Australian finance leaders believe that a new breed of CFO is needed to keep up with the rapidly evolving business landscape, according to a new study by Sage.
The global study, called The Redefined CFO, surveyed close to 2,000 respondents and found that CFOs are increasingly taking a more holistic approach to finance leadership, with a reliance on data to engage with the wider strategic priorities of their organisations.
In Australia, CFOs reported seeing increased responsibilities over the last 12 months in identifying strategy and future planning (80%); digital transformation (80%); and diversity, equity, and inclusion initiatives (78%).
Among their key concerns, Australian CFOs identified the following as their top three priorities: integrating emerging technologies such as AI and machine learning (15%); the upgrade of software and technology solutions to drive digitalisation (14%); and hiring new talent (14%).
“Financial leadership today is the most diverse it has ever been,” said Jonathan Howell, chief financial officer at Sage. “As they evolve, CFOs must blend attributes that allow them to engage in cross-functional decision-making, operate with purpose and future-proof their organisations.”
The Sage report also found that finance teams prioritise technology skills over financial experience in recruitment, impacting the hunt for new skills.
CFOs identified the ability to respond and integrate new and emerging technologies as the most significant issue holding their organisation back, with these technologies perceived to be a crucial part of creating or maintaining a competitive advantage (44%); financial forecasting (42%); and business-wide trend forecasting (41%).
Furthermore, 38% of CFOs said they were looking for professionals with financial expertise but plan to train them on using big data or AI, and 34% said they are seeking those with coding experience.
“CFOs now have a bigger seat at the table, and increasingly, we are seeing that they are owning a lot of the organisation’s technology journey,” said Justus Siage CPA, solutions engineering manager at Sage Australia. “They have very specialised skills in financial modelling and return-on-investment (ROI) analysis, compared to other areas of the business.”
“Generally speaking, organisations are seeking modern CFOs who are more conversant with technology,” added Pezh Moradi, chief operating officer at McArthur. “From numbers and reporting, we are seeing a movement to CFOs being more tech-savvy. And with technology taking away a lot of the administrative burden of CFOs, they are able to build on softer skills such as leadership and coaching, focus more on hard skills such as business intelligence (BI), as well as the various personas highlighted in the Sage study.”
The study also highlighted how organisations have been prioritising people and empathy in business decisions, with 76% of financial decision-makers placing purpose over profits.
In particular, 45% of Australian CFOs said they aspire to be Chief Fairness Officers, focusing on nurturing their organisation’s employees and fostering empathy. Eighty-five per cent (85%) had likewise expressed ambitions to become CEO of their organisation, with 58% feeling that CFOs could perform the job of CEOs.
