After conducting research on 30,000 job postings and analyzing core competencies for CFOs between 2018 and 2023, Deloitte shared with us what heads of finance are expected to deliver in today’s fast-paced environment to ensure the company remains among the market movers.
The reason behind the research lies in the impact of new technologies, environmental concerns, demographic changes, and geopolitical shifts.
Technology Factor
According to Deloitte, 75% of companies are eager to pursue innovations.
Reaching beyond industry boundaries and finding new ways to grow and manage risks has led 62% of CEOs to rank innovation as one of their top three priorities.
Over the next five years, these companies are going to adopt a range of new techs, including:
● Artificial Intelligence
● Cloud computing
● Advanced data solutions
Considering that the average lifespan of a public company has shrunk by 1/3 in the last generation, mistakes in implementing these technologies can be costly — potentially fatal.
Environmental Factor
Reducing carbon dioxide and waste, using renewable energy, and investing in sustainability are top concerns for 69% of corporate employees, who want their companies to invest more in these.
Companies, investors, governments, and consumers prefer to collaborate with organizations that foster the responsible and sustainable use of global resources.
Demographic Factor
Millennials and Gen Z have already become the majority of consumers, totaling 64%. They are more demanding, with 90% being dissatisfied with their vendors.
They expect products to be delivered swiftly and work seamlessly right out of the box, with no tolerance for failure in a single feature.
This requires CFOs to step outside their regular financial measures and consider a new, more personalized approach to customers.
The crypto industry serves as a good example. Starting in 2021, the following crypto exchanges and blockchain companies have appointed their CFOs as CEOs or interim CEOs: Binance.US, BitMex, Crypto Finance AG, Kraken, and Argo Blockchain — all are focused on delivering the top-notch products for a younger, digitally native generation, and CFOs are seen as ideally positioned to meet their evolving expectations.
Geopolitical Factor
During the three-year observation period, Deloitte recognized a threefold increase in global trade restrictions — even before the current tariff wars started.
Countries comprising 42% of the global GDP have recently held elections. The results are fueling economic nationalism and trade protectionism, which have already shaken the markets.
CFOs are expected to navigate oceans of uncertainty in trade-offs between investments in short-term performance and long-term growth. Moreover, growing needs for transparency together with regulators gaining more authority over the free markets greatly influence business decisions.
These tectonic changes require CFOs, besides keeping their top knowledge in financial fundamentals and management, to better navigate business operations, risk management, analysis and research, and commercial connectivity.
A 19% increase in demand for these skills in three years indicates a significant shift in CFO responsibilities toward a more diverse, business-driven, and customer-centric approach in the new tech-driven world.