What does the finance function of the future look like?

BDO Ireland
Insights
2025
Finance Function of the Future
What does the finance function of the future look like?

What does the finance function of the future look like?

The evolution of the Chief Financial Officer (CFO) into a more value-centric role, akin to a Chief Value Officer (CVO), is an essential element of building a finance function of the future. In addition to fulfilling core responsibilities, such as compliance and reporting, navigating tax and regulation, and driving growth, today’s CFOs must act as strategic leaders, advising organisations on non-financial aspects depicted in our interactive CVO wheel below. Each one of these responsibilities is key to creating value, enabling agility, and supporting the growth of an organisation.

Click on each of the tabs to assess where you are in your journey to building your finance function of the future.

CFO-to-CVO-wheel-animate-bdo-branded

Have you got a clear understanding of your organisation's operating model to be able to measure a truly value-centric view of your organisations performance?
How are you adapting to new demands for transparency and the integration of non-financial information into your reporting?

How can you identify silos and optimise processes, evaluating stages from planning to procurement, to improve supplier reliability and sustainability?

How are you integrating ESG into your strategic plan and meeting regulatory reporting requirements?
To what extent are sustainability considerations embedded into your organisation's objecitves?

How do you balance short-term objectives with long-term value creation?
What does value creation look like to your organisation, and how do you ensure that it's at the heart of strategic decision-making?

How are you embedding the concepts of value into the risk management and governance processes?
What systems and processes are you putting in place to safeguard against risks and fraud (e.g. digital risk, economic crime, cyber security, and data protection)?

How are you implementing a multi-stakeholder value creation model that includes investors, regulators, customers, employees, and the local community?

How are you prioritising mentoring, networking, and strategic business partnering to build a resilient, agile workforce and attract top talent?

What are you doing to ensure your team develop new expertise on data, sustainability, and soft skills, like stakeholder management?

How can your finance function not only support but also drive digital innovation and automation?
How are you ensuring your organisation takes a holistic approach to digital transformation considering people, systems, and processes?

What processes are you putting in place to leverage financial and non-financial data and AI to drive strategic decision making?
In light of the growing emphasis on both financial and non-financial data analysis and insight generation, what is the role of your finance function in delivering data governance?

A value centric approach

CFOs are now responsible for getting the balance right between short-term objectives and long-term value creation. As exemplified in one case study in this series, these two seemingly conflicting objectives can represent a harmonious balance. The Chief Value Officer (CVO), as the right hand of the Chief Executive Officer, is responsible for delivering value-driven strategic success. The link between an organisation’s values and the delivery of value to stakeholders is also clearly articulated.

Many of the CFOs we interviewed highlighted how through strategic goals and reporting the organisation delivers for the public good. Whilst the stakeholders may not be readily identifiable beyond the financial lens, tools such as the IIRC’s Integrated Reporting Framework (which has now been incorporated into the work of the IFRS Foundation) can provide a ready lens for the reporting of value.

Long-term sustainability vs short term profitability

Investment in a sustainable future requires a balance of people-, profit- and planet-centric views of performance, often challenging traditional approaches to business case development and investment appraisal.

Measuring a truly value-centric view of performance relies upon the finance function having a clear understanding of the organisation’s operating model. As the case studies demonstrate, having a holistic view of performance can drive substantial growth, often in organisations whose purpose clearly demonstrates how society benefits from their existence.

Ensuring robust and trusted data

The role of the finance function in delivering data governance across the organisations is paramount. In a value centric performance model this data does not simply include financial elements, it also embraces less structured data that supports strategic objectives around natural, human and intellectual capitals. Establishing and maintaining integrity over these data sources presents new challenges for the finance function. Sound insight and strategic guidance are built upon this base.

Value does not compromise profit; it makes profit stronger in the longer-term.

Each of the case studies presented below is a strong testament to the evolution of the CFOs interviewed into being a CVO. They underpin how the effective finance function is critical to organisational success. Yet that function must adapt to the changing world in which it operates.

Content adapted from BDO Global.

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