Finance teams out of their depth

Posted on 11 May 2016 by Admin   |   Filed under Finance, Business Comments (11)

By comparison, worldwide heads of finance are more likely to hold MBAs than their peers in Australia.

Corporate finance groups continue to be stretched beyond? their capabilities, strained with more strategic and functional duties, the report shows.

Simply over 80 percent of CFOs surveyed across Australia and New Zealand anticipate they will be asked to take on broader operational leadership functions, beyond finance, in the coming years, substantially greater than the international average of 64 percent.

This trend towards increased responsibilities is already evident: 58 percent of local CFOs surveyed invest more time specifying and establishing the general strategy for their company than they did 5 years back.

EY finance management consulting leader Donal Graham stated it was concerning that over half of Australian CFOs surveyed did not have the right mix of capabilities in their finance groups to carry out and support the organization’s strategic decision making.

EY recognized this ability gap in its research 6 years ago. Mr. Graham stated CFOs themselves were ultimately to blame for it.

"Australian corporations do not have particularly well-funded learning and advancement programs for finance," Mr. Graham said. "I'm discussing truly advanced skills-path planning for practitioners.

"Australian organizations are quite lacking compared to global organizations in that location," he stated.

The research study also reveals a huge shortage of information analytics and digital technology skills within finance teams.

"Finance departments have access to more data than before [Are not] especially well-equipped to analyze this information to inform tactical decisions," Mr. Graham stated.

He thought CFOs had to do a better task of offering the benefits of a profession in finance to professionals with information analytics abilities, specifically when they were competing with more appealing departments, such as marketing and customer services.