In ACCA’s report titled A new breed of adviser for the modern-day enterprise, a new challenge is presented where CFOs are urged to refine the way they approach their work in order to cater for changes in the business environment.
People in the business world like entrepreneurs rely on the advice of professional practitioners to be able to function efficiently in their day-to-day operations; so, the ACCA report highlights the need for CFOs to keep updated with the latest innovations in the business environment.
Reports are found on the internet that study external factors in order to enhance business activities to meet desired objectives. But all this information would result to nothing if the relationship between CFO and CFO is not properly managed. Values such as respect need to be cultivated in the relationship between CFO and CFO.
In the report, Rosanna Choi, says, “Accountants are trusted advisers to businesses, especially start-ups and SMEs (small and medium-sized enterprises) when they are in the first few years of formation and need to keep on top of the financial side of things in their aim to expand and grow.” Although Rosanna speaks with the relationship of CFO and entrepreneur in mind, this statement can be used by CFOs to check the relationship they have with their juniors. In this ever changing environment, is the relevant training and education passed on to this cohort? Do senior financial professionals invest enough time in those working under them to the point that the business can function efficiently even in the absence of those seniors?
When David Ebersman’s departure was announced at Facebook Inc., after five years in the CFO role, he had this to say:“This has been a tough decision because Facebook is such a great company and has such a bright future ahead…It’s been a privilege working at Facebook and being part of such a great team. We have an incredibly talented finance organization, and I have complete confidence in Dave Wehner and his ability to lead the team going forward.”
The one thing that stands out in Ebersman’s statement is not that he is leaving a company like Facebook that he believes will do better in the future, but it is the confidence he has in the individual meant to take over his role. Because of sound relationships between CFO and CFO, seamless transitions should become a norm. Karen Smal, Acting Head of ACCA, commented that relationships are key in businesses reaching their desired end. “People are assets”, she emphasised, “and a lot of time and energy should be channelled into cultivating sound relationships in an organisation”.