CFOS: Riding the Waves of Finance Transformation

Barry Payne, Director of External Relations at AICPA-CIMA, wrapped MFM’s 2024 Annual Conference with an insightful and interactive keynote address designed to encourage everyone in media and entertainment finance to rethink their roles and recalibrate their paths. Here’s his summary of the presentation.

As a result of these dynamic conditions, the definition of CFO is changing from Chief Financial Officer to Chief Future Officer. And the skill set of financial professionals has to adapt, moving from a rearview mirror perspective to a windshield view, from hindsight to foresight, and from a reputation as CFO “no” to CFO “know.”

Like waves in the ocean, the pace of change and transformation is choppy, it’s getting bigger, and it’s coming faster. Knowing that we cannot stop or slow down these waves, we must be nimble, adjust, and learn how to surf these big waves of transformation to keep up with the demands of innovation.

Balance, strength, and flexibility are the tenets to surfing success. The same holds true for riding these waves of uncertainty and change. For CFOs, finance leaders and professionals having the balance of team critical skillsets, forward-thinking mindsets, and being flexible, adaptable, and with the foresight to invest accordingly with change are critical attributes needed to successfully navigate the waves of transformation. Here are 10 themes for CFOs and finance leaders to follow as they strive to achieve transformation success:

1. Transformation is Fundamentally About People: Most importantly, the people on your team play a significant role in driving transformation. The success of any change initiative depends largely on the mindset, education, and skill sets of the team. Transformation is not just a technological or strategic shift but a deeply human-centric process.
2. RONI (Risk of Not Investing) and FOBO (Fear of Becoming Obsolete):These acronyms capture the dual pressures finance executives face. RONI underscores the peril of failing to invest in necessary changes and upskilling, whereas FOBO reflects the anxiety of falling behind in skills and capabilities amidst rapid transformation. Both highlight the need for strategic forward-thinking and a willingness to adapt.
3. Mindset of Team is Critical: The importance of cultivating a strategic, forward-thinking mindset among team is essential. A mindset that embraces change, recognizes the inevitability of transformation, and sees beyond immediate challenges is essential for effectively navigating the waves of change.
4. Upskilling and Education are Essential: Continuous learning and skill development is a necessity. Upskilling the finance team is not just about staying relevant but is critical for harnessing the opportunities that come with transformation.
5. Change is Inevitable; Adaptation is Key: The sentiment "Adapt or expire" encapsulates the urgency and inevitability of change in the finance sector. Embracing change, rather than resisting it, and preparing teams to adapt quickly to external changes are vital strategies for staying ahead.
6. AI and Technology are Tools, Not Panaceas: While acknowledging the role of AI and technology in transformation, it's clear that these are tools to aid the transformation, not solutions in themselves. The human element -- mindset, creativity, and strategic thinking -- remains irreplaceable.
7. Finance Roles are Transforming:The evolving nature of finance roles are becoming more strategic, requiring a broader skill set beyond traditional finance skills.
8. The Journey is Ongoing: Transformation is a continuous process with no definitive end point. Organizations need to maintain a dynamic approach to transformation, constantly adapting to new challenges and opportunities.
9. Strategic Forward-Thinking: Success in navigating the waves of transformation is linked to having a strategic mindset that not only anticipates future trends and challenges but also proactively addresses them.
10. All About People and Talent: Ultimately, the foundation of any successful transformation is the people and talent within the organization. Ensuring that the team is equipped, motivated, and aligned with the transformation goals is paramount.

For financial executives in the media and entertainment industry - a sector that is being buffeted by the winds of change more acutely than many other industries - this transformation is vital. We all know that it’s imperative for us to have deeply technical and functional accounting and finance expertise. But increasingly it’s the mastery of the less tactical i “soft skills” that will drive our career advancement and our companies’ success. Those skills include critical and strategic thinking, communication and storytelling, data and tech savviness, and leadership and negotiation capabilities.

There is a collective awareness among finance executives of the challenges and opportunities presented by the rapidly evolving landscape, with a clear directive to prioritize people, adaptability, and strategic foresight in navigating these changes. To succeed and ride these ongoing “waves of change” without wiping out is understanding the critical importance of and adapting a people-centric approach to transformation, emphasizing the need for a forward-thinking mindset, continuous upskilling and strategic investment in change initiatives.

Are you ready? Surf's up!

This article was written by Barry Payne, Director of External Relations at AICPA-CIMA, a trade association that advances the global accounting and finance profession through its work on behalf of 597,000 AICPA and CIMA members, candidates and registrants in 188 countries and territories. The two now-combined organizations are the worldwide leader on public and management accounting issues through advocacy, support for the CPA license, the CGMA designation and specialized credentials, professional education and thought leadership.

Posted at MediaVillage through the Thought Leadership self-publishing platform.

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