1. Hoggett Bowers Executive Search and Interim Management
For further information, please contact Karen Wilson or David Sayers
on +44 (0)207 964 9100 or at leaders@hoggett-bowers.com
www.hoggett-bowers.com
2014
Page 1 of 2
The Changing Role of the CFO
by David Sayers, Head of CFO Practice
The shape of business has changed
dramatically in the last twenty years.
Business models have shifted; the way we
communicate has evolved; most corners of
the globe are now accessible with global
businesses’ thriving. We have seen
business models of small, medium and large
organisations shifting with the relevant
changes in leadership. In some industries,
roles are created regularly to address new
ways of working—Chief Listening Officer,
Chief People Officer, Chief Privacy Officer
and all manner of Chief evangelists. But
Forbes reports that: “The only C’s with
“real” power are the Chief Executive
Officer, the Chief Financial Officer and,
occasionally, the Chief Operating Officer”.
And, actually, as the CFO roles evolve—they
are becoming more accountable, more
important and more powerful. So what has
changed and from where do these
proverbial fresh faced CFOs hail—and are
they in your organisation ready for the
challenge?
The Four Faces of the CFO
According to Deloitte in their paper Four
Faces of the CFO, today’s CFOs are expected
to play four diverse and challenging roles,
making their job more complex than ever.
They report that the CFO is under greater
scrutiny—internally and externally enduring
the never-ending pressure to cut costs,
grow revenue and ensure control. They
must be a catalyst, strategist, steward,
operator and potentially the CEO designate.
Deloitte affirms that this is being driven by
economic uncertainty, increased regulatory
requirements, financial restatements and
increased investor scrutiny, which has
forced the CFO into the spotlight. This has
also facilitated the drive to ready the CFO to
succeed the CEO.
McKinsey also believes that the CFO has
four distinct profiles: The Finance Expert,
The Generalist, The Performance Leader
and The Growth Champion. McKinsey
learned through its research, however, that
not every CFO embodies all of these
attributes. Which profile suits your
organisation best will depend on your
industry, your company’s history and the
demands of your investors.
Research also confirms that the Big 5
consulting firms (i.e., Accenture, Deloitte,
Ernst & Young, KPMG and PwC) all agree
that the CFO has become a strategy
stakeholder and business leader.
Some also believe that the CFO has as much
importance and power as the CEO, and
must be more versatile. According to the
ACCA, effective leadership in today’s
finance function requires significant
breadth of skills. EY reported that ‘although
controls remain critical, today’s CFO must
The duties of a modern CFO now
straddle the traditional areas of
financial stewardship and the
more progressive areas of
strategic and business leadership

2. Hoggett Bowers Executive Search and Interim Management
For further information, please contact Karen Wilson or David Sayers
on +44 (0)207 964 9100 or at leaders@hoggett-bowers.com
www.hoggett-bowers.com
2014
Page 2 of 2
provide not only financial planning and
analysis, but information about where the
business is going and how quickly it is
getting there.’ In an article written at the
end of last year Top Finance Professionals
told its readers “the CFO of tomorrow
should be a big picture thinker, outspoken
and able to make collaborative rather than
unilateral decisions.” What is interesting,
too, is that Deloitte reported in The Wall
Street Journal earlier this year that the CFO
can and should support the HR function to
ensure better talent analytics, as well as
showcase ways in which HR leadership can
be ‘more like the CFO’ with their strategic
prowess. So, not only are CFOs becoming
more powerful, they are a positive example
of leadership in other areas of the business
too. The CFO is no longer just a risk
manager but is being engaged to make
choices on behalf of the company—
decisions, which were traditionally the
exclusive domain of the CEO.
Talent Management
The multiple talents expected of the
contemporary CFO cannot be invented but
must evolve from all that is traditional.
CFOs cannot simply change or replace
attributes for others—they must retain the
qualities of the traditional CFO while honing
new skills and talents that affect business
change and forward motion. Crucially,
today’s CFOs must also have relevant skills
unique to their company and sector. They
must influence the development of talent
throughout the finance function.
ACCA conducted surveys in 2012 and 2013
interviewing global finance leaders to
understand the impact of the survey’s
findings.
The conclusion is talent management
attraction is essential if the finance function
is to meet its aspiration as a valued strategic
partner to the organisation moving forward.
What next?
Businesses need to be honest and ask
themselves—is our CFO up to this
challenge? Are they skilled and engaged
beyond the traditional remit and can they
ultimately lead the organisation? If the CEO
and Chair are unable to affirm confidently
that this is the case, the business will be
jeopardised if no action is taken. But what
are the first steps? Leadership review is
essential and ensuring that you are
engaging a skilled practitioner with a deep
understanding, of the intricacies of the ever
evolving CFO role, for both present and
future.
In a report released by McKinsey,
88 percent of 164 CFOs surveyed
reported that CEO’s expect them to
be more active participants in
shaping the strategy of their
organisations
“The work that many (CFOs)
have already completed has given
them a platform to drive change
across the whole business”
according to Accenture