Finance departments face new topics and stakeholders
Based on this new perspective, 82 percent of the finance executives surveyed stated that the lines of their disciplines will be redrawn at the classical edges of controlling and accounting. Corporate venturing, the control of new business models, ESG reporting, investor relations, corporate governance, data privacy, M&A, and other topics are gaining ever more relevance. They intersect with the activities of finance departments, and it is precisely these areas that offer potential for synergies and give finance executives the opportunity to position themselves early on. IT-related topics will also be moving closer to the domain of finance, prompting even closer collaboration between CFOs and CIOs. As business intelligence and data analytic solutions become more user-friendly, they will be applied more often at finance departments. In the course of these developments, finance departments will also be assuming greater responsibility for data governance and data models.
In addition to these changes within organizations, external factors will also play a role. In contrast to earlier trends toward “green controlling,” legal requirements in areas such as corporate sustainability reporting (CSRD2) bring binding standards. ESG controlling will thereby fall under the jurisdiction of specific roles. Seventy-seven percent of respondents agree that the “sweet spot” for finance departments will shift to a position at the intersection of classic financial duties, IT, and incipient governance issues. CFOs need to incorporate these developments into their overall strategies in order to establish the relevant forms of expertise early on and in targeted ways.
Nearly all the finance executives surveyed find it highly relevant to further develop their departments on an ongoing basis. However, some have concerns about how to integrate a process of continuous improvement. Consistent implementation of certain internal guidance measures (such as “future radar” systems and trend scouts) can provide support. Once established in the governance role of a finance department, this type of financial foresight can help the department remain agile and responsive at all times. Foresight measures can take many forms, including regular participation in networks and expert committees at industry associations, meetings with tool providers, and attendance at conferences as well as traditional desk research—and thereby enable employees to play more active roles in further developing their fields of action.
Synergies and roles guide the organization of finance departments
The classic lines between “controlling” and “accounting” are increasingly being called into question. At the same time, synergy enhancement, stakeholder orientation, automation, E2E responsibilities, and employee skills are becoming structural and organizational factors for finance departments.