CFOs: Making the shift from financial gatekeepers to value creators

Chief financial officers (CFOs), who are now trusted partners of organisations, have moved beyond profit to long-term value, ethical leadership, and business-wide impact.

For decades, CFOs have handled the role of managing the numbers, protecting the bottom line, and keeping investors happy. But as businesses face growing pressure around sustainability, technology, and stakeholder trust, their financial leadership has evolved. 

As pointed out by Garrett West, Director of International IT Managed Services Delivery Operations at Dell Technologies, in the “CFO to Chief Value Officer: Redefining Business Success” podcast by Singapore Business Review in partnership with ACCA, CFOs have stepped up and have gone beyond just being financial gatekeepers.

“They're more accountable in economic, environmental and social equality, not just profit,” he said, referring to stakeholders such as local communities, employees, and environmental groups.

West noted that the changes in investors prompted the shift amongst CFOs. The latter’s previously short-term financial performance has turned into long-term value creation, and this requires a more holistic view of the business, one that considers financial results along with people, sustainability, and long-term impact.

Essential skill sets for broader business outcomes

Speaking from experience, West, who has been in the field for over 20 years, underscored the four qualities that define effective financial leaders. First on the list is value acumen, which involves understanding how value is created across customer relationships, employee engagement, and social impact.

Second is stakeholder leadership. CFOs, he said, are natural “super connectors”; hence, they engage a wider and more diverse group than ever before.

Another essential quality is data and technology leadership, with West stressing the pressure to give real-time performance management as AI accelerates decision-making. Finally, there is ethical leadership. CFOs are seen as the moral compass within the company, so they must ensure that decisions align with values and sustainability goals.

West further noted that CFOs need to adopt new skills and, just as importantly, a new mindset to stay relevant in their roles. Amongst the most critical skills are digital and AI fluency, sustainability expertise, change management, and communication. 

“Previously, CFOs were known as ‘Doctor No.’ That’s not acceptable anymore,” he said, stating how they must exert effort and even compromise to make things happen. 

Emphasising the importance of communication, West added that CFOs must learn to translate complex data into compelling narratives for stakeholders.  “Numbers are important, but we're communicating. Sometimes we have to get away from them and tell the story,” he stated.

Empowering CFOs

As organisations move into the future, the need to shift their perspective on finance leadership and to empower their CFOs plays up. “CFOs are not just compliance officers anymore,” West said. 

They must be positioned as strategic advisors, supported by clear governance, strong training, and real empowerment from the C-suite.

West then addressed finance leaders, “Don't be afraid to embrace change. Step up to that value office type of role and add value to the company and to all the stakeholders. You have to continuously educate yourself and continue upskilling.”