Future pathways

to CFO
2017
Contents

A note to aspiring CFOs 3

Why should I read this guide? 4
This is a story of evolution, not revolution 5
The top finance job today 6
Today’s conventional finance career 7
How can tomorrow’s finance leaders best prepare? 9
Plan A – know your finance fundamentals 11
See strategy and business experience 12
as the new baseline
Plan your career for the next big thing: 13
Insight and Analytics
Get risk experience under the belt 14
Become a deal maker 16
Get closer to stakeholders, become customer focused 18
Focus on the management skills that matter 20
Prepare for more regulation and broader reporting 22
Get connected 23
Expand your footprint 24
Conclusion 25
Case studies 27
Ivan Mitringa – Dell 28
Simon Dingemans – 100 Group 33
Ayla Majid – Islamabad Stock Exchange 37
Xinkai Chen – Hugo Boss 42
Alexander Joramsa – Grid Solutions 46

Future pathways to CFO Contents 2

A note to aspiring CFOs

The operating environment of

tomorrow’s companies is complex
and competitive. It is also less
stable, and inherently risky. Amid
this uncertainty, future CFOs and
the finance teams they lead must
somehow chart a path able to
create and sustain value
for their businesses.
When we consider what the future of finance will look like,
are all bets off? Is there simply too much technological,
social, economic and business change taking place to
reliably predict how the future role of the CFO will evolve?
Or does this turbulence instead set the framework for how
the future role of finance leaders will evolve, as well as help
redefine the skills and experiences that will be most valued
in tomorrow’s leaders?

Future pathways to CFO A note to aspiring CFOs 3

Why should I read
this guide?

Now, more than ever, the CFO is at the forefront of value preservation and value
creation activities – no small balancing act. In delivering successful finance leadership
and performance, the standout challenges facing today’s Chief Financial Officers (CFOs)
are already significant. But for the next generation of finance leaders, they will be even
greater, particularly in the areas of globalisation, technology, consumer sophistication,
and competition, among other factors. This shines a spotlight on the need to develop
new finance career paths, which equip the leaders of tomorrow with the skills,
experiences and capabilities necessary in a rapidly changing business environment.

This updated guide originated from a global study undertaken

jointly by ACCA and IMA on the future careers of CFOs. It
combines interviews and research insights from today’s finance
leaders on how they see the role of the CFO evolving, and
explores the developments shaping finance leadership in the
future. It also outlines the career routes that present CFOs have
taken to become finance leaders, and addresses the critical
question for those seeking to become the next generation of
CFOs: will this be your next career step, or is it a longer term
goal for the decade ahead?

How do I get there and what experience should I seek out?

Future pathways to CFO Why should I use this guide? 4

This is a story of evolution,
not revolution
For finance professionals with ambitions firmly set on becoming future CFOs, the
career trajectory they will need to follow is already being redefined, a reflection
of how the role is evolving, as well as broader technological, social and economic
trends impacting businesses. There is no evidence, however, to suggest the finance
leadership rulebook needs to be entirely rewritten for future CFOs: this is a story
of evolution, not revolution.

We can expect the traditional linear routes through the
organisation to CFO to apply less in the future, and that
there will be new stepping stones to access this role. The
CFO role is slowly shifting from being about stewardship
to being about value creation. As such, the skills and
capabilities required are changing, as are career
experiences that ready future CFOs.
These evolving capabilities come in direct response to
business environments changing worldwide, and reveal new
expectations of CFOs and the finance teams they lead. So
what words of wisdom can we gain from current CFOs on
the career experiences that aspirant finance professionals
should get exposure to?

Finance chiefs will need to demonstrate a much broader set

of skills than they used to, with experience and capabilities
covering strategy formulation, transformation projects and
M&A, mature and emerging markets, turning data into
insights, harnessing technology for better financial control,
risk management and regulation – and binding all this
together, finely honed communication skills to engage with
varied stakeholder groups. The size of an organisation, its
sector, its history and culture, its geographic footprint and
its growth plans among others will all influence how these
capabilities rank in a CFO’s day to day role.

‘For future CFOs – what’s

the most important skillset
you need? It’s going to be a
diverse set of experiences.’
Tom Naratil
President of Wealth Management Americas
and President of UBS Americas, UBS Group AG

Future pathways to CFO This is a story of evolution, not revolution 5

The top finance job today

Chief Financial Officer as a job description for today’s

finance leader doesn’t quite reflect the reality of the
role. Finance leaders continue to deliver on their finance
stewardship responsibilities, but the focus on strategy
formulation and execution, is growing further. Balancing
the breadth of responsibilities continues to be a
challenge. Time is at a premium; so too is prioritisation.

As the growth agenda comes back
in the line of sight, how the finance
organisation supports businesses’
ambition dominates CFO thinking.
But helping chart the route to growth
is no easy task. From managing
regulatory changes to control of the
decentralised finance organisation,
and driving insight to support better
decision making, the significant
challenges for finance chiefs are
evolving. The public face of the
CFO also continues to grow with
more scrutiny from stakeholders who
clamour for sustainable long-term
value and an increasing flow of reliable
information, and the investment
community continues to challenge
the robustness of investment and
growth plans.
But here is the issue: for all the changes
that have started to take place with
the role of finance leadership today,
our analysis shows that today’s CFOs
have broadly followed the expected
‘traditional’ finance career trajectory.
To understand and contextualise how
career experiences may evolve in the
future, we start by exploring the classic
career paths that shaped today’s
finance leader. And we simply ask:
will this change, and what are the
career experiences of most value for
future finance leaders?

The global trading environment

remains difficult. CFOs continue to cite
challenging economic conditions, but
also see technology and automation,
regulation and risk as key issues
impacting their role most significantly.
The environment is dynamic and
uncertain, on the one hand creating
the desire for sustainable growth,
but also presenting multiple risks in
delivery. Balancing this pursuit of
growth with appropriate control of the
organisation has become the defining
hallmark of finance leadership today.

Future pathways to CFO The top finance job today 6

Today’s conventional finance career

Figure 1: The most common career route for current

CFOs according to our survey

5 Previous role? Controller 31%

Internal or external recruit? External 60%

4 Emerging market role? No 75%

International experience? No 73%

3 Role outside finance? No 61%

Moved industries? Yes 74%

2 Over 5 finance roles? No 56%

Moved business? Yes 80%

1 First role? Business & Industry 42%

Future pathways to CFO Today’s conventional finance career 7

Today’s classic finance career

1 4
Familiar starting blocks
Today’s CFOs started their career in traditional
finance training grounds, with 40% starting out
in public accounting firms, and auditing firms
continue to be a significant entry point for the
global profession, too. On the other hand,
42% of finance chiefs started their careers in
a finance role in business. This is no surprise:
these routes typically provide much of the core
foundational finance knowledge needed, from
statutory reporting and financial control, through
to management accounting and analysis. In fact,
only 8% started their professional careers in a
non-finance role.
The primacy of domestic rather
than international careers
The career story of today’s CFO is one of
domestic rather than international experience.
Only 27% of the current CFOs surveyed had
spent time in an overseas role, and only one-
quarter of CFOs had spent any time in emerging
markets. This is likely a reflection of the extent of
the globalisation of business during the career
period, and levels of expansion into emerging
or new markets
at the time. However, some
differences due to business size were noted here
also: for those CFOs representing businesses
with $1 billion+ turnover, 41% had international

2
experience and 30% had spent time in a finance
Mobility within finance, role in an emerging market.
the conventional career

5
Almost half of the CFOs participating in the
survey have had six or more finance roles before
becoming CFO. The majority
have gained
financial experience across different businesses
and almost three-quarters have moved industries
to further their career ambitions. This breadth of
financial understanding remains at the basis of
today’s CFO role, because different finance roles
and disciplines can never be practised in isolation.
Today’s CFOs have deep experience
coiled
around three core finance areas: management
accounting and business commentary, financial
control, and financial insight and analysis.
Essentially, finance fundamentals remain
cornerstone skills developed in the classic finance
career today.
Tested stepping stones to CFO
Financial director and financial controller roles
remain the prior destination of choice for those
with sights set on the top finance job. Of current
CFOs, 31% were controllers or group controllers,
and 22% were finance directors prior to their
current CFO post; 60% percent of current CFOs
were recruited externally. Again, it’s further
evidence that core financial knowledge remains
fundamental to the role of today’s finance chief.
As a matter of fact, over one-quarter (27%) were
CFOs elsewhere prior to taking their current
positions, while a minority of CFOs came into
the role through less conventional routes such
as external deal making (2%), shared service or
transformation leads (2%), and specialist finance
roles such as tax, treasury or risk (1%).

3
Moves into ‘business’ only
for the minority
More than half of today’s CFOs (61%) have never
taken
roles outside of the finance team, spending
their careers entirely within the boundaries of
finance. It is an on-going challenge for finance
leaders
to develop their commercial acumen and
understanding, which suggests much
of their
commercial experience takes place in the role
as CFO, rather than during the career journey.
It exposes the challenges that often prevail
when shifting from control positions to CFO.
Some differences due to business size were
noted however; those CFOs representing larger
businesses were less likely to have taken a non-
finance role at some point during their career.

Future pathways to CFO Today’s conventional finance career 8

 How can
tomorrow’s
finance leaders
best prepare?

Future pathways to CFO How can tomorrow’s finance leaders best prepare? 9
How can tomorrow’s
finance leader best prepare?
The career story of today’s CFO is a traditional finance
career. However, the business environment of the
future will continue to change, shaping a different
finance career experience.

The advent of rapidly changing However, through all of this complexity

technology will have significant
implications on how business is
done, and how customers are served.
The rebalancing of economic power
from west to east will bring inevitable
longer-term consequences, not least
where business activities are focused.
Businesses have to contend with
greater exposure to risk due to
economic turbulence and low growth
patterns, amid broader social,
demographic and political changes
on the world stage, which will
inevitably impact the business
landscape too.
and volatility, tomorrow’s CFO must
still support the business with effective
finance leadership. The context and
factors shaping the finance leader
role will continue to evolve. These
developments present a challenge,
as well as an opportunity for those
ambitious finance professionals intent
on becoming the finance leaders of
the future. It begs the question: in light
of these changes, what are the career
experiences and capabilities that will
be of most value?

Future pathways to CFO How can tomorrow’s finance leader best prepare? 10
Plan A – know your
finance fundamentals
For finance professionals with ambitions firmly set on becoming future CFOs, the
career trajectory they will need to follow is already being redefined, a reflection of
how the role of today’s finance leader is changing, as well as broader technological,
social and economic trends impacting businesses. There is no evidence, however, to
suggest the finance leadership rulebook needs to be entirely rewritten for future
CFOs: this is really a story of evolution, not revolution.

Today’s CFOs still expect an business. This is a skill that comes ‘A financial background,
understanding of core finance from many years of experience and coupled with breadth
fundamentals to be essential for rotation through different finance of finance experience
future finance chiefs – 95% agreed it roles. The advice is simple – aspirant enables you to ask the
was important that future CFOs have CFOs need to ensure a balanced right questions as a CFO.
experience in the core finance areas of portfolio of finance roles across their It would be hard to do this
financial and management accounting. career arc. Experience in specialised
if you didn’t have a finance
It’s difficult to foresee a future roles will continue to be beneficial,
background.’
business environment which does not but experience in mainstream roles in
Robert Mello
continue to require a strong grasp of finance remains essential.
CFO, GE Healthcare Greater China
baseline finance skills and core finance
‘CFO aspirants need a
practices such as capital expenditure
programmes, cost management, cash solid understanding of
flow, financial reporting, financial the accounting function
so they can have an Figure 3: Do you think it is
analysis, financial planning and
important that future CFOs have
forecasting. These are the finance intelligent conversation
experience of the core finance
activities that underpin the essential with the controller. They
areas of financial and management
workings of a business. There is no need to have a broad accounting?
reason to assume the business won’t understanding of how the
still highly prize CFOs who bring strong business makes cash and
control and financial management how decisions affect the
to the organisation, particularly in
long-term sustainability
a period of increased volatility. A
of the company.’
challenging economic landscape was
Andre Alexander
cited as the top influence impacting
Former CFO, Special Olympics
the future role of CFOs in our survey. Yes 95%
Our findings on the volatility of the Other data points consistently support No 5%
future global economy are consistently the notion that core finance experience
supported elsewhere.2 remains vital. In another survey, 80%
of CFOs agreed it was important for
Whilst breadth of finance expertise newly qualified finance professionals
will continue to be essential, it should, to understand the entire finance value
however, be acknowledged that it chain, and 96% felt it was essential they
is not possible for finance leaders had a good working knowledge of
to hold deep expertise in every financial management.3
finance discipline or area. However,
a fundamental skill of significant value
is being able to ask the right questions
of the finance team and the wider

2
100 drivers of change for the global accountancy profession: ACCA and IMA 2012
3
The complete finance professional 2013 ACCA

Future pathways to CFO How can tomorrow’s finance leader best prepare? 11
See strategy and business
experience as the new baseline
If future CFOs and the finance teams
they lead are to live up to the promise
of being growth catalysts for the
organisation, strategy and commercial
experience are must-haves.
Tomorrow’s CFO will play a critical
role in strategy formulation, validation
and execution. With rapid change in
both business and consumer models,
commercial acumen will become
a baseline requirement for future
finance chiefs.
‘One of the most important
pieces of advice I would
give future CFOs is to gain
commercial experience and
business understanding.’
Richard Moat
CEO, Eir Ireland
Today, the finance business partnering
role is well established (though
challenges still prevail), giving more
commercial exposure to the finance
organisation. But deeper business
experience is usually only acquired in
more senior roles. In the future, CFOs
will benefit from commercial exposure
earlier in their career to develop both
the requisite business understanding
as well as critically helping develop
successful relationships outside of
the finance team. Ambitious finance
professionals should seek out
business experience, not just finance
understanding, and quickly.
Figure 4: In your opinion, what are the top three areas for
future CFOs to personally have finance experience in?
Strategy formulation
and execution
Financial insight
and execution
Risk management
0%
Future pathways to CFO How can tomorrow’s finance leader best prepare?
The aspirant CFO needs to think ‘To make yourself a more
carefully when planning this deeper viable CFO candidate you
business experience. The good news is should spend some time in
that some organisations are starting to the business. The big question
understand the essential importance is how do I get there?’
of providing their next generation
Tom Naratil
CFOs with deep business experience, President of Wealth Management Americas
mandating rotation into a variety of and President of UBS Americas, UBS Group AG
business functions, and we can
expect this to continue. The challenge
at the individual level is to ensure
ongoing visibility both to the business
and finance leadership teams when
61% of today’s CFOs do not
such career moves take place. There
have experience outside of
is always the risk of going ‘off radar’.
the finance team
‘Future CFOs have to be
strategically focused.
This will be fundamental
to their role.’
Christie Zou
Former CFO, Merck Serono China
61%
The future CFO has a number 39%
of options to gain this broader
experience: they can take embedded
finance roles in the business to
gain greater insights into the value
drivers of the organisation; they can
proactively seek out roles which
develop change management or
project management capabilities, or
take up overseas postings that give
greater insight into regional
or market dynamics.
56%
43%
36%
10% 20% 30% 40% 50% 60%
12
Plan your career for the next
big thing: Insight and Analytics
Today, finance teams mostly remain
rooted in basic business intelligence
queries. Analysis remains focused on
‘what’ happened, rather than ‘why’,
‘how’, or ‘what’s the implication for the
future?’. Technologically speaking the
finance team is reactive and playing
catch up – multiple ERP systems,
manual reconciliations, and limited
data extraction and manipulation
tools continue to be the norm. There’s
lots of talk of finance driving the value
agenda, but significant challenges
remain. In particular, analytics in
finance are embryonic in most
organisations.
For next generation CFOs and the
future finance organisation, predictive
insights through analytics present
fantastic opportunities for superior
decision support, which in turn
enhances the reputation of the finance
team internally.
There is growing evidence that high
performing businesses have finance
teams that deliver better insights.4
In the future, analytical insight –
regressing, correlating, forecasting
and extrapolating data that drive much
better customer or product insights –
become essential in unlocking value
and creating competitive advantage.
4
The new value integrators: IBM 2012
Future pathways to CFO How can tomorrow’s finance leader best prepare?
Insight was rated the second most ‘Key skills will include
important area for future CFOs to critical and analytical
have experience in.
thinking’
Scott Rosenberg
The business will ask new President and CFO, Purchasing Power
questions and wish to gain a better
understanding of the true profitability
of its activities – it will wish to better ‘For CFOs of today and
understand the real return on the future, experience
marketing campaigns, or wish to gain
in the area of analytics
a clearer understanding of the true
costs to serve across its product and how it can be
portfolio. But the question of who applied to bring
has primary responsibility for, or
valuable insight to
‘ownership’ of, analytical insights in
the business is not a foregone the business is more
conclusion. In this respect, it presents important than ever.’
both an opportunity and a threat to Richard Lundon
the finance team. Future CFOs do, CFO, IBM Ireland
however, have the opportunity to
drive this agenda, and they can start
by proactively building analytics
experience into their career portfolios.
With more complexity, more data,
and neater extrapolation and analysis
tools, it’s no surprise that present
CFOs rate financial insight and analysis
as the second most important area
for future CFOs to have gained career
experience in. A strong grounding in
providing and applying insight will be
essential for future CFOs, but framing
the discussion in a business context,
and developing the compelling story
behind the numbers will matter just
as much.
13
Get risk experience under the belt

Strategic risk, financial risk, political risk, operational risk, environmental

risk, cash flow risk, commodity price risk, innovation risk, talent risks,
regulatory risk, economic risk, cyber risk, competition risk...

The risks businesses of all sizes face
will grow and change over time.
Most CFOs agree effective risk
management is already a priority
today. It was identified as the third
most important area in which future
CFOs need to gain career experience.
Some of the traditional financial
risks faced by businesses in the future
will need to be viewed as a portfolio
of increasingly complex and linked
investments that need careful
management, estimation and financial
projection5. For aspiring CFOs,
experience in scenario planning and
more complex financial risk assessment
processes will be valuable. Here again,
analytics will be invaluable.
But given the breadth of risks faced, ‘Future CFOs will
astute CFOs of the future will need to need to ensure
be able to step back from detailed and
complex risk assessments on specific they are skilled and
financial projects. They will need to knowledgeable in risk
be able to consider the broader risk management. It’s a
landscape, and new strategic and
future risks emerging on the horizon, vital imperative.’
such as the increasing risks relating Christie Zou
Former CFO, Merck Serono China
to cyber security, or the high levels
of reputational risk now present
for businesses in an environment
connected 24/7.
With so much risk for businesses at
every corner, future CFOs must not
be risk averse; rather they must be
prepared to take risks which have been
sufficiently calculated. The value added
by deep commercial experience and
business exposure will be significant
in this respect.

5
The changing role of the CFO 2012 ACCA and IMA

Future pathways to CFO How can tomorrow’s finance leader best prepare? 14
 ‘To achieve sustainable growth in the future,
CFOs will really need to understand and be
very competent in risk management. They also
have to recognise that the risks that businesses
face will continue to evolve – for example risks
relating to social and digital media, or risks
that develop as a result of globalisation and
expanding the business into new emerging
markets. There is also the increased speed at
which some risks will occur and how you can
best prepare to cope with this strategically.’
Teuta Bakalli
Director, Willis Towers Watson

Future pathways to CFO How can tomorrow’s finance leader best prepare? 15
Become a deal maker

Most bets are placed on a long-term
rebalancing and redistribution of
global economic wealth. Western
centric organisations increasingly
look east or south to drive growth.
Many of the largest organisations in
the world increasingly have emerging
market origins. Some of this future
growth will undoubtedly be inorganic;
capital will flow both ways. Even in the
short-term, an uptick in acquisition and
merger activity is likely – significant
cash balances on corporate balance
sheets and low interest rates help.
Some analysts are going further
and pointing to a decade of capital
‘superabundance’.6
For future CFOs in the largest
organisations, we can expect previous
deal making experience to be valued.
In our survey, merger and acquisition
activity was identified as the fourth
most important area in which future
finance chiefs need to have experience.
But this isn’t just a technical
finance play. There is no doubt
that understanding aspects of due
diligence and deal structuring will be
skills of immense value for future CFOs,
but merger and acquisition activity
is also about developing capabilities
such as change management,
project management and deeper
transformation experience.
There is a broader funding dimension
too. For larger listed businesses, we
can expect capital market issues to
continue to be essential for finance
leaders – which is why experience in
specialist finance areas such as investor
relations will continue to be relevant.
We should also recognise and expect
increasing breadth of fundraising
options for CFOs to deal with in the
future, beyond traditional finance
sources. Learning the technical finance
mechanics of funding the business,
as well as developing investor facing
capabilities and skills will remain
important. Selling the right story to
analysts is a critical skill for group
CFOs to cultivate.

‘Capital markets
experience is very
important for group
CFO roles of major
businesses.’
‘Learning M&A
Tom Naratil
President of Wealth capabilities early on
Management Americas and was very useful for
President of UBS Americas,
UBS Group AG my future career.’
Christie Zou
Former CFO,
Merck Serono China

6
Bain: A world awash in money. Capital trends through 2020.

Future pathways to CFO How can tomorrow’s finance leader best prepare? 16
 ‘For aspirant CFOs who wish
to lead larger listed organisations
in the future, getting experience
of capital markets, and merger,
acquisition and disposal activity
I think will be increasingly important.’
Richard Moat
CEO, Eir Ireland

Future pathways to CFO How can tomorrow’s finance leader best prepare? 17
Get closer to stakeholders,
become customer focused
The CEO–CFO relationship is well
documented: the CFO treads a
careful line between collaboration
and independence. On the one hand
the CFO must support the CEO in
developing and executing the strategy
of the organisation. But they also have
a fiduciary responsibility to ensure the
business is well controlled and strategy
ambitions do not put the longer-
term health of the business at risk.
It’s a difficult balance to manage. But
broader relationships with the board or
senior management team matter too.
Most business activities and projects
touch the finance team. CFOs are
uniquely positioned to see the bigger
picture in the organisation; they’re
plugged-in by default due to the remit
of the finance organisation they lead.
This is why CFOs must be skilled in
cultivating strong relationships across
the business. Future CFOs need to
think carefully about how they develop
a strong internal profile, cultivating
strong relationships across the
business, and take on roles which give
greater visibility.
‘Always think about
your visibility with
leadership decision
makers in your
organisation.’
Robert Mello
CFO, GE Healthcare Greater China
Future pathways to CFO How can tomorrow’s finance leader best prepare?
Externally there are challenges too. ‘The CFO needs more
More stakeholders than ever scrutinise than just technical
company performance. They have
vested interests themselves and the skills. They need
nature of their finance relationships political skills and
are broadening out. Expectations of capabilities. They
the responsibilities of finance teams
are also changing. It may not always be are part of the senior
about the financial best return for some leadership team.’
stakeholders, or ‘growth at any cost’. Andre Alexander
Former CFO, Special Olympics
There will be more complex trade-offs
and ethical issues for finance leaders to
consider, as well – the environmental
impacts on investment projects,
the ethical dimensions of ‘legal’
corporation tax payments made, and
so on. It’s a more complex networked
environment that future finance chiefs
will have to navigate.
Future CFOs will need to be closer to
customers because they’ll be the
stakeholders with real power – better
information on the business and its
competitors, more product choices
and lower switching costs. In the age
of brand disloyalty, cultivating a better
understanding of customers across
the business will be essential, but it
will also be more important for the
finance organisation. In a 24/7 digitally
and socially connected environment,
CFOs and the finance organisation
will need to be more ‘tuned-in’ and
customer centric.
18
 ‘Future CFOs will need to be much more in
tune with what is happening in the external
environment. There’s a lot of constituents out
there you will need to deal with.’
Robert Mello
CFO, GE Healthcare Greater China

‘Future CFOs will really need to understand

how to develop relationships with a wide
range of stakeholders. A strong network
will be essential too.’
Richard Lundon
CFO, IBM Ireland

‘Managing a breadth of stakeholders is a key

skill and it applies across the board, not just to
the largest listed businesses. Even future CFOs
setting up ‘start-ups’ will need to be adept at
engaging with different stakeholders because
you are trying to build the brand, you need
to raise funds, you need to be able to remain
agile and so on. It’s an essential skill for future
CFOs to master.’
Teuta Bakali
Director, Willis Towers Watson

Future pathways to CFO How can tomorrow’s finance leader best prepare? 19
Focus on the management
skills that matter
Our survey identifies leadership skills,
communication skills, strategy skills
and change management skills as the
top four must-have capabilities.
‘Communication skills
are essential for future
CFOs to master.’
Benjamin Mulling
CFO, Tente Casters Inc.
Tomorrow’s finance leader will have
to build deep capability in their
finance teams to meet the needs of
the business. They will have to present
a clear vision of the future of the
finance organisation, and increasingly
manage a diverse and diffuse finance
workforce. They will also have to
lead virtual finance teams, and they
will need to recognise that high
performing finance teams are created
from engaged, knowledgeable,
committed and highly skilled finance
professionals. Developing these new
types of leadership capabilities and
an appreciation of the importance
of talent management will be
absolutely essential.
Secondly, great communication and
influencing skills will be key for future
finance chiefs to master. Getting
internal and external stakeholders
on board with key finance messages
will be critical. Message alignment
will be important; speaking the ‘same
language’ for different stakeholders
will be necessary. Communication
channels are evolving too, of course,
and future finance leaders will
need to be adept in mastering new
communication technologies.
‘Future CFOs need
leadership experience
to build strong teams.’
Tom Naratil
President of Wealth
Management Americas
and President of UBS Americas,
UBS Group AG
As businesses continuously
re-adjust their processes to play
catch up in an increasingly fluid global
consumer marketplace, change is a
notable constant. The transformation
programmes that many finance
teams themselves are now engaged
in to better align themselves to the
business, as an example, are far-
reaching. Tomorrow’s finance leader
will need to bring deep change
management capabilities because
the finance team will be continuously
re-positioning itself to ensure it is most
effectively aligned with the business.
‘I believe very deeply
that future CFOs
must understand the
importance of their
team. Your team, as
a leader, is the most
important thing you
have. You can only be
as successful as your
team is.’
Robert Mello
CFO, GE Healthcare Greater China

Figure 5: In your opinion, what are the top management skills needed by future CFOs?

Leadership skills 65%

Communication skills 60%

Strategic
thinking skills 53%

Change
24%
management skills

0% 10% 20% 30% 40% 50% 60% 70%

Future pathways to CFO How can tomorrow’s finance leader best prepare? 20
 ‘Developing the right management and leadership
skills is essential. My advice to future CFOs would
be in several areas. Firstly, be prepared to push
yourself out of your comfort zone in developing
your career. Seek out breadth and develop business
experience and strong business relationships so
they come to you. This goes hand in hand with
developing really effective communication skills.
With the emergence of technology advancements
be prepared to be mobile because this is likely to be
even more important in the future. Also be prepared
to operate in a continuously changing environment.
All of these experiences will help build the right
capabilities towards a successful career.’
Richard Lundon
CFO, IBM Ireland

Future pathways to CFO How can tomorrow’s finance leader best prepare? 21
Prepare for more regulation
and broader reporting
Future CFOs are likely to face greater
regulation. They will have greater
personal accountability in ensuring
regulatory issues are dealt with and,
for those leading large businesses
expanding into emerging markets,
they will need to learn to develop
finance organisations that can
on-board regulatory adherence
seamlessly, as well as being assured
in specific technical areas such as tax.
Putting finance structures and systems
in place which can manage future
regulatory and reporting requirements
will be an essential skill for future CFOs
to acquire.
Figure 6: What do you think are going to be the top three influences impacting the future CFO role?
Challenging
economic landscape
Risk management
challenges
Growing regulation
0%
Future pathways to CFO How can tomorrow’s finance leader best prepare?
Part of the way in which regulation
may grow is through broader reporting
requirements. The limitations of
traditional financial statements in
communicating the financial health
and position of the company are well-
documented. In response, there has
been a growth in broader disclosures
to plug the perceived gap, from
sustainability reporting to corporate
governance disclosures to director
remuneration disclosures. Part of the
problem however is that there has
been a growth in the length and
complexity of reports too.
The calls for integrated reporting,
bringing together different strands
of information that give a more
coordinated and joined up view on
how the entity is intending to achieve
its corporate objectives over the
longer-term, grow stronger. Though
developments remain embryonic in
this challenging area, ACCA’s investor
research suggests it will be a
welcome advance.
10% 20% 30%
What is certain is that stakeholders
increasingly seek greater assurance on
the sustainability of business activities.
The question of how to effectively
report organisation performance
and value creation will increasingly
dominate the CFO agenda and
thinking. The impact for future CFOs
is significant: it requires new finance
thinking on establishing and measuring
performance indicators; systems will
need reworking, and financial and
non-financial trade-offs will need to
be better calibrated and understood.
Longer-term this is probably another
great opportunity for the finance team
to extend its influence in the business
but it will be a major challenge in
two areas: changing finance culture
and ensuring relevant skills. Gaining
reporting exposure and tracking
these developments is essential for
future CFOs.
52%
45%
42%
40% 50% 60%
22
Get connected

Technology hasn’t quite delivered
on its promise for the finance team…
yet. Whilst current finance teams may
be more closely evaluating more
automated invoicing, payment and
workflow tools, progress is slow.
Even in 2017, transactional finance
remains stubbornly human capital
intensive, and plug and play finance
technology isn’t quite there in reality.
Significant data extraction and analysis
deficiencies in most finance teams
remain, with multiple finance systems
in play.
Looking further afield, if future
predictions on disruptive technologies
are even partly accurate however,
the impact on business – and by
default on the finance organisation
– will be significant. Technological
advances will shape the careers of
next generation CFOs and the finance
teams they lead. Technology and
automation was identified as the fourth
highest influence impacting the future
CFO role.
The obvious technology development Aspirant CFOs need to understand
is the coming together of social, how technology is likely to impact
mobile technologies and cloud the way the finance organisation of
infrastructure which mean more and the future operates. They need to plan
more future CFOs should have real in roles which expand their technology
time self-service access to all sorts capabilities and understanding,
of data on business performance in and which give insights into how
the palm of their hand. There will technology is transforming business
be less effort ‘accounting’ for the in general, not just the finance
numbers and more time spent department.
explaining the implications.
There are other developments
which could impact on career paths
within the finance department more
specifically: robotic technology could
significantly reduce foundation level
career openings in transactional
finance areas, and mobile technology
could reduce the need for large
physical finance departments,
rendering traditional and visible
career paths less obvious.

The Digital CFO

Digital is reshaping the global economy and changing the face of today’s workplace. Get more
insights on how CFOs can embrace the technological change and seize the opportunity for
the finance team from the Digital CFO series, a collaborative project between ACCA and PwC,
working with leading CFOs and C-suite executives.

www.accaglobal.com

Future pathways to CFO How can tomorrow’s finance leader best prepare? 23
Expand your footprint
Many organisations are rebalancing
their operations between mature
and emerging markets. Increasingly
they seek to stabilise their operations
in mature markets and look for
growth in emerging economies.
But this means greater risk as well
as opportunity, and significant
operational and cultural challenges.
Tomorrow’s finance team will reflect
the businesses they serve, and
embrace diversity. Operationally we
can expect a greater rebalancing of
the footprint of the finance team. It’s
already happening; the advent of
shared services and outsourcing
has dramatically reshaped where
finance activities are delivered. It may
not be unrealistic to view that time
served in these operations could be
beneficial for future CFOs, given the
scope of finance activities they now
cover and their ambitions to move
up the value chain. This is an area of
significant debate at the moment.
Will future CFOs come from this
environment? If they don’t, are there
implications for how the necessary
understanding is developed amongst
future finance leaders?
‘You need to be a CFO
that sees the entire
picture – you need to
see everything from
all points of view.’
Benjamin Mulling
CFO, Tente Casters Inc.
Future pathways to CFO How can tomorrow’s finance leader best prepare?
Market expansion impacts the finance ‘Have a global vision
team directly in other areas, as well: and global skills you
onboarding new regulatory reporting,
meeting tax and legal requirements, need to understand
driving financial insight into market and different cultures.’
product performance, raising capital Christie Zou
or managing the different risks that Former CFO, Merck Serono China
emerging economies present.
The technical demands of new market
entry are significant for the finance
team, but so too are cultural and
diversity dimensions. Gaining
international finance experience,
understanding how to work effectively
across different cultures and leveraging
diversity should be clear career goals
for next generation CFOs.
‘Take the opportunities to have different
assignments in different parts of the world.
Understand how things are done, become more
adaptable in your thought processes, to different
cultures; working effectively in one country
is not always the same in another country.
Recognise that diversity is powerful, learn
how to leverage it.’
Robert Mello
CFO, GE Healthcare Greater China
24
Conclusion

For tomorrow’s CFO, the leadership handbook is being

redrafted, but not entirely rewritten. They will certainly
lead their finance organisations through a very volatile,
uncertain and continuously changing environment. The
next 10 to 15 years will be a period of technological
advancement, as well as political, economic and social
upheaval. Inevitably, the business landscape will evolve
in response. New organisation models will emerge, and
we will see a significant rebalancing of business and
consumer power.

We will see more automation of finance As an aspirant CFO planning your

activities, and in the shorter term an
ongoing change to the footprint of
finance operations to deliver efficient
and standardised finance services. At
the same time, the growing diversity
of the finance organisation will itself
present new leadership challenges and
call into play new capabilities. There
will be more regulation and more
scrutiny on how the business achieves
its performance levels. We can
expect significant developments and
challenges for finance teams to drive
insights that create advantage in what
will be a more complex, competitive
international landscape.
But for future finance chiefs, this
is a story of rebalancing between
traditional and new finance
responsibilities, and contextualising
these for a changing world. Many
of the capabilities that future CFOs
will need are in place already, and
evidenced by the skills that current
CFOs are already having to bring
to the table – growing involvement
in strategic decision making, an
acute understanding of effective
risk practices, skilled stakeholder
management capabilities, dealing
effectively with compliance and
reporting requirements, working cross
culturally – and so on.
career path, your focus should be on
gaining experience which enables you
to build better skills in all of these key
areas, and learning how to apply them
effectively in a changing business
environment.
It should also be said that all of
our ongoing research in this area
suggests that a core understanding
of fundamental finance concepts will
remain as relevant for future finance
chiefs as it does today for current
CFOs. Businesses will still want to
create value and profit, they will still
want to manage costs, they will still
need funding, they will still need to be
controlled and their risks managed,
they will still be asked to account
for their activities. These finance
fundamentals aren’t changing.
This is why future CFOs need to
continue to build these core finance
capabilities into their careers, and why
qualifications such as ACCA and CMA
will continue to remain relevant.
However, the successful CFO of the
future will recognise that the context
in which these skills are applied is
shifting rapidly. As a consequence,
the traditional linear route through
the finance organisation may not
provide the requisite capabilities that
most CFOs in the future will need to
apply these skills effectively. These
developments could well signify the
end of the road for the traditional
finance career to the CFO role.

Future pathways to CFO Conclusion 25

 ‘If I reflect on some of the experiences which I think are
going to be vital for future CFOs, there are many pieces
of advice I would give. You always need to foster a good
relationship with your CEO and you need to be able to
increasingly handle relationships with a broader set of
stakeholders such as shareholders, debt and bond holders,
the government, the press and so on.

I’d also suggest you need to be very open minded about

where your future growth in the business will come from.
You will certainly need a strong basic finance understanding
because this remains at the heart of strategic decision
making, but you will also need to be able to translate the
numbers and communicate their implications. Learn to
think strategically, and get deeper and broader management
experience for example by overseeing significant change
management and transformation projects. Increasingly
I believe international experience and experience across
different cultures are going to be important if you wish to be
a CFO leading a major international organisation. The future
CFO role will be very challenging, but also very rewarding
for the right candidates.’

Richard Moat
CEO, Eir Ireland

Future pathways to CFO Conclusion 26

 Case studies

Future pathways to CFO Case studies 27

Ivan Mitringa FCCA,
Financial Director, Dell

‘Changes are inevitable, no

matter what industry or
place. I encourage my team
to be in the driver’s seat
and not the passenger.’

Joen Goh, journalist. This article was first published in the April 2017 Singapore edition of Accounting and Business magazine.

Ivan Mitringa FCCA, finance
director at Dell, discusses how
communication and transferable
skillsets provide finance prowess
in today’s business landscape.
Today’s finance professionals are
participating in what is termed as
the ‘fourth industrial revolution’
characterised as a blurred combination
of various technologies mystified by
buzzwords such as big data, analytics
and the internet of things. More than a
decade into his professional evolution
in Dell, Ivan Mitringa is a fine example
of a data-conversant finance individual.
‘This is the present and future
our company lives in and lives for
nowadays!’ Mitringa says. ‘If I am
to translate it to our finance evolution,
over the recent years we have moved
from spending lots of time on
gathering and consolidation of the
data to almost real time analytics
and translation to our business
partner language.’
Future pathways to CFO Case studies – Ivan Mitringa
Communication is key
Entering the company only a year after
his university graduation, Mitringa
recently celebrated his 13th year
with Dell. He is currently located in
Singapore, managing remotely a
larger team in Penang, Malaysia and
Bangalore, India.
As a finance director, responsible for
the APJ Commercial Sales’ finance
planning and analysis department
(FP&A), he and his team have shifted
their priorities from simply analysing
the vast amounts of information to
providing relevant business intelligence
and counselling used for either day-to-
day operations or strategic decisions
by the executive leadership inside Dell.
‘Today, you are certainly more valuable
if you can provide more predictive
analytics,’ Mitringa says. ‘That’s where
FP&A and my team come in. We are
prepared to explain the past but also to
advise on the future by conveying the
right recommendation or reasonable
options to the leadership team. It gets
more difficult as there is so much data
today and many ways to interpret it,
which forces you to elevate from the
details and apply the wide-angle lens
to explain the story behind it all.’
While his role is already complex by
nature, it gets more interesting as
Mitringa and his team are in separate
countries. Most of Dell’s finance staff
are located in a few hubs around the
world, while Austin in the US, Ireland,
Singapore and others serve as HQ or
regional hubs for senior leadership.
28
‘In this role, some of my skills have
been stretched to a different level. My
entire team is out of Singapore, so I
really need to be proactive, especially
in communication,’ he says. ‘A really
good finance business partner cannot
be too much of an introvert; you have
to be able to proactively communicate
if you want to deliver. You have to be
confident in discussions with people
beyond your peer level or outside
of your organisation, or on specialist
knowledge teams.’
Mitringa should know – having been
in the first small team of finance
individuals who started when Dell
did in Bratislava. Mitringa spent the
first six years learning key finance
skillsets, which he later utilised when
he entered Dell’s global senior finance
development programme called the
Finance Rotation Program. Within three
years, he was given the opportunity
to rotate in three different roles in two
locations. Each year globally between
20 and 30 finance employees embark
on the programme; Mitringa was first
posted to Dell’s headquarters in Austin
for two years, then back to Bratislava
in Slovakia.
Future pathways to CFO Case studies – Ivan Mitringa
Leading by example
After he graduated from the
programme, Mitringa’s desire for
constant challenge and professional
growth opportunities was translated
into his being relocated to Singapore.
He has eyed the Asia region for quite
some time as he believes that to be
globally versatile and exportable
should you explore opportunities that
provide you with what‘s necessary
to achieve it.
Nowadays, no matter where you look,
the word ‘growth’ is mostly connected
with Asia and Mitringa wanted to be in
the thick of things. He travels at least
twice every quarter to meet with his
team beyond Singapore, maintaining
a nimble footing to keep ahead of
progress. He checks in with his team
frequently because he believes in the
importance of connecting his people
with leadership decisions and sharing
information transparently. ‘You have
to be honest and genuinely care for
your people. If you don’t explain how
their work is connected with the bigger
picture, it’s very difficult to get a really
good outcome,’ he says.
‘The internet for consumers started
only when I was at university. These
days, the young population are very
technology-savvy and much more
comfortable to work with technology
and extract the information,’ Mitringa
says of his experience with the younger
generation. ‘Finance leaders have
to stay vigilant and ready for many
changes – not only in technical skills,
but more and more in soft skills as
communicating, connecting and
motivating both direct and
indirect teams.’
‘Changes are inevitable, no matter
what industry or place. I encourage
my team to be in the driver’s seat and
not the passenger. It would add to
their professional career if they can
demonstrate that they lead the change
rather than being led. Especially in
the technology industry where Dell is,
the pace of change is incredible. Just
looking at Dell, in 2013 we went private
in one of the largest LBO [leveraged
buyout] transactions in technology
and in 2016 we closed the largest
integration in the technology industry
so far. And finance was a key part of
these two mega changes.’
Mitringa joined Dell in 2003 and
originally thought he would stay only
a few years. More than a decade into
his first company, he credits this to
the enormous effort Dell spends on
developing people. The company
is committed to supporting finance
professionals, either by internal
development programmes that are at
the top of industry standards, or via
various external certifications where
Mitringa sees himself as an example
of Dell’s belief. ‘When I finished my
ACCA Qualification in 2005, there
were probably two or three of us in
Dell Slovakia who decided to give it a
try,’ he says. ‘With the very early take-
up of ACCA, Dell Slovakia created a
movement of people who were keen to
develop themselves continuously, even
beyond their university education.’
29
Learning and being prepared
Mitringa is unflinching about the need
for continuous learning no matter
where one is in life. ‘If you start working
in a multinational company, want to
progress and move around the globe,
you should invest in yourself to have
a globally recognised professional
qualification. It’s not everything but it
gives you the competitive advantage,’
he says. ‘For people who don’t
have a qualification from a globally
recognised institution, you need a
world-standard stamp of quality to
be recognised internationally. This is
where accreditations like ACCA step
in. It is difficult to convince people
unless I am first committed myself, and
I’ve only gotten this far by means of
constant upgrading.’
Dell, like many others, is a data-driven
company and, for a long time, finance
has been a vital business partner in
every key decision, ranging from the
supply chain to selling to customers.
The recent combination with EMC
started many integration activities
across the company and Mitringa’s
team has been intensively engaged in
planning for both businesses in APJ
for next year, with each team having to
change its existing model so that they
come together finally.
‘The effort has to be in creating
synergies from day one, starting
with everyone being on the same
page, understanding the same basic
principles and timelines,’ he says.
‘This gets interesting because teams
are dispersed all over the globe with
different time zones. Once again,
proactive communication is key.’
Future pathways to CFO Case studies – Ivan Mitringa
‘I need to underscore that to
successfully pull these types of
changes in the company, finance
professionals have to be very open and
not be afraid to voice their concerns.
They need to be self-driven, ready for
constructive feedback and be able to
make tough decisions and move on.’
Mitringa highlights three factors that
drive him professionally: people,
development and opportunities.
‘I’ve had the luck to have great
managers. Most people leave their
managers, not jobs or companies.
People I work with are down-to-earth,
humble, experienced, and eager to
learn’ he says. ‘And because Dell
invests a lot in talent development,
I was able to achieve substantial
professional development since
joining, apart from the ACCA
Qualification.
‘We may not have every opportunity to
gain practical experience in different
fields, but that should not stop us
from attaining knowledge. Continuous
interest and intent to invest our efforts
in our field are necessary. That’s why
I have internal audit and treasury
professional certifications, besides
ACCA. If I can’t get the practical
experience straightaway, I look for
theory first and nobody can tell me
that I wasn’t interested or did not go
the extra mile.’
Mitringa’s keen sense of personal
development is his personal branding.
He has already experienced eight
jobs in Dell and had to prove his
mettle each time. Staying in the same
company, showing progress and
being continuously recognised takes
dexterity, and that is his trademark.
‘Dell has a global outlook,’ he explains.
‘When we launch a development
programme, most of the time it is
set in a global environment where
people in different regions are in the
same programme, so staying here
is like taking a mini MBA: finance
professionals build resilience and the
ability to communicate across regions.’
Mitringa aims to be a versatile finance
professional, fluent in more than one
field, and with the abilities of a global
leader. ‘I’ve been demonstrating
that I’m able to work in a challenging
environment. I don’t know everything
– nobody does. But identifying the
best people to work with can make
things happen with great results. I’m
confident in that,’ he says.
‘You would expect that I want to be
a CFO one day. Yes, that’s an option,
but to get there I would like to be
first somebody who is “deployable”
and valuable in different finance
domains, leading people no matter
where I’m placed.’
Since the interview, Mitringa has
moved on to become Worldwide CFO
Software & Peripherals at Dell.
30
Ivan Mitringa CV Basics

2016 Dell was established in 1984 when Michael Dell founded

CFO, Worldwide Software & Peripherals, the company at 19 with a vision of how technology should
Dell EMC, Singapore be designed, manufactured and sold. In 1988, Dell’s initial
public offering raised US$30m. Today, the multinational
2015 computer technology company, based in Texas in the US,
Director, APJ financial planning and analysis employs 140,000 worldwide. Known for its supply chain
(commercial sales), Dell EMC, Singapore management and direct-sales model, Dell launched
Dell.com in 1996, selling made-to-order personal computers
2013 to customers. This move generated US$1m in sales per day
Director, EMEA statutory and US GAAP, just six months from its site launch. The PC company evolved
Dell, Slovakia into a technology solutions provider, acquiring storage,
computer, networking and software capabilities through
2012 the years. In 2013, Michael Dell and private equity firm Silver
Senior US GAAP accounting manager; Lake Partners bought back Dell from public shareholders
Senior accounting manager to accelerate its solutions strategy and focus on innovations
(Finance Rotation Program), Dell, Slovakia and long-term investments with the most customer value.
In 2016, Dell and EMC came together as Dell Technologies,
2011 the biggest technology integration in history.
Competitive market analytics
(Finance Rotation Program), Dell, Austin, US

2010
Global IT finance controller
(Finance Rotation Program), Dell, Austin, US

2007
Senior finance commercial controller,
Germany-Austria-Switzerland, Dell, Slovakia

2005
Finance planning and analysis, EMEA home/small
and medium business, Dell, Slovakia

2004
Reporting manager, EMEA home/small and
medium business, Dell, Slovakia

2003
Reporting senior finance analyst, EMEA home/
small and medium business, Dell, Slovakia

Future pathways to CFO Case studies – Ivan Mitringa 31

Tips from Ivan Mitringa FCCA

1
Presentation and communication skills take
practice, as few finance folk are outspoken by
nature. Be available: attend business reviews,
understand issues and hear about businesses the
management is looking at. Once you hear how
the dots connect and see how the data reflects it,
you will see a better direction for analytics.

2
If you are prepared to move globally for career
advancement, fortify the family before you
take it on. And have a real conversation when it
happens. You have to be very quick before the
window of opportunity closes, so it will help to
have it sorted out before an offer actually
comes along.

3
Be prepared to make different trade-offs at
different levels in your career. Understand which
part of your life you are investing in. Not every
move is associated with a promotion, but the
experience on your CV reflecting that you’ve
made good progress – in a different country,
under a different type of management, within
a different environment – will show that you are
able to tackle obstacles.

4
Understand how to do more with less – very
important these days. Be ready to establish
common platforms, uniform systems of ledger
and shared financial planning tools.

5
Don’t deliver just what you are asked for.
Remember to assess the solution from different
perspectives and come back with options B
or C. This will show you care and are thinking
ahead, which is a tremendous value-add to your
business partner.

Future Pathways
pathways to CFO Case studies – Ivan Mitringa 32
Simon Dingemans,
CFO at GSK and 100 Group Chair

‘We have come a long way;

sometimes public opinion takes
time to catch up. You keep going
and you bring people with you.’

Peter Williams, journalist. This article was first published in the June 2015 UK edition of Accounting and Business magazine

100 Group chair and GSK finance
chief Simon Dingemans explains why
he is passionate about promoting
the needs of CFOs and big business
in shaping the UK economy.
Simon Dingemans admits that the
voice of the CFO or FD can be
fragmented. As chairman of the
100 Group (as well as having the day
job of being CFO of multinational
pharmaceutical giant GSK), he is trying
to change that. ‘The contribution
business makes to society, to the
economy and to the UK’s business
objectives is not as well heard as it
might be,’ he says. ‘Our voice on
the financial priorities tends to be
notched down in the overall debate.
However, if we can put in some facts
and figures, we can have a more
substantive discussion.’
The 100 Group has represented the
CFOs of the largest companies in the
UK for many years. With the objective
of supporting and driving the UK as
a competitive place to do business,
it also strives to give a stronger and
more coherent voice to business,
particularly at this time when the
contribution of big business is not
as well heard as it might be.
One example of the contribution the
100 Group can make is its Total Tax
Contribution (TTC) survey, which has
just completed its tenth year. The
survey, which ‘has a good database
that tracks where tax revenues from
business come from’, shows that the
contribution of big business to the
economy has been growing (see Total
Tax Contribution survey).
Dingemans hopes that bringing some
facts to the discussion, as opposed to
the rhetoric, can contribute balance.
‘That balance shows the number of
people big companies employ, the
tax they contribute, the significant
investment they make that will
eventually create the wealth that can
be applied to the priorities of the
government of the day’.
‘We are not trying to change the
legislative agenda or the priorities
of any particular part of government
or the political establishment,’ he
continues. ‘We are trying to ensure
people understand what big business
does and how it contributes, while
listening to how big business can do
this in a more effective way.’

Future pathways to CFO Case studies – Simon Dingemans 33

If government wants tax revenues from
big business, then Dingemans points
out that big business is clear about
what it requires from government:
‘Clear, visible, stable priorities.
Business is investing over the longer
term; if the rules keep changing, it
is difficult to do that in a consistent
way. For instance, a business like
GSK is investing with a 30-year time
horizon. Whether it is the Patent
Box [the tax regime for intellectual
property revenue], capital allowances
or business rates that keep changing,
it is very hard to predict what returns
you are going to make. Instability
undermines people’s confidence
to invest, which ultimately drives
employment and economic growth.’
From an international perspective,
Dingemans says that the 100 Group
is clear that it supports the OECD’s
refresh of the tax model convention;
but again he emphasises the need to
do so in a coherent and joined up way.
‘We are not comfortable when national
governments go off and do individual
things. When bits of the world go off in
an independent and disconnected way,
there are often knock-on, unintended
consequences elsewhere.’
A key tenet of the OECD process has
been to update its framework, but in a
series of steps where everyone moves
together. ‘That is what we prefer,
and the process so far seems to be
delivering broadly if not completely,’
says Dingemans.
In responding to the criticisms of
big business over issues such as tax
paid, Dingemans is clear: ‘There are
obviously different points of view, but
nothing detracts from the fact that
big business should pay its fair share
in a consistent way within the rules
and policies that the government has
set out. The 100 Group is aligned to
that priority. All of our members are
supportive of that principle.’
Future pathways to CFO Case studies – Simon Dingemans
Engaging with government
This is why the 100 Group is engaging
with government over legislation such
as the Diverted Profits Tax currently
being introduced. ‘We want it to be
effective and manageable in how it is
delivered. We see the detail as well as
big picture. This is where business can
make sure the objective is delivered.’
He believes FDs should be at
the centre of conversations on
controversial issues and equally should
be accountable. ‘If you are the CFO
of a big business, you should expect
scrutiny,’ he says. ‘It is important
to respond to that scrutiny with
transparency – that your accounts
are clear and people can understand
what you are doing.’ For that reason,
he supports the changes in narrative
reporting and the strategic overlay of
annual reports » explaining key drivers
and how the business operates.
‘Where big business does not do
itself any favours is where it is not
transparent. We have come a long way
in the last few years; sometimes public
opinion takes time to catch up. You
keep going and you bring people
with you.’
The 100 Group, says Dingemans,
is only as good as the contribution
its members make. ‘I am trying to
get more involvement and more
participation from our membership.
We’re small in terms of infrastructure;
we’re not the CBI. We contribute
rather than trying to run an agenda
all by ourselves.’
CFO vs accountant
As a former banker, Dingemans
brings his own experience to bear on
the 100 Group. When ACCA politely
noted Dingemans’ banking rather
than accounting background, he
responded: ‘If the question is: “Do
you need to be an accountant to be
a CFO?”, I would clearly argue you
don’t. It is a question of what you want
the role to be. You see this broadly
across the 100 Group, where the role
of the CFO has become much more
strategic and a partner to the business.
Perhaps historically it has been more of
a controlling/reporting function. And
there are plenty of companies where
that is appropriate and adequate for
what they want. Increasingly, CEOs
are looking for more of a partnership
with their CFOs, and that brings a
requirement for a broader and more
engaged skillset and approach.’
Dingemans says his background allows
a different range of skills to be brought
to bear on running the finances of the
company in support of the group’s
overall strategy. He explains that
in his initial discussion with GSK,
CEO Andrew Witty said he wanted a
different finance function and a CFO
who would help him drive the strategy,
including simplifying the company’s
operations. Dingemans says that he
has focused on the operational agenda
and that his outside experience has
helped him to challenge the way things
are done. The pharmaceutical industry
has traditionally operated in high-
growth, profitable markets with the
focus on R&D. Less attention has been
given to cost structures and running
the business.
‘We have to manage our profitability,
margin and cost structure in ways that
would be more familiar to consumer
businesses,’ says Dingemans. ‘How do
we turn this machine faster, becoming
more responsive to our patients and
having shorter supply chains, better
procurement and better working
capital? It is complex. I can bring
lessons from other types of companies
on what “good” looks like.’
34
Formerly with Goldman Sachs, he
says he doesn’t miss the banking and
indeed in 10 of the last 25 years, he
says, he has really enjoyed working
with the same clients over time as part
of their inner team. ‘As a banker you
worked on a transaction and then went
on to the next, but I wanted to follow
through. Coming here, there has been
the chance to make significant change
and improve what we do.’
He says both Goldman Sachs and
GSK have a collegiate approach to
working and people are motivated by
what those businesses do, but within
GSK there is a far broader range of
businesses. On his arrival at GSK in
early 2011, Dingemans investigated
whether the financial operations were
aligned with the strategic objectives.
‘The GSK finance function had
been very strong in controlling and
reporting, but it did not engage or
partner with the business except in
isolated examples.
‘I deliberately restructured the finance
organisation to create two halves:
a more dedicated partnering team
that works closely with the business,
offering a different mix of skills, more
able to make better decisions in a
challenging environment.’
The second half, of course, is the
accounting. ‘At the same time, how
do you do the controlling and
reporting in a more efficient way?
We have therefore invested in new
systems and standardised processes.’
Future pathways to CFO Case studies – Simon Dingemans
Historically GSK was a regionally
led organisation with country
organisations taking precedence
and that is still important. However,
says Dingemans, if processes are the
same across all countries, controls
are more effective and efficient,
and transactions are more efficient,
enabling performance to be tracked
more readily. And all that helps
partnering with the business and
allowing for easier integration of
acquisitions. ‘Andrew wanted me to
bring some demands for performance,
but do it in a way that was consistent
with GSK’s values.’
Reshaping the portfolio
As CFO, Dingemans has overseen a
series of restructuring programmes
designed to increase efficiency, reduce
cost and to make the business cost
base more flexible. ‘Flexibility is as
important as efficiency,’ he says. ‘We
are able to move the cost base around
more easily. We have had a new
pipeline to launch and old products
rolling off. We have needed to take
resource from old products to new,
which has been easier because of
the restructuring. We have moved
20,000 to 30,000 of our headcount
from developed to emerging markets
and similar numbers from pharma to
vaccine, thus reshaping the portfolio.’
That restructuring seems to have paid
dividends, literally. Since 2008, GSK
has returned £33bn to shareholders in
dividends and buybacks. Dingemans
has looked at managing the balance
sheet more efficiently, having leverage
on the balance sheet to drive equity
returns, while protecting bond holders
and stakeholders on the credit side.
He is constantly benchmarking
whether to invest or pay returns to
shareholders: looking at cashflow
return on investment. ‘That did not
exist before I got here; we did not have
consistent metrics across the business.
When you have pharma, vaccines and
consumers, you have to be able to sit
in the centre and ask where you want
to put £1 of capital? And you have to
benchmark returns in a consistent way.
It is deliberately simple to ensure you
don’t get tangled up in the specifics of
each of the businesses. And you want
the businesses to understand the rules
so they can see if they are likely to get
the investment.’
He talks of financial architecture
creating a set of financial priorities:
drive sales growth; put leverage
through the profit and loss; drive
earnings per share faster than sales
growth; convert those earnings to cash
to reinvest or return to shareholders.
‘Now it has been in place four or five
years, everyone understands. In the
past we were rightly, but probably too
heavily, focused on growth as the first
priority, without necessarily asking
about what the return from that
growth was. We now have that
much more balanced.’
35
Simon Dingemans CV
2011 – present
Chief financial officer, member of the board
and corporate executive team, GSK
1995
Joins as head of UK investment banking and
later becomes leader of the European mergers
and acquisitions business, Goldman Sachs
1986
Joins investment bank SG Warburg, becoming
one of its youngest ever directors in 1994
1985
Graduates from Oxford University with
a Masters in Geography
Future pathways to CFO Case studies – Simon Dingemans
Total Tax Contribution survey
The total tax contributed by the 100 companies surveyed
has been rising over the past few years; the £1bn tax and the
tax collected (note collections) is 14% of the total monies
entering into government coffers.
Dingemans says: ‘The important point is that corporation tax
is falling because government policy is to reduce corporate
tax rates to stimulate investment, which then generates jobs
and so employment taxes are generated. The total is what
matters, not the individual components.’
The 100 Group
Members of the 100 Group are FDs of FTSE 100 and other
large UK private companies.
The companies from which its members are drawn account
for almost 90% of the market capitalisation of the FTSE
100, collectively employ over 7% of the UK workforce and,
in 2014, paid or generated, taxes equivalent to 14% of total
UK government receipts.
As well as its main committee, the 100 Group has financial
reporting, tax, pensions, investor relations and markets
committees.
The website gives dates of meetings and links to documents
such as the Total Tax and the Wider Economic Contribution
Survey and the Annual Review.
The group was started in 1975 as The 100 Group of
Chartered Accountants; membership was restricted to the
finance role in 1988 and the name changed.
36
Ayla Majid FCCA,
Director of Islamabad Stock Exchange
‘Having a qualification
like ACCA’s is extremely
important for economic
empowerment.’
Sarah Perrin, journalist. This article was first published in the March 2017 international edition of Accounting and Business magazine.
Ayla Majid FCCA was the first
woman to be elected to the board
of a stock exchange in Pakistan,
and with an MBA and a law degree
under her belt, she is a formidable
role model.
ACCA Council member Ayla Majid,
a director of business advisory services
at Khalid Majid Rehman Chartered
Accountants (KMR), is a trailblazer
for women in business in Pakistan.
Not afraid of new challenges, she
is becoming used to being the sole
woman at the decision-making table,
but hopes others will follow.
Future pathways to CFO Case studies – Ayla Majid
At KMR, Majid specialises in project
advisory, mergers and acquisitions,
public-private partnerships and public
policy in areas such as infrastructure
(including roads and bridges), minerals,
energy and communications. ‘I
advise from one end to the other –
from evaluation of bids to carrying
out negotiations on the concession
agreements and all the way to the
financial close – working with all the
stakeholders,’ she says.
Her breadth of qualifications and
experience is valuable here. As well
as her ACCA Qualification, Majid also
has an MBA from the Lahore University
of Management Sciences and a law
degree from the University of London,
gained through distance learning.
‘The tripod I have – business,
accounting and law – really helps in
doing the 360 and closing the loop,’
she says.
In an early public policy assignment
in 2006, Majid helped the Ministry
of Petroleum and Natural Resources
revamp Pakistan’s national mineral
policy. More recently, she participated
in a major project on resource
assessment for shale gas in Pakistan.
‘My role was to do the capital
investment profiling and assess the
regulatory and fiscal framework,’ she
says. ‘I had to analyse the existing
regulations and framework, and
study the infrastructure available, and
then present to the government the
framework to move towards in the
formation of policy.’
Majid found herself rapidly becoming
a rare expert in shale gas policy
formulation and operations, a new field
in Pakistan. ‘I had to study extraction
technologies and interview almost all
the significant players in the market,’
she says. ‘I watched a lot of YouTube
videos. I soon found myself giving
“shale gas 101” lessons to lawyers.’
37
Majid started her career in business,
with no immediate plans to enter
the accountancy profession. Having
graduated with her MBA, in 2000 she
joined Fauji Foundation, a charitable
trust founded in 1954 for the welfare of
ex-servicemen and their dependants
and one of the largest business
conglomerates in Pakistan. Her role
involved restructuring a portfolio of
commercial companies from across
a range of sectors, including power,
cement, sugar, technology and oil and
gas. ‘I was working on fixing lots of
different projects and I would interact
frequently with lawyers, accountants
and bankers – International Finance
Corporation and the like,’ she says.
The experience triggered her decision
to gain additional qualifications.
‘I figured I needed to improve my
understanding of accounting and of
how contracts are made,’ she says.
She did so by completing a law degree
in 2008, just two years after gaining her
ACCA Qualification.
Future pathways to CFO Case studies – Ayla Majid
Natural choice
‘ACCA was the natural choice,’ Majid
says. ‘It had the best-quality curriculum
and was relevant to what I was doing.
It also had the right kind of flexibility;
I was working so couldn’t do full-
time study.’ During this period Majid
decided to join KMR, the accountancy
firm her father had founded in 1975,
as a director in its business advisory
service. ‘I had completed the bulk
of the restructuring task at Fauji
Foundation so there wasn’t much
left for me to do there,’ she says. At
the same time, she realised that her
multisector experience would be
valuable to KMR.
Majid is also chief executive of
CAMCO, a brokerage and investment
advisory company that she set up in
2006. ‘That’s my platform for working
in the capital markets,’ she says.
‘My work has been particularly in
the policymaking, governance and
regulatory area.’ Such experience has
helped to make her a trailblazer for
professional women in Pakistan to the
extent that in 2010 she was elected
to be a member of the board of the
Islamabad Stock Exchange. She later
worked on demutualisation of the
exchange and most recently she was
part of the team that restructured the
capital markets, resulting in the merger
of three stock exchanges, which led
to the creation of the Pakistan
Stock Exchange.
‘It was like breaking the glass ceiling,’
Majid says. ‘At the beginning there
was a bit of resistance or lack of
acceptance from male colleagues
because it was new. I was one woman
among nine men. But I really enjoyed
it; I learnt from working with them.
I realised that as women, we have a
slightly different way of thinking and
it is extremely important that we work
together and contribute to each other.’
She believes that her presence
modulated the atmosphere for the
better. ‘When I walked in I got a
tremendous amount of respect and the
environment would change,’ she says.
‘Men would straighten up and talk in
a slightly more mellow fashion.’ But
she also found she sometimes had to
challenge their views.
‘I had to take a strong position on
certain areas, such as the need to
carry out business in the most ethical
manner,’ she explains. ‘I had to face
some strong challenges also. I found
these situations to be tough but I
thrive on challenges. When I joined the
board in 2010 I was able to change the
opinion of the entire board to agree
with my perspective on a number of
areas where all the nine men initially
had a contrary, very strong position.
I did it by communication and
persuasion, being professional, not
being intimidated and not giving up.’
38
Opening doors
Majid is also one woman among men
in her role as an independent director
of the Islamabad Electric Supply
Company, having been nominated
by the Ministry of Water and Power.
‘I also chair the audit committee,’ Majid
says. ‘I really enjoy working there; it’s
exciting and challenging.’ She would
be happy to see more women join
her on such boards. ‘I feel the work
I am doing is opening doors for other
women,’ she says.
‘When I take on these positions, I feel
I have some responsibility to represent
my gender so that men know there are
smart women out there who can do the
role as effectively as anyone else.’
ACCA activities also feature in Majid’s
diary. She was on the Members’
Network Panel in Pakistan before
joining Council in 2014. She is a
strong ACCA advocate. ‘ACCA is
a great door-opener for women all
over the world,’ she says. ‘Women in
developing countries don’t always
have access to education, so they need
flexibility. Not all women can have
full-time jobs; there could be cultural
restrictions or family commitments.
ACCA is a qualification they can pursue
from the comfort of their own homes.
They can work flexibly and have
access to networks all over the world.
So having the ACCA Qualification is
extremely important.’
Future pathways to CFO Case studies – Ayla Majid
ACCA offers more than an accountancy
qualification, Majid adds. ‘We don’t
only work as accountants. My role
is sometimes about strategy. When
I am sitting on boards it is about
governance. In my own company I work
as an entrepreneur. When I am working
on delivering assignments, it’s about
working as a professional.’
Majid gives substantial credit to ACCA
for her success. ‘We are all a product of
our experiences,’ she says. ‘Because of
ACCA I have met amazing people and
had amazing experiences.’
Economic empowerment
Her belief in the value of sound
qualifications is reflected in her
membership of the board of governors
of the Helpcare Society, a not-
for-profit organisation set up by a
retired army general to run schools
for underprivileged children. ‘It’s
about providing quality education
and putting them on the path to
completing professional qualifications
so they can come out of the loop
of their underprivileged status,’
Majid says. ‘They can become
independent and help their families.
Having a qualification like ACCA’s is
extremely important for economic
empowerment. That’s true for women,
for people in refugee camps and for
people who are underprivileged.’
Helpcare’s first students have now
graduated from university, with some
aiming for a career in the civil service
and accountancy.
While still aiming for a top leadership
role, Majid wants to ‘give back’. This
she is also doing through her role as
one of the World Economic Forum’s
Young Global Leaders, teaming up with
other talented individuals from around
the world and all disciplines. ‘I was very
humbled to be nominated,’ Majid says.
‘I get to interact with a phenomenal
group of high achievers from all over
the world – from business, professions,
politics, music, art, the social sector.
The idea when we get together is to
have a positive impact for the global
good.’ Majid, for example, is involved
in initiatives aiming to provide
electricity to isolated villages and
give support to refugees.
Majid is also a great believer in
continuous learning and development.
In the spring of 2016 she spent two
weeks at Harvard University in the
US, completing a module on global
leadership and public policy. How does
she find the time for so many activities?
She quotes a saying of a former boss
at Fauji Foundation which made a big
impression: ‘When there is a night in
between, you are never short of time.’
39
Ayla Majid CV Basics

2016 KMR’s roots stretch back to 1975, with the formation of

Appointed an independent director on the
board of the Islamabad Electric Supply Company
2015
Became one of the World Economic Forum’s
Young Global Leaders
2014
Became an ACCA Global Council member
2013
Member of the committee drafting the first
code of governance for public-sector entities
in Pakistan
chartered accountancy firm Khalid Majid & Co.
The firm provides accounting, audit and assurance, taxation
advisory, business advisory and other corporate services.
The firm has a team of 40-plus professional and support
staff; its national office is in Islamabad.
KMR works with government agencies, donors, large
multinationals and local organisations, including the Ministry
of Petroleum and Natural Resources, the Privatisation
Commission, the National Highway Authority, United States
Agency for International Development, UN organisations
and the World Bank.

2010 Key sectors for KMR are oil and gas, minerals
Elected to the board of Islamabad Stock and infrastructure.
Exchange. Became vice chair of ACCA Pakistan’s
Members’ Network Panel

2008
Gained a law degree from the University of London

2006
Founded and became CEO of CAMCO, a capital
markets and advisory company (presently holds
trading licence of Pakistan Stock Exchange);
gained ACCA Qualification

2004
Joined Khalid Majid Rehman as director of
business advisory services

2000
Joined Fauji Foundation as investments analyst.
Gained MBA from Lahore University of
Management Sciences

Future pathways to CFO Case studies – Ayla Majid 40

Tips from Ayla Majid FCCA

1
Having a qualification is extremely important.
Wherever we are working, we are professionals
first; we are experts in our own field. So one has
to invest in oneself immensely and continuously
– because the world is changing and we need to
keep abreast of those changes to stay relevant.

2
My advice to young women is – even if your view
is in the minority – use persuasion and keep
on going. You can change opinions through
communication. So don’t give up and don’t
be intimidated.

3
ACCA is a lifetime career partner. There’s an
amazing amount of ACCA research on industry
sectors and areas such as corporate governance
and with a global perspective. Working in a
developing country, it’s a privilege to have access
to such great depth of research and a great
network of people.

Future Pathways
pathways to CFO Case studies – Ayla Majid 41
Xinkai Chen FCCA,
Director of Finance and Operations and
General Manager at Hugo Boss Greater China
‘Financial talents should
engage more actively in
the company, for they
are the ones who can
get a whole picture
of the operation.’
Zhou Ailin, journalist. This article was first published in the February 2017 China edition of Accounting and Business magazine.
Xinkai Chen FCCA, general manager
and director of finance and
operations at Hugo Boss China,
talks about how the company is
moving forward in the country.
Heading into the Jing’an Temple
Metro station, the most prosperous
downtown area of Shanghai, one will
naturally catch sight of the facade of
Hugo Boss, an upper premium German
fashion designer. This is also the
location of its flagship store.
Over the past 18 months, the
company’s shares have almost
halved. It is not alone, with the global
economic comeback still seeming
elusive and with other luxury brands
feeling the pinch. But Hugo Boss is
determined to make a comeback.
Future pathways to CFO Case studies – Xinkai Chen
‘2017 will be a year of stabilisation; it’s
already happened in mainland China,’
says Xinkai Chen, general manager
and director of finance and operations
at Hugo Boss China. ‘2018 will see a
return to growth.’ Xinkai, whose role
has recently expanded to cover
Greater China, including Taiwan,
Macau and Hong Kong. He also
serves as deputy chair of ACCA
Eastern China’s steering committee.
Hugo Boss has just unveiled its
strategic development plan, the key
element of which is focusing the
portfolio on the two brands Boss and
Hugo. With the global harmonisation
of sales prices and structural
improvements in distribution, the
company is also ensuring that its brand
image remains consistent worldwide. 
 back towards sustainable growth in
In the age of the ‘new mediocre’ of
persistent slow growth and uncertainty,
the luxury market seems likely to be
stuck in a holding pattern for the
foreseeable future. Some consulting
agencies attribute the difficult luxury
environment to a decrease in tourism
across Europe, a slowdown in the US
and China, and instability in the
Middle East.
‘However the global picture has
changed, one thing that remains
unmoved is that we change to meet
our customers’ needs,‘ Xinkai notes.
In mid-November, Hugo Boss
announced an update on its strategic
development plan, which aims to steer
the time-honoured German brand
the challenging landscape.
42
In order to appeal to customers, the
company will operate with only two
brands in future: Boss and Hugo. ‘Boss
will offer upper premium business
wear as well as sophisticated casual
wear,’ Xinkai explains. ‘Boss Orange
and Boss Green will no longer be
continued as independent brands,
but instead both lines will be
integrated into the Boss core brand
in order to offer the customer a
consistent brand experience across
all wearing occasions.’ Previously, Boss
Orange was the contemporary, trend-
driven label, while Boss Green focused
on sportswear.
In addition, the company expects to
significantly strengthen its market
presence in the growth segment
of casual wear. Hugo will in future
appeal to a broader base of younger
customers, with fashionable collections
offered at attractive prices.
‘Hugo’s entry-level price range will
be around 30% lower than that of the
Boss core brand,’ Xinkai says. ‘The
realignment of the brand portfolio is to
be completed with the delivery of the
spring 2018 collection.’
Rather than focusing merely on the
high-end group, ‘we aim to cater to
the needs of a whole spectrum of
customers,’ he continues. ’Not carrying
any flashy logos, Hugo Boss makes its
own aura felt in a low-key way. In Boss
and Hugo we have two strong brands
with their own identity, which appeal
to different target groups.‘
Future pathways to CFO Case studies – Xinkai Chen
Global harmonisation
Contrary to first impressions,
womenswear is becoming an important
part of the core business, and the
cooperation with artistic director
Jason Wu will provide significant
inspiration to this segment. However,
the company is planning to focus more
closely on its menswear collections
and has just presented the Boss
Menswear collection at the New York
Fashion Week.
Another major strategic adjustment
lies on the pricing side in the global
harmonisation of sales prices.
’The company will continue the
harmonisation of its global price
architecture,’ Xinkai says. ‘2018 in
particular will see a number of further
adjustments made. Any remaining
price differences will result entirely
from disparities in transport costs,
taxes and customs charges. While this
will therefore result in further price
decreases in Asia, average prices in
Europe are expected to rise slightly.
The price structure in America will
remain stable.‘
Hugo Boss has already introduced a
range of measures in response to the
difficult market environment. These
include cost savings of around €65m in
the current year, closing loss-making
stores and adapting the sales structure
in the US market, as well as significant
price reductions in China.
The company’s outlook for 2016
suggests that sales will grow steadily
or decline by up to 3% on a currency-
adjusted basis. The company still
expects the operating result (earnings
before interest, tax, depreciation and
amortisation) to decline by between
17% and 23%.
China is a battleground that is too
large to be ignored. As the country
transitions from an investment-led
growth model to a consumption-led
one, there is more potential to tap into
this enormous market, which Huge
Boss can’t miss.
Despite the economic slowdown,
Chinese consumers’ appetite for
‘quality products’ seems to be
growing. In 2016, Chinese tourists
bought everything from cosmetics to
high-tech toilet lids while travelling
abroad, provoking a fierce debate on
the attractiveness of Made-in-China
products. ‘That’s why we should focus
more on the supply side, which is the
quality and service in this market,’
Xinkai says.
A year ago, Hugo Boss cut its high
prices in China by roughly 30% to bring
them closer to the global average
as e-commerce and travel made the
differences more obvious to Chinese
consumers. Third-quarter sales in
China were 4% lower than the previous
year at the constant currencies. ‘Yet
given store closures and price cuts
this was actually a heartening result,’
Xinkai says.
Digital strategy
But success also relies on the tailwind
of the internet. The rapid rise of
Taobao, a Chinese version of eBay,
has pioneered the trend of online
shopping in China. With this in
mind, digital strategy has become
another crucial part of Hugo Boss’s
development plan, with the aim
of increasing the performance of
the e-commerce business in the
short term.
43
Xinkai points out that the business’s
website has recently been overhauled
and a new mobile app introduced. ‘The
website is now being commercially
optimised with a variety of measures
planned,’ he says. ‘Hugo Boss in China
again posted positive growth on a like-
for-like basis in the third quarter 2016.’
Additionally, the group attaches
great importance to the digitisation
of central processes in development,
sourcing and distribution.
Customer service is another key
area. According to recruitment firm
Spherion, luxury retailers are hit
hardest when customers who are
accustomed to exclusive shopping
experiences are unhappy with service.
This is why Hugo Boss’s stores ‘will
not lose their charm,‘ Xinkai says. ‘As
an upper premium brand, customers
come to Hugo Boss for a better
experience. For example, we also
provide a tailor-made service to our
customers who come to our stores.‘
Luckily, Hugo Boss China has already
caught the hearts of many Chinese
customers, appointing Wallace Huo, a
popular Taiwanese actor, as its ‘Man of
Today’ Hugo Boss ambassador in 2016.
Huo is nicknamed by his female fans
‘lao gan bu’, which means ‘old cadre’,
giving him the air of a poised and
stylish figure. ‘This just perfectly clicks
with the positioning of the Hugo Boss
menswear brand,‘ Xinkai says, adding
that the firm has boosted its marketing
output since 2015. ‘The ultimate goal
that we hope to meet is what echoes
our image and core value.’
Future pathways to CFO Case studies – Xinkai Chen
Accounting genes
Xinkai could be said to have been born
with accounting genes; his grandfather
was a member of the Chinese Institute
of Public Accountants’ standing
committee and owned an accountancy
firm prior to 1949. After graduating
from Jilin University of Technology in
Changchun in 1992, where he studied
international trade and industry, Xinkai
gained financial experience with
Tianjin Leader Group Import & Export.
‘At that time in China, there was no
“Big Five” in the real sense – just
representative offices,’ he recalls. ‘So I
chose to start from a trade company.‘
The post also meant that Xinkai gained
international experience in Singapore
and Hong Kong.
Ideal formula
In 1995 he moved to multinational
textile manufacturer Esquel Group,
where he was senior manager of
finance and administration, based in
London, Hong Kong and Singapore.
His ACCA journey began when he
studied at Cass Business School in
London in the late 1990s. ACCA’s
syllabus combined with work
experience was, he discovered,
an ideal formula for honing his
financial talents.
He joined Hugo Boss in 2007, helping
the company to expand its presence
in mainland China. ‘There were only
two representative offices focusing
on sourcing back then but in 2009
we started to focus on retailing by
taking over our franchising partners,
building our own distribution.’ This
led to the formation of a joint venture
with Rainbow Group in 2010. After fully
taking over the joint venture in 2014,
Hugo Boss started to reorganise its
distribution network to build for future
growth in mainland China.
2015 marked another milestone for
Xinkai, when he spent two months on
Harvard Business School’s Advanced
Management Program, which allowed
him to hone his business skills. The
course, Xinkai says, enables senior
executives to bring about a full-scale
transformation – in themselves and in
their organisations – and on his return
to Hugo Boss, he took on a more
general management-oriented role.
As finance’s depth and scope of
responsibility grows, so does the need
for highly skilled talent. Xinkai also
suggests that younger professionals
should spend time on career planning
in order to prepare themselves for
challenges, and should continue to
hone their skills not only in finance
but in other key areas such as law
and language.
As Hugo Boss continues to go through
a major reorganisation and prepare
for future high growth, attaching more
importance to emerging markets such
as Greater China, Xinkai’s role has been
being increasingly that of a business
partner to the CEO – a move in line
with the general trend. According
to EY’s Partnering for performance
report, 64% of CFOs surveyed said
that collaboration with the CEO has
increased, with 76% reporting greater
involvement in corporate strategy,
driven by a focus on growth.
‘Financial talents nowadays should
not restrain themselves only to
accounting; rather, they should engage
more actively in the daily business of
the company, for they are the ones
who can get a whole picture of the
company operation,’ Xinkai says.
Various CFO surveys show that talent
availability has become one of the
top concerns in finance sectors,
and this chimes with Xinkai’s views.
While there has been a lot of buzz
recently around digital disruption
and its effect on the accountancy
profession, he firmly believes that
‘financial talent still remains the core
of the whole business‘.
44
Xinkai Chen CV Basics

2015 Hugo Boss is one of the market leaders in the upper

Advanced Management Programme,
Harvard Business School, Boston, US
2009
Director, finance and operations,
Hugo Boss China
2007
General manager and legal representative,
Hugo Boss Guangdong Trading Company
1998
Masters in shipping, trade and finance,
Cass Business School, London, UK
1995
Senior manager, finance and administration,
Esquel Group
1992
Trade executive, Tianjin Leader (Group)
Import and Export
premium segment of the global apparel market.
Headquartered in Metzingen, Germany, the company has
almost 14,000 employees.
In fiscal year 2015, it generated net sales of €2.8bn, making
it one of the most profitable listed apparel manufacturers in
the world.
Products range from modern apparel, eveningwear and
sportswear to shoes, leather accessories, fragrances and
home textiles.
In fiscal year 2015, 60% of group sales were generated in
the company’s own retail business. Wholesale business
contributed 38% and 2% were from licences.
China is one of 11 countries where the company operates an
e-commerce business.

1992
Bachelor in International Trade of Industry,
Jilin University, Changchun

Future pathways to CFO Case studies – Xinkai Chen 45

Alexander Joramsa,
CFO, GE Grid Solutions, Asia Pacific and China

‘Having a good cultural and

gender mix has strengthened
our ability in solving problems’

Rufus Tan, journalist. This article was first published in the January 2017 Singapore edition of Accounting and Business magazine.

A global outlook and a
determination to support customers
have proved to be a winning
combination for Alexander Joramsa,
CFO of GE Healthcare, ASEAN.
Work in the finance department is
sometimes portrayed, albeit wrongly,
as a desk-bound role, with staff
spending most of their time behind
computer monitors. But Alexander
Joramsa, CFO of GE Healthcare,
ASEAN, believes that nothing is further
from the truth. His inspiring philosophy
is that, when you break it all down,
numbers are often the thing closest to
a person’s heart.
‘When people think of sales, they think
of the selling activities. What I’ve come
to realise is that finance people have an
edge,’ he says. ‘Because we are able to
interpret and explain numbers beyond
just numbers themselves, we are in the
best position to create a convincing
business case for our clients.’
Future pathways to CFO Case studies – Alexander Joramsa
Joramsa says that it is not enough as
a finance department to just generate
reports. ‘I always tell my team that it is
our responsibility as much as it is any
other department’s to do what we can
to help our business to grow,’ he says.
‘Here at GE Healthcare, 30% to 40% of
the finance department’s time is spent
on customer-facing activities. We try
and understand their priorities and
constraints, and, as we understand the
customers’ needs better, we are able
to help them come up with the right
solution that makes good business and
financial sense.’
The story of how Joramsa found his
way into the healthcare industry is
one of a man who strongly believes in
following his heart. Originally a science
student from Bandung, Indonesia,
Joramsa tells us that he came across an
opportunity during his undergraduate
days to try accountancy. He liked
numbers but had never taken any
accounting subjects before, so he
decided to try it out for a year; if he
didn’t like it, he could always switch
back to engineering or some other
science-related course.
People interaction
He quickly realised, however, that he
really enjoyed the subject and decided
to complete his accountancy degree.
Upon graduation, he joined one of the
then Big Five accountancy firms:
Arthur Andersen.
It was at this point that, Joramsa says,
‘I realised that traditional accounting
and auditing was not really my cup of
tea. I wanted more people interaction.’
After he had been with Arthur
Andersen for a year, Joramsa had the
chance to take on a scholarship to do
his Master’s in Australia. He leapt at
the opportunity. Then, on his return
to Indonesia, he joined the treasury
department of the Dutch bank
ABN AMRO.
46
Feeling a lack of stimulation, he
jumped once more to the corporate
banking department. This was the
point at which he first worked in the
healthcare sector, servicing Bristol-
Myers Squibb, where he would later
spend a decade.
In terms of personal qualities, Joramsa
believes that having an open mind and
embracing challenges have served
him well. Joramsa shares that when
he was first offered a job by Bristol-
Myers Squibb in 1999, there were two
positions available: one in treasury and
one in business. Having already tried
his hand at treasury, he decided to go
for the role of commercial operations
manager – something that he had no
prior experience in.
Steep learning curve
‘Having to develop an understanding
of areas such as supply chain,
distribution and sales force
effectiveness was a steep learning
curve for me, but it is something that
has helped me to better understand
the business and no doubt helped me
in my finance career,’ he says.
Another aspect that Joramsa believes
has influenced the way he runs his
finance department today is his
experience of working in different
countries. Since 2002, he has been
based outside Indonesia – first in
Malaysia, then Singapore, and with
a short stint in India in between.
Through his experience of working
with different cultures, he has learnt
to appreciate the advantages that
diversity brings; today, his finance
team includes people from China,
India, Indonesia, Malaysia, the
Philippines and Vietnam.
‘Living in Singapore, we can sometimes
take for granted the multicultural
diversity which we enjoy,’ he says.
‘Having a good cultural and gender mix
has enabled us as a team to broaden
our perspectives, and strengthened our
ability in solving problems.’
Future pathways to CFO Case studies – Alexander Joramsa
Working in different markets has also
shaped Joramsa’s global mindset,
which he says is important for surviving
in today’s increasingly globalised
economy. ‘Thinking globally means
that we are able to solve problems
by thinking out of the box, with a
strong focus on how we can help our
customers to be successful. In the
past three years, we have worked to
come up with various solutions such
as crossborder financing, simplified
leasing arrangements for small clinics
and lowering cancer scanning costs,’
he explains.
Simplification process
Having spent more than 20 years in
the finance industry, Joramsa has
witnessed dramatic changes driven
by today’s volatile economic business
climate, where anything and everything
could happen in an instant. He says
that, with forecasting becoming more
unpredictable, the only thing that
finance can reasonably control is
cost structure.
As a result, Joramsa explains, GE
Healthcare has embarked on a
simplification process, ‘to zoom in to
what matters most for the company,’
he explains. ‘Our strategy is to keep a
lean and agile team, which is ready to
react to changing economic conditions
at a moment’s notice.
‘Finance plays two important roles,’ he
continues. ‘We are the stewards of the
company as well as business partners.
We need to perfect the fine art of
balancing these two roles.’
When dealing with change, Joramsa
says that it is important to maintain a
positive attitude. ‘Life is not linear,’ he
says. ‘When business is down, we just
need to think of solutions. After all, if
there were no challenges, why would
there exist a need for people like us?
Nobody likes to work with negativity.’
While entering the healthcare industry
might have happened by chance,
Joramsa has certainly grown to love
and appreciate it over time. And,
perhaps because of his desire to
connect with others, he feels that
the sector’s relatable nature makes
it particularly enjoyable. ‘Healthcare
is something that everyone will
experience at some point in their lives,’
he says. ‘For me, I had a personal
experience when I was posted to
Malaysia and my father-in-law came to
visit us. He suddenly fell ill, so we went
to see a doctor and discovered that he
had stage-four lung cancer with only
a few months to live. It was during this
time that I realised that what we did in
healthcare made a real difference in
people’s lives.’
‘I now feel like I have a personal stake
in the industry and I try to champion for
early detection and early screening to
make sure that what happened to my
father-in-law will not happen to others.’
Looking back, Joramsa feels grateful
for the numerous experiences that
he’s had over the course of his career.
He also credits his formative years
in accountancy with helping him to
develop a systematic and structured
thought process. Today, he puts 250
hours each year towards coaching and
sharing his expertise with the industry.
This includes participating in five to
six events each year, one of which
was the recent ACCA shared-services
business process outsourcing (BPO)
morning epiphany event, where he
joined a panel discussion to discuss
how robotic process automation
would exponentially transform shared
services and BPO. ‘It is important for
us to continually engage with industry
and to engage in a culture of lifelong
learning,’ he says.
Finally, for finance and accounting
professionals looking to advance in
their career, Joramsa shares a piece
of valuable advice: ‘Don’t be stuck
behind your desks,’ he says. ‘The world
is bigger than this. Reach out, engage
with other departments and ask for
help when you need it. People are
generally willing to help if you ask.’
47
Alexander Joramsa CV Basics

2013 As a Fortune 500 company with more than 300,000

CFO, GE Healthcare, ASEAN (Singapore)
2010
CFO, GE Healthcare, Korea (Seoul)
2008
CFO, GE Healthcare, Medical Diagnostics,
Asia (Singapore)
1999
Regional compliance manager, Bristol-Myers
Squibb (various portfolios in Jakarta, Kuala
Lumpur and Singapore)
1997
Relationship manager, ABN AMRO Bank,
Indonesia. Master of commerce – finance,
from UNSW, Sydney, Australia
1994
Bachelor of economics – accounting and business
administration from Parahyangan Catholic
University, Bandung, Indonesia
employees and a presence in 150-plus countries, GE spends
US$1bn annually on people development. This includes the
two-year Financial Management Program, which spans four
rotational assignments along with intensive coursework and
interactive seminars that equip participants with technical,
financial and business skills.
GE’s relationship with Singapore began in 1969 when the
company opened a number of electronics manufacturing
plants. Today, it employs more than 3,500 people in the
city-state, working in the energy, transportation, water and
health sectors.
Healthcare is one of the fastest growing businesses in GE
Singapore’s portfolio, supplying government departments,
hospitals, healthcare and research and training facilities with
the latest diagnostic imaging equipment and healthcare
information systems. Its solutions are present in diagnostic
imaging departments, operating theatres and high acuity
wards throughout Singapore.

1993
Senior auditor, Arthur Andersen, Indonesia

Future pathways to CFO Case studies – Alexander Joramsa 48

Tips from Alexander Joramsa

1
We live in an information age where, more than
ever, we have ready access to information and
learning aids. We really have no excuse not to
be continually learning.

2
Shift your paradigm from one of finance and
accounting, to one of a businessperson.
Remember: if the company doesn’t make
money, the finance team will not have a job.

3
We serve two customers: internal and
external. In making decisions, you need
to consider if one solution could end up
creating more trouble for the other end.

Future Pathways
pathways to CFO Case studies – Alexander Joramsa 49
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Future Pathways
pathways to CFO Case studies 50
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aims to offer business-relevant, first choice qualifications
to people of application, ability and ambition around the
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