Re-Defining Finance For A Sustainable World

Future of Finance 2.
Re-defining finance
for a sustainable world
i | Future of Finance 2.0 Re-defining finance for a sustainable world

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ii | Future of Finance 2.0 Re-defining finance for a sustainable world
Contents
2 Creating a vision for the future Expected rise in automation

Technological impact on
3 Foreword finance’s basic activities
Future of Finance 2.0: The four big shifts Applying the four shifts
5 Introducing the Future of Finance 33 The changing shape of finance

The digital journey of finance for a sustainable world
Applying the four shifts
The changing role and
mandate of finance
Organisational sustainability and ESG 39 The skills and mindset for
Workplace evolution a sustainable world
Adopting new tools
9 The challenges to business Adapting to hybrid work
for a sustainable world Skills and the ‘information to impact’
The drivers of change for infinity loop
a sustainable world Systems thinking
Embracing a systems approach Top skills gaps
Applying the four shifts Applying the four shifts
15 Information to impact — Finance’s basic 50 Finance business partnering

activities for a sustainable world for a sustainable world
Basic finance activities The role of the finance business
within the infinity loop partner in sustainability
Finance as the source of Applying the four shifts
organisational truth
The sustainability focus across 58 Conclusions
basic finance activities
Re-defining our purpose
Value creation and the ‘information Actions for a sustainable world
to impact’ infinity loop
The value finance brings to
an organisation 65 Acknowledgements, authors,
methodology, and endnotes
Continuing the Future of
Finance 2.0 journey
26 Changing technology Acknowledgements
for a sustainable world Methodology
Use of tools
Future of Finance 2.0 Re-defining finance for a sustainable world | 1

Creating a vision for the future
The future of finance starts now.
Once upon a time, accounting and finance professionals had clearly defined
roles. Their job titles identified their purpose clearly — ledger clerk, bookkeeper, cost
accountant — and they worked quietly in back offices producing reports containing
useful information for management, investors, and regulators.
Management accountants mostly looked forwards, while financial

accountants mostly looked backwards. Auditors, both internal and external, checked
up on them.
But times have changed and our roles, along with the demands on the profession,
have changed with them.
Are we ready to cross traditional boundaries and play a role in the transformation
of the enterprise and how its assets are managed?
Are we prepared to contribute to its business model, its stakeholder relationships,

and the time horizon over which both tangible and intangible value are created?
The challenge ahead is how the management accounting community adapts to lead
greater organisational accountability and enable decision making that creates, measures,
and maintains value for a sustainable world. With the right insight and skills, accounting
and finance professionals can ensure that they are well prepared to meet the challenges
of future dynamism and unpredictability.
This report brings together the findings of our 18-month global research project,
conducted by a multidisciplinary team in conjunction with stakeholders at all levels
of the profession.
Our iterative research methodology uses literature reviews, interviews, roundtables,

and surveys to explore the future progress of the finance profession and its role within
the wider organisational ecosystem. Through our interactions with finance leaders,
accounting and finance professionals, regulators, academics, and students, we
examined the ambit of finance in a rapidly changing world, highlighting the critical
factors and proficiencies necessary to our evolution and advancement as a profession.
But this is only the beginning of the story.
2 | Future of Finance 2.0 Re-defining finance for a sustainable world

Foreword
The four shifts
Within the past few years there have been significant business profitability cannot be the primary goal of an
shifts in how value is being defined. The rapid shift enterprise is now clearly propelling and accelerating
of focus from profits and shareholders to societal ESG reporting and disclosures.
benefits and stakeholders is affecting how the investor
community assesses value creation through an For a sustainable world, the finance function should
entity’s business model. With the rise of social and focus on maximising value creation by fostering a long
investor activism, the very meanings of ‘value’ and term time horizon, adopting a multi-capital approach
‘prosperity’ are undergoing dramatic changes, and to driving decision-making towards the effective and
investors and the financial services community have efficient allocation and deployment of resources,
adjusted their expectations about how enterprises expanding relationships, and transforming business
create value. Sustainability is driving the shift towards models for long-term success. These are the four big
value defined by a set of stakeholders wider than just shifts that are re-defining the future of our profession.
shareholders. The recognition and acceptance that
Figure 1: The four big shifts required for a sustainable world
1 2 3 4
Business
Time horizon Capitals Relationship model
management management management management

The details behind these shifts include: has focused almost exclusively on costs and
revenues within the business model. New capabilities
• A shift in time horizon management: The traditional and competencies are required to participate in other
boundaries of enterprise profitability in the short term dimensions of the business model that define how
need to expand into value creation for the medium an enterprise creates and delivers value. Finance
and long term. Performance management should needs to connect performance with purpose and
shift from annual cycles to medium- and long-range be able to engage in the design and delivery of its
views. Scenarios around long-term planning and customer value proposition, the culture, and the
forecasting need to span significantly longer digital platform of the enterprise.
periods of time.
These are defining times for the finance
• A shift in asset and capital management: Finance profession. Our research shows that sustainability
professionals must develop capability that expands has a significant strategic impact on the office of the
beyond the management of tangible financial CFO and the finance function. Finance leaders must
and manufactured capital. They should adapt recognise the strong link between sustainability
to create frameworks and capability to manage management and the financial performance of an
intangible capitals such as social and relationship organisation. In other words, how an enterprise
capital, intellectual capital, human capital, and manages sustainability has a direct impact on the
natural capital. This requires new key performance value the enterprise creates (or destroys).
indicators (KPIs) and measurement metrics that
track the performance and value generation of Our Future of Finance 2.0 research and findings
these intangible assets. detailed in this paper — along with the already-
published papers The Digital Journey of Finance, The
• A shift in relationship management: Management Changing Role and Mandate of Finance, Organisational
accountants will need to develop relationship Sustainability and ESG, and Workplace Evolution
management capabilities that go beyond the — provide a roadmap to help the management
traditional relationships with regulators, investors, accounting community make these shifts and
and providers of credit. They should stretch their articulate how the profession needs to re-define
boundaries into relationship management with finance for a sustainable world. Adopting this holistic
customers, distributors, suppliers, employees, approach will equip finance professionals to drive
communities, and governments. There is significant better business decision-making and the creation
value creation for the enterprise in the development of more resilient value.
and management of these relationships.
Ash Noah, CPA, FCMA, CGMA
• A shift in business model engagement: Management VP & Managing Director Management Accounting & ESG
accountants must recognise the imperative for
the finance function to support value creation by
engaging and partnering in building the enterprise
business model. Traditionally, the finance function

Re-defining finance for a sustainable world:
Introducing the future of finance 2.0
In January 2019, AICPA & CIMA published Reinventing Building bridges

Finance for a Digital World, the findings of our original We began our research by building a bridge — carrying
Future of Finance research project. We found that out an extensive literature review of academic,
the focus of the finance function in a digital world business, and industry publications covering the period
was shifting from costs to organisational value, and 2019–2022. Through this exercise, we were able to
that these new notions of value would determine how understand and analyse global marketplace reactions
finance professionals were judged and justified. To to changes and developments in four key areas
fulfil these demands, finance professionals needed affecting finance and finance professionals:
to embrace new digital skills. Little did we know
Finance in the hybrid workplace
at the time that within a year the business world
Data and data analytics in finance
would embark on an unprecedented, accelerated
Technology in finance
programme of digital upskilling, triggered by the
The race to digital adoption in finance
COVID-19 pandemic.
This gave us a clear starting point from which to
continue our own exploration, Future of Finance 2.0.
Find our literature review and emerging theme papers

on the Future of Finance 2.0 landing page.
Figure 2: The Future of Finance 2.0 research journey to Re-defining finance for a sustainable world
Literature The story

review Interviews Roundtables Survey continues ...
2019–22
phase
1 phase
2 phase
3 phase
4
96 individuals 554 2,252 futureoffinance@
14 countries participants participants aicpa-cima.com
40 countries 68 countries
4 literature review papers 4 emerging theme papers Re-defining finance for a sustainable world

“
Five years later, we return to the topic in a global Interviewees agreed that AI cannot replace
context that is at once familiar and unsettling. In
professional judgement. Humans must
today’s environment, we find that, despite the ‘robots
will steal your jobs’ headlines, the focus of the retain a role in reviewing and analysing AI
profession has returned to human factors: people,
relationships, skills, and knowledge. Yet it cannot be
denied that our fastforward to digital communication,
outputs and override it if necessary.
The digital journey of finance
”
AICPA & CIMA, 2023
hybrid working practices, and a world driven by artificial
intelligence (AI) has had significant human impact.
As our research progressed, we published a series The opportunities and challenges presented by new
of interim reports detailing our conversations with technologies, such as generative AI (GAI), animated
accounting and finance professionals, business our roundtable discussions. Although it was broadly
leaders, educators, and students from around the agreed that the potential to uplift the finance profession
world. We identified four emerging themes from those is immense, research participants were apprehensive
conversations, the findings of which were published about the ethical integrity of AI chatbots, the potential
between August and December 2023. for data bias, and the lack of ‘black box’ transparency
clouding decision-making processes.
The digital journey of finance
Our conversations with the accounting and finance Nevertheless, our stakeholders believe that finance,
profession confirm that we are collectively on an because it has insight into all business units, is
ever-evolving journey of transformation. Businesses uniquely positioned to lead a broader organisational
are becoming more global and competitive, while the shift into digitisation. Our research conversations reveal
workforce is becoming more diverse and dispersed. that digital transformation is no longer about gaining
Demands from customers, suppliers, regulators, a competitive advantage; it is necessary to drive value
employees, and other stakeholders are steadily and, ultimately, survive.
increasing. The pace of technological advancements
is contributing to a fast-moving and multifaceted
world. These factors and others are leading to new
business models, new mindsets, and new ways
of working. The profession is transforming, and
technology is paving the way for its future. Today,
more than ever, organisations are looking for ways to
strengthen their digital capabilities by implementing
new infrastructures, leveraging new technical tools,
looking for innovative ideas, and capitalising on the
vast amount of available (but often fragmented,
uncontrolled, and poorly governed) data.

The changing role and mandate of finance Organisational sustainability and ESG1
The breadth and depth of finance activities, and Organisational performance is no longer being judged
the speed at which they operate, has increased. purely on short-term financial returns to shareholders.
Our 2019 white paper revealed that a key role Now, an organisation’s customers, workforce, and
for accounting and finance professionals is the investors — as well as governments and society at
identification, creation, and preservation of value, large — all demand greater transparency beyond
underpinned by commercial acumen and insight the traditional financial metrics. Finance functions
into the underlying drivers of that value. are stepping up to meet the challenges that a
sustainability focus presents. They realise it is no
Finance and accounting have expanded and evolved longer possible to continue with the unsustainable
from their traditional, transactional roots into new model of business as usual. Sustainability is fast
areas. Data and technology bring opportunities becoming the lifeblood of resilient organisations.
for wider access, transparency, and synergies
“
between financial and nonfinancial data. AI is already Organisations have set forth on a
transforming finance workflows by automating
sustainability journey from a cost and
certain tasks, but effectively and ethically using AI
and assuring the data it produces will necessitate compliance focus to a resilience and
increased human-led discretion and leadership. People systemic risks focus, from siloed thinking
management and leadership skills underpin successful to systems thinking, and from assessing
organisational transformations. Where once the focus financial performance to assessing
was on smarter working and cost management,
performance in the wider economy and
we now see a move towards greater agility, with a
growing focus on social and human equilibrium. society, while understanding impacts on
Sustainability and ESG (environmental, social, and

governance) initiatives bring a wider perspective
its environment.
”
Organisational sustainability and ESG
AICPA & CIMA, 2023
to the finance focus. Finance and accounting
professionals now have a role in ensuring that
The sustainability agenda has moved the dial
organisations take a more holistic view, balancing
towards a multi-capital view of value and the
and safeguarding the interests of people, planet,
need for multi-stakeholder interactions. As a result,
and prosperity. Finance business partnering is
management accountants must be able to participate
becoming increasingly important, co-creating
not just in reporting how the organisation has
value and engaging in collaboration both within
created value but also in co-creation of long term
and beyond organisational boundaries.
value. An important aspect of this will be how an
organisation measures and manages its intangible
value that ultimately drives longterm success and
profitability. The finance function needs to understand
that, in managing the business for the long-term,
considering the needs of wider stakeholders ultimately
generates return on investment to shareholders.

Our interviews and roundtables indicate there is Isolation during lockdowns reinforced the importance
an increasing global awareness that investment in of in-person communication. Shared knowledge,
sustainability is an essential part of planetary and experience, and ideas enhance learning, but replicating
organisational resilience. This has been driven by both these online requires different skills. The leaders
shareholders (investors) and stakeholders (regulators, we spoke to believe that colleagues who attend
consumers, suppliers, and employees) demanding the office have better chances of being promoted
organisations have stronger ethical values and develop because they find themselves in the middle of all
an environmental conscientiousness that respects the critical conversations and situations, which
planetary boundaries and social foundations. The opens up opportunities to contribute and upskill.
emergence of more complex sustainability standards This raised concerns of unconscious bias and
and regulation globally is embedding sustainable discrimination against those in remote-working
practices into organisations’ governance, strategy, risk posts, who may be less visible to management and
management, and performance metrics and targets. unable to access peer learning and mentoring.
Workplace evolution
The reverberations of ongoing technological,
environmental, and social transformations have had
“ For finance, hybrid work is here to stay But
when it comes to understanding the nature
of hybrid work and how it links with cost
significant impacts on our workplaces. This may be
efficiency, productivity, teamwork, innovations,
best exemplified by the flexible modes of work that
have emerged from the COVID-19 pandemic. Mandated organisational culture, digital technologies,
lockdowns in many countries in 2020 and 2021 well-being, and DEI, our research shows that
challenged us to work, learn, and lead in hybrid and
remote modes, which opened our eyes to both their
benefits and limitations. Although we now understand
the evidence is nuanced.
Workplace evolutions
”
AICPA & CIMA, 2023
how to achieve a better work-life balance, hybrid and
remote work have also highlighted inconsistencies in Our research found that communication is
collaboration, inclusion, acculturating, and belonging. the greatest challenge within the new work
environment, involving an extensive list of soft
skills. In the role of the finance business partner,
these skills include emotional intelligence, agile
mindset, resiliency, tenacity, and leadership.

The challenges to business
“ The social, psychological, and environmental costs of progress have been and are immense
Accounting is more than numbers: accounting is accountability. This time, the real costs for
progress have to be faced and factored in.2
Jeanette Winterson
”
12 Bytes: How We Got Here,
Where We Might Go Next, 2021
Sustainability is no longer just a management The focus for organisations must be ‘sustainable
buzzword. It has become a lens through which development’. This term has been in use since
society judges the organisational health of a 1987 when the United Nations Commission on
business and its impact on the nine planetary Environment Development defined sustainability
boundaries and twelve social foundations (table 1). as ‘development that meets the needs of the
present without compromising the ability of
The planetary boundaries, often referred to as
future generations to meet their own needs’.4
the ‘ecological ceiling’, define the environmental
limits within which humanity can safely operate, This shift in emphasis means that organisations
while the social foundations set out the basics of must address their impact on the planet beyond
life we should all have access to. Between them financials and investment returns. Finance
is the ‘safe and just space for humanity’.3 This is functions, management accountants, and the
a system in which organisations have the social wider profession must incorporate sustainable
license to operate and conduct business. development into their everyday practices to support
this shift. It is no longer possible to continue with
unsustainable models of business as usual.
Table 1: Planetary boundaries and social foundations of sustainability
Planetary boundaries5 Social foundations6

Climate change Water
Ocean acidification Food
Chemical pollution Health
Fertilizer use Education
Freshwater withdrawals Income and work
Land conversion Peace and justice
Biodiversity loss Political voice
Air pollution Social equity
Ozone layer depletion Gender equality
Housing
Networks
Energy

The drivers of change for a sustainable world and potential conflict hot spots around the world. At
In the five years since we first explored the main its heart, the AI arms race is a competition between
drivers of change in the original Future of Finance China and America for global economic hegemony,
research study, the areas haven’t changed. The that the American political scientist Graham Allison
intensity of those drivers, however, has grown. has labelled ‘the Thucydides Trap.’7 The term refers
It is also important to remember that these to ‘the tendency of a military conflict to occur
categories of change don’t operate in a vacuum when a rising power threatens to topple a ruling
independently of one another. They are intertwined. power as an international hegemon — just like the
Peloponnesian War ensued when Sparta feared
Institutional and systemic drivers the rising power of Athens’.8 Allison’s conclusions
Within the institutional and systemic category, are stark. Over the last 500 years, ‘In 12 of 16 past
geopolitics and regulation are on the rise. cases in which a rising power has confronted a
Geopolitics continues to affect organisations ruling power, the result has been bloodshed.’9
as the global balance of power moves south
and east. This is manifesting itself in an AI arms
race and the increasing number of actual
Figure 3: The drivers of change for a sustainable world
Institutional Social Market Technology

& systemic
Key: ▲▼ change of intensity since 2019
In a time when the borders between what is war The rise of nationalism, a consequence of the
and what is peace are blurring, businesses find ‘Thucydides Trap’, is impacting globalisation. A second
themselves on the front lines. Organisations are factor has been the COVID-19 pandemic that exposed
becoming embroiled in ‘pseudo conflicts’, where the fragility of global ‘just in time’ supply chain models.
states use trade laws rather than direct action to apply
pressure. These take the form of state-sponsored
boycotts and use of restrictive import and export
practices. Organisations also continue to experience
growing cyber threats from rogue state actors.

As states and organisations attempt to become Technology drivers
more self-sufficient and resilient against future Digital technology is now ubiquitous and tools such
global shocks, deglobalisation is increasing. National as AI are interwoven into life. Increasingly, bots act
security considerations are increasingly dominating as gatekeepers between humans. But the hyper-tech
policymaking and business model changes driving the world carries risks and continues to affect business
move to self-sufficiency. This protectionism is now models. The geopolitical power struggle in the form
pervasive within the digital sector, with the growth of of the AI arms race is leading to national ‘techno-
‘techno-nationalism’ and ‘technological sovereignty’.10 protectionism’ and has the potential to result in a
global digital decoupling between two dominant
In the sustainability regulation space, the momentum ideologies.11 For any organisation with technology at
to develop global sustainability standards has moved the heart of its business model, the implications are
quickly. The European Union Corporate Sustainability huge. These impacts upon and technological adoption
Reporting Directive (CSRD), consisting of 12 standards, by the finance function are further explored in the
will require companies to report against those ‘Changing technology for a sustainable world’ section.
standards for the 2024 financial year and publish
findings in 2025. At COP26, in November 2021, the
IFRS® Foundation trustees created the International Global risks
Sustainability Standards Board (ISSB). Within two The World Economic Forum (WEF) annual global
years, the ISSB had released its first sustainability risk reports describe changes occurring in the
reporting standards: IFRS S1, General Requirements global risk landscape from year to year, focused
for Disclosure of Sustainability related Financial on the categories of economic, environmental,
Information, and IFRS S2, Climate-related Disclosure. geopolitical, societal, and technological. In the 2024
Global Risk Report, 5 of the top risks identified over
Social drivers the next 10 years are environmental, while 2 are
In the social sphere, one of the biggest impacts on societal. Sustainability risks are front and centre.12
demography is likely to be global migration patterns. Three of the top 10 relate to technological risks.
Climate migrants will be forced to relocate to more The risk of ‘misinformation and disinformation’
hospitable terrain as sea levels rise, droughts increase, needs to be top of mind when exploring the section
and weather patterns change. By relocating, climate ‘Information to impact — Finance’s basic activities
migrants compete with local populations for scarce for a sustainable world’ later in this report. Risks,
resources. Climate and resulting economic migrations ‘Adverse outcomes of AI technologies’, and ‘cyber
could increase the potential for in-country conflict and insecurity’, need to be top of mind when exploring the
instability for organisations operating in these markets. ‘Changing technology for a sustainable world’ section.
Market drivers
Consumer empowerment is increasingly affecting
the marketplace as consumers develop a greater
understanding of the important role they play in
achieving sustainable growth of the organisations
they purchase goods and services from.

Figure 4: WEF Global Risk Report 2024 — Global risks ranked by severity over the long term (10 years)
ENVIRONMENTAL TECHNOLOGICAL
1 Extreme weather events SOCIETAL 5 Misinformation
2 Critical change to Earth systems and disinformation
3 Biodiversity loss and 7 Involuntary migration
6 Adverse outcomes
ecosystem collapse 9 Societal polarisation of AI technologies
4 National resource shortages
8 Cyber insecurity
10 Pollution
“
The 2023 WEF report introduced the term polycrisis One of the challenges around transforming
to describe ‘a cluster of related global risks with
food systems is that they are very complex.
compounding effects, such that the overall impact
exceeds the sum of each part.’13 This conceptual They are very multifunctional, and we need
framework encourages the exploration of how to tackle the different facets simultaneously.
connections between emerging risks — whether You can’t deal with climate on its own. You’ve
environmental, geopolitical, or socioeconomic got to think about nature and biodiversity.
— may collectively evolve. In re-defining finance
You’ve got to think about food security.
for a sustainable world, a holistic perspective is
required to meet future business challenges. You’ve got to think about nutrition and health.
You’ve got to think about equity. All at the
Embracing a systems approach same time. That’s probably why they’ve been
Professor Geoff Simm, director of the Global
parked until now, but they need to be very
”
Academy of Agriculture and Food Security at
the University of Edinburgh, in a discussion on much centre stage from now on.14
what needs to happen post COP28 (December Professor Geoff Simm
2023), highlighted the complexity (above right). Farming Today: Cost of Food
and Climate Change, 2023

“
Traditionally, organisations, finance functions, To become or stay prosperous, we have to take
management accountants, and the profession have
on costs today for gravy tomorrow, and that’s
taken complicated issues, broken them down into
individual parts or silos, and then reassembled them to
how any investment works, right, you save now,
boost efficiency. Like a malfunctioning electric car or to spend later. But that produces what I call a
aeroplane, they can be taken apart and reassembled ‘prosperity trap,’ because we abandon our
using rules, processes, and instruction manuals. long-run goals, unwilling to take short-term hits…
Businesses who want to invest for the long-run
However, given the complexity of the sustainability
tasks ahead, using traditional methods that produce still have to face the carnage of quarterly earnings
short-term solutions without acknowledging the reports, so no wonder executives would often
interconnectedness between issues could worsen rather trim their workforce or pump their stock
things. Complex problems can’t be reduced to price through a share buyback, than make an
”
rules and processes. They involve too many investment that only pays off in a decade.15
unknowns, too many interrelated factors, and have
an unknown number of potential solutions. Ben Ansell
Our Democratic Future: The Future of Prosperity, 2023
The interconnected issues that the sustainability

space presents can be overwhelming to professionals Sustainability is now a defining issue for
whose disciplinary foundations are based on organisations and their long-term resilience.
rules, processes, and precise solutions articulated To lead organisations for a sustainable world,
as numbers. It’s time to add a systems-thinking management accountants will need to understand
approach to your skill set. As this report and our global challenges and shift their definitions of
research makes clear, the future of finance depends value beyond current traditional boundaries.
on taking a larger, systems-thinking approach.
• Time horizon management
Applying the four major shifts With all the drivers of change affecting
In his lecture ‘The Prosperity Trap’, Ben Ansell, organisations, the automatic physiological
the 2023 BBC Reith Lecturer and Professor of reaction, the fight-or-flight response, tends to revert
Comparative Democratic Institutions at Nuffield to short-termism. The challenge will be how the
University Oxford, details the enemies we face in trying management accounting community can lead
to secure a sustainable shared prosperity. Short- organisations to move from a short-term cost
termism is the first enemy he explores (top right). perspective to a long-term resilience viewpoint.

• Capitals management • Business model management
Organisations will need to fully explore The systems-thinking approach must start
the interconnectedness of the six capitals with an organisation’s business model. This
and how the potential for a risk polycrisis is because a business model is a depiction
impacts the creation of long-term value. of the many parts that together represent
the system of an organisation.
• Relationship management
The systems-thinking approach challenges
Once the business model is fully understood,
our core understanding of what relationship
use the lens of sustainability to appreciate
management is. This requires us to
how an organisation sits within a much
go beyond the human stakeholders
larger, complex system and how the drivers
organisations traditionally interact with. It
of change affect long-term resilience.
is also an important way to rehumanise an
organisation’s relationship with society. By using the 9 planetary boundaries and 12
social foundations (table 1) as a compass for an
organisation’s sustainable development and its
social license to operate, the shift in perspective
moves finance functions, management accountants,
and the profession to hold organisations truly and
effectively accountable.

Information to impact
Finance’s basic activities for a sustainable world
“ The degree of wisdom deployed in the making of a decision varies directly according to
whether that decision involves building something or destroying. Making a structure takes time
and planning and care; tearing something down is invariably quick and messy and requires a
great deal less thought.16
Simon Winchester
”
Knowing What We Know: The Transmission of Knowledge, 2023
Because contemporary notions of value have what has changed is the complexity of the issues and
changed, organisations must employ new ways the need to quickly generate insights, which has been
of storytelling to express their value beyond only enabled by automation (‘assemble to insight’, the left
financial terms. In telling an organisation’s value side of the loop). The shift being seen for finance in its
stories, the finance function’s fundamental activities business partnering function is from ‘decision support’
— whether assessing finance risk, reconciling to ‘decision-making’. The right side of the loop, ‘advise
accounts, compiling management information, or to assess’, requires elevated ‘human skills’ such as
assuring reports — are a constant and repeatable critical thinking, communication, and collaboration.
process. We first explored the ‘information to impact’
Today, the questions and insights being explored
cycle in the CGMA® 2019 white paper Reinventing
through the infinity loop are guided by an
finance for a digital world: The future of finance.17 Fast
organisation’s social license to operate (SLO).
forward five years and the cycle remains relevant, but
Figure 5: The ‘information to impact’ infinity loop
orm
ation Influence
Inf
As
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m
bl
e
e
lyse
is
Apply
v
Ad
Ana
As
se
ss
In sig ht I m p a ct

Start with the human story perspective to influence decision-making. Again,
The value story of any organisation is a human story. the key here is to know your stakeholders and
In the ‘information to impact’ cycle, finance functions use appropriate language and communication
need to first understand how to begin telling that tools that will resonate with that audience.
story, before jumping to assemble the financial and
nonfinancial information that will help them tell it. Applying for impact
The key here is to know your stakeholders, whether To guide actions and help ensure organisations
they are internal or external to the organisation. achieve the required impact, the finance function
enables and uses control systems, such as
Once the finance function has a sense of the strategic planning, budgeting, performance
human story, the basic activities, as shown in measures, and performance reviews.
figure 5, within the cycle are as follows:
Assess to assemble
Assembling information The finance function ensures it assembles valuable
The finance function assembles data from a range information to inform the consideration of subsequent
of sources, then collects, cleans, and connects it proposals and updates to the business model. It is
all into assembled information. Finance prepares a period of reflecting and learning. This information
accounts and returns in prescribed formats for can range from reports to analysis of the outcomes
external reporting, but the function also prepares achieved or experiences gained from relevant
management information in accessible formats for initiatives. These are valuable feedback loops for
internal stakeholders. Georgina Sturge, a statistician developing future business model adaptation, strategy
at the UK House of Commons Library and advisor formulation, and strategy implementation. See figure 5.
to the University of Oxford’s Migration Observatory,
warns: ‘Getting good data doesn’t necessarily Basic finance activities within the infinity loop
mean doing more counting and measuring — it Throughout our research roundtables, respondents
just means counting and measuring the right agreed the 2019 ‘information to impact’
things. And yet it’s often assumed that “more model accurately detailed the key activities
data” and “bigger data” are inherently better.’18 of the finance function. However, feedback
from the roundtables also noted that:
The lesson here is simple. Assembling bad
data will result in bad information, insights, • Information must be identified
and flawed knowledge outcomes. from a variety of sources.
Analysing for insights • The time spent on each activity is not

The finance function analyses both financial and equal, as the model seems to imply.
nonfinancial information to draw out patterns
• The data running through the model
and relevant insights for its stakeholders.
is not exclusively ‘finance’ data.
Advising to influence • The model requires a clearer feedback loop.
The finance function then communicates these
insights and contributes an objective, responsible

Questions relating to the model were included spend there is significantly lower (23%).
in an online survey distributed to accounting This could mean several things:
and finance professionals globally. Respondents
• Finance professionals are pigeonholed
were asked to rate the percentage of time they
into the transactional ‘information’ silo.
actually spend, and the time they would like to
spend, across the four areas (information, insight, • Rising volumes of data mean there is
influence, and impact). This revealed a significant more ‘information’ work to do.
gap between reality and the desired state of affairs.
• Finance professionals recognise that
The findings in figure 6 show that finance emerging technologies will help them
professionals, despite indicating in 2018 that they do their jobs more efficiently.
wished to move away from the ‘information’ area
in which they spent the most time (39%), are still • Data analytics has become increasingly
spending the largest amount of their time (37%) in attractive to finance professionals.
this area. The desired amount of time they wish to
Figure 6: Basic finance activities — Percentage of time spent on activities in 2018, currently and desired
39 37 23 25 23 25 20 20 26 16 19 26
Information
 Insight
 Influence
 Impact
 2018  Current*  Desired**

*n=2184 **n=2180
C6a: What percentage of your time do you currently spend in each of the four areas?

Splitting the data by job level shows that, at all Finance as the source of organisational truth
levels, people need to be spending a lot less time in The Changing role and mandate of finance
‘information’ and more time in ‘insight’ — the areas emerging themes report highlighted the finance
which are (or will be) most affected by technology. All function’s superpowers to understand the
levels of the function will spend more time over the numbers and see organisational activities
coming years in the more people-centric ‘influence’ holistically. It places the finance function at the
and ‘impact’ areas. New entrants to the profession heart of an organisation, routinely collaborating
aspire to the same level of ‘impact’ as their leaders. with and across all business units.
These superpowers are enhanced by the fact that

finance functions and management accountants
understand the value-creation cycle of an
organisation through its business model.
Figure 7: Basic finance activities — Percentage of time spent on activities currently vs desired, by job level
Percentage of time spent in each area* � �Percentage of desired time in each area*
Trainee/intern/apprentice 41 20 19 20
24 26 24 27
Experienced professional
(non-management) 44 22 16 18
25 26 25 25
Manager 38 23 19 19
22 26 26 26
Senior manager
Manager 36 23 22 19
20 26 27 27
Director 32 23 24 21
20 25 28 27
Senior director 30 24 25 21
19 26 28 27
C-suite (e.g., CEO, CFO, etc.) 30 23 25 23
20 26 27 27
Information (%) Insight (%) Influence (%) Impact (%)
C6a: What percentage of your time do you currently spend in each of the four areas? (n=2184)
C6b: Ideally, what percentage of your time would you wish to spend in each of the four areas? (n=2180)

With the business model (a system of inputs to of sources that is being assembled from across an
business, business activities, business outputs, organisation, as well as from external stakeholders,
business outcome, and impact on stakeholders) at to feed into the ‘information to impact’ infinity loop.
the centre of an organisation, finance functions and
At the centre of an organisation’s diverse data lakes
management accountants have a unique end-to-
and the infinity loop, finance functions have an
end picture of how value is created and preserved.
important role as the guardians of organisational truth.
This includes both tangible and intangible value.
The Edelman Trust Barometer 2023 global report
In the Future of Finance 2.0 global survey, respondents includes a key finding for organisations, claiming
were asked to rank the use of financial and ‘business is the only institution seen as competent and
nonfinancial data within their finance functions. ethical’. The report also notes that organisations are
seen as, ‘a trustworthy information source.’19 This is
The findings reveal that respondents are highly likely largely due to the dedicated work of finance functions
to use financial data ‘all the time’ or ‘most of the championing evidence-based debate and decision-
time’ for reporting and decision-making activities. making and creating a shared sense of belonging for
The prominence of financial and nonfinancial data is the multiple stakeholders of an organisation. This is
signifying the increased collaboration between finance
no mean feat given a world increasingly experiencing
functions and other internal business units. It is also
the ‘weaponisation of information’ and polarisation.20
emphasising the need for data from a wide range
Figure 8: Overall use of financial and nonfinancial data across finance functions
60%
55%
50%
42%
40%
40%
30% 25%
27%
23%
22% 21%
18% 16% 19%
20% 17%
21% 21%
19%
16%
10% 13% 12%
0%
Internal External Supporting Understanding Developing Enhancing Supply chain Supporting Measuring
reporting reporting decision-making customer customer value operational management diversity and environmental,
needs proposition efficiency inclusion (D&I) social and
initiatives governance
(ESG) impacts
C8a. On a scale of 1-7 (where 1=”All of the time” and 7 = “Never”), to what extent do you use financial data for each of the following? (n=2125)
C8b. On a scale of 1-7 (where 1=”All of the time” and 7 = “Never”), to what extent do you use non-financial data for each of the following? (n=2119)

The sustainability focus The finance functions are increasingly stepping up and
across basic finance activities facilitating their organisations’ understanding of ESG/
Although figure 8 indicated a lower current use of sustainability issues impacting financial performance.
financial data (at 12%) and nonfinancial data (at
A key driver behind this is momentum by regulators
19%) for measuring ESG impacts, further global
in the sustainability space to develop sustainability
survey results suggest greater optimism. When
standards. With both the CSRD and ISSB standards
asked to rate their organisation’s engagement
applicable from financial year 2024, 55% of
with ESG and/or sustainability initiatives (figure 9),
respondents agree that regulation is driving a focus
respondents reveal there is a higher understanding
on the ESG agenda for their organisations. It is also
of ESG and its impact on their organisations. Of
interesting to note that 52% of respondents agree that
those polled, 61% agree that ESG is becoming more
their organisations’ focus on the ESG agenda is being
important to their organisation’s business model.
shaped by supply chain/ecosystem considerations.
Figure 9: Organisations’ engagement with ESG and/or sustainability initiatives
ESG is becoming more important to

61% 17%
my organisation’s business model.
My organisation’s ESG agenda will

be determined by regulations. 55% 20%
My organisation’s ESG agenda will be shaped

by supply chain/ecosystem considerations. 52% 22%
s routinely assesses the impact

My organisation’
of ESG and/or sustainability issues on our 51% 26%
financial planning performance and prospects.
My organisation routinely reports externally on

51% 28%
ESG consideration and/or sustainability initiatives.
ESG consideration and/or sustainability

50% 24%
My organisation
initiatives routinely
routiinely repo
affect business decisions.
ESG metrics are used internally to measure the impact

of my organisation on society and the environment. 48% 28%
ESG metrics are used internally to measure the impact

45% 29%
of ESG issues on the performance of my organisation.
Agree Disagree
D3. Please consider the following statements regarding your organisationʼs

organization’s engagement with environmental, social and governance
governace (ESG)
and/or sustainability initiatives: (n= 2052)

Organisations that qualify for reporting on the evolution, when addressing the potential sustainability
environmental and social impacts of their business impacts, risks, and opportunities that can affect
activities against sustainability standards such as the their performance and long-term resilience.
CSRD and ISSB standards must also cover the impacts
External sustainability reporting is not only requiring
of suppliers in their value chain. Examples include
organisational transparency in metrics and targets,
the IFRS S2, Climate-related Disclosures, standard,
but it also extends across governance, strategy,
which includes reporting of scope 3 greenhouse gas
and risk management factors. All of these must be
emissions in an organisation’s value chain, as well
considered when working within the infinity loop.
as the European Sustainability Reporting Standard
(ESRS) S2, Workers in the Value Chain, which asks In the emerging themes report Organisational
organisations to report on their impacts on the sustainability and ESG, our research explored
interests and rights of supply chain workers.21 an ESG maturity model, highlighting the journey
The survey findings also reveal a gap between the high from a shareholder perspective to a system
importance respondents place on the ESG value to value perspective.24 The model introduced three
perspectives that organisations move through as
their business and the current practices of measuring
they build their capacity and embed sustainability:
the impact of sustainable initiatives (48%) and
performance (45%). This will improve as organisations • Shareholder perspective: A focus on
build their sustainability literacy and report against financial returns to shareholders
mandatory standards in their jurisdictions.
• Stakeholder perspective: A focus on
Definitions of materiality from a sustainability lens are strong ESG identification, primarily
broadening how finance functions use the ‘information through risk-management processes
to impact’ infinity loop. Finance functions must now
focus on longer-term sustainability forecasting across • System value perspective: A focus on long-
many different sustainability-connected issues. The term value creation for all stakeholders, where
objective of IFRS S1, General Sustainability-related governance is aligned with the social space and
Disclosures, for example, is to ‘require an entity to dependent upon the wider environmental pillar
disclose information about its sustainability-related
Organisations in the shareholder perspective stage
risks and opportunities that is useful to primary
of their maturity journey are driven by regulatory
users of general purpose financial reports in making
compliance, so most of their finance function’s effort
decisions relating to providing resources to the
is reactive. Their time and energy are typically used
entity’.22 This encompasses information that could
to assemble information, bringing together a wide
have an impact on cash flows, access to capital,
range of sustainability data sources — collecting,
or cost of capital over the short, medium or long
cleaning, and connecting data into assembled
term, collectively referred to as ‘sustainability related
information. Here, the finance function prepares
risks and opportunities that could reasonably be
sustainability information for compliance metrics,
expected to affect the entity’s prospects’.23 Within
targets, and climate-related financial disclosures.
this reporting process, organisations have an
These tend to be financial capital stories and reports.
expectation to articulate their value creation processes,
including strategy development and business model

For organisations in the stakeholder perspective
stage, because ’assembling information’ for
sustainability data has been embedded by
finance functions, there is more scope to focus
on ‘analysing for insight’. Here finance functions
analyse both financial and nonfinancial information.
They can draw out patterns and relevant insights
for sustainability issues relevant to multiple
stakeholder groups that their organisation affects.
There is some limited focus on ‘advising to

influence’, especially with employees and entities
in the supply chain. The sustainability insights
are being integrated into an organisation’s
enterprise risk management (ERM) processes.
For those organisations at the system value

perspective, the sustainability focus is firmly on
the right-hand side of the basic finance activities:
‘advising to influence’ and ‘applying for impact’. In
’advising to influence’, the insights from compliance
disclosures are being used by finance functions to
contribute to and influence organisational objectives
and decision-making. Finally, finance functions
are ensuring that sustainability issues, within
‘applying for impact’, build organisational resilience.
This means that a sustainability-focused culture
has been built into an organisation’s governance • Information is relevant. Help organisations
processes and is driving future strategic direction. plan for and source the information needed for
creating strategy and tactics for execution.
Value creation and the
• Analysis generates sustainable value. Simulate
‘information to impact’ infinity loop
different scenarios that demonstrate the cause-and
The Global Management Accounting Principles (GMAP)
effect relationships between inputs and outcomes.
define management accounting as ‘the sourcing,
analysis, communication, and use of decision-relevant • Stewardship builds trust. Actively manage
financial and nonfinancial information to generate and relationships and resources so that the
preserve value for organisations.’25 financial and nonfinancial assets, reputation,
and value of the organisation are protected.
That generation and preservation of
organisational value comes together through • Communication influences and creates
the ‘information to impact’ infinity loop. It works impact. Drive better decisions about
in tandem with the management accounting strategy and its execution at all levels.26
value creation cycle, which reveals: Please refer to figure 5.

Figure 10: The ‘information to impact’ infinity loop: Past knowledge/future wisdom
ormation Influence
Inf
As
se
m
bl
Past knowledge Future wisdom

e
se
lyse
Apply
vi
value measurement value creation

Ad
Ana
As
se
ss
For a sustainable world, the creation and preservation contribute to the efficiency with which we can pursue
of value must also recognise the impact an objectives; with whether we do things right.’27
organisation has on people, the planet, and economic Value creation through future wisdom
prosperity, both from its direct activities and from The right-hand side of the loop (from advise to
those within its wider value chain ecosystem. This assess) provides future wisdom. It recognises the
links back to the 9 planetary boundaries and 12 need for social and ethical practices. There is a
social foundations that define an organisation’s move from the language of business to a more
social license to operate and conduct business. inclusive and respectful reality, based on multiple
dimensions beyond only a financial capital and
Value measurement through past knowledge profit lens. Reflecting and interacting with multiple
The left-hand side of the infinity loop (from assemble stakeholders, through an outside-in approach, finance
to insight) begins with data, followed by adding functions and management accountants translate
meaning to create information, and, finally, producing sustainability issues from the external community
knowledge by applying context. Because much into the organisational value-creation process.
of this is based on hindsight, we have labelled the The finance professional’s wider understanding
knowledge ‘past knowledge.’ Past knowledge is
of possible ethical implications and unintended
used to define value measurement. Its foundations
consequences builds more resilient value creation
are based in the complicated rules and processes
for an organisation. It also contributes to shaping a
of management accounting and the ‘language of more sustainable world. As Ackoff noted, ‘Wisdom
business’. The late Russell Ackoff, an American is concerned with effectiveness, whether we do the
organisational theorist and Anheuser-Busch Professor right thing. Wisdom is contained in evaluations.
Emeritus of Management Science at the Wharton It provides a person with a willingness to make short
School, University of Pennsylvania, noted, ‘Data, term sacrifices in order to make long term gains.’28
information, knowledge, and understanding all can

Figure 11: The value finance brings to an organisation
100%
92%
88% 89% 87%
90% 86% 85%
83% 82%
80% 80% 80%
80% 78% 77%
76%
69% 69% 71%
70%
69%
60%
54%
50%
40%
30%
20%
10%
0%
0%
Sustainability/ Cost Analysis and Reporting Controllership Capital Partnering Enterprise- Reporting Agility and
ESG efficiency insight accuracy and risk optimisation and decision wide cost speed flexibility
support management
2018 * 2023 **
C1: Thinking about the tangible and intangible value that finance teams bring to an organisation, please indicate your level of agreement with the
following statements
(*n = 2263) (**n = 4693)
The right-hand side concludes with assess, 2. Analysis and insight: Up 11 percentage points
indicating that at this point it is imperative that from 2018. This is another key component of
the new learning and performance outcomes the single source of organisational truth.
feed organisational business model evolution.
3. Cost efficiency: This has risen 19 percentage
The value finance brings to an organisation points, up from last place in 2018. This rise has
We asked survey participants to tell us about the value been driven by the impact of managing businesses
the finance function brings to an organisation. Ten during the COVID-19 pandemic and recent global
subject area statements were given, and respondents inflationary pressures on organisations.
were asked to rank them. The top five are: 4. Controllership and risk: Up 7 percentage points
1. Reporting accuracy: Up 9 percentage points from 2018.
from 2018. This is a key component of the 5. Partnering and decision support: Up 6 percentage
single source of organisational truth. points from 2018.

Finally, respondents were asked to rank topics affecting • Time horizon management
their roles within the next three to five years:29 The shift in focus to nonfinancial intangible value
for a sustainable world requires a longer time
• 71% of respondents believe their organisation scale in which to measure progress through
will rely on finance professionals to analyse multiple proxy KPIs. This includes focusing
across the whole of an organisation’s value
and interpret more nonfinancial information
chain, both upstream and downstream. A
to support decision-making and strategy. cradle-to-grave product life cycle approach.
• 70% of respondents believe accountants have a • Capitals management
vital role in helping businesses achieve net zero. A sustainability focus provides significant
opportunity, not just for the finance function, but
• 56% of respondents believe finance professionals will also for organisations to break into a new ‘value
take a leading role in their organisation’s ESG agenda. zone’. The issue for many finance functions
is the disproportionate amount of time spent
While a score of 56% for finance professionals leading assembling information around costs and
their organisation’s ESG agenda suggests a lower revenues only. Although these are important
level of agreement regarding the roles respondents topics, a broader systems approach will inspire
opportunities to build more resilient organisations.
will play in sustainability issues, it presents an
opportunity going forward. The opportunity will • Relationship management
be to use the ‘information to impact’ infinity loop The right-hand side of the ‘information to impact’
when exploring ESG agenda issues to drive future infinity loop must continue to interact with multiple
sustainable and responsible decision-making. stakeholders. This includes both internal and
external stakeholders within an organisation’s
value chain. The finance function must also
continue to be the single source of organisational
The ‘information to impact’ infinity loop continues truth that guards against misinformation
to be at the centre of organisational knowledge and disinformation in a polarised world.
and wisdom, driving decision-making. Its core
hasn’t changed. What has changed are the types • Business model management
A circuit of the ‘information to impact’ infinity loop
of questions raised and the wide-ranging data
ends in ‘assess’ to ‘assemble’. Here it is imperative
sets being processed through the cycle. that new wisdom is used to assess current
business model thinking and build resilient business
Frustratingly, many finance professionals are still models of the future for a sustainable world.
only involved in the value measurement activities. To
lead the change and make a difference, the balance
across the loop will need to shift to include a greater
emphasis on wisdom and sustainable value creation.

Changing technology
“ When technologies complement what workers do, they make us all richer, but when they
substitute for workers, well, then they might only make the managers or shareholders of the
company richer... We’re not bystanders in the development of new technologies from carbon
capture to artificial intelligence. We are the main players strutting the stage. We can influence
whether innovation happens and who gets to benefit.30
Ben Ansell
”
Sustainability issues tend to be intangible, making

it harder to estimate their associated costs,
benefits, and societal value. Doing so requires
focus across the other five capitals of integrated
reporting: manufactured capital, intellectual capital,
human capital, social and relationship capital, and
natural capital. This means the traditional focus
on financial capital and narrow AI solutions to
estimate costs and benefits of tangible assets is
not enough. Now, finance functions must try new
technology products and services that go beyond
what is familiar. It requires seeking systems that
allow innovation and rigorous experimentation.
Use of tools
Unsurprisingly, we have seen a steady rise in the
tech tools finance uses, with data visualisation
showing the highest growth. Cloud is used by
two-thirds of organisations and is no longer
seen as a transformative tool by the majority.
Climate technologies are emerging, although
only one-third of our respondents were aware
of them, though mid-level staff (experienced
professionals, senior managers, and managers) are
significantly more aware than leaders (directors,
senior directors, and C-suite). This may also
reflect an inter-generational change in attitudes
to the role, scope and influence of finance.

Figure 12: Which technology tools does your finance team use now? — Adoption curve
Which of these tools do you use now?
(18%) Data visualisation (46%)

(54%) Cloud (65%)
(27%) Advanced analytics (39%)
(12%) RPA (25%)
(5%) AI (17%)
(2%) Blockchain (13%)

Climate tech (12%)
2.5% 13.5% 34% 34% 16%
Innovators Early Early Late Laggards

adopters majority majority
C5: Which of the following tools and technologies does your finance team use now? (*n=4693) (**n= 1701)
In analysing our 2018 survey, we viewed advanced During the latter stages of our Future of Finance
analytics, cognitive computing, and blockchain 2.0 research, the tech company Open AI released a
as tools that would deliver new capabilities to large language model (LLM) called Chat GPT-4. A
the finance function. At the time, they had failed generative pre-trained transformer (GPT), this LLM
to break through to the mainstream. Today technology has captured the public’s imagination.
(figure 12), such tools are considered essential to Other companies are developing technology that
transformation by some, but not all, organisations. could give nearly everyone access to artificial
Although there has been significant growth in the general intelligence (AGI), such as personal assistant
recognition of AI as a transformative tool (up from chatbots, within the next few years. Such AGI has
19% to 44%), over half of our respondents do not the potential to transform organisations’ business
consider AI to be critical in helping transform their models and the management accounting profession.
organisations. AI seems to be seen by the majority
as something ‘we’ll get round to eventually’.

Mustafa Suleyman, author of The Coming Wave, is
working on technology that would give nearly everyone
access to personal AGI tech within five years:
“ Within the next couple of years, whatever your job, you will be able to consult an on-demand
expert, ask it about your latest ad campaign or product design, quiz it on the specifics of a legal
dilemma, isolate the most effective elements of a pitch, solve a thorny logistical question, get
a second opinion on a diagnosis, keep probing and testing, getting ever more detailed answers
grounded in the very cutting edge of knowledge, delivered with exceptional nuance. All of the
world’s knowledge, best practices, precedent, and computational power will be available, tailored
to you, to your specific needs and circumstances, instantaneously and effortlessly.31
Mustafa Suleyman
”
The Coming Wave: AI, Power and the 21st Century’s Greatest Dilemma, 2023
This could transform the partnership of human Blockchain, once touted as the future of accounting,
intelligence (HI) and artificial intelligence has failed to live up to its early promises, although
(AI). AGI is currently at the peak of inflated one-fifth of respondents believe that it will be
expectations in the Gartner hype cycle for critical to transformation. The recognition of data
emerging technologies for 2023, making it a tech visualisation as a critical finance tool has jumped
trend organisations must monitor closely.32 from 22% in 2018 to 44% in 2023. Advanced
analytics, robotic process automation (RPA),
and cloud are still important finance tools.
High-performing organisations are the main

users of exponential tools, including climate
technologies, AI, and blockchain. They have also
embraced core business tools such as RPA.
Figure 13: Which tools will be critical in helping transform your organisation?
Blockchain 15%
22%
Climate tech 0%
23%
Cognitive computing/AI 19%
44%
Advanced analytics 44%
49% Exponential
Data visualisation 22%
44%
Core
RPA 29%
39%
Cloud 34%
44%
0% 10% 20% 30% 40% 50% 60%
2018 2023
n=1701
C5: Which of the following tools and technologies will be critical in transforming your organisation? (*n= 4693) (**n=1701)

Expected rise in automation
In 2018, we asked survey participants what percentage
of finance labour they expected to be automated in
the next three years. Only 8% of respondents believed
that over 61% of labour would be automated.
Figure 14: What percentage of finance labour do you see being automated in the next three years? (2018)
< 20% 20%–40% 40%–60% 60%–80% >80%

C4: What percentage of finance labour do you see being automated in the next three years? (n=4633)

In 2023, we followed up this question by asking When we look at future expectations, we see that
respondents what percentage of finance processes more than one-third of respondents (35%) expect
had been automated in the previous three years. automation of over 61%, far higher than reported
The majority reported automation of 20%–40% of previously. Over half (54%) expect to see automation
processes, which is a little lower than anticipated. levels of 20%–60%. This level of automation would
This may be explained by a reluctance to invest during free up staff for higher-value activity, which in turn
the COVID-19 pandemic. One-quarter (24%) reported would change the shape of the finance function.
41%–60%, while 15% reported automation of over 60%.
Figure 15: Expected percentage of automation vs actual
40%
35%
30%
25%
20%
15%
10%
5% 2%
32% 27% 40% 34% 20% 24% 6% 11% 4%
0%
<20% <20–40% 41–60% 61–80% >80%
Forecast 2018* Automated in last 3 years**
C4: What percentage of finance labour do you see being automated in the next three years? (*n=4633) (**n=1701)
Figure 16: What percentage of processes do you expect to be automated in the next three to five years?
40%
35%
30%
25%
20%
15%
10%
5%
27% 11% 34% 25% 24% 29% 11% 21% 4% 14%
0%
<20% <20–40% 41–60% 61–80% >80%
Automated in the last 3 years Automated in next 3 years
C4: What percentage of Finance processes (a) have been automated in the past 3 years and (b) do you expect to be automated in the next 3-5 years? (n=2207)

Figure 17: What percentage of finance processes do you expect to be automated over time?
60%
50%
40%
25%
30% 11%
29%
20%
21%
10% 14%
27% 34% 24% 11% 4%
0%
<20% <20–40% 41–60% 61–80% >80%
2018* — Automated in next 3 years
2023** — Automated in past 3 years 2023** — Expect to be automated in next 3–5 years
C4: What percentage of Finance processes (a) have been automated in the past 3 years and (b) do you expect to be automated in the next 3-5 years?
(*n=4633) (**n=2207)
Technological impact on finance’s basic activities • An American market-driven model: ‘It seeks
When considering the activities that make up the to advance open markets and internet
‘information to impact’ infinity loop, the left-hand side freedoms, at home and abroad.’
(‘assemble’ to ‘insight’) will increasingly become a set
• A Chinese state-driven model: ‘It seeks to protect
of automated processes. Rather than being a machine-
regime survival, political control, and its right to
only activity, ‘assemble’ to ‘insight’ is likely to become
make its own rules for the “sovereign internet”.’
a partnership of human intelligence (HI) and artificial
intelligence (AI). The right-hand side of the infinity loop • A European rights-driven model: ‘It seeks to rein
(‘advise’ to ‘assess’) will remain, for the medium- to in surveillance capitalism and protect EU citizens
long term, a set of HI processes because they involve from being exploited by US tech giants.’34
engagement with stakeholders and require empathy,
creativity, judgement, ethics, and professionalism. The implications for organisations are vast, depending
on the markets business is conducted across.
Though the technological revolution continues, it
is complicated by the geopolitical AI arms race.
Anu Bradford, Herny L Moses Professor of Law
and International Organizations at Columbia Law
School, perceives this Al arms race as a battle
between three competing regulatory approaches:33

At a more granular level, two developments — AGI national technological self-sufficiency. This has
and quantum computing — stand out in their capacity implications for an organisation’s future ability
to disrupt and transform the business models of the to automate finance processes. Most tech relies
organisations, firms, and clients that management heavily on the production of semiconductors,
accountants and finance professionals work with. and the COVID-19 pandemic exposed fragility in
the global supply chain. Chris Miller, Assistant
• Time horizon management Professor of International History at the
Organisations and finance functions need to Fletcher School of Law and Diplomacy at Tufts
include AGI, LLMs, and quantum-computing University, reflecting on the events of 2021,
developments in their horizon-scanning processes. said, ‘As the world’s economy and its supply
Although these technologies are currently within chains convulsed between pandemic-induced
the ‘peak of inflated expectation’ of the Gartner disruptions, people around the world began to
hype cycle for emerging technologies, they understand just how much their lives, and often
could reach the ‘slope of enlightenment’ in the their livelihoods, depended on semiconductors.’35
next 5 to 10 years. Build your tech literacy as
these could become critical in helping transform • Business model management
your organisation and change how you carry The AI arms race brings into question an
out your tasks within the finance function. organisation’s purpose and current business model
as organisations try to grapple with opposing
• Capitals management ideologies of doing wider business. According to
Traditionally, finance functions focused primarily Bradford, ‘At worst, tech companies are forced
on financial capital and narrow AI solutions to
to choose which of the models they comply with
estimate costs and benefits of tangible assets.
— well knowing that their compliance with one
However, sustainability issues tend to be intangible
regulatory model is deemed to violate another.’36
in nature, making it harder to estimate their
associated costs, benefits, and societal value. It
In the sustainability space, better technology
requires focusing across the other five capitals.
supports the maturity journey of organisations
This means finance functions must try new
from shareholder to system-value perspective.
technology products and services that go beyond
The issue for many finance functions, as they
what is familiar. It requires seeking systems that
develop new sustainability capabilities, is that
allow innovation and rigorous experimentation.
they are constrained by existing technology
• Relationship management systems not designed for the complexities of
The rise in techno-protectionism is undermining ESG. Finance functions are in danger of moulding
trust in global supply chains. For the United themselves to fit the technology they already
States and China, it is driving policies of interact with, rather than seeking new tools to
help unlock the complexities of sustainability.

The changing shape of finance
Figure 18: The changing shape of finance — Hierarchical to segregated diamond
Hierarchical Segregated Diamond Segregated diamond

All functions in-house. Smaller in-house team. All functions in-house. Smaller in-house team.
Many roles at lower level. Routine transactional Process automation Routine processes
Fewer high-level roles. processes outsourced creates opportunity for automated and outsourced
to shared service mid-level roles offering to SSCs, along with some
centres (SSCs). higher-value services. higher-value services.
Our surveys asked respondents to select a shape that best described their current finance function and one that represented its
evolution. For the 2023 survey, based on industry feedback, we introduced the ‘segregated diamond’ structure.
Our previous research indicated that the traditional were emerging at the mid-level of the function. This
shape of the finance function — a hierarchical triangle resulted in a shift to a diamond-shaped structure.
with a broad base of transactional roles and fewer Although only 13% of our survey respondents at the
roles at senior levels — had evolved into a segregated time reported that their finance function followed
triangle. This change, driven by globalisation and this structure, we believed this change in shape was
technological advances, allowed routine processes moving at pace and we predicted that, within three
to be migrated to shared service centres. The bottom years, it would become as common as the hierarchical
section of the segregated triangle represents the finance function structure.
finance function activities carried out in-house or
outsourced to shared service centres.
In 2019, however, we noted how traditional

transactional processes and activities were becoming
increasingly automated, meaning that fewer job roles
were needed at the bottom of the pyramid. At the
same time, new technical specialist and strategic
partnering roles focused on insight and influence

By 2023, it was clear that the diamond model Respondents expecting their finance functions to
had become increasingly common, with 40% of remain in or move towards the diamond shape in
respondents now reporting a diamond or segregated- the next few years cited technology as the main
diamond shape. This may take a variety of forms. driver of this change (49%). Forty percent stated that
Organisations with a significant focus on specialist the change was driven by business needs (such as
and business partnering roles providing direct support recent growth, takeover, and stakeholder demands)
to executives are likely to appear wider and flatter. or people-related issues (such as skills development,
The diamond trajectory is set to continue, with two- talent acquisition, and staff retention). Relatively few
thirds of all respondents stating that their finance (11%) cited cost reduction as a reason for the change.
functions are moving towards this model. While 38%
of respondents still report a traditional hierarchical
model (down from 57% in 2018), over half of these
(21%) do not see this continuing in the longer term.
This follows a similar trajectory to 2018, when 26%
of respondents expected to see a change in shape.
Figure 19: What is the current shape of your finance function?
60%
50%
40%
30%
20%
10% 6%
3%
57% 38% 25% 18% 13% 28% 0% 12%
0%
Hierarchical Segregated Diamond Segregated None of the
above
2018 Actual* 2023 Actual**
C10: W
hich of the following best describes the shape of your finance function? (*n=4692) (**n=2110)

Figure 20: What shape is your finance function evolving to?
40%
35%
30%
25%
20%
15%
10%
5%
38% 17% 18% 12% 28% 28% 12% 39% 3% 3%
0%
diamond above
2023 Actual* 2023 Desired**
C10: Which of the following best describes the current shape of your finance function?
C11: Which of the following best describes the shape your finance function is evolving to?
(*n=4692) (**n=2110)
When we compare the results with our 2018 The move towards segregated models, however,
survey, we’re not as far away from the hierarchical continued as anticipated. Shared service centres have
triangle as we’d hoped to be by this time. It continued to evolve and become ‘global business
is likely that the COVID-19 pandemic had an services’ (GBS), developing best practices and centres
impact here. With businesses in turmoil, finance of excellence. They continue to move up the value
transformation efforts slowed or were shelved as chain. With remote work now commonplace, the
organisations, focused on customer needs and concept of ‘location’ for shared service centres has
survival, retrenched to familiar infrastructure. become less relevant and we are now seeing corporate
finance functions becoming a part of the GBS.
Figure 21: The changing shape of the finance function over time
60%
50%
40%
30%
20%
10% 5% 15%
3%
57% 31% 38% 25% 23% 18% 13% 31% 28% 0% 0% 12%
0%
diamond above
2018 Actual* 2018 Desired* 2023 Actual** 2018 — Automated in next 3 years
(*n=4692) (**n=2110)
In our 2023 survey, 30% of respondents reported a set to rise significantly, with over half of respondents
segregated structure, in which routine transactional stating that they are moving towards a segregated
processes are carried out within shared service centres model that makes use of in-house or outsourced
(either in-house or outsourced), leaving a smaller shared service centres. A 2021 study on the share
central finance team. Over time, we have seen the of functions performed in shared service centres
‘segregated diamond’ model appear, in which some found that finance was by far the most common,
higher-value services, such as data analytics and with 90% of shared service centres providing finance
business partnering, are outsourced to shared service services. In lower-cost economies, this offers career
centres. Within the next few years, this approach is and skills development opportunities for many.37

Figure 22: The shape of the finance function — Triangle to diamond
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2018 Actual* 2018 Desired* 2023 Actual** 2023 Desired**
Triangle family Diamond family Something else
(*n=4692) (**n=2110)
Figure 23: The shape of the finance function — Integrated vs segregated models
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2018 Actual* 2018 Desired* 2023 Actual** 2023 Desired**
Triangle family Diamond family Something else
C10: Which of the following best describes the shape of your finance function?
(*n=4692) (**n=2110)
As we predicted in 2019, the most significant In 2019, we also reported a key finding from our 2018
shift is towards diamond-shaped models. survey: those respondents who think finance work
will be highly automated over the next three years
Two-thirds of respondents report an evolution to were more likely to see their function evolving to a
this shape. Yet this move presents a double-edged segregated or diamond shape. In 2023, we found that
challenge for the profession — finding a replacement those who anticipated automation of over 41% were
for the repetitive-yet-effective manual processing twice as likely to be moving towards a diamond shape
familiar to generations of novice accountants, than those who anticipated lower levels of automation
while simultaneously maintaining succession in the coming years. Regardless of automation levels,
channels for mid-level and senior roles that may two-thirds of our respondents (67%) stated that
not follow the function’s traditional parameters. they were moving towards the diamond shape.

Applying the four shifts Our 2019 white paper set out the attributes of each
The evolving shape of the finance function is an level within the diamond structure (figure 24). These
indicator of its broader remit and activities, as levels haven’t changed. Finance professionals from
explored in the emerging themes paper The changing each of the levels increasingly work in multidisciplinary
role and mandate of finance. Its evolution towards teams, assembled in skill combinations that support
a diamond shape is a response to the four major the business and wider stakeholders. What we do
shifts and a requirement for a wider perspective for a see is a contraction in the level 4 tasks of assembling
sustainable world. Traditionally a back-office function, and extracting data as technological automation
finance now sits at the heart of an organisation. continues. In the upper reaches of level 3, there
Ensuring that organisations take a more holistic is an expansion of he tasks of generating insights
view, balancing and safeguarding the interests of in areas of specialism. This is being driven by the
people, planet, and prosperity, means that finance increasingly complex sustainability issues that require
functions are beginning to use an outside-in approach sense-making and interpretation to provide insight.
to engage with multiple external stakeholders.
Figure 24: The attributes of each level within the diamond structure
Level 1
Strategic Systems and technologies of
leadership governance and oversight
Level 2 Strategic partnership for value

to influence and shape how the Systems and technologies of
organisation creates and preserves value engagement
Level 3 Technical specialists

providing insights in their Systems and technologies of
respective areas interpretation
Level 4 Managing processes and applying

accounting rules to assemble and Systems and technologies of
extract data recording

The expansion of level 2 continues with increasing • Relationship management
focus on the tasks of strategic partnership for value. The increasing focus on partnering for
This includes the use of sustainability factors to organisational value only happens through
influence resilient, longer-term decision-making, elevated engagement and interaction with
to control operations, and to carry out the both internal and external stakeholders. A
implementation of decisions. broader, flatter structure is a metaphor for this
focus. The result is a better quality of strategic
It is possible that going forward, as the level 4 decision-making and resource optimisation.
tasks contract and the level 3 and 2 tasks continue
• Business model management
to expand, the shape of the finance function will
The shift in business model management to define
become a much broader, flatter structure.
how an enterprise creates and delivers value is a
• Time horizon management driver of the changing finance function shape.
The shape, especially at level 3 (insight generation
The evolving finance function shape also
and level 2 (value partnering), is evolving to
reflects the direction of travel in the skills
support the shift in performance management.
and mindset for a sustainable world.
This enables greater scenario analysis around
the long-term planning and forecasting required
to operate within a sustainable world.
• Capitals management
The increasing expansion and capacity of level
2, value partnering, enables the shaping of
value creation through quality decision-making,
judgement, tradeoffs, and learning. With the 9
planetary boundaries and 12 social foundations
as a moral compass, there is a greater focus on
the management of intangible capitals: social and
relationship, intellectual, human, and natural.

The skills and mindset
“ The challenge we all face is how to maintain the benefits of breadth, diverse experience,
interdisciplinary thinking, and delayed concentration in a world that increasingly incentivizes,
even demands hyper-specialization.38
David Epstein
”
Range: How Generalists Triumph in a Specialized World, 2019
As the role of accounting and finance professionals Our 2018 survey asked respondents how future
expands, so must our skills and mindset. This is skills and competencies would be spread across
made clear in the 2020 revisions to the International roles in a digital world, using four key knowledge
Federation of Accountants (IFAC) code of ethics, areas (figure 25). We found that, as careers
which requires all professional accountants to develop, the focus moves from pure technical
have an inquiring mind.39 This involves considering skills towards people and leadership skills.
the nature, scope, and outputs of the professional
We anticipated that this transition would speed
activity being undertaken. It also means being
up through a combination of automation and
open and alert to a need for further investigation
the move from finance working in isolation to
or other action. This new approach moves
working with others across the organisation.
accounting and finance professionals away from
traditional rules-based approaches and towards
a more inclusive, expansive mindset better suited
for the challenges of today and tomorrow.
Figure 25: Competencies and skills focus for a digital world, 2018 (as percentages)
70%
60%
50%
40%
30%
20%
10%
70 13 11 6 48 19 18 15 40 20 21 19 40 21 19 20 21 25 22 32
0%
Entry level Manager Senior manager Controller CFO
Technical skills Business skills People skills Leadership skills
C12: What proportion of skills should be focused on in the next five years to prepare for the future? (n=4693)

The 2019 CGMA Competency Framework introduced On revisiting the question of essential skills and
a new knowledge area: digital skills. These range competencies, we see that, while technical skills
from basic digital literacy to deeper expertise in are still most important at entry level, the digital
cloud computing, cybersecurity, data analytics, knowledge area is particularly important at this stage.
and digital costing. At the time, we stated that if One could therefore consider digital knowledge as
finance professionals were to remain relevant, an extension of our traditional technical toolkit.
they must keep pace with advances in technology
and be able to manage and guide the finance
function in a digital world. We expected that
these skills would be important at all levels and
that their focus would become more strategic as
individuals progressed through their careers.
Figure 26: Competencies and skills focus for a sustainable world, 2024 (as percentages)
40%
30%
20%
10%
39 16 14 9 22 26 20 21 18 16 22 26 19 16 17 24 21 18 19 17 14 23 21 30 13
0%
Entry level Manager Senior manager Controller CFO
Technical % Business % People % Leadership % Digital %

Adopting new tools help finance articulate the business needs and
Our interviews and roundtables identified new give the right requirements when working with IT
skills for finance in the digital arena, particularly to deploy and implement operational solutions.
around data analysis, as discussed in The digital
With an increased focus on value-added activities,
journey of finance emerging themes paper.40 While
finance professionals need analytical skills to
our findings indicated no requirement to become
make sense of data and identify trends and
systems engineers, computer programmers, data
insights based on critical and strategic thinking.
engineers, or scientists, it was clear that there is
a need to understand the ‘art of the possible’. Our research has shown that this data is scattered
all over the organisation with limited control or
In the space of infrastructure and automation, finance
governance, which makes analysing, storytelling, and
needs knowledge of application programming
influencing very difficult. Roundtable participants
interfaces (APIs) to understand the principles behind
agreed that the finance function owns the financial
the ERP systems and other infrastructure technologies
data and plays a significant role in data governance.
the organisation may use. Finance must also keep
However, there was not a unanimous agreement on
up with emerging technologies so they can speak the
who, between business owners and finance, should
same language as the relevant internal stakeholders
own the nonfinancial data within an organisation.
and, crucially, ask the right questions. This will also
Figure 27: Entry level skills 2018 vs 2023
2018* 0%
6%
11%
13%
73%
2023** 22%
9%
14%
39%
39%
0% 10% 20% 30% 40% 50% 60% 70%
Digital Leadership People Business Technical
C12: What proportion of skills should be focused on in the next 5 years to prepare for the future? *(n=4693) ** (n=2100)
Note: in the 2018 survey, technical skills were divided into ‘Technical’, ‘Accounting and technical’, and ‘Analysis’.

What is clear is that finance professionals should Adapting to hybrid work
be able to identify problems, find innovative Our Workplace evolution paper found that the transition
solutions, and implement efficient workflows to to new work modalities was challenging for leaders
handle data effectively. Effective communication because different skill sets are needed for in-person
is essential to explain complex concepts and and virtual communication and leadership. The hybrid
findings to nontechnical stakeholders in a clear work environment requires dedicated efforts and
and concise manner. Good communication expertise to manage and create an inclusive work
also includes listening well to understand the atmosphere with team members working both in
requirements and expectations of others. the office and remotely. The need for collaboration
Against a backdrop of constantly evolving technologies is at an all-time high, and if the challenges of having
and data management techniques, finance teams the team in varying locations and time zones are
need to be adaptable and open to learning new tools not addressed effectively by leaders, they can result
and approaches, to embracing automation, and in high turnover, burnout, and disengagement.
to seeking opportunities to streamline processes. This is of particular concern when considering
Cross-functional collaboration is important. Finance new entrants to the profession, who may not yet
professionals should be able to work effectively have had the opportunity to develop and hone their
with other internal stakeholders to share knowledge teamwork skills in the workplace environment.
and leverage the expertise of others. Collaborative Interviews and roundtables confirmed that to
efforts between different stakeholders such as be aligned and efficient in a remote-working
finance, business units, IT, data governance, and environment, finance professionals need even more
compliance/legal teams are particularly necessary enabling skills. Participants pointed specifically to
to define and enforce ownership of data effectively. leadership, online and in-person presentation and
Literacy was a common theme in interviews and communication, data storytelling, interpersonal and
roundtable discussions, particularly in the areas of data teamwork skills, self-directed learning, and digital
science, technology, and sustainability. With finance aptitudes as particularly relevant and sought after.
universally understood to be the language of business,
we can act as a conduit between these emerging
areas but only if we can speak their language.
The concept of storytelling is not new to the
management accountant, but the breadth of the
content that needs to be conveyed has expanded.
Now, we must construct and recount stories that go
beyond the numbers, bringing in myriad data sources
from across and beyond the organisations we work in.
The hybrid working environment, however that
may be structured, requires leaders to develop
new skills, particularly around leadership and staff
development. The impact on our traditional office-
based training ground must not be underestimated.

Skills and the ‘information to impact’ infinity loop The right-hand side, ‘advise’ to ‘assess’, represents
The left-hand side of the infinity loop, ‘assemble’ to HI fostering future wisdom leading to value
‘insight’, represents a hybrid of HI and AI, using past creation. Management accountants and finance
knowledge to drive value measurement. The focus for professionals will increasingly need to focus
management accountants and finance professionals on cognitive skills and working with others.
will continue to be on technology and cognitive skills:
• Business skills
• Technical skills
• People skills
• Digital skills
• Leadership skills
• Business skills
These will help create knowledge that contributes

to the efficiency of the objectives being pursued.
Figure 28: Skills and the ‘information to impact’ infinity loop
Technology and cognitive skills Cognitive and working with others skills
orm
ation Influence
Inf
As
se
m
bl
e
se
lyse
Apply
vi
Ad
Ana
As
se
ss
Technology and cognitive skills Cognitive and working with others skills

These will drive the future wisdom focus on • An attempted solution will change a wicked
effectiveness through evaluation, leading to problem, so it is difficult to learn from trial
long-term value creation. and error.
This is not an easy ask of the finance professional • There will always be untried solutions
as the task of ‘advising to influence’ requires a shift that might have been better.
in mindset to embrace and understand the irrational
nature of multiple stakeholders. This focus includes • All wicked problems are essentially unique;
developing emotional awareness, compassion, there are no classes of wicked problems to
and empathy when telling human stories and which similar solutions can be applied.
organisational impacts. Authors of the Trusted
• They have multiple, interdependent causes.
Advisor Fieldbook, Charles Green and Andrea Howe,
discussing the dynamics of influence, note that: • There are many explanations for any wicked
‘Effective advice-giving is part art, part science, problem, depending on the point of view.
and mostly nonrational. How we listen to others
• Solutions have consequences for which the
matters much more than what we say. This
decisionmakers have responsibility.’42
paradoxically has the result of making others
more likely to listen to us. The act of listening Systems thinking is an approach to wicked problem
itself creates relationship and trust’.41 solving that views issues as part of a wider, dynamic
Trust and the skills associated with gaining system. It is the process of understanding how an
stakeholders’ trust is an integral part of ‘advising issue is influenced individually and, also, as part of
to influence’. Being right by itself doesn’t mean a whole. It considers how factors interact with one
that advice given is automatically taken. For a another. For example, when contemplating nature
sustainable world, where greater collaboration factors, understanding the interconnectedness of
is needed, business and people skills are key. climate change and inequality, seeing the patterns
of change, and the feedback loops between the
Systems thinking
factors, makes for more informed decision-making.
The issues affecting organisations for a sustainable
world are imbued with complexity and often
connected. Authors Horst Rittel and Melvin
Webber use the term ‘wicked problems’. Wicked
problems have the following characteristics:
• ‘Difficult to formulate.
• Unclear when they are resolved.
• Not having true-or-false solutions, only good

or bad, according to the perspective taken.
• A solution will have long, drawn-out consequences

that need to be considered in evaluating it.

The author Isabel Rimanoczy, in her book The The WEF’s Future of Jobs Report 2023 categorises
Sustainability Mindset Principles, encourages us to systems thinking as a cognitive skill.44 In the evolving
adopt systems thinking, which she defines as follows: skills landscape to 2027, the WEF survey ranks
systems thinking 6th in the top 10 skills on the rise.
“ Unlike analysis, which fragments something The report notes, ‘Cognitive skills are reported to be
growing in importance most quickly, reflecting the
into its separate components, systems
increasing importance of complex problem-solving
thinking looks at the patterns, flows, in the workplace.’45 Top skills on the rise are:
processes, feedback loops, and systems
Table 2: WEF Future of Jobs Report 2023
nested in larger systems, and how they all
”
— Top 10 skills on the rise46
integrate into a whole.43
1. Creative thinking (cognitive)
Isabel Rimanoczy 2. Analytical thinking (cognitive)
The Sustainability Mindset Principles: A Guide to
3. Technological literacy
Developing a Mindset for a Better World, 2021
4. Curiosity and lifelong learning
As management accountants and finance 5. Resilience, flexibility, and agility
professionals, our default is to apply a financial 6. Systems thinking (cognitive)
7. AI and big data
capital lens and frame the story around the
8. Motivation and self-awareness
shareholder. Systems thinking asks us to first
9. Talent management
consider the issue at hand, understand the feedback 10. Service orientation and customer service
loop relationships and interconnectedness,
and move from analysis to synthesis, before
Interestingly, the WEF’s top skills on the rise are similar
selecting the appropriate tools for the job.
to the skills gaps ranked by our survey respondents.
In today’s increasingly uncertain world, crisis
management skills are set to be increasingly
important. Surviving a crisis, defined as ‘an
abnormal and unstable situation that threatens an
organisation’s strategic objectives, reputation or
viability’,47 requires preparedness to make decisions
under uncertain conditions, the ability to recognise
often-unnoticed ‘slow-burn’ problems before they
escalate, and adaptive resilience — the ability to not
just absorb a shock, but to emerge stronger from it.48

Top skills gaps
We asked our survey respondents to rank the biggest skill and
talent gaps for finance to address, and we found that we still
had the same top-three skills gaps we’d had five years ago.
Figure 29: Top skills gaps for finance
Business partner
62%
(Business acumen/behavioural/leadership)
Data and analytics

54%
(Data modelling/data analysis)
Business solution architect

42%
(Integrates functional and IT solutions)
Communication, influencing,
40%
critical thinking
Leadership in the
35%
hybrid environment
Environment, social, and

29%
governance (ESG) accounting
Business planning/
20%
budget analyst
Financial and
18%
regulatory accountant
accounting
D2: What are the biggest gaps for finance to address in terms of skills and talent? (n=2054)

We asked respondents to consider how much finance functions suggests a possible disconnect
accounting and finance professionals should focus on between what is being learned and what is being
specific competencies within each skills area over the practiced, in comparison with prior generations.
next five years. Given the move away from traditional As careers progress, there will be gaps in
hierarchical structures within the finance function, and business, people, and leadership skills that
the huge value-adding opportunity within the ‘bulge’, need to be developed through CPD.
it would seem that the natural progression of the
Finance business partnering, in addition to a strong
neophyte accountant should be towards the evolving
technical and digital background, requires additional
role of the finance business partner. We know that to
business (+10%), people (+5%), and leadership
achieve this status, newly qualified accountants need
(+7%) skills compared to entry-level roles.
to demonstrate technical, digital, business, people,
and leadership skills, all of which can be acquired These skills are generally perceived to be challenging
and assessed through the CGMA qualification. to teach and assess using traditional educational
methods; however, the CIMA CGMA Professional
The technical toolkit is particularly important at the
Qualification has a demonstrably proven educational
start of your career, when you need to develop the
approach for the development and assessment
strong technical roots supporting a sustainable
of these business-critical skills. All learning works
profession. Digital skills, however, which include
towards successful performance of these powerful
analysis, problem-solving, making recommendations,
skills in the business simulation case study exams
communication and decision-making, also need
that need to be passed at the end of each level.
to be developed. The rise of automation within
Figure 30: Competency percentage by job level
Entry level 39% 16% 14% 19% 22%
Manager 26% 20% 21% 18% 16%
Finance business partner 22% 26% 19% 16% 17%
Senior manager 22% 21% 21% 21% 15%
Controller 24% 21% 18% 19% 17%
CFO 14% 23% 21% 30% 13%
Technical Business People Leadership Digital

Figure 31: Skills and competency areas to focus on over the next five years
40%
35%
30%
25%
20%
15%
10%
5%
0%
Technical Business People Leadership Digital
Entry level Finance Business Partner

The CGMA Competency Framework (2019) identifies
five key knowledge areas for management accountants
— technical, business, people, leadership, and digital
skills.49 In the following section, we identify what we see
as the most crucial key knowledge areas for each shift.
• Time horizon management

Business skills enable finance professionals
to use their knowledge of the business and the
ecosystems in which it operates to transform
data into insights This allows businesses to
evaluate their strategic positioning, the alignment
of their business models to their strategies,
their performance, and opportunities for the
future. As time horizons expand, this future
focus will be of increasing importance. With
technology seen as the key driver of change in
finance functions, management accountants
will need to hone their digital skills to keep
pace with technological advances, particularly
around forecasting and predictive analytics.

• Capitals management • Business model management
Technical skills enable finance professionals to Influencing changes to the business model
collect, store, process, and analyse information requires leadership skills at all levels. The CGMA
to be shared with various stakeholders. These Competency Framework identifies three levels
skills include the preparation and dissemination of leadership: peer, functional, and strategic.
of external and internal reports in accordance Peer leadership involves leading peers both
with professional accounting standards. Business within and outside of the finance function on
skills enable finance professionals to use their issues that require an understanding of the
knowledge of the business and the ecosystems financial implications of events and issues in the
in which it operates to transform data into organisation’s internal and external operating
insights. This allows businesses to evaluate environments. Functional leadership refers to
their strategic positioning, the alignment of the leadership that ensures the finance function
their business models to their strategies, their delivers its objectives to the organisation. It
performance, and opportunities for the future. takes place from the intermediate level onward,
but mostly at the advanced level. Strategic
• Relationship management leadership is exercised at the strategic level.
People skills, including the ability to communicate Experts join with leaders in other functional
effectively, are a crucial element of relationship areas to define, formulate, and oversee the
management, which is used to influence implementation of the organisation’s strategy.
the decisions, actions, and behaviours of
decision-makers and others throughout the
organisation and its stakeholders. The ability
to collaborate and work with partners beyond
organisational boundaries is also a key skill.

Finance business partnering
“ The word partner has several definitions, business, and the creation of a business partnering
model is an effective way of achieving this.
including either of two persons dancing
together. The dancing metaphor Finance business partners can now be found in all
conjures up images of give and take, areas of the business and all sizes of organisation,
as evidenced by our survey (figure 35). The majority
synchronization, graceful movement, and
work in financial planning and analysis (FP&A),
being in tune and in step with one another…. internal reporting, performance, and strategy, but
We use the word partner as a verb – it is we now see increased numbers working in more
an act, not a person or thing.50
Charles Green and Andrea Howe, 2012
” financial areas such as tax, risk, and treasury. Some
have moved out of the finance function altogether,
taking up roles in IT, sustainability, or in other
Business partnering is seen as the top skills gap among nonfinancial areas of the business (figure 36).
our survey respondents (figure 29), reflecting a key
From a regional perspective (figure 34), we see
recurring theme of our research: finance business
that most of our respondents now consider
partnering adds value to organisations. What is less
themselves finance business partners, and that
clear, however, is what this value-add looks like.
finance business partnering models, once the
Traditionally, finance business partnering (FBP) domain of large corporates, now exist in all sizes
has been internally focused, working alongside of organisation. Interestingly, only half (51%) of
other functions and operational units. The rise of those who identified as a finance business partner
sustainability considerations has led finance business have a finance business partner job title. This
partners to go beyond organisational boundaries and indicates that finance business partnering has now
look externally at the impact on stakeholders and the become an internally driven mindset rather than
wider communities of the business ecosystem. an externally defined assignment (figure 32).
Our research has shown unequivocally that the However, when we look at the job levels of our
role of finance is evolving due to many factors: respondents (figure 33), we see a less positive
the impact of digitalisation, changing societal picture — 57% of experienced professionals and 37%
expectations, new regulations around sustainability of managers and senior managers do not consider
and ESG, and a workplace environment that is themselves to be finance business partners. This
unrecognisable from previous decades. could be for many reasons including operating
models, working preferences, leadership, or a lack
In our 2019 white paper, we reported that the finance of opportunity within the business. Although the
function was moving away from working in isolation, picture is more positive at the higher levels, we
with a narrow focus on analysis and reporting, to cannot assume that the finance business partnering
becoming integrated across the organisation to mindset will naturally evolve through the talent
create value. Future of Finance 2.0 research confirms pipeline. If sustainability demands skills that do not
that this movement is continuing. Today more currently exist, this presents a significant challenge
than ever, finance needs to work collaboratively for the management accounting profession.
with other departments across and beyond the

From a performance perspective, we found that The figures for mid performers in high-competition
those organisations performing well (at high and industries (41%) are lower than high performers
mid level have a high proportion of finance staff in high-competition industries (54%), but in mid-
who identify as business partners, including over competition industries, more mid performers have
two-thirds of high and mid performers in high ‘finance business partner’ in their job title than
competition (70%) and mid-competition (69%) high performers (54% vs 46%) indicating that the
industries. In mid-competition industries, the finance FBP model has been adopted, perhaps through a
business partner mindset was reported in over desire to improve organisational performance.
half of mid- and high-performing organisations.
Figure 32: Across all job levels, professionals consider themselves business partners regardless of their job title
77%
72% 74%
69%
62% 56%
50% 50%
48% 45% 48%
43%
40%
37%
Director C-suite Senior Senior Manager Experienced Trainee/intern/

(n=20) (n=212) director manager (n=479) professional apprentice(n=50)
(n=91) (n=475) (n=585)
Awareness Industry use
A7. Do you consider yourself to be a finance business partner? (n=2263)

A8. [If yes to A7], is this reflected in your job title? (n=1392)

Figure 33: The business partnering gap
585
475 479
329
270
91 201 249
212
67
144 151
163 140
35 50
98
102 70 20
11
C-suite Senior Director Senior manager Manager Experienced Trainee/
director professional apprentice
I consider myself to be a FBP FBP is in my job title Total number of respondents
A7: Do you consider yourself to be a finance business partner? (n=2093)

A8: (if ‘Yes’ to A7) Is this reflected in your job title? (n=2093)
Figure 34: Finance business partners by region

100%
80%
60%
40%
20%
0%
Africa Americas APAC Europe India North Asia Other UK&I
No/Not sure Yes

Figure 35: Finance business partners by size of finance function
70%
60%
50%
40%
30%
20%
10%
0%
1–9 10–49 50–249 250–999 1,000–9,999 10,000+
No/Not sure Yes n=2263
Figure 36: Finance business partners in all areas of the finance function
800
700
600
500
400
300
200
100
0
Sustainability/ IT Procurement Other Other Treasury Risk Tax Controllership External Data analysis/ Strategy Performance Internal FP&A
ESG non-finance finance reporting business reporting
intelligence
A7: Do you consider yourself to be a finance business partner? (n=1336) n=1336

Figure 37: Changes in the finance profession over next 3–5 years (percentage of respondents who agree)
D1: Please indicate your level of agreement with the following statements. Within the next 3-5 years ... (n=2263)
When we asked respondents for their views • Voiced more optimism about the future of the
on how the finance profession would change profession (84% of FBPs vs 15% of non-FBPs)
over the coming years (figure 37), we found
• Displayed confidence in their skills
that those who self-identified as finance
regarding future career opportunities
business partners (60% of all respondents):
(83% of FBPs vs 71% of non-FBPs)
• Were more likely to consider that competencies
From an organisational perspective, respondents
such as critical thinking, innovation,
who identified as finance business partners are over
communication, and relationship management
twice as likely to consider that the finance function
will be needed by finance professionals
itself is valued as a business partner by colleagues
elsewhere in the organisation (82% vs 40%).
• Recognised the need for finance professionals
to demonstrate and create value (84%
of FBPs vs 44% of non-FBPs)

Figure 38: The finance business partner identity
60% of all respondents self-identify as

finance business partners. They are:
More likely to consider that competencies such as critical thinking,
innovation, communication and relationship management are
increasingly important to finance professionals.
More likely to recognise the need for finance professionals to

demonstrate and create value. (84% of FBPs vs 44% of non FBPs)
Far more optimistic about the future of the profession.

(84% of FBPs vs 15% of non FBPs)
More confident of their skills with regard to future

career opportunities.
(83% of FBPs vs 71% of non FBPs)
Over twice as likely to consider that colleagues elsewhere in

the organisation view and value the finance function as a
business partner. (82% of FBPs vs 40% of non FBPs)
Those who do not identify as finance business partners are more

concerned about the impact of automation reducing the number of
finance roles available. (67% of FBPs vs 92% of non FBPs)
Although most of our respondents (81%) recognise analyse and interpret growing volumes of nonfinancial
that the routine data processing work of finance information to support decision-making and strategy.
professionals will be automated, those who do not However, finance business partners are less likely than
identify as finance business partners are more others to see finance taking the leading role in the
concerned about automation reducing the number organisation’s ESG agenda (62% vs 79%). This may
of finance roles available (92% vs 67% of FBPs). well be because of their closeness to the business,
enabling a realistic, objective view of what the
From a sustainability perspective, most respondents organisation is capable of achieving. Finance business
recognise that accountants have a vital role in partners will also have a strong recognition of the role
helping businesses achieve net-zero and expect and mandate of finance within their business and its
their organisations to rely on the finance function to potential to extend beyond traditional boundaries.

The role of the finance With a net-positive vision, the finance business
business partner in sustainability partner can orchestrate bringing people
A system value perspective helps break down and society together with organisations to
information silos within an organisation and allows solve shared sustainability challenges.
the finance business partner’s role to expand.
The sustainability focus embeds interdisciplinary Finance function as an external partner
conversations for business partners externally within Amid the global climate change crisis, running a
supply chains and with scientists, policymakers, and successful company is no longer about defeating
local communities. Traditionally a role internal within a the competition at all costs. Competitors are turning
business, finance business partnering is fast becoming into collaborators and partners to tackle the enormity
an outside-in approach to telling an organisation’s of achieving net-zero. These changes not only drive
stakeholders impact value stories.51 business sustainability but also dictate an ever-
pronounced shift in the focus of the finance function
Paul Polman, CEO of Unilever (2009–2019), and towards an outward-facing business partner role.
Andrew Winston, a consultant on corporate strategy,
introduced the vision of ‘net positive’ to provide Internal partnering
a set of principles for organisations to own: For a UK transport infrastructure body, this means
“
finance business partners are actively part of the
A business that improves well-being for conversations with engineers and people delivering
everyone it impacts and at all scales — projects to challenge the environmental sustainability
every product, every operation, every region impacts of any proposals. Many participants also
and country, and for every stakeholder, talked about their organisations’ activities in the
diversity, equity, and inclusion (DEI) space. The
including employees, suppliers, communities,
monitoring and publication of DEI metrics and
customers, and even future generations and statistics is a collaboration between the finance
the planet itself.52
”
Paul Polman and Andrew Winston
function and the human resources (HR) team. Finance
functions are providing a validation and assurance role
in the opening of DEI opportunities for organisations.
Net Positive: How Courageous Companies Thrive
by Giving More Than They Take, 2021

Applying the four shifts • Relationship management
Finance business partnering is no longer restricted
• Time horizon management by organisational boundaries. Developments in
To create sustainable value for the organisation, the sustainability arena increasingly demand that
finance business partners must adopt a finance build external relationships. However,
flexible approach to performance management the ability to negotiate and sustain strong
evaluation with regard to timing of measurement internal relationships remains significant and still
and reporting activities. Traditional monthly, impacts the ability to create and retain value.
quarterly, or annual cycles should not be
automatically accepted as being fit for purpose. • Business model management
Organisational success is made or broken by
• Capitals management business model agility. In this regard, finance
Long-accepted notions of value have been business partners have an important role
turned on their head in recent years, with to play as architects of value. By leveraging
intangible assets now considered responsible their relationships within the organisation
for 90% of all business value.53 The ‘bigger alongside their knowledge of the wider business
picture’ mindset taken by successful finance ecosystem, they can ‘join the dots’ to adapt and
business partners reflects the shift from easy- evolve successful, agile business models.
to-measure financial and manufactured capitals
to the more challenging intangibles of human,
intellectual, natural, and social and relationship
capital. As a result, new ways of measuring and
managing these intangibles must be found.

Conclusions
“ We face a fundamental challenge to get and

keep a truly shared prosperity, and prosperity
itself is already difficult because it requires us
to bear costs today for riches tomorrow.54
Ben Ansell
”
It is clear from our research that what societies,

investors, stakeholders, and organisations
value is in flux. This is due in part to the global
recognition that we are facing a three-fold crisis
of climate emergency, dramatic nature loss, and
rising social inequality across the globe.
The most immediate impact is the change in

the way we measure organisational health and
resilience. We are moving from a pure focus
on financial capital to a multi-capital approach
when telling an organisation’s value stories.

Colin Mayer, Professor and Emeritus Professor of Management accountants play a very significant role
Management Studies at the Blavatnik School of in identifying where long-term value resides within
Government and the Said Business School at the an organisation. They then cajole the resources and
University of Oxford, gave the keynote address at performance behind it to maximise value over time.
the 2023 AICPA & CIMA ESG and Sustainability New sustainability regulations and demands from
Conference. His topic, ‘Pioneering Purpose: stakeholders are changing how we account for what
Leveraging leadership strategy for a better future’, we account for. In turn, this encourages management
highlighted the need to recognise the outcomes accountants to think about the complex interplay of
and impacts companies have on the world: sustainability-related issues to their organisations’
business operations, products, and services — not
“ That means measuring those impacts in just in the short term, the traditional business cycle,
but increasingly over the medium and long term.
qualitative terms of social and environmental
factors. For example, in terms of CO2 Management accountants have a unique sight of
emissions, valuing them in terms of the the full value chain and those broader relationships
that are shaping the performance and prospects
monetization of those impacts. But in
of their organisations for a sustainable world. They
particular, deriving an accounting system, also understand the connections between financial
which reflects the true cost of the business, performance and sustainability-related financial
not just the input cost, but also the cost of performance, through multi-capital management.
rectifying and remedying, the detriments, the The degree of rigour, and the particular way
environmental damages, the pollution and the of thinking of the accounting profession, adds
health damage that a company is inflicting on credibility to sustainability data. This in part comes
”
its customers and on other parties. from the trust and confidence the profession has
built in financial data over the last 100 years.
Colin Mayer
AICPA & CIMA ESG and Sustainability Conference, 2023 Our Future of Finance 2.0 research comes at a
transformational point in time, where the rigour
The key takeaway: accounting must be the that the accounting profession can provide for a
accountability for the true cost of business. sustainable world is a game-changing prospect.

Re-defining our purpose It is critical that finance leaders understand that
A starting position, for organisations, finance sustainability is much more than just reporting;
functions, finance professionals, and the it has implications on an organisation’s business
management accounting profession, is at the model and how value is defined, created, delivered,
very least to revisit our relationships with the 9 and captured. Every business model’s starting point
planetary boundaries and 12 social foundations. is about how value is defined, and the definition
There are matters which the management accounting of value is determined by its various stakeholders.
community and profession can think about, Sustainability factors now fundamentally affect
discuss, and take action on in light of this white how stakeholders define value and, as a result, how
paper and the Future of Finance 2.0 research. an enterprise will make determinations to deploy
resources to create value. Decisions around resource
Organisations allocation, both short and long term, need to take
The challenge for organisations is to re-define their ESG factors into account. Sustainability factors have
business models for a sustainable world. This must significant implications for future enterprise value.
start by reflecting on an organisation’s authentic
purpose beyond just profit. Colin Mayer said: Finally, organisations must think about how to
build and retain the skills and talents of their
“
financial professional employees. This includes
Profits should be the product of solving not
building the capacity, competence, and credibility
producing problems and the purpose of of their finance functions, as well as managing the
business is to profit from producing solutions hybrid workplace so finance functions can tackle
not problems for others. In other words, the performance challenges for a sustainable world.
purpose of business is to produce profitable Finance functions
solutions for the problems of people and Finance functions have a unique end-to-end
view of an organisation, and our research
planet, not profiting from producing problems
reveals they have the mandate to take a more
either. Profits then come, as they should do, holistic view, balancing and safeguarding the
from producing solutions not problems.55
Colin Mayer
” interests of people, the planet, and prosperity.
As the ‘information to impact’ infinity loop
Capitalism and Crises, 2024 demonstrates, the finance function must leverage
enterprise data and analytics to generate essential
As models of capitalism and expectations of business insights. For the sustainable world, finance functions
change, organisations must think about their wider must make greater and better connections between
societal impacts and build sustainability into the DNA financial and nonfinancial information when analysing
of their purpose and strategic direction. data. This is especially true for sustainability-
related information that is financially material to
enterprise value preservation and creation.

Data being used to feed the infinity loop (data
traditionally owned by the finance function) is
now sourced from many external sources and
stakeholders. It requires greater expertise to decrease
the time spent on the curation and generation of
information across the six capitals and increase
the time spent on actionable insights, decision-
making, and execution. Finance functions must
also continue to leverage the latest technologies
and automation, including deploying AI and
generative AI in new ways across the infinity loop.
In a world of increasing disinformation and
misinformation, finance functions are the guardians
of professional ethics, organisational truth, and
authenticity. This requires the true cost of doing
business, across the full value chain, to be reflected in
management reporting and investment appraisals.
New regulations in sustainability reporting globally
(ISSB sustainability standards) and in several specific
jurisdictions (for example, the EU’s CSRD) will improve
corporate reporting and drive the change towards
sustainability information being reported with the
same level of rigour and accuracy as financial
information. This will inform the understanding of
the business operations of an enterprise and provide
key insights into the company’s performance.
Finally, as finance functions work with the rest of the
organisation and perform outreach across the full value
chain, they have an important role in the orchestration
and partnering of value. The global wicked problems
we all face can only be resolved through collaboration
and partnerships across governments, societies
and communities, industries, and organisations.
Working in a facilitator role, finance functions can
break down siloed activity, encourage diverse
strategic thinking, and foster sustainable innovation.

Accounting and finance professionals Every finance professional needs to develop their shade
Our research is not advocating that management of green and apply a knowledge and understanding
accountants become sustainability experts. First and of sustainability issues to the extent appropriate for
foremost, their value is in the management accounting their role, function, organisation, or client interaction.
skills providing data integrity, insights into drivers For a sustainable world, human skills that work
of organisational value, stewardship in strategic in tandem with technology to address the global
decision-making, and partnering to create value. The ESG wicked problems are required. They are not
important shift is including the sustainability lens when necessarily new skills, but the imperative and the
defining, enabling, shaping, and telling the stories of level of need for these skills are critical to achieving
how an organisation creates and preserves value. the four shifts. Human skills such as empathy,
For a sustainable world, the finance professional, communication, and collaboration are essential for
through a partnering mindset, becomes the stakeholder relationship management, upholding
bridge between multiple external stakeholders professional behaviour, promoting an ethical culture,
and an organisation. This is about being able to and for engaging in the business model. Skills such
hold conversations with sustainability experts, as systems thinking and problem-solving are crucial
value chain partners, and external stakeholders for intangible asset management and addressing the
on the potential ESG issues and then translate need to manage value creation over the longer term.
the insights into business language. The management accounting profession
As the sustainability agenda is one that is highly Our Future of Finance 2.0 research reveals that the
dynamic, the development and maintenance of management accounting profession is a broad church.
knowledge and skills for the finance professional This is illustrated by the sheer variety of role titles
need to be flexible and appropriate, as needs will located both within and beyond the finance function
differ greatly across different sectors and over time. reported via interviews, roundtables, and global
We have previously described this in terms of survey. The research demonstrates the versatility
different shades of green, where deep, specialised of the skills and competencies of a management
knowledge about sustainability is represented by accountant that opens doors within finance and
the darkest shade (required by a few experts). The across organisations, sectors, and industries.
shades get lighter as you expand outwards to the
lightest green, which represents a high-level, broad
understanding and awareness of sustainability
issues that will enable finance professionals to
support mainstream decision-making across
organisations, with clients and the wider economy.56

Author James Bridle, in his book, Ways of Being, noted:
“ Every discipline discovers its own ecology

in time, as it shifts inexorably from the
walled gardens of specialized research
towards a greater engagement with the
wider world. As we expand our field of
view, we come to realize that everything
impacts everything else — and we find
meaning in these interrelationships.57
James Bridle
”
Ways of Being, 2022
Re-defining finance for a sustainable world is a key

moment for the management accounting profession
to embrace a greater level of interdisciplinary
conversation to tackle the world’s wicked problems.
It is driven by the need to broaden the focus across
multiple capitals and multiple stakeholders, while
retaining our long-established professional values:
integrity, objectivity, professional competence and
due care, confidentiality, and professional behaviour.

Brian Klaas, associate professor in global sustainable value, the debate continues as to when and
politics at University College London, noted whether the chief financial officer (CFO) will become
that in general we ignore chaos theory and the the chief value officer (CVO) to successfully execute
impacts of tiny, accidental shifts on our reality. organisational strategies in the 21st century.59 The
shift in perspective from pure accounting to a wider,
“
systems-focused approach moves finance functions,
Science, especially the field of complex
management accountants, and the profession to hold
systems, knows this is how the world works. organisations truly and effectively accountable.
Social science mostly ignores it. Instead
Actions for a sustainable world
of facing reality head-on, we’ve invented a These are indeed defining times for the profession.
fake conception of our world that writes out Far from the clear-cut roles of the past, in which
all the wrinkles of life because they’re hard accountants existed only to protect revenue
and profit, we now can embrace and establish
to model. A misleading image is reflected
”
a new, more diverse purpose. But to succeed,
back at us from these models.58 accounting and finance professionals must build
Brian Klaas on our status as trusted advisers — to develop the
What if Every Little Thing You Do Changes History? 2024 competencies to lead the adoption of technology,
to integrate sustainability into enterprise strategy
and operations, and to communicate constructively
To reflect organisational reality in a complex
across and beyond organisational boundaries
ecosystem, a combination of interdisciplinary cross-
— all while continuing to deliver high-quality,
fertilisation and a systems thinking approach are
actionable internal and external reporting.
essential and will continue to continue to influence
the evolution of not only our remit as defined by those Adopting this focus positions us as architects of
we work with and for, but, crucially, the profession’s value creation for long-term sustainable prosperity,
ambit — our self-defined range, scope and influence. through embracing technology and storytelling to
bridge between the organisation and its stakeholders.
Management accountants are redefining the notions
Today, finance professionals at all career stages and
of value for a sustainable world, and this is expanding
levels have a unique, once-in-a-lifetime opportunity
the traditional management accounting functions such
to re-define finance for a sustainable world.
as costing and performance management. With the
increased emphasis on the creation and preservation of

Acknowledgements, authors,
methodology, and endnotes
Continuing the Future of Finance 2.0 journey
Our research so far describes one chapter of the future of finance story.
But what will the next chapter look like?
How you can be involved
Throughout 2024, we will continue to explore key topics and their impact on the profession.
Contact us to share your experiences, observations, and opinions.
Your responses will help us ensure the future relevance of the management accounting profession.
future.finance@aicpa-cima.com
Find out more about the Future of Finance 2.0 research project.
Acknowledgements
We would like to thank all the interviewees, roundtable participants, survey respondents, and
colleagues who gave up their time to share their experience, insights, and opinions on the future
of finance. We greatly appreciate your contributions and continued support.
Lead author
Rebecca McCaffry, FCMA, CGMA

Associate Technical Director
Research and Development
Contributing author
Dr Martin Farrar
Associate Technical Director
Research and Development
With special thanks to Edyta Bielak, Associate Content Strategist, Content Strategy & Design
and Jacky Pfennig, Senior Manager, Research and Development

Future of Finance 2.0 research team
Kate Berlova Senior Co-ordinator, Research and Development
Martin Farrar Associate Technical Director, Research and Development
Christian Gagiano Senior Manager, Curriculum Development
Nancy Marc-Thrasybule Associate Technical Director, Research and Development
Rebecca McCaffry Associate Technical Director, Research and Development
Jane O’Rourke Associate Director, Curriculum Development
Paul Parks Director, Research and Development
Jacky Pfennig Senior Manager, Research and Development
Timothy Rutt Senior Director, Curriculum Development
Ian Selby Vice President, Research and Development
Lori Sexton Associate Technical Director, Research and Development
Raluca Stroe Manager, Research and Development
Irena Teneva Associate Technical Director, Research and Development
Jocelyn Turner Associate Technical Director, Research and Development

Methodology
Understanding employer and business needs is always key to our research. This is why we continue
to work closely with businesses, regulators, policymakers, educators, members, and subject matter
experts to ensure a clear understanding of the roles finance professionals play in business, the
competencies expected of them, and how and why these are changing.
Reflecting consumer power, generational change, and the expanding business ecosystem, Future
of Finance 2.0 takes a broader, more inclusive approach, consulting the AICPA & CIMA member and
student communities, educators, the wider finance profession, and those they work with.
We followed an exploratory sequential research design, in which qualitative data is analysed to guide
the direction of a quantitative study. Over an 18-month period, we carried out a series of virtual, desk-
based, and face-to-face investigations, building up a comprehensive reference source through primary
and secondary research.
We began our research by building a bridge — carrying out an extensive literature review of academic,
business, and industry publications published between 2019 and 2022. Through this exercise, we were
able to understand and analyse global marketplace reactions to changes and developments in key
areas affecting the profession. This in turn informed our three-phase primary research.

Phase 1 — Interviews
To truly understand the issues facing accounting and finance professionals, practitioner interviews
are crucial. Where previously, interviews were conducted face-to-face in offices, COVID-19 travel
restrictions, coupled with a rise in home-based working, demanded a shift to online interviews. We
spoke to senior finance and nonfinance people from organisations of all sizes and across all industries
from the private, public, and not-for-profit sectors.
We asked the following questions at every interview:
• What is driving transformation in your organisation?
• What has ‘digital’ meant for your organisation?
• How are sustainability and ESG developments affecting your organisation?
• What skills are needed within your organisation going forward?
All interviews were recorded with the permission of participants, and transcripts were analysed using
qualitative data analysis software. This software assists in managing the large volume of qualitative
data and shortening the analysis timeframes, which provides enhanced data management and more
thorough interpretation.
96 individuals were interviewed between February and July 2022,

representing 92 organisations and 14 countries.

Phase 2 — Roundtables
The emerging themes from the interview phase gave us scenarios to validate and expand on during
roundtable discussions. Working with our colleagues and networks, we invited groups of finance
professionals, students, educators, and subject matter experts to join us in candid conversation. This
collegial approach encouraged participants to share their experiences and resulted in a rich discussion
of key topics. The relaxation of COVID-19 travel restrictions in late 2021 allowed us to carry out most of
our roundtable discussions in person.
Participants were shown a series of questions and asked to share

their experiences, observations, and opinions.
Discussion topics covered four areas:
• Finance activities
• Technology and data
• ESG agenda
• Workplace evolution
As with phase 1, roundtable discussions were recorded and transcripts

analysed using qualitative data analysis software.
92 roundtables took place between October 2022 and March 2023, with
554 participants representing over 445 organisations and 40 countries.

Phase 3 — Surveys
Based on our findings from the interviews and roundtables, we defined key issues,
themes, and topics to inform the content of global stakeholder surveys, hosted on our
online platform. Our fieldwork was conducted between May and July 2023.
The expanding role and scope of finance demands wider professional,

operational, and generational perspectives, so we broadened our
audience of finance professionals and finance leaders to include students,

newly qualified accountants, and C-suite business leaders.
Scope of survey and countries covered

Following the invasion of Ukraine in early 2022, AICPA & CIMA suspended all services in Russia and
Belarus, and as a result those living and working in those countries were not included in our survey.
The pivot to ‘virtual working’ impelled by the COVID-19 pandemic has had significant impacts for
researchers relying on survey instruments. When one’s entire day is spent in front of a screen, as is
reality for many, combined with the associated growth in email traffic and number of browser pop-ups,
it is unsurprising that ‘survey fatigue’ is quick to set in. According to Qualtrics60 this usually manifests in
two ways — respondents deciding not to begin the survey at all, or losing interest and either speeding
through or dropping out. This can have a significant effect on the number of usable responses.
Although the post-pandemic ‘survey fatigue’ phenomenon was very much in evidence among
the population, we received 2,252 responses from 68 countries to support our wider work.

Endnotes
1. Portions of this section originally appeared in Future of Finance 2.0 emerging themes:
Organisational sustainability and ESG published by AICPA & CIMA in November 2023.
2. Jeanette Winterson, 12 Bytes: How We Got Here, Where We

Might Go Next (Jonathan Cape: London, 2021), 34.
3. Raworth, Doughnut Economics, 45.
4. United Nations, Sustainable Development Goals, ‘The Sustainable

Development Agenda’ (Accessed 4 December 2023).
5. Azote for Stockholm Resilience Centre, Stockholm University, ‘Planetary boundaries’, 2023.
6. Kate Raworth, Doughnut Economics: Seven Ways to Think Like a 21st

Century Economist (Random House, London: 2017), 44.
7. Time Marshall, The Future of Geography: How Power and Politics in Space
Will Change Our World (Elliott & Thompson: London, 2023), 248.
8. Anu Bradford, Digital Empires: The Global Battle to Regulate

Technology (Oxford University Press: London, 2023), 216.
9. Graham Allison, ‘The Thucydides Trap: Are the U.S. and China
Headed for War?’, The Atlantic, 24 September 2015.
10. Anu Bradford, Digital Empires, 75, 165.
11. Anu Bradford, Digital Empires, 211.
12. World Economic Forum (WEF), The Global Risk Report 2024: 19th Edition, January 2024, 38.
13. WEF, The Global Risk Report 2023, 57.
14. BBC, Farming Today: Cost of Food and Climate Change (BBC Radio 4: 6 December 2023).
15. BBC, The Reith Lectures — Ben Ansell: Our Democratic Future: The
Future of Prosperity (BBC Radio 4, 20 December 2023).
16. Simon Winchester, Knowing What We Know: The Transmission of Knowledge —

From Ancient Wisdom to Modern Magic (William Collins: London, 2023), 370.

17. Martin Farrar, Re-inventing finance for a digital world: The
Future of Finance, CGMA, January 2019, 12.
18. Georgina Sturge, Bad Data: How Governments, Politicians and the Rest of Us
Get Misled by Numbers (The Bridge Street Press: London, 2022), 165.
19. Edelman, 2023 Edelman Trust Barometer: Navigating a Polarized World (Edelman, 2023), 4, 38.
20. Peter Pomerantsev, This Is Not Propaganda: Adventures in the War

Against Reality (Faber & Faber: London, 2019), 107.
21. IFRS, IFRS S2 Climate-related Disclosures, June 2023.
22. EFRAG, ESRS S2: Workers in the Value Chain (Exposure draft, November 2022).
23. IFRS, IFRS S1 General Requirements for Disclosure of Sustainability-

related Financial information, July 2023, 6.
24. Raluca Stroe & Martin Farrar, Future of Finance 2.0 Emerging Themes:
Organisational sustainability and ESG (AICPA & CIMA: November 2023), 4–5.
25. David Hackett, Ian Selby, Lori Sexton, Peter Spence, Ken Witt (Eds), GlobalManagement
Accounting Principles — Effective Management Accounting: Improving Decision
and Building Successful Organisations (AICPA & CIMA, 2023), 3.
26. Global Management Accounting Principles, 3.
27. Russell Ackoff, Differences That Make a Differences: An Annotated Glossary of

Distinctions Important in Management (Triarchy Press, Axminster: 2010), 55.
28. Ackoff, Differences That Make a Difference, 55.
29. D1. On a scale of 1 to 7 (where 1 is Strongly disagree and 7 = Strongly agree), please indicate
your level of agreement with the following statements. Within the next 3-5 years… (N = 2057)

31. Mustafa Suleyman, The Coming Wave: AI, Power and the 21st Century’s
Greatest Dilemma (The Bodley Head: London, 2023), 135.
32. Gartner, ‘What’s New in the 2023 Gartner Hype Cycle for
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33. Anu Bradford, Digital Empires.
35. Chris Miller, Chip War: The Fight for the World’s Most Critical
Technology (Simon & Schuster: London, 2022), 327.
37. Statista Research Department, ‘Share of functions performed in

shared services centers 2021, by service line’, 28 November 2023.
38. David Epstein, Range: How Generalists Triumph in a Specialized

World (MacMillan: London, 2019), 13.
39. IESBA, ‘Final Pronouncement: Revisions to the Code to Promote the Role and
Mindset Expected of Professional Accountants’, 5 October 2020.
40. This section originally appeared in The digital journey of finance (AICPA & CIMA, 2023).
41. Charles Green & Andrea Howe, The Trusted Fieldbook: A Comprehensive
Toolkit for Leading with Trust (John Willey & Sons: Hoboken, 2012), 15.
42. Horst Rittel and Melvin Webber, Dilemmas in a General Theory of Planning. In,
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a Mindset for a Better World (Routledge: London, 2021), 51.
44.WEF, Future of Jobs Report 2023: Insight Report, May 2023, 43.
45.WEF, Future of Jobs Report 2023, 39.

46. WEF, Future of Jobs Report 2023, 39.
47. 2014 British Standard on Crisis Management BS11200.
48. David Omand, How to Survive a Crisis: Lessons in Resilience

and Avoiding Disaster (Viking: London, 2023).
49. CGMA Competency Framework, AICPA & CIMA, 2019.
50. Green & Howe, The Trusted Fieldbook, 51. (2012)
51. Paul Polman & Andrew Winston, Net Positive: How Courageous Companies Thrive by
Giving More Than They Take (Harvard Business Review Press: Boston, 2021), 98.
52. Polman & Winston, Net Positive, 7.
53. Ocean Tomo, ‘Intangible Asset Market Value Study‘(2020).
55. Colin Mayer, Capitalism and Crises: How to Fix Them (Oxford University Press: Oxford, 2024), xiii.
56. Martin Farrar, Transformative Skills Pack: Sustainability

Mindset (AICPA & CIMA, November 2022), 26.
57. James Bridle, Ways of Being: Beyond Human Intelligence (Allen Lane: London, 2022), 13.
58. Brian Klaas, ‘The Big Idea: What if Every Little Thing You do
Changes History?’, The Guardian, 27 January 2024.
59. Mervyn King & Jill Atkins, The Chief Value Officer: Accountants
Can Save the Planet (Routledge: London, 2016).
60. Jack Davies, ‘Think you’re sending too many surveys? How to
avoid survey fatigue’, Qualtrics, 25 June 2019.

Notes

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Re-Defining Finance For A Sustainable World

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Future of Finance 2.

i | Future of Finance 2.0 Re-defining finance for a sustainable world

2 Creating a vision for the future Expected rise in automation

5 Introducing the Future of Finance 33 The changing shape of finance

15 Information to impact — Finance’s basic 50 Finance business partnering

Future of Finance 2.0 Re-defining finance for a sustainable world | 1

Management accountants mostly looked forwards, while financial

Are we prepared to contribute to its business model, its stakeholder relationships,

Our iterative research methodology uses literature reviews, interviews, roundtables,

But this is only the beginning of the story.

2 | Future of Finance 2.0 Re-defining finance for a sustainable world

Figure 1: The four big shifts required for a sustainable world

Future of Finance 2.0 Re-defining finance for a sustainable world | 3

4 | Future of Finance 2.0 Re-defining finance for a sustainable world

In January 2019, AICPA & CIMA published Reinventing Building bridges

Find our literature review and emerging theme papers

Literature The story

Future of Finance 2.0 Re-defining finance for a sustainable world | 5

6 | Future of Finance 2.0 Re-defining finance for a sustainable world

Sustainability and ESG (environmental, social, and

Future of Finance 2.0 Re-defining finance for a sustainable world | 7

8 | Future of Finance 2.0 Re-defining finance for a sustainable world

Table 1: Planetary boundaries and social foundations of sustainability

Planetary boundaries5 Social foundations6

Future of Finance 2.0 Re-defining finance for a sustainable world | 9

Figure 3: The drivers of change for a sustainable world

Institutional Social Market Technology

Key: ▲▼ change of intensity since 2019

10 | Future of Finance 2.0 Re-defining finance for a sustainable world

Future of Finance 2.0 Re-defining finance for a sustainable world | 11

12 | Future of Finance 2.0 Re-defining finance for a sustainable world

The interconnected issues that the sustainability

Future of Finance 2.0 Re-defining finance for a sustainable world | 13

14 | Future of Finance 2.0 Re-defining finance for a sustainable world

Figure 5: The ‘information to impact’ infinity loop

Future of Finance 2.0 Re-defining finance for a sustainable world | 15

Analysing for insights • The time spent on each activity is not

16 | Future of Finance 2.0 Re-defining finance for a sustainable world

 2018  Current*  Desired**

Future of Finance 2.0 Re-defining finance for a sustainable world | 17

These superpowers are enhanced by the fact that

C-suite (e.g., CEO, CFO, etc.) 30 23 25 23

Information (%) Insight (%) Influence (%) Impact (%)

18 | Future of Finance 2.0 Re-defining finance for a sustainable world

Future of Finance 2.0 Re-defining finance for a sustainable world | 19

Figure 9: Organisations’ engagement with ESG and/or sustainability initiatives

ESG is becoming more important to

My organisation’s ESG agenda will

My organisation’s ESG agenda will be shaped

s routinely assesses the impact

My organisation routinely reports externally on

ESG consideration and/or sustainability

ESG metrics are used internally to measure the impact

ESG metrics are used internally to measure the impact

D3. Please consider the following statements regarding your organisationʼs

20 | Future of Finance 2.0 Re-defining finance for a sustainable world

Future of Finance 2.0 Re-defining finance for a sustainable world | 21

There is some limited focus on ‘advising to

For those organisations at the system value

22 | Future of Finance 2.0 Re-defining finance for a sustainable world

Past knowledge Future wisdom

value measurement value creation

Future of Finance 2.0 Re-defining finance for a sustainable world | 23