFEs) to share greatest practices, to debate present monetary points and to study present matters associated to the efficiency of their jobs. Membership inside the International CFO Council is [SFEs] together with CFO’s, Controllers, Finance VPs and Treasurers. I began this a few years in the past and we now have 1,500 members in 30 international locations.

I take into account myself a lifelong learner. I really like studying new issues and assembly new folks. The in-person and digital conferences permit me to community and be taught from trade specialists. Mahatma Gandhi stated “the easiest way to seek out your self is to lose your self within the service of others.” That is one small method I can serve the finance group.