The 'Chief Future Officer' and the evolving role of the CFO

One thing I love most about my job is the ability to connect, engage, and learn from finance and accounting professionals at conferences like this one, the North American Finance Executives Summit #NAFES24 in Phoenix. Of course many are our members, CPAs & CGMAs but all are interested in helping move the profession forward.

This is the 'wisdom of the crowd' that attended my session titled, "CF Know - Surfing the Waves of Transformation". The session's main premise is that the pace of change and transformation is like waves in the ocean and they are getting bigger and coming faster. Knpwing that we cannot stop or slow down these waves, we have to learn how to surf them or 'ride these big waves of transformation'. The session emphasized the critical importance of mindset, people, and the risk of not investing (RONI) in the context of rapid and inevitable changes within the industry. At the end of my presentation I polled the audience of 100+ participants for their biggest insights and here is what they said on the theme of transformation in the finance sector. Here's a synthesis and summary of the main points:

1. Transformation is Fundamentally About People: A recurring theme across the responses is the central role of people in driving transformation. The success of any change initiative depends largely on the mindset, education, and skill sets of the team. The quotes and sentiments expressed highlight a collective acknowledgment that transformation isn't just a technological or strategic shift but a deeply human-centric process.
2. RONI (Risk of Not Investing) and FOBO (Fear of Better Options): These acronyms capture the dual pressures finance executives face. RONI underscores the peril of failing to invest in necessary changes and upskilling, whereas FOBO reflects the anxiety of making suboptimal choices amidst rapid transformation. Both highlight the need for strategic forward-thinking and a willingness to adapt.
3. Mindset of Team is Critical: The importance of cultivating a strategic, forward-thinking mindset among team members is emphasized repeatedly. A mindset that embraces change, recognizes the inevitability of transformation, and sees beyond immediate challenges is essential for navigating the waves of change effectively.
4. Upskilling and Education are Essential: The results also stress the necessity of continuous learning and skill development. Upskilling the finance team is not just about staying relevant but is critical for harnessing the opportunities that come with transformation.
5. Change is Inevitable; Adaptation is Key: The sentiment "Adapt or expire" encapsulates the urgency and inevitability of change in the finance sector. Embracing change, rather than resisting it, and preparing teams to adapt quickly to external changes are seen as vital strategies for staying ahead.
6. AI and Technology are Tools, Not Panaceas: While acknowledging the role of AI and technology in transformation, there's a clear consensus that these are tools to aid the transformation, not solutions in themselves. The human element—mindset, creativity, and strategic thinking—remains irreplaceable.
7. Finance Roles are Transforming: The evolving nature of finance roles was highlighted, with a recognition that these roles are becoming more strategic, requiring a broader skill set beyond traditional finance skills.
8. The Journey of Transformation is Ongoing: There's an understanding that transformation is a continuous process with no definitive end point. Organizations need to maintain a dynamic approach to transformation, constantly adapting to new challenges and opportunities.
9. Strategic Forward-Thinking Mindset: Success in navigating the waves of transformation is linked to having a strategic mindset that not only anticipates future trends and challenges but also proactively addresses them.
10. It's All About People and Talent: Ultimately, the foundation of any successful transformation is the people and talent within the organization. Ensuring that the team is equipped, motivated, and aligned with the transformation goals is paramount.

In summary, the poll results underscore the critical importance of a people-centric approach to transformation, emphasizing the need for a forward-thinking mindset, continuous upskilling, and strategic investment in change initiatives. The insights reflect a collective awareness among finance executives of the challenges and opportunities presented by the rapidly evolving landscape, with a clear directive to prioritize people, adaptability, and strategic foresight in navigating these changes.

Are you ready? Surf's up!

Tom Hood, CPA, CGMA, CITP is the Executive Vice President of Business Engagement and Growth at the AICPA-CIMA. Tom leads the Future of Finance initiative in the Americas Region bringing together the top CFOs, CAOs, Controllers. Our purpose is to Reimagine the Future of Finance to Power Trust, Opportunity, and Prosperity. Tom is one of LinkedIn's Top 100 Influencers and has been named the Third Most Influential Person in Accounting by Accounting Today.