Although there is clear recognition that the role of the financial controller is in flux, and despite the adoption of data insights and artificial intelligence, the finance professionals need more support to fully harness the power of emerging technologies.
This is the findings of a recent study by EY, which polled more than 1,200 financial controllers across 28 countries and territories, revealing that only 28% of respondents ranked searching for opportunities to use technology as one of the top three ways of creating value.
Meanwhile 69% cited driving company growth, suggesting that many are overlooking the capacity of technology to fuel growth.
Even though many financial controllers see value creation as the future focus of their role, EY finds that for now, a large proportion remain focused mainly on value optimisation, such as cost-saving strategies, rather than on seeking out opportunities for growth.
However, the survey identified a sub-set of financial controllers (20%), known as “confident controllers,” who are already driving value creation through technology. More than two-fifths of this group (42%) lead on innovation, compared to 27% of other controllers surveyed.
Emerging talent gap
The EY survey also points to a potential talent shortage at the top of the profession over the coming years, mirroring an industry-wide lack of qualified professionals, with just 38% of confident controllers saying they want to become chief financial officer (CFOs).
Interestingly, those with ambitions for the CFO role are often less convinced about the importance of some business areas than controllers who want to remain in the role – for example, 71% of controllers who want to stay in their positions say innovation matters, compared to just 41% of those who aspire to be CFOs.
The future of the financial controller
The research highlights that value creation is critical to the future of controllership, as 88% of controllers surveyed expect their role to change significantly within the next five years, with 24% of respondents anticipating a very different and unknown skill set compared with today.
When asked how the role of the financial controller would specifically evolve, the most common answer was that it would shift from being largely focused on value protection and optimization to also embracing value creation.
Controllers can realise their potential as value creators, while fulfilling their traditional responsibilities as value protectors and optimizers. EY identifies three important ways:
- Embrace three transformational opportunities: data, artificial intelligence (AI) and sustainability. As stewards of their organizations’ data, controllers are in an influential and strategic position to unleash the potential of data.
- Get future ready. Although controllers may see themselves as value creators, they do not prioritize innovation. Instead, they tend to look at value creation through the lens of driving growth.
- Become a confident controller. These controllers are playing a formative role in driving finance transformation, accelerating enterprise growth and creating long-term value.
