From CFO to CVO: towards a value-driven organisation

Report by BDO and ACCA sparks debate

A competent CFO is invaluable to an organisation. This financial strategist not only monitors a company’s financial health but also plays a crucial role in making strategic decisions. At the same time, we are also seeing a trend whereby companies appoint a Chief Value Officer (CVO), who focuses more specifically on creating value for stakeholders and society. BDO Global and ACCA asked some 100 opinion leaders in finance to give their views on this fascinating topic.

For this report (“Chief Value Officer - The Important Evolution Of The CFO”), BDO Global and ACCA (the Association of Chartered Certified Accountants) joined forces. ACCA represents more than 240,000 members working with numbers in 178 countries. The 100 respondents represent both large multinationals and start-ups in both the private and public sectors.

They were asked the following two questions:
  • What is value?
  • Is the CFO the appropriate person to measure value in an organisation, or should a separate CVO be appointed for this purpose?

What is value?

“The report shows that the concept of ‘value’ cannot be unambiguously defined,” confirms Dirk Vandendaele, Partner Accounting & Reporting BDO Belgium. Stakeholders of a company or organisation determine for themselves what value can mean. Or, as one of the interviewed CFOs described it: “Value does not necessarily have to be linked to financial figures. It can also be about ethical business practices or contributing to local anchoring. So, the term can take on a number of meanings, depending on who the stakeholder is.”

“In general, you could define value as the extent to which your organisation’s services, products or processes meet the needs and expectations of stakeholders, including customers, investors and employees. That value is achieved through efficiency, quality, innovation and sustainability. The importance of value can hardly be overstated, as it boosts your organisation’s competitiveness, creates loyal customers, attracts investors and motivates employees. In other words, effective value creation is the basis for business success and growth.”

Profound metamorphosis

This study also shows that the role of the CFO is currently undergoing a profound metamorphosis. “In 2023, a CFO is evolving from a number cruncher and ‘finance wizard’ to a strategic advisor who forms a strong tandem with the CEO,” says Dirk. “The CVO embraces a broader perspective, with a shift from purely financial responsibilities to integrating social, environmental and ethical considerations into business decisions. In fact, a CVO aims to create value for all stakeholders - not just shareholders - and is committed to sustainability and social responsibility as an integral part of the business strategy.”

“In the report, a UK CFO described this phenomenon as follows: ‘I think the CFO of the future (…) is going to see himself or herself as an executive in the company, rather than merely the financial conscience of the company’.”

4 zones future finance

CFO and CVO in one position?

How should the role of CVO be integrated in an organisation in practice? Is it appropriate to create a new position for this, or can a CFO adopt this role? In the report, Dirk reads the recommendation to integrate both roles. “This creates unique opportunities to centralise all reporting obligations - financial and non-financial - in one person. A CFO can fulfil this role with reliability and integrity, along with their technical expertise and experience within the organisation.”

Additional skills required

Successfully fulfilling this additional role as CVO requires not only expertise and experience, but also the necessary personal skills. “Mentoring, networking, lifelong-learning and a wide range of professional experiences are all crucial building blocks for acquiring these skills,” says Dirk. “Because, in order to present the value-driven nature of one’s organisation to stakeholders as a CFO, you need to come out extra strong in terms of, for example, negotiation skills, conflict management and stakeholder management. A good ‘in-depth view’ of the organisation’s business model is also hugely important. And through new training paths, you can expand your horizons. One respondent summed it up well: ‘I took an MBA course because my initial accounting qualification was too limited’.”

A CFO and CEO should form a strong tandem, with each complementing the other in terms of content.”
Dirk VandendaelePartner Accounting & Reporting BDO Belgium
Reinforcing the development opportunities

There is significant value in finding a mentor who can assist in developing one’s personal career path. Each career path is unique and many senior finance professionals are very willing to mentor aspiring CFOs. Being part of a network of peers helps one to share experiences and gain fresh insights.

Mentoring


Courses such as MBAs have value in giving understanding of some of the broader operational aspects of organisations. Some of these may be more marketing focused, but there are sufficient synergies between an accountancy qualification and an MBA to make them a sound basis for a CFO role. A CFO commented, ‘I did my MBA because I thought my accounting qualification was too narrowly focused’.

Opleidingen


Undertake relevant continuous learning programmes, not only those focusing upon technical skills, such as those related to sustainability, data and technology, but also embracing the ‘softer’ skills, such as influencing and conflict management as well as persuasion and stakeholder management.

Leren


Seek opportunities for operational experience to gain a deep understanding of the sector, which can be applied in the CFO role. 

Bedrijfsvoering


Where possible, gain international experience because the connectivity of the global economy and the resulting risks heavily influence the work of the CFO.

Internationaal



Experience of crisis management is essential. As a CFO from Argentina commented, ‘you have to learn how to surf in every kind of crisis’.

crisis


Undertake business partnering roles, focusing especially upon the analysis and interpretation phases of stakeholder engagement. A CFO from the US commented that, ‘I preach all the time about this necessary skill, that we have [to be] storytellers. It is not one that you teach in a class, but it is how do you get people with more of those skills because we deal with all the different facets of the organisation, and it all comes back to how do you define value?’

Partnerships


Ensure that your technical accountancy skills remain relevant and avoid the ‘computer says yes’ syndrome. Several CFOs commented that when interviewing candidates for senior roles, they were astounded by those who failed to demonstrate an understanding of the core accounting fundamentals that a qualification inculcates.

Technisch


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