WEBINAR SUMMARY

The CFO Agenda:

Transforming the Finance
Function
Featuring Tabitha DeFrancisco and Bob Woods

DECEMBER 12, 2018

SPONSORED BY
 WEBINAR SUMMARY

The CFO Agenda:

Transforming the Finance
Function
PRESENTER:
Tabitha DeFrancisco, Director, Consumer Markets, Finance Consulting, PwC
Bob Woods, Partner, PwC

MODERATOR:
Angelia Herrin, Editor, Special Projects and Research, Harvard Business Review

Overview
Chief financial officers have insight into every business unit. Given their visibility into opportunities
that can be unlocked by information-led transformations, it is no surprise that CFOs are assuming
new strategic roles. They are tasked with guiding the growth of companies, building digital
organizations, and transforming the finance function. To succeed, CFOs must first identify their
objectives and then decide whether they will lead with people, process, or performance. As new
finance roles emerge, chief financial officers must re-evaluate how they upskill existing talent and
recruit new employees. Winning finance teams embody competencies related to technology, business
acumen, data, strategy, and more.

Context
Bob Woods and Tabitha DeFrancisco discussed a seven-point Modern Finance agenda that supports
successful digital transformations, as well as the competencies needed for new finance roles.

Key Takeaways
Before embarking on a transformation journey, CFOs must understand their
organizations’ scope.
Finance organizations are typically structured around three dimensions:

1. Strategic. Strategic finance evaluates company performance and supports future growth of the
company, stock price, and other external measures.

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HBR WEBINAR THE CFO AGENDA: TRANSFORMING THE FINANCE FUNCTION

2. External. External finance activities support the investor community and regulatory
environments.

3. Functional. These groups focus on the organization’s core functional activities.

Each dimension has a unique set of customers. CFOs must understand the different customer groups
and how each defines success.

Most companies begin transformations at the functional level, but many try to achieve objectives and
outcomes associated with the strategic or external levels. This generates misalignment.

PwC advises CFOs to start the transformation process by evaluating their organizations’ scope,
identifying objectives they want to achieve, and clarifying the constituents they want to serve.

FIGURE 1: OFFICE OF THE CFO – SCOPE OF RESPONSIBILITIES

Finance is affected by multiple trends, all of which are accelerated by technology.

Many CFOs focus heavily on the radical automation trend. However, they must also understand
the tradeoffs between that and other trends, including demographic, geopolitical, and generational
trends. It is important for CFOs to consider all trends affecting finance as they choose the digital
agenda they want to pursue.

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HBR WEBINAR THE CFO AGENDA: TRANSFORMING THE FINANCE FUNCTION

FIGURE 2: TRENDS AFFECTING FINANCE

CFOs must articulate the finance function’s digital aspirations.

These typically fall into one of the following categories:

• Efficiency seekers. These organizations strive to do business smarter and faster. Many CFOs and
finance teams focus here because it is the most tactical, outcome oriented, and controllable.

• Modernizers. These organizations create new capabilities to modernize the business. Many
finance teams seek technological solutions to survive disruption. They also consider the skills
employees need to scale with new business needs.

• Re-definers. These organizations change and redefine the business at the core. They are focused
on staying ahead of the market. For example, a brick-and-mortar organization may need to
transition its operating model to support online customer experiences.

• Industry explorers. These organizations break new ground in new markets and industries. Many
companies in this category operate in the technology sector. However, non-tech firms are also
trying to disrupt by changing the market paradigm.

PwC has found that most CFOs are striving to be Modernizers.

“C-suite executives are asking, ‘What is the defining characteristic of

the business and how do we stay ahead of that?’ The CFO is usually
an advisor in this conversation. It’s important to have data about
profit margins, declining sales, at-risk geographies, and more.”
—Bob
 Woods

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HBR WEBINAR THE CFO AGENDA: TRANSFORMING THE FINANCE FUNCTION

Successful digital transformations are enabled by a finance agenda that addresses

the workforce, workplace, technology, and data.
A seven-point Modern Finance agenda is the key to successful digital transformations. These seven
activities relate to leading with people, process, and performance.

FIGURE 3: MODERN FINANCE AGENDA

Observations on how and where CFOs can begin include:

• Finance organizations typically start by selecting one key lever. This decision is based on the
organization’s culture, values, and objectives.

• Organizations that lead with performance unlock insight from their data. Solutions like Tableau,
Qlik, and Power BI support fast access to data. Instead of generating massive management reports,
these digital tools enable finance professionals to quickly digest data.

• Organizations that lead with process embrace automation. Many finance teams are automating
basic and repetitive tasks.

• People are often neglected during digital transformations. The most effective transformation
journeys bring the workforce along. Opportunities exist to upskill the workforce using digital
tools. CFOs must consider how digitally savvy the workforce is and how much change the finance
function can handle. The entire workforce must adopt new ways of thinking.

• To support the Modern Finance agenda, finance organizations must embody six organizational
competencies. These are: data trust provider, regulatory architect, performance monitor,
predictive risk monitor, innovation center, and automation leader.

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HBR WEBINAR THE CFO AGENDA: TRANSFORMING THE FINANCE FUNCTION

• Each Modern Finance agenda point has a maturity progression. Each trend builds on the previous
to guide the transformation (see Figure 4).

FIGURE 4: MODERN FINANCE AGENDA – MATURITY PROGRESSION

Digital technologies are redefining existing finance roles, as well as creating new roles.
Digital technologies are changing the skills and capabilities of finance organizations. Functional silos
are breaking down. New roles such as Analytics and Value Managers, Business Growth Partners, Digital
Accountants, Global Process Owners, Compliance and Risk Managers, Data Scientists, Digital Engineers,
and Transformation Leads work across functions, connecting dots throughout the enterprise.

FIGURE 5: THE IMPACT OF TECHNOLOGIES & TRENDS ON SELECTED FINANCE ROLES

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HBR WEBINAR THE CFO AGENDA: TRANSFORMING THE FINANCE FUNCTION

New finance roles have distinct competency attributes that create unique
opportunities for growth.
As finance teams hire new talent or upskill existing employees, they must evaluate individuals in five
competency areas:

1. The Technogeek. People with this competency are technologists, integrators of tech processes,
architects, and technology incubators. These individuals often play with technology on the
weekend and request learning funds to train themselves in new areas. They understand how to
solve business problems using technology.

2. The Problem Solver. People with this competency have business and commercial acumen. They
are collaborators and structured thinkers. These individuals identify business problems to be
solved. They consider how technology solutions will impact the employee experience and end-to-
end data orchestration.

3. The Treasure Hunter. People with this competency are data miners, value/insight creators,
integrators who identify data value, and algorithm writers. Many finance organizations struggle
to find individuals with this competency. Often the work of Treasure Hunters must be balanced
by the Controller. For example, algorithms may lack adequate traceability, which generates
compliance concerns.

4. The Dreamer. People with this competency are creative visualizers, innovators, artistic explorers,
experimenters, and boundary pushers. In existing finance organizations, these individuals are
usually in transformation roles. Looking ahead, every finance professional will be expected to
move the strategic agenda forward.

5. The Controller. People with this competency are detail-oriented financial advisors, scorekeepers,
and value preservers. The Controller competency is different from the traditional Controller role.
Despite widespread concern, automation won’t eliminate the need for the Controller competency.
Controllers answer key questions including: Where is the data? What is the organization
doing with it? How does the organization ensure the data is accurate and complete? How can
constituents get access to the right data?

“Looking ahead, people will connect the dots across functions.

Everyone in finance, for example, needs a base-level digital
IQ, while the IT function needs a solid foundation of business
knowledge.”
—Tabitha
 DeFrancisco

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HBR WEBINAR THE CFO AGENDA: TRANSFORMING THE FINANCE FUNCTION

CASE STUDY: A CORPORATE CONTROLLER ENABLED BY A MODERN FINANCE WORKPLACE

-DQHLVDFRUSRUDWHFRQWUROOHUZKRPDQDJHVDODUJHWHDPRIDFFRXQWDQWVDFURVVGLႇHUHQWSURFHVVHVDQG
geographies. She depends on real-time collaboration, especially during month- and quarter-end close.
The Modern Finance workplace supports Jane in three key ways:
• Collaborative, real-time compilation of data. This includes reconciliations, accruals, deferrals, and
balance sheet schedules to expedite month-end and quarter-end close tasks via in-schedule data
connections and collaboration.
• Conversational, trigger-based tracking. This enables Jane to stay on top of all activities going on
during month-end and quarter-end closes. Tracking ensures global team alignment and monitoring on
both desktop and mobile user interfaces.
• Quick use intelligent bots and data connectors. TKHVHDXWRPDWHZRUNÀRZVWRTXLFNO\PRYHWDVNV
along from completion to review. Information is served up in standard performance management
visualizations.

Tabitha DeFrancisco is a Director in PwC’s Consumer Markets Management Consulting practice specialized in optimizing
finance and accounting operational performance and Digital Transformation. Tabitha drives sustainable transformation
through process redesign, cross-functional collaboration, and strategic use of automation. Tabitha has extensive experi-
ence in finance and accounting integration, transaction processing optimization and automation, management reporting
automation, and close improvement and has served clients across industry lines.
Bob Woods is a partner with PwC’s Technology, Media, and Telecommunications (TMT) practice and advises clients on
Digital Transformation and its impact to their business and finance operations. His specializations include managing
finance process and system change due to digitization of client’s software to services; addressing the impact of
regulatory, statutory, and financial reporting requirements, including Revenue Recognition; redesigning cost, allocation,
and related reporting processes for data centers and network operations; and evolving corporate performance
management align to economics of SaaS, IaaS, and other digital business models.
He is a key contributor to CFO-focused thought leadership in the area of Cloud/SaaS-related accounting, operational,
and financial management. He is an author and contributor to Cloud-related publications including On the Horizon:
Insights into the Cloud for Finance and Accounting Professionals, and Leading from the Front: Re-designing Finance for
the Digital Age.
Angelia Herrin is the editor for special projects and research at Harvard Business Review. Her journalism experience spans
25 years, primarily with Knight-Ridder newspapers and USA TODAY, where she was the Washington editor. She won the
Knight Fellowship in Professional Journalism at Stanford University in 1990. She has taught journalism at the University of
Maryland and Harvard University. Prior to coming to HBR, Angelia was the vice president for content at womenConnect.
com, a website focused on women business owners and executives.

The information contained in this summary reflects BullsEye Resources, Inc.’s subjective condensed summarization of the applicable conference session. There may be material errors,
omissions, or inaccuracies in the reporting of the substance of the session. In no way does BullsEye Resources or Harvard Business Review assume any responsibility for any information
provided or any decisions made based upon the information provided in this document.

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SPONSOR’S PERSPECTIVE

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