CHIEF VALUE

OFFICER –
THE IMPORTANT
EVOLUTION OF
THE CFO
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About this report
The chief financial officer (CFO) role is fundamental to organisations
and their stakeholders. The role continues to evolve and reshape
as the emphasis of organisations changes. The role of a chief
value officer (CVO) is one that is increasingly used in the context
of the broader reporting that organisations are now undertaking.
Is the CVO role an extension of the CFO role or is it unique? What
constitutes value anyway?

To explore those two questions, this report draws on the views of

nearly 100 finance leaders from across the globe, representing a
wide variety of organisations from large global corporates to start-
up businesses. The finance leaders included not-for-profit and
public sector organisations as well as publicly listed and private
equity backed entities.
Foreword
The CFO represents the pinnacle of one of the branches of the accountancy and finance profession. CFOs are
fundamental and highly respected members of the business community and the role that they play creates
integrity and trust in the financial affairs of their organisations.
Increasingly their organisations are being asked to consider the implications of the necessity of creating sustainable organisations that deliver
value to a broader range of stakeholders and to report on a broader basis. This is a requirement that most CFOs are already starting to satisfy.
It requires a deep understanding of their organisation and a comprehensive set of technical and interpersonal skills, as highlighted in their
profile in ACCA’s Career Navigator, for example. It is important, in any discussion in organisations of creating or redesignating a CVO role, to
acknowledge that much of what might be included in such a role is probably already being undertaken by the CFO.

This is not to be complacent, and it is important to recognise that those already undertaking CFO roles will benefit from continuing education
programmes in key areas to maintain their skills.

The future of the profession relies upon the development of the next generation of CFOs, ready to replace those able individuals currently
in the role, when the time comes. While the ever-broadening role may seem daunting, the good news is that the accountancy and finance
profession is ready to provide support through mentoring programmes and continuous learning activities. It is essential for finance and
accountancy leaders to play their part in ensuring that the next generation is prepared for this crucial role. Acting as mentors, for example,
is an essential element and it should be recognised that many CFOs willingly give their time to this activity already. Networking and peer-to-
peer discussions are also key elements in that career journey.

As the CFO role develops, so does the important consideration of the value that organisations generate. CFOs are the stewards of value.
May we be the first to recognise this.

Helen Brand OBE Carly Bleathman Albert Lopez

chief executive, ACCA partner, business services global head of business
and outsourcing, BDO UK services and outsourcing,
BDO Global

4
Contents

Executive summary 6 3. Developing the relevant skill sets 22

3.1 The imperative of developing the necessary skills 22
Key actions summary 8 3.2 For the current CFOs 23
3.3 The next generation 23
1. What do we mean by ‘value’ 9
1.1 Defining value 9 Conclusion 24
1.2 A model of value 10
1.3 The enablers of value 11 Responses to three questions 26
1.4 The converters of value 12 What is a Chief Value Officer? 27
1.5 The recipients of value 13 Is a CVO a CFO? 28
1.6 Value vs. profit 13 Why would I want to be a CVO? 29
1.7 Linking value to values (and strategy) 14
1.8 The chief value officer today 15 Acknowledgements 30
1.9 A consistent view of value? 15
References 32
2. The changing CFO role 16
2.1 The historic CFO role 16
2.2 The evolving trend 17
2.3 The reality of the CFO role 18
2.4 CFO, CEO and COO 19
2.5 Value across the C-suite 20
2.6 The CFO role for the future 20
2.7 The CFO role in the context of the CVO 21

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CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | EXECUTIVE SUMMARY

‘We look at value from a finance point of view

Executive summary
of the numbers. But we realise over time there
are many stakeholders who do not necessarily
look at the monetary view or the value of the
company in that way.’
CFO based in East Africa
Organisations are increasing being asked to consider, and to
Three key messages from this report report upon, more value-centric aspects of their operations.
n The concept of value is fundamental to the
There is also an increasing requirement being placed upon
management of performance in organisations and many organisations to report against non-financial aspects
its adoption is a key element in their path to a of their operations. With a focus for many organisations on
sustainable future. purpose and value, there is a trend to asserting the need
for a new C-level executive, the chief value officer, or CVO.
n Chief financial officers are increasingly adopting
Is this a role that the CFO is already fulfilling or is this a new
a value centric approach in their work and this
role? Drawing on the opinions of nearly 100 CFOs and other
represents an evolution towards a chief value officer
senior business leaders from across the world, this report
role away from a traditionally financially focused remit.
suggests conclusions on this debate.
n The development path for those aspiring to be chief
financial officers requires an increasingly broad range Before considering what the role of the CVO might
of experience which embraces both formal and embrace, it is important to consider what we may mean by
informal learning activities which professional bodies the term ‘value’. The following model (Figure ES1) seeks to
and practices need to engage with. explain the fundamentals of the concept.

FIGURE ES1: A model of value

Recipients

Investors and other

Customers Employees Community Regulators
financial stakeholders

Return
Performance management and measurement
Converters

Operations and processes Data Technology

Enablers

Social and
Financial Manufactured Intellectual Human relationship Natural

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CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | EXECUTIVE SUMMARY

Value in an organisation is produced by a series of CFOs are increasingly acting as strategic leaders and On this basis, while there is always more to learn, there is
enablers which can be represented by the six capitals in advisers in their organisations. The CFO role is one that has no need to rebrand the role, but CFOs need to ensure that
the Integrated Reporting Framework originally instituted moved significantly from the traditional view, while retaining they step up to satisfy the required value agenda.
by International Integrated Reporting Council (IIRC) as a the core responsibilities. Figure ES2 provides a view of the
proxy. These capitals are ‘converted’ by the operations and currently required skill set for the role of the CFO. A failure to do so will lead to a marginalised finance team
processes of the organisation into value and reported upon and CFO role, as the CVO requirement will be fulfilled by
by using data and technology in real-time performance For many CFOs, this role, together with that of other others and finance teams will remain focused upon historic
management. In turn, this reports the value to a series C-suite executives, embraces the concept of value reporting with less value add.
of stakeholders who are broader than, but include, the management. CFOs are the accountable face for the
delivery of value in their organisations. The evolution It is important to accept that there is a perception issue,
financial stakeholders. The role of the CVO is to support the
of the role is driven, in part, by the expectation of the as exemplified by the extracts in the ‘Responses to three
development of components of the organisation’s value-
stakeholders with whom the CFO engages. questions’ section at the end of this report, which give a
creation strategy and to monitor progress against this.
very traditional view of a CFO role. This does not align with
Value is a long-term concept and one that is aligned to the While there is a debate as to whether there is a separate the value-centric view that many senior finance leaders
creation of sustainable organisations. The reality is that for CVO role or if it is an extension of the CFO role, many of believe is the CFO role of today.
most CFOs the achievement of the strategic goals of an the CFOs who contributed to this research argued that they
were already fulfilling that role. The opportunity exists not only for those currently in post
organisation that embraces economic, environmental and
but also for those who aspire to be the next generation of
social equity is a fundamental part of their evolving role.
CFOs, for their roles will be very different from that seen
This is at the core of generating value.
through the lens of ‘tradition’.

Using a range of career development actions is essential

as the pathways followed in the past provide only some
FIGURE ES2: The reality of the CFO role
of the attributes expected (see section 3.1). It is important
that today’s CFOs appreciate the challenges in the
Stakeholder management development path that their successors now face.

Consulting skills The CVO role is an important evolution of the CFO role.

‘I think that if a CFO does not become a chief value

officer, then they are going to continue to be that
back-office function where all the decisions are going
be made without the involvement of a financial lens
Ethics

Ethics
or a perspective on the resources of the organisation
needed. So, I think it is important that the CFO does
evolve [in]to the chief value officer’.
Financial acumen Business acumen Value acumen Data acumen
CFO based in the US

Project management

Change management

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CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | KEY ACTIONS

Key actions
The following table suggests some actions that leaders of organisations
may take to embed value-based concepts in their management and to
develop their finance teams appropriately.

ACTION REPORT SECTION

What is value – a sustainable future
Consider the organisation’s definition of value and how this may be
1.2 ‘I think value for me is in two parts…and I think the
applied across the range of recipients of value identified.
traditional one, obviously, is growth. I do have investors
Consider the value-based outcomes of the organisation’s sustainability that have the perspective that they have put money in
1.2
transition plan. this business and they are expecting a return and that’s
primarily, as a CFO, probably also [the] call.
Assess how each of the six capitals works to create value for the
1.3 and 1.5
recipients of value. ‘It’s demanded of the CFO that they understand how the
organisation is creating and growing that return. But
Consider how real-time reporting across the capitals can be beyond that, and one of the themes that is emerging for
1.4
incorporated into performance-management processes. us specifically, is … “what are the other components of
Appreciate that performance management needs to reflect value within the communities in which we operate and
value across the six capitals and therefore increasingly relies on a 1.4 the responsibility that we have as a business to ensure
combination of financial and operational data. sustainability so that you can continue to derive value
and growth from this community?”
Establish a democratisation of data across the organisation, enabling a
1.4 ‘In my mind, it is becoming very clear that, as a CFO, it
collective view of performance and value to be established.
is quite important to have an eye on all of those aspects.
Formalise the link between ‘value’ and ‘values’, through strategy. 1.7 We are moving towards [involving] employees now [in]
identifying what [our] purpose should be… in relation to
Establish a ‘responsibility – accountability – consulted – informed’ …our core business. Then it becomes easier to do good
2.5
(RACI) model across the C-suite covering the different aspects of value. while making money because that is more sustainable.
Establish a leadership structure that focuses upon value. 2.5 We are finding those things that we are good at as a
business, which is creating connectivity…in creating
Embed the concepts of value into the risk-management and this sort of platform. But in doing that we can link it
governance processes in the organisation, including within the remit of 2.5 very clearly to economic uplift for the community [and]
the non-executive directors. for the country, and that means then that we have a
secure future – one where you can continue to operate in
Consider the development path for those currently in the finance team
this environment and continue to generate profits.’
to ensure that they have embraced the concepts necessary to perform 3.1 and 3.2
their expected role. A CFO based in Africa

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CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 1. WHAT DO WE MEAN BY ‘VALUE’

1.1 Defining value

1. What do value /'væljuː/

The noun ‘value’ is defined in three relevant ways

we mean
by the Oxford Learner’s Dictionary:
n ‘how much something is worth in money or other
goods for which it can be exchanged

by ‘value’ ‘how much something is worth compared with its

n
price, and
n ‘the quality of being useful or important’ (Oxford
Learner’s Dictionary 2023).

As a verb it is defined as:

n ‘to think that somebody/something is important; and
n ‘to decide that something is worth a particular
amount of money’ (ibid).

From these definitions it can be surmised that the term

‘value’ relates to the relative importance of an item or
service that might, or might not, be measured in financial
terms. What one individual may perceive as the value of
an item or service may be different from another’s view.
The laws of economics dictate that the scarcity of an item
and its usefulness to an individual or organisation dictate
their perception of value. In the second definition of the
noun, above, the concept of a premium of value over
price (or cost) is introduced. In defining the term itself the
subjective nature of the discussion is inescapable.

‘VALUE IS IN THE EYE This report seeks to identify the role of the CVO as the latest
C-suite role in an organisation and to determine whether
OF THE BEHOLDER.’ the emergence of this role represents an extension of the
CFO role or is indeed unique. Whichever view you, as an
UK CFO individual, may take, there is a clear element of overlap, as
indeed there are in many C-suite roles. Often, the execution
of the activities that any individual might associate with a
particular job title is more important than the role itself.

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CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 1. WHAT DO WE MEAN BY ‘VALUE’

Considering whether the CVO role is an evolution of Creating and maintaining value is a cyclical activity, so there imperative, it falls increasingly to the CFO to ensure that
the CFO role and therefore one that is naturally the role is a process of return of value from the recipients to the there is a balance between financial and non-financial
of the finance and accountancy profession requires the enablers. This process is also summarised in Figure 1.2. drivers. As an all-embracing concept, value optimisation
examination of two aspects, firstly, what we might consider may necessitate taking decisions that are not, in strict
in line with the concept of value and, secondly, how the The generation of value is a continuous process and terms, financially optimal.
CFO role is itself developing. If there is a CVO role, what is this makes it a longer-term activity than, for example, an
the value that the role is managing? annual profit or loss calculation. This factor was not lost in In facilitating an understanding of the concept of value it
comments made by many of the roundtable participants. is necessary to consider each of the three levels of value
The CVO role is clearly a discussion point in several While for many the financial perspective may be the key listed above.
professions, however. For example, the Next Level Purchasing
Association posted an article in 2018 entitled ‘Could CPO
[Chief Purchasing Officer] Role be Replaced by Chief Value
FIGURE 1.1: A model of value
Officer?’ (Next Level Purchasing Association 2018).

1.2 A model of value

Recipients
For organisations, there is no single definition of ‘value’
Investors and other
covering either how it is generated or the nature of the financial stakeholders
Customers Employees Community Regulators
stakeholders who may be considered as its consumers.
Many of the roundtable participants were keen to stress
that value itself is highly contextual for the organisation,

Return
Performance management and measurement
its sector, size and location. A CFO from mainland China Converters
noted that value, besides the economic value that Operations and processes Data Technology
everyone thinks it can bring to enterprises, also includes
the remaining value that lies in the sustainability that it can
bring to society, the environment and the talent employed
in the enterprise’s operations, all of which benefit from
Enablers

the enterprise’s activities. The so-called value brought to

Social and
society and the environment is not directly obtained by Financial Manufactured Intellectual Human relationship Natural
the enterprise but is generated through the principles
established by regulatory markets and authorities.

There are, nonetheless, some fundamentals that must

be included in a model of value. The model in Figure 1.1 FIGURE 1.2: The value cycle
defines three levels of value:
n the enablers – the facets of the organisation that
represent the assets used to create value
n the convertors – the processes by which the Defined Created Delivered Sustained
organisation combines inputs and creates products
and services, and
n the recipients of the value that the organisation What people Vision and values Products and Measured and
generates. perceive as value of organisation services reinvested

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CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 1. WHAT DO WE MEAN BY ‘VALUE’

1.3 The enablers of value

FIGURE 1.3: The six capitals of the IIRC’s Integrated Reporting Framework
The six capitals of the IIRC’s Integrated Reporting (<IR>)
Framework (IIRC 2013) provide an initial basis for the
enablers of value in an organisation. Several roundtable
participants referred to the Framework in their initial
comments. Indeed, two academic institutions that provide
courses for the CVO use it as their basis (Audencia n.d. and Social and
University of the Witwatersrand n.d.). That of the University Financial Manufactured Intellectual Human relationship Natural
of the Witwatersrand builds upon the work of Mervyn King
in his book The Chief Value Officer: Accountants can Save
the Planet (King and Atkins 2016). The definition of a sustainable organisation (Figure 1.4) is
also closely linked to these enablers of value. A sustainable FIGURE 1.4: The three domains of sustainability –
The concept of these enablers is that they represent the organisation is one which creates long-term value by taking the triple bottom line
levers that an organisation uses to create value through into consideration how it operates in its ecological, social
its activities. Each organisation will use them in a different and economic environments. The progression of value in
combination according to the product or service it provides. an organisation is therefore determined by how the six
capitals are worked in combination to lead to such a
Several of the roundtable participants commented
sustainable future. This was a factor echoed by several
that whereas a ‘traditional’ view of the valuation of
roundtable participants.
an organisation, for example when a transaction was Social equity
undertaken, would have been based upon the physical Such a view of value makes the link between a purely
assets that it used, it is increasingly the value of the financial objective, which might be associated with the
intangible assets, as represented by the intellectual capital Economic
economic aspect, and the need to balance this with the viability
as well as its human capital, that constitutes the most broader social considerations and those of environmental Sustainability
approrpriate valuation of an organisation. The concept protection.1 A CFO from Africa commented that,
of value is closely aligned to how an organisation uses ‘sustainability is [a] key that we cannot run away from, and
each of these capitals in combination to generate a future in addressing the issue of sustainability, you are basically
revenue stream which provides benefits. Some roundtable looking at an organisation, considering all its stakeholders
participants even went as far as singling out the human Environmental
over and above the shareholders and ensuring that you
capital as the key. Their assertion was that the human protection
know the likely impact upon them’.
capital, the people of the organisation, working together
with the other capitals create the organisation’s commercial A UK CFO commented that: ‘there is obviously the impact
advantage. A CFO working in the not-for-profit sector we can have in improving the environment, and on the
commented that value is a matter of, ‘what are we doing with social side it is the value either internally or outside in
the resources we have? How are we improving the lives of communities. This value to those stakeholders…is very
others? How we are fulfilling the deliverables of our mission’. different to the financial value that you [already] know’.

1 The social aspects of value and the responsibility of organisations, and in particular finance functions, is considered in ACCA 2023.

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CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 1. WHAT DO WE MEAN BY ‘VALUE’

1.4 The converters of value The value itself is only realised if there is an appropriate at a certain point in time does not add value. The decision
The enablers of value are not themselves enough to create level of performance management and measurement in made may not change. It should be noted that there is a
and sustain value in an organisation. Today’s organisations the organisation to benefit from it. Value cannot be created counter argument to this assertion, which is that trends do
increasingly use a combination of people, process, simply by having the data and processes on their own and need to develop, and constant changes of direction can
technology and data to take the six capitals and create it is the interpretation of the outputs and the resulting destroy as much value as rigidly sticking to a course.
value from them (Figure 1.5). actions that produce results.
In their roles as the providers of performance information
Some roundtable participants contended that the strategic Many roundtable participants reflected that the production across the organisation, finance teams need to understand
importance of data to many organisations in creating and of historical results, while of some benefit, was not always the importance of the provision of real-time information,
sustaining value meant that it should be considered as relevant to an organisation that was looking to create value. often through self-serve applications, across the capitals. This
an additional capital in the IIRC’s <IR> framework. While There are two dimensions to this. Firstly that, as the events implies that information is needed that reflects performance
that might be appropriate in certain circumstances, it is of the first four years of the 2020s have shown, there is a across all the six capitals, which increasingly requires relating
better to think of data, once retrieved from the technology significant level of uncertainty in geopolitical and economic operational and financial information in an integrated
platforms that facilitate its collection, being converted conditions. Organisations need to respond dynamically to manner. The democratisation of data across organisations is
into information. This conversion is a stage in the value- external threats. Reflecting upon what happened a month essential to creating value. The process of democratisation
creation process and interacts with each of the other or six weeks ago may not facilitate adding value. of data enables everybody in the organisation, irrespective
capitals. Indeed, it is the processes through which that of their technical know-how, to work with data comfortably,
Secondly, there is a desire by many stakeholders to receive to be confident in talking about it and, as a result, make
data passes that create information. As organisations
increasingly integrate analysis and artificial intelligence (AI) information in as near real time as possible. Periodicity is no data-informed decisions and build customer experiences
into their processes, it is the human analysis and validation longer a valid concept. Waiting to get the ‘numbers right’ powered by this data, thereby creating value.
of the outputs that creates the value. If one considers
developments such ChatGPT, while these are phenomenal
as technical feats, they would not be very impressive FIGURE 1.5: The converters of value
without either the immense amount of human-created
information on which they are trained, or effective use and Performance management and measurement
verification on the output side. Data is an intermediate
material on the way to realising and creating value, Operations and processes Data Technology
however it is processed in any particular organisation.

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CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 1. WHAT DO WE MEAN BY ‘VALUE’

1.5 The recipients of value

FIGURE 1.6: The recipients of value
In a traditional view of performance and value, the profit
goal was seen as sufficient for organisations. That is
Positive cash flow
no longer the case and, as illustrated in Figure 1.6, an Profit / EBITDA
Quality of product Good jobs Benefit in locations Compliance
organisation has many recipients of value. Customer relationships Secure employment Infrastructure Risk management
Sustainability

This is not to say that investors and other financial

stakeholders are not the recipients of value. Indeed, many
Investors and other
of the roundtable participants whose organisations are financial stakeholders
Customers Employees Community Regulators
private-equity-based observed that, for them, ‘value’ is
considered to be the impact of the multiplier of EBITDA
and that their responsibility as CFOs is to maximise the provide markets for alternative products to sustain the The final recipient of value are the regulators with whom
growth in value, as represented by that multiplier, to livelihoods of their growers; and secondly how bringing the organisation interacts. Regulators, which may also
the end of the investment period for the benefit of the mobile communications to remote communities also acts include governmental organisations other than purely
investors. That said, they also acknowledged that in so as a stimulus for economic growth thereby sustaining the financial regulators, are increasingly requiring disclosures
doing they needed to create an organisation with a investment in renewable energy required. Any balanced about, and hence involvement in, the non-financial aspects
positive future, indeed a sustainable future, which would scorecard that reflects value needs to include such of organisations. This reflects the importance of the actions
continue to generate profits after a sale or other assessments of the quality of the customer relationships. of organisations in addressing issues such as net zero goals,
transaction had taken place. It can be contended that but also literacy and health-care goals both in organisations
such future sustainability relies upon the interaction Employees are also receivers of the value created by and their supply chains. Indeed, frameworks as such the
between investors and the other recipients of value. A organisations. Employees expect to be satisfied in their draft European Sustainability Reporting Standards (EFRAG
CFO in a private-equity-backed organisation commented, employment and to benefit from it – the concept of a 2022) may be said to reflect this broader view of value.
‘we will eventually exit [at] some stage and the way we are ‘good job’.2 Value can also be related to the attraction of
trying to create value is not only obviously, through the potential employees to the organisation. Employees can be 1.6 Value vs. profit
valuation of our business based on financial metrics [but considered to be not just those direct employees, but also
those contracted to work with the organisation but who are A UK CFO expressed what can be considered to be the
also] … we view how our potential acquirers perceive us
not directly employed, as well as those in the supply chains. classical view, commenting that, ‘the traditional definition is
and the multiple they might put on our business, which is
that if you grow financial capital then you have generated
more determined by the value of what they see [as] the
As with employees, there is also a social element of value, value’. A CFO from Australia also noted that, ‘you would
potential in our business going forward’.
which lies in the interaction between the organisation and hope that…value is reflected in the share market. Often it
The next group of recipients are represented by the the communities in which it is based. A traditional view of isn’t, and there is a disconnect[ion] between the value in the
customers. In the customer-centric operating model, this might once have been just the impact of corporate and market and the intrinsic value [of the organisation]’.
the quality of the products and the resulting customer social responsibility (CSR) programmes. It has expanded
significantly beyond this. By using concepts such as the A discussion point for many of the roundtable participants
relationships are essential. Several CFOs, for example those
‘social licence to operate’ (see ACCA 2023) organisations was the relationship between value and profit. Many saw the
working in service industries, commented that factors such
are appreciating the value that their activities create, or maximisation of profit as remaining the core focus of their
as the NPS were fundamental parts of their assessment of
destroy, in the communities in which they are based. In organisation, because profit creates the ability to invest in
the value that their organisation created. Two examples
its purest form, this may be how the organisation ensures the future. Some amended this view by expressing the view
given by CFOs serve to illustrate the interaction between
the future viability of its workforce, through education and that the pandemic had reinforced the need to focus on
the social and the value agendas. In the first how the
environmental programmes. liquidity rather than regarding profit as the sole focus.
growing of a declining crop has led the organisation to

2 The concept of a ‘good job’ and the broader social implications of value are considered in ACCA 2023.

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CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 1. WHAT DO WE MEAN BY ‘VALUE’

It is important to see these two concepts as complementary 1.7 Linking value to values (and strategy) Figure 1.7 illustrates the potential linkage and the role of
rather than mutually exclusive. They may represent a short- A further consideration is the link between the concept the strategy of the organisation. As has been explained,
term (perhaps annual) focus on profit maximisation against of value and the values of an organisation. Organisational the value that an organisation delivers to its recipients is
a longer-term perspective suggested by the concept of values are a set of core beliefs held by an organisation. They through a range of channels and is executed by using a
value. It is possible to reconcile these two perspectives. act as guiding principles that provide the organisation with range of capitals as the enablers.

The work of organisations such as the Impact Economy purpose and direction and set the tone for its interactions The strategy of the organisation reflects the direction in
Foundation (Impact Economy Foundation n.d.) illustrates with its customers, employees and other stakeholders. which it seeks to progress. Any discussion of strategy will
one way of doing this. have a range of outcomes which should embrace some,
if not all, of the recipients of value who were outlined in
A CFO whose organisation is private-equity-backed FIGURE 1.7: Value and values section 1.5. To execute that strategy, the organisation
commented that organisations need to: ‘continue to needs to establish a common purpose that can be
perform and grow, and to do so in a more productive and exemplified through its values. There is, therefore, a strong
effective way, either using technology or automation. AI, correlation between the concepts of ‘value’ and ‘values’.
for example, is creating huge amounts of value for us as a
business, [and] also for our clients and our stakeholders’. A CFO commented that, ‘I think there is a balance to be
Strategy
struck [between] short term, the medium term [and the]
A European CFO commented, ‘value is directed to a longer term. The sustainability aspect comes into that
different actor into the system. In Europe people are conversation as well, because I think that as organisations
looking at profit, but it is much more important to start looking at a more balanced scorecard, integrated
demonstrate a level of ethics towards sustainability. It is reporting approach [to] how they actually perform…
another pressure on the CFO who only looks at profits’. Value they are also considering how they report on value
creation’. This participant continued, ‘the long-term
A CFO from Africa discussed a perspective for assessing
does not compromise your short-term performance and
value against profit in terms of performance, commenting
everything that you are doing there. It is about having
that ‘[the] usual direction [CFOs] are coming from has been
that sustainable plan’.
measuring the value of a company either by the performance
of the shares or your bottom line. In doing that everything Values Whether the CVO role exists today is a question – or is it
is monetised. But now the longer-term [perspective] looks an opportunity?
at the social impact, it goes to look at the environmental
aspects, and when you are looking at those things an
annual cycle may not be adequate’. This participant then THE STRATEGY OF THE ORGANISATION REFLECTS THE DIRECTION IN
questioned whether finance teams were ready for the task
and concluded that perhaps they were not. The changing
WHICH IT SEEKS TO PROGRESS... TO EXECUTE THAT STRATEGY, THE
role of the finance team is discussed in section 2.6. ORGANISATION NEEDS TO ESTABLISH A COMMON PURPOSE THAT CAN
BE EXEMPLIFIED THROUGH ITS VALUES. THERE IS, THEREFORE, A STRONG
CORRELATION BETWEEN THE CONCEPTS OF ‘VALUE’ AND ‘VALUES’.

14
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 1. WHAT DO WE MEAN BY ‘VALUE’

1.8 The chief value officer today 1.9 A consistent view of value?
A CFO noted that, ‘the CVO description had been batted The discussion of value in this section has been at a The changing CFO role – a perspective
around for many years and you think if it is…heading in that conceptual level. The CFOs in several of the roundtables ‘The role is changing, and I have seen it in so many
direction, you want to…be ahead of the game’. discussed whether it was appropriate to have a conceptual forums where they say … CFOs make the best CEOs
framework for value or whether more substantial guidance [chief executive officers] because they have in mind what
A search of a number of online recruitment-agency was needed. will the number look like? That is what the stakeholders
job boards3 for CVOs produces few roles with this title. want to have comfort in.
Instead, these searches tend to identify roles such as the As has been commented, for most of the roundtable
‘chief operating officer’, ‘chief procurement officer’, ‘chief participants, the concept of value was highly contextual ‘Even if my CEO spoke in a meeting, the chairman would
technology officer’ and ‘chief financial officer’ as their to the organisation, its economic circumstances, its sector look and ask me, do you agree…? [Agreement] coming
nearest matches. The inference therefore is that while the and its size. For that reason, any guidance on value must be from the CFO gives the comfort that somebody has
term exists as a discussion point in the development of a capable of embracing this degree of variation. looked at the mathematics behind all this storytelling
C-suite role, there are few actual roles that currently exist and that [the CFO is] comfortable.
with this specific title. Yet, there is also a view that, as the term is increasingly
‘The role is evolving, and I think it is high time we start
being used, there needs to be some level of consistency
to move the CFO mindset away from just the financial
A similar search of job titles in LinkedIn (conducted 1 April in what is meant by it. Several participants argued that
reporting to see how we influence the numbers before
2023) produced only a select few individuals who used this a ‘guiding principle’ should be established to give
they get to the trial balance. Because if you are looking at
job title to identify themselves. consistency at a high level while enabling flexibility of
it from a ‘cake recipe’ [model] and every time I bake the
interpretation at a detailed level.
Such an analysis does not necessarily mean that the cake [it] turns out [the same], unless I go back to change
organisations are not considering the role and it may be A CFO from the public sector commented that for that the recipe the outcome will always be constant.
expected to appear in roles soon. What is relevant is that, sector the concept centred on value for money: how do ‘Unless the CFO goes and changes the recipe of the cake
as organisations develop, value is being considered as an public services serve their communities best? While at first and [is] not just waiting by the oven to get the cake out of
alternative aspect of many existing roles. glance this may appear to differ from the analysis of value the oven, the outcome is never going to change. We have
provided above, it can also be interpreted as requiring a to get involved in the day-to-day and I think that is where
different definition of stakeholders, so the ‘value for money’ the CVO title becomes more appropriate. We [must] have
AS ORGANISATIONS DEVELOP, concept is embedded in the overall value concept. the change in mindset to say it is not just about financial
VALUE IS BEING CONSIDERED reporting, it is not just about finance-related roles, but
A CFO from Africa who has worked in both the commercial
AS AN ALTERNATIVE ASPECT you are able to influence so many strategic decisions
and not-for-profit sectors commented, ‘I tend to think
OF MANY EXISTING ROLES. that “value” is a very volatile [concept] because “value”
that are of value to the organisation’.
for a profit-making organisation and “value” for [a] social CFO based in Africa
enterprise means different things. Trying to come up with a
definition that cuts across makes it difficult because you view
value from a stakeholders’ perspective, at the end of the day’.

If such a definition were to be in place it would help cement

the role of the CFO in relation to value in organisations. 

3 A search was undertaken of job boards in the US, UK, Singapore and on various global sites on 1 April 2023.

15
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 2. THE CHANGING CFO ROLE

‘Value in the past was very straightforward.

It was “show me the money”, and actually it was
real money…that you could count with your hands.
We have moved away from that because we have
digital value money. We also have other values and
we have struggled with the concept of the value
of goodwill, which only ever crystallises when

2. The changing CFO role

somebody’s prepared to pay for that goodwill.
What is the value of ESG?
‘Is the value that somebody puts on your organisation
the same as my value? It is not financial value.
It could be ethical value, it could be equality value
through your contribution to the local community.
All sorts of interactions become valuable to somebody,
and it all depends on which stakeholder that is.’
UK-based CFO

2.1 The historic CFO role

The public perception of a CFO role may well be of an
individual in an organisation who is responsible for the
production of the financial statements and the integrity
of the financial information that underpins these. The
individual who discharges this role has a high level of
ethical standards as the member of a professional body and
that inspires a degree of trust. They understand in detail,
and apply, the financial reporting standards as applicable
to the organisation and so they are the key contact with the
external auditors.

The more enlightened individual, perhaps one who has

interacted with the CFO in an organisation, may well see
them as the keeper of the purse strings and often, as many
roundtable participants commented, as ‘Dr No’ – the
person who says that the organisation cannot afford to
undertake the suggestion made. In that regard, they are
approached with caution.

Many of the roundtables referred to this perception of the

role as one of the challenges in addressing the difference
between a CFO and a CVO. This is why there may be a

16
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 2. THE CHANGING CFO ROLE

perception that they are two different roles (see the Figure 2.2 provides an alternative view of the CFO role as is the strategic adviser, often monitoring the organisation’s
commentary in the section ‘Responses to three questions’) the guardian against the risks the organisation faces and performance in line with its strategic objectives. At the core
rather than that the CVO role is either a natural evolution the steward of its assets. In both cases, the CFO is not of this is the role of ‘change agent’: the person charged with
or a reality of the CFO role as it currently exists. The danger necessarily the owner but is strategically involved. The supporting, or driving, change within the organisation. For
is that the traditional attitudes expressed in ‘Responses CFO is the reporter of performance in its broadest sense some organisations this may be transformational change,
to three questions’ reflect the general public’s view of of both financial and operational performance and, in this for others it might be strategic change. It means being a
the CFO role, which is significantly different from the role, provides information to others, both internally and key focal point and super-connector for the organisation.
perception of the roundtable participants. externally, enabling them to form considered and evidence-
based opinions on the relative strengths and opportunities How much of this role embraces the leadership role over
A CFO from the Middle East commented, ‘from my for the organisation. In presenting this information, the CFO what we might consider as creating and maintaining value?
perspective, the role of finance is definitely transforming
towards more business support, business value add[ing],
rather than just finance retrospective reporting’.
FIGURE 2.1: The role of the CFO – as defined in ACCA FIGURE 2.2: An alternative view of the CFO role
2.2 The evolving trend / IMA 2020
A CFO from Canada commented: ‘I think as the CFO we Guardian of risks Steward of assets
must recognise that we are now becoming a contortionist. Strategy &
business
The world is changing, and the expectations of our roles acumen
are likewise evolving’.
Risk &
Transactions
control
ACCA has conducted several pieces of research on the
development of the CFO role. In 2020 it published jointly a
paper with the Institute of Management Accountants (IMA),
The CFO of the Future (ACCA / IMA 2020). That report
appraised the role of the CFO and concluded that, among
Consulting
Financial Technology Change agent
other things, the role had evolved in breadth to include acumen & data
several key activities (Figure 2.1). At the core of this model
of the CFO role is financial acumen, the level of trust and
integrity referred to in section 2.1. That core value remains
indisputable. It is what additional responsibilities the role
Investor
carries and, indeed, how that core role is discharged, that Leadership
management
is the focus of the discussion on the CVO role.
Supply
One aspect of the CFO role which was highlighted in the chain Reporter of
performance Strategic advisor
ACCA / IMA (2020) report was the range of stakeholders
with whom the CFO engages. This is highlighted in Figure
2.1. Both internally and externally to the organisation, the
CFO role is a voice for the organisation, building upon the
inherent trust in, and ethical perspective of, the role.

17
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 2. THE CHANGING CFO ROLE

2.3 The reality of the CFO role The CFOs also see that they have a responsibility for data flow. This was something that other CFOs noted was
Most of the roundtable participants considered that value creation in the organisation: not just for its financial exacerbated by a lack of up-to-date systems, with many
their role has moved significantly beyond a traditional performance but also for other aspects of value. Some of calculations being performed on ‘unreliable’ spreadsheets.
perception of the role. In fact, it has progressed beyond the the CFO contributors saw this discharged solely through the
reporting requirements for non-financial disclosures, while To support these core roles, the CFO needs to be a strong
definition offered in ACCA / IMA 2020. Some commented project manager and an effective change leader.
that the pandemic had been a significant factor in changing others categorised it as a stewardship of all the assets that
their role. The economic uncertainties had caused their produce value. All agreed that to discharge this element they
Finally, there is an expectation that the CFO is an effective
organisations to increasingly seek their advice as relevant needed to be actively involved in the management of data
communicator, a key stakeholder manager. This requires a
to the rapidly changing circumstances. In providing the across the organisation to ensure that there is an appropriate
breadth of consulting skills that include influencing, conflict
advice that was being sought there had been a significant level of integrity. This applied especially to non-financial data
resolution and strategy development.
refocusing away from assessing historic data to predicting that might form the basis of external reporting. For some
potential outcomes by analysing data and developing CFOs, this represented a particular challenge, especially, Running through all these aspects of the role is a moral
forecasts that present a range of options. The pandemic as one commented, because for many aspects of reporting and ethical core. A CFO from Southern Africa commented
and post-pandemic disruption in supply chains and against the required environmental disclosures they are that it is, ‘interesting how the CFO is normally the one with
increased geopolitical uncertainties have meant that the essentially dealing with ‘single entry bookkeeping’ when the moral compass. That resonates with the term “value”
level of certainty of the 2010s has not returned. The need an accountant’s premise of internal control is firmly based and understanding the long-term consequences of the
for critical advice has been increased. The CFO now has a on the concept that ‘double entry’ provides the checks and decisions that you take today: “doing the right thing”’.
forward-looking rather than a backward-looking role. One balances. Ensuring that the data has an appropriate level
of integrity is something that other functions were not used Value and how the organisation represents itself to others is
CFO commented, ‘I think disruptions are going to intensify
to and therefore it falls to the finance team to control the at the heart of the CFO role of today.
over time. We need to be aware of the risks of devaluing
as well and what can impact that. It is not just that you are
not selling things. It is a much bigger picture around “how
do the customers perceive your business?”, or “[are you] FIGURE 2.3: The reality of the CFO role
adding value to your employees more than just what they
are getting paid?”’ A CFO from Australia added, ‘CFO’s are Stakeholder management
not driving the lag indicators, which are the financial results:
they are driving the lead indicators, which are often not
Consulting skills
financial results’.

For many of the roundtable participants the CFO role is

encapsulated in Figure 2.3.

The core need for financial acumen remains, together with

Ethics

Ethics
responsibility for the financial processes, performance
management and external reporting. The CFO requires
an increasingly deep understanding of the business
Financial acumen Business acumen Value acumen Data acumen
model. One CFO, who had transitioned to the role from
being an audit partner, commented that one of the first
realisations upon taking up the role was the depth of the Project management
understanding of the business model that the role required,
beyond their initial expectations.
Change management

18
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 2. THE CHANGING CFO ROLE

2.4 CFO, CEO and COO operation. The results of various aspects of that will They argued that, for organisations to create value
A positive dynamic between the CFO and CEO was seen eventually be summarised in finance. This gives the CFO an efficiently, it is essential for the three roles to operate in
by most roundtable participants as fundamental to the advantage, giving them a comprehensive understanding unison with, to some extent, overlapping responsibilities.
success of the organisation. Several commented that the of the company’s processes or business. This puts the CFO In that way, strategic goals would be attained, and value
pandemic had reinforced that dynamic. Some categorised in a better position to become a sparring partner for the preserved and created.
it as the change in the CFO role from ‘Dr No’ to ‘Dr How’ – CEO, brainstorming together and cross-checking, verifying,
or validating various assumptions. Our participants argued A CFO from Hong Kong SAR related the importance of
how can the organisation achieve this given the constraints the CFO role, at an executive level, to another aspect of
and range of opportunities that it faces? that this is a particularly important part of the CFO’s role in
creating value. value, suggesting that having a CFO at this level and
Several roundtable participants were former CFOs who with a role in managing and creating value would intensify
were now CEOs. They commented that they saw the step A discussion of the distinction between the CFO and the focus on the sustainable nature of the organisation.
from one to the other as a natural progression and, in the the chief operating officer (COO) was a more nuanced One of the key drivers for this would be the circular
economic climate of 2023, they could not see how they conversation. In smaller organisations that did not warrant economy and the recycling of products. This participant
could discharge their current responsibilities without having a COO role as such, there was a consensus among the suggested that while, on the face of it, the cost equation
had the CFO experience. roundtable participants that the CFO role embraced the might look in one direction, the value equation – aligned
operational aspects of the COO role, such as the focus to a broader range of stakeholders – looked in another,
A CFO in mainland China commented that another on process efficiency and back-office operations. For the commenting, ‘we have to find a cleverer way to make the
function of the CFO, whether we call them the CVO or the larger organisations, the convergence of the CEO, CFO Earth better but [still] be profitable’.
CFO, is to oversee the entire value chain of the company’s and COO roles was highlighted by some participants.

19
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 2. THE CHANGING CFO ROLE

2.5 Value across the C-suite 2.6 The CFO role for the future Automation will continue to provide the finance team,
The roundtable participants considered the question of A finance professional commented, ‘The role of the modern and hence the CFO as its leader, with the opportunity
ownership of value as a concept. As has been established day CFO is more like a like a T-shape where you have got to streamline data processing and improve the accuracy
in Chapter 1, value is a broad concept, and its creation that depth of knowledge from an accounting perspective, of data capture. Trends such as open accounting may
reflects activities that are discharged by multiple teams but then you have got the bar along the top with a broader simplify data flows for many, creating transparency across
across an organisation. No single C-suite executive could understanding of different parts of the business that you organisations. The use of blockchain to record transactions,
be responsible for all aspects of value. link to integrated reporting, and it brings in different points both of a financial and non-financial nature, will also
of what we say value is about being …the worth or the serve the same end. Consider the skills for a CFO as the
In relation to value, the application of the ‘responsibility usefulness of something to the business or whatever your vertical stem of a ‘T-shape’ with the recipients of value (the
– accountability – consulted – informed’ (RACI) model objective may be’. stakeholder groups) as the crossbar (Figure 2.4). The effort
across the C-suite would probably demonstrate that most required in the processes and performance management
performing these roles had a responsibility for some The CFO role in the future is defined by two trends: one of across the finance function (the stem) will decrease over
aspects of value creation. All the C-suite roles need to be increasing automation and one of a broadening range of time with the progressive adoption of automation. This will
consulted on the whole value agenda for the organisation. external and internal reporting requirements. enable the CFO’s focus to shift towards engaging with the
stakeholders across the top bar the ‘T’.
As many aspects of the reporting of value are covered by
the financial and non-financial reporting standards, in reality
the CFO is accountable for these aspects of value. Creating
a separate CVO role would not remove that responsibility FIGURE 2.4: The T-shape of the CFO’s responsibilities
from the CFO.

While the leadership of the value-creation process is a Investors and other

Customers Employees Community Regulators
collective responsibility of the C-suite on a day-to-day basis, financial stakeholders
it should be reflected in the responsibilities at the executive
and board levels, and within the risk-management and
governance structures of the organisation. Many of the risks
to value should already be included in the assessments
undertaken by chief risk officers: it is important to embed
such responsibilities in their role. Financial
and reporting
responsibilities
MANY OF THE RISKS TO
VALUE SHOULD ALREADY BE
INCLUDED IN THE ASSESSMENTS
UNDERTAKEN BY CHIEF RISK
OFFICERS: IT IS IMPORTANT TO
EMBED SUCH RESPONSIBILITIES
IN THEIR ROLE.

20
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 2. THE CHANGING CFO ROLE

In the other dimension, the finance function increasingly

assumes some responsibility for the sustainability agenda FIGURE 2.5: Four zones of the future of finance ‘THE CFO IS A
of the organisation. The extent of this will depend upon
the nature of the organisation. In a large entity where
VALUE CREATOR’.
there are many complex issues associated with achieving CFO IN CHILE
a sustainable future, the finance team will do best to focus
Insight
their skills on the quality of the reporting of sustainability Sustainability generation
activities, both internally and externally. Reporting, however,
only reflects what has already been achieved. It is strategy
that leads to action. CFOs need to be integrally involved
in this. For a smaller, and perhaps less complex entity, as
one audit partner commented, ‘when the music stops the
agenda ends up with the CFO’. Finance teams therefore Value
need to be prepared to structure themselves across four
zones (Figure 2.5), led by the CFO.

What can be said with a fair degree of certainty is that

the CFO role will continue to be vital for the leadership Compliance Transactional
and control efficiency
of organisations and will continue to develop over the
coming years.

For many organisations the CFO is the CVO. The

2.7 The CFO role in the context of the CVO
progression has been a natural one. Several roundtable
Are the CFO and the CVO roles synonymous or are they participants foresaw the growth of overlaps between the
separate? The answer to that question, from the evidence two distinct roles. One commented that ‘there is a thin
presented, is that, to an extent, ‘it depends’. The classic line between these two, because [as CFOs we] are not just
view (as noted in the ‘Responses to three questions’ going to continue…just being the bookkeeper, now you
section) is that the CFO role is short-term focused and are just the reporting person. The question now is, “[is] it
financially driven. The overwhelming majority of the CFOs possible to have a CFO and a CVO in one institution?”’
consulted for this research would immediately refute that
premise, arguing that their role is longer term in nature and Another CFO commented that, ‘it is not so much in the
embraces the totality of performance. title [as] in the mindset. What am I doing with that data to
create that value?’.
For a significant global organisation, an argument may
be made that an individual must be responsible for Another commented that, ‘I think you can start out as a
non-financial reporting and, hence, for addressing more CFO and then become a chief value officer. You need to
value-driven requirements. This could be because a know the fundamentals of financial finance and accounting.
focus is needed on the special nature of the disclosures But I think as you gain experience and you put yourself out
required and the complexity of gathering that information. there more, you understand the business [and] you can
As the CFO will remain the key figure in presenting such build relationships with people around the company.
information there is a strong argument that this person – You could then become that chief value officer. You start
the ‘CVO’ – should report to the CFO. as a CFO but then you become a chief value officer’.

21
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 3. DEVELOPING THE RELEVANT SKILL SETS

‘I think the CFO of the future if they are going

3. Developing the
to be a true value creator – are going to see
themselves as an executive in the business,
not as the “chief bean counter”’.

relevant skill sets

CFO in Australia

3.1 The imperative of developing the

necessary skills
The role of the CFO is one that is continually evolving.
New skills are required, but older skills can afford to be
‘unlearned’. What is important is that there is a cadre of
individuals with the relevant skills both for present and for
the future.

Historically, most CFOs will have followed one of two

routes through the profession. Either they have progressed
through the finance function of organisations to a
financial controller / finance director role before moving
onto their first CFO role, or they have followed a route
through practice to then assume a CFO role. As has been
demonstrated in this report, there is a potential skill ‘jump’
between the last roles in these pathways and the CFO role.

One CFO likened the progression through the finance

function to a triangle of roles, noting, ‘that triangle
has shrunk at the bottom because of automation and
technology. You can select people from the bottom to
move them up and then move them up [again]. That can
still happen. However, you are drawing from a smaller pool’.

In several roundtables the discussion turned to the

relevance of a CFO-specific, or more advanced, certification
in the career progression of a finance professional. While
this did not have uniform support, among many there was
an agreement that such a certification could offer support
in developing a range of relevant skills that currently
stand outside the requirements of the core professional
qualification and could consolidate a range of currently
available continuing education opportunities for example,
covering sustainability, non-financial reporting, technology
and data. It could also reinforce the development of the
interpersonal skills necessary for career progression.

22
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | 3. DEVELOPING THE RELEVANT SKILL SETS

3.2 For the current CFOs

TABLE 3.1: Reinforcing the development opportunities
For those who are already in CFO roles, the development
pathways to embracing the concept of value are less MENTORING
complex. For many, the route is through a series of
evolutions which can be enhanced by using continuous 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
learning opportunities to ensure that they maintain their
of a network of peers helps one to share experiences and gain fresh insights.
skill sets in areas such as sustainability, technology and
data, among others. Networking with other CFOs who are COURSES
progressing along the same path can also be beneficial.
Courses such as MBAs have value in giving understanding of some of the broader operational aspects of
A CFO from mainland China commented that not just the organisations. Some of these may be more marketing focused, but there are sufficient synergies between an
finance leader, but also the entire finance team should be accountancy qualification and an MBA to make them a sound basis for a CFO role. A CFO commented, ‘I did
moving in a direction, asking ‘What is this direction?’ This my MBA because I thought my accounting qualification was too narrowly focused’.
participant argued that it is towards being able to manage LEARNING
the business as a CEO at any time.
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
3.3 The next generation
and conflict management as well as persuasion and stakeholder management
For those who now aspire to be CFOs the challenges are
greater than in the past. The gap in the pathway between OPERATIONS
a more junior role and the CFO role may now be harder to Seek opportunities for operational experience to gain a deep understanding of the sector, which can be applied
bridge than it was. It is important to reiterate a comment in the CFO role.
made by many of the roundtable participants – bridging
that gap is worthwhile. The CFO role is one that offers INTERNATIONAL
tremendous satisfaction and reward.
Where possible, gain international experience because the connectivity of the global economy and the resulting
risks heavily influence the work of the CFO.
The roundtable participants made several observations
that reinforce the value of many of the traditional steps in CRISIS
the pathway, as summarised in Table 3.1.
Experience of crisis management is essential. As a CFO from Argentina commented, ‘you have to learn how to
One consideration on which several roundtable participants surf in every kind of crisis’.
commented was that even with the T-shape progression
BUSINESS PARTNERING
of the CFO (Figure 2.4) there is a need for strong technical
accountants to manage the data flows. This is also an area Undertake business partnering roles, focusing especially upon the analysis and interpretation phases of
of developing expertise. One that should not be ignored. 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
‘I always feel exploratory learning is critical, especially
how do you define value?’
in the finance function. I used to work previously at an
organisation that supported those who were incarcerated. TECHNICAL
I have been inside correctional facilities, I got to go home
at the end of the night. I wasn’t a resident, …but it helped 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
me understand what we [were] doing as a business’.
who failed to demonstrate an understanding of the core accounting fundamentals that a qualification inculcates.
CFO based in the US

23
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | CONCLUSION

Conclusion
‘What footprint does the organisation want to make
on the world outside of the monetary footprint?’
CFO from Canada

24
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | CONCLUSION

The concept of value is an important one for organisations. It is an increasing area of focus for many
stakeholders, whom this report defines as the recipients of value. Being able to report upon and
achieve value-based objectives is essential for organisations now and in the future.

While value itself may be a concept that is unique in It is important that CFOs, as leaders of finance teams and
detail to each organisation, there are several principles in their own roles, seize the opportunity presented to them.
that we can agree upon: how value is enabled, how it is Increasingly, finance teams are being asked to become
converted and the identity of the recipients of the value more forward looking, to embrace operational as well as
among the range of stakeholders to whom an organisation financial performance measures and to deliver decision
is increasingly accountable. Sustainable organisations support when needed. Organisations are increasingly
have a long-term role in society which balances the being held accountable for their actions in society, well
economic, environmental and social dimensions and is beyond generating profits. As the balance between these
crucial to how they add value. Finance teams increasingly aspects continues to alter, so the role of CFO will continue
need to demonstrate how this is being achieved from to grow. Failure to adapt will marginalise the function and
the organisation’s strategic direction, looking towards the individual.
the future to the external reporting and highlighting the
progress made. The CVO role is an important evolution of the CFO role.

The concept of a CVO seeks to embrace many of these

notions as longer-term concepts in the leadership of ‘Regardless of our title as “CXO”, it ultimately
organisations. In reality, creating value is a collective originates from our mindset, where we position
responsibility of the board and senior management. ourselves, what we think we can do, and what we
Yet the role that CFOs already play in organisations means are willing to do. I think mindset is very important,
that they are acting as CVOs. Whether that implies a need and most importantly, from a mindset perspective, we
to ‘rebrand’ the CFO role is a matter of personal choice, should not limit ourselves. Regardless of whether I am
but the inherent values integral to the CFO role are a “CXO”, I am responsible for the company’s business
attributes that should be cherished in relation to value, development and future, which is the most important
and not lost. In creating value, CFOs are the key players
thing. With this kind of mindset, regardless of whether
for many organisations.
I am a “CXO”, I can create value in my position’.
CFO from mainland China

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CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | RESPONSES TO THREE QUESTIONS

Responses to three questions

As an illustration of the discussion about the CVO and the role’s relationship to that of the CFO,
three questions were posed to both ChatGPT and Bard (the Google equivalent). The responses are
reproduced below and illustrate one perspective on the debate, which might well influence any
discussion of the awareness of the reality of the CFO role in organisations. These views do not accord
with those who contributed to this report. Indeed it shows the lengths that we, as a profession, still
need to go to, to continually update and broaden the concept and perception of what the CFO role is.

26
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | RESPONSES TO THREE QUESTIONS

What is a Chief Value Officer?

CHATGPT RESPONSE BARD RESPONSE

A Chief Value Officer (CVO) is a senior executive in an A Chief Value Officer (CVO) is a senior executive who is
organization who is responsible for identifying, developing, responsible for creating and protecting the value of a
and implementing strategies that create and maximize value business. The CVO typically reports to the CEO and works
for the company and its stakeholders. The CVO is typically closely with other members of the executive team to develop
focused on creating long-term value for the organization by and execute strategies that will increase the company’s value.
aligning business strategy with the needs and expectations
The CVO’s responsibilities may include:
of customers, employees, investors, and other stakeholders.
• Developing and implementing a value creation strategy
The role of the CVO is to identify new business opportunities,
• Managing the company’s risk profile
assess market trends and changes, and develop strategies
to optimize revenue and profit. Additionally, the CVO is • Measuring and reporting on the company’s value
responsible for monitoring and analyzing key performance • Communicating the company’s value to investors and
indicators, such as customer satisfaction, brand equity, and other stakeholders
market share, to ensure that the organization is delivering
The CVO role is relatively new, and the responsibilities of the
value to its stakeholders.
role vary from company to company. However, the CVO is
In summary, the Chief Value Officer is a strategic leader typically responsible for ensuring that the company creates
who is focused on creating and delivering value to all value for all of its stakeholders, including shareholders,
stakeholders, and is responsible for developing and employees, customers, and the community.
executing strategies that drive sustainable growth and
The CVO role is becoming increasingly important as
success for the organization.
companies face more challenges and opportunities in the
global economy. The CVO can help companies to identify
and capitalize on opportunities, and to mitigate risks. The
CVO can also help companies to communicate their value to
investors and other stakeholders.
The CVO role is a demanding one, but it can be very
rewarding. The CVO has the opportunity to make a
significant impact on the success of a company.

27
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | RESPONSES TO THREE QUESTIONS

Is a CVO a CFO?
CHATGPT RESPONSE BARD RESPONSE

No, a CVO (Chief Value Officer) is not the same as a No, a CFO is not a CVO. A CFO is a Chief Financial Officer, while
CFO (Chief Financial Officer). While both roles are senior a CVO is a Chief Value Officer. While both roles are important for
executives in an organization, their responsibilities and the success of a company, they have different responsibilities.
focus are different.
The CFO is responsible for the financial management of
The CFO is responsible for managing the organization’s a company, while the CVO is responsible for creating and
financial resources, including budgeting, forecasting, protecting the company’s value. The CFO typically reports to the
accounting, and financial reporting. They oversee CEO, while the CVO reports to the CFO.
financial operations, ensure regulatory compliance,
The CFO’s responsibilities include:
manage risk, and work to optimize financial performance.
The CFO’s primary focus is on financial matters, and • Preparing and analyzing financial statements
they are responsible for providing financial guidance and • Managing the company’s cash flow
support to the organization’s leadership team. • Investing the company’s money
• Managing the company’s taxes
In contrast, the CVO’s primary focus is on creating
and maximizing value for the organization and its • Overseeing the company’s accounting department
stakeholders. They are responsible for developing and The CVO’s responsibilities include:
implementing strategies that align with the needs and • Developing and implementing a value creation strategy
expectations of customers, employees, investors, and
• Managing the company’s risk profile
other stakeholders, with the goal of creating long-term
• Measuring and reporting on the company’s value
value for the organization. The CVO may work closely
with the CFO to ensure that financial resources are • Communicating the company’s value to investors and
being used effectively to create value, but their primary other stakeholders
responsibility is focused on value creation and not The CFO role is typically focused on the short-term, while the
financial management. CVO role is typically focused on the long-term. The CFO is
responsible for ensuring that the company’s financial statements
are accurate and that the company is in compliance with
financial regulations. The CVO is responsible for ensuring that
the company creates value for all of its stakeholders, including
shareholders, employees, customers, and the community.
The CFO role is more traditional, while the CVO role is more
strategic. The CFO role is typically filled by someone with a
strong background in accounting and finance, while the CVO
role is typically filled by someone with a strong background in
strategy and business development.
In some cases, a company may have a CFO who also serves as
the CVO. However, this is not always the case. In some cases,
the company may have two separate executives, one for CFO
and one for CVO.

28
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | RESPONSES TO THREE QUESTIONS

Why would I want to be a CVO?

CHATGPT RESPONSE BARD RESPONSE

If you are interested in being a strategic leader who is There are many reasons why you might want to be a CVO. Here
responsible for creating and maximizing value for an are a few:
organization and its stakeholders, then becoming a Chief
 o make a difference. As a CVO, you have the opportunity to
• T
Value Officer (CVO) could be a rewarding career path.
make a significant impact on the success of a company. You
As a CVO, you would be responsible for identifying new
can help to create and protect value for all of the company’s
business opportunities, assessing market trends, and
stakeholders, including shareholders, employees, customers,
developing strategies to optimize revenue and profit.
and the community.
Being a CVO can be an exciting and challenging
 o be challenged. The CVO role is a demanding one, but it
• T
role that requires a broad range of skills, including
can be very rewarding. You will have the opportunity to work
strategic thinking, analytical abilities, leadership, and
on complex problems and to make decisions that will have a
communication skills. You would work closely with other
real impact on the company.
senior executives and stakeholders, and would have the
opportunity to shape the direction of the organization,  o learn. The CVO role is a great opportunity to learn about
• T
drive growth and success, and make a positive impact different aspects of business. You will have the opportunity to
on the company and its stakeholders. work with people from all over the company, and you will learn
about different industries and markets.
In addition to the intellectual challenge and sense of
purpose that comes with being a CVO, the role can  o grow. The CVO role is a great opportunity to grow your
• T
also be financially rewarding. CVOs are typically well- career. You will have the opportunity to work with senior
compensated, with high salaries and other perks such executives and to learn from them. You will also have the
as stock options, bonuses, and other incentives. opportunity to develop your own skills and expertise.
Overall, if you are passionate about creating value, If you are interested in a challenging and rewarding career, then
have a strong strategic mindset, and are interested in a you should consider becoming a CVO.
challenging and rewarding career path, then becoming
a CVO could be a great choice for you.
Source: ChatGPT, accessed 31 March 2023 Source: Bard, accessed 1 April 2023

29
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | ACKNOWLEDGEMENTS

Acknowledgements
The contributions of the following individuals, amongst others, in the development of this research are
noted with thanks.

Zhang Aihui, Changan Automobile, mainland China Andrew Elsby-Smith, Amtico Europe, UK
Richard Aitken-Davies, Non-Executive Director, UK Ben Fash, Fluence Corporation, Australia
Susan Allan, Willerby Group, UK Nick Fox, BDO, Australia
Olayinka Anyachukwu, Nigeria Swee Guan Goh, StorHub Self Storage, Singapore
Amber Arnhold, Honeywell Aerospace, US Edward Guest, Unlimited, UK
Francis Au, Portfolio CFO, Hong Kong SAR Jonathan Guttmann, Alloys, Australia
Sharon Barnes-Simmonds, Action Against Hunger, Canada Jacques van Heerden, Solana Group, South Africa
Katherine Bayliss, Arab Australia Bank, Australia John Herman, Movable Ink, US
Michael Bencsik, BeforePay Group Limited, Australia Peter Houillon, Kaplan International, UK
James Best, Precision Consulting, UK Michelle Hourigan, Datatrails, Republic of Ireland
Liz Blackburn, ACCA Council Member, UK Juan Carlos Jerez, Holding Auto Club Chile S.A, Chile
Michael Bradburn, Ausgrid, Australia Jey Jeyakumar, Toll Global Express, Australia
Geoff Bryant, B&Q, UK Yang Jihong, Yangzijiang Acetyl Chemical Industrial Co,
China
Natalie Burkitt, Shepper, UK
Echo Jin (Jin Song Hua), Microsoft China, mainland China
Aaron Chan, Standard Chartered, Australia
Joshua Jonas, Strathwise Consulting, Tanzania
Imran Chughtai, Goldsmiths, University of London, UK
Kevin Jones, SA Power Networks, Australia
Phoenix Chung, Legend Strategy International Holding,
mainland China Neville Kadimi, Diamond Wipes International, US
John Craig, DC Consulting (Scotland) Limited, UK Steve Kamski, Tri-Mach Group Inc., Canada
Eric Dana, Atom Power, Inc., US Julius Katanaka, Wazalendo Savings Credit and
Cooperative, Uganda
Rory Dennis, Xuper, UK
Amit Kooyela, HV Holdings Ltd, Mauritius
Jim Dodge, First Quality, US
Jeff Lewis, BDO, Canada
Grant Earney, RMBL Investments Limited, Australia
Evans Madioli, HealthX Africa, Kenya

30
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | ACKNOWLEDGEMENTS

Beatrice Malenga Mabhena, Vodacom, Mozambique Zeng Ping, Heidrick Chengdu Tunnel Co, mainland China
Hesham Mohamed Adel Abdelhay Mahmoud, Mayfair CIB John Reidy, SOR Consulting, Canada
Author
Bank Limited, Kenya Clive Webb
Amoen Marie Ange Rödiger, Henry Schein, Germany Head of Business Management, ACCA
Steve Mazinga, PYXUS Agriculture Malawi Limited, Malawi
Alistair Roman, Consulting CFO, UK
Dony Mazingaizo, Italy
Amélie Ruellan, Audencia, France
Joanne McCourt, Ebit Intelligent Procurement, UK
Agne Saade, Vistra, UAE
Sally McGill, Staffordshire University, UK
Ebrima Sawaneh, Arise Ports & Logistics, UK
Nauman Mian, byat.com, UAE
Alan Shand, Weatherford, US
Gordon Miller, BronxWorks, US
Malcolm Shroff, Tata Consultancy Services, Australia
Michael Mills, Jaguar Land Rover, UK
Brendan Sheehan, White Squires, Australia
Shakira Mohamed, Sai Pharmaceuticals Ltd, Kenya
Heather Smith, ANISE Consulting, Australia
Prudence Muchinouta, Community Markets for
David Swan, Non-executive director, UK
Conservation, Zambia
Qiu Tian, Chongqing Pharmaceutical (Group), mainland
Lydia Muhangi, Financial Sector Deepening Uganda,
China
Uganda
Ashenafi Tiruneh Bikila, Silafrica Ethiopia Industries PLC,
James Murnieks, Siemens UK & Ireland, UK
Ethiopia
Stephanie Murray, Lawyers on demand, UK
Adrian Tittarelli, Crucianelli S.A., Argentina
Kelvin Musana, Standard Chartered, Uganda
Paul Turacayisenga, Portfolio CFO, Uganda
Mark Nadel, The Friedkin Group, US
Aashima Vadhera, Midrex Technologies, Inc., UAE
Ian Ng, AMMEGA, mainland China
Romay Whal, Intocast, Germany
Lillian Njuba, East Central and Southern Africa Health
Hannah Williams, Tiny Rebel Brewing Co, UK
Comunity, Tanzania
Paul Wood, Australian Public Police, Australia
Tatiana Okhotina, CUBE Content Governance, UK
Mike Wynen, ISG Group of Companies, Canada
Josephine Okui Ossiya, Bujagali Energy, Uganda
Jack Xiao, Rosewood Hotel, mainland China
Andrew Oyie, Umeme Ltd, Uganda
Du Xiaohui, Beijing Foton Daimler Automotive Co., Ltd,
Cecile Parker, Vital Energi, UK
mainland China
Andrew Pepper, Consultant, UK
Chen Yilong, Country Garden, mainland China
Alan Pepper, essensys, UK
Masresha Zeleke, GIZ Somalia, Somalia
Iván Pérez, Metrotel, Argentina

31
CHIEF VALUE OFFICER – THE IMPORTANT EVOLUTION OF THE CFO | REFERENCES

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ACCA The Adelphi 1/11 John Adam Street London WC2N 6AU United Kingdom / +44 (0)20 7059 5000 / www.accaglobal.com