With increased scrutiny from investors, customers, regulators, community members, and other interested groups, business leaders are factoring in the effects on people and the planet. This requires businesses to aggregate and track more data — expanding the roles of the chief financial officer (CFO) and their finance team to track nonfinancial matters like sustainability and human capital.
The expanded scope of metrics is an acknowledgment that organizational value is multifaceted, and that requires a team of individuals who understand the curation of value — leading them is the chief value officer (CVO).
The CVO applies their technical skills and financial expertise to supporting business strategy and performance monitoring through both financial and nonfinancial value markers. Thanks to this holistic view, the CVO can champion greater progress within the business.
More organizations are transitioning to this value-centric approach and will need purpose-driven individuals who can develop sound business strategies — and CAS Core Learning courses from AICPA® & CIMA® can set the finance function up for success.
Insights to expand your business’ value
A successful strategic vision employed by the CVO is built upon how key performance indicators, traditional financial measures, and an evolving business landscape are all intertwined — and these are critical concepts of client advisory services (CAS) courses. These courses are ideal for accountants working in CAS who are looking to upskill and propel their careers.
You’ll gain insights on developing and sustaining customer relationships, maintaining a balanced product portfolio, and integrating corporate social responsibility into the value chain — concepts you’ll need to approach value management at your organization. Key topics include strategy concepts and tools, ecosystem impact, supply chain management, corporate social responsibility, change management, and more.
But a strong strategic vision needs strong implementation practices to see it through. CAS courses detail change processes, cultural influences, and appropriate leadership styles to prepare you for successful execution.
Embracing nonfinancial markers as a CVO
Tracking cash flow, creating financial budgets and reports, and supporting organizational leaders through strategic financial decision-making, are all common responsibilities of a CFO.
The CFO and their team addressed risk, navigated market fluctuations, and measured their organization’s performance through a financial lens. But economic and geopolitical instability, digital advancements, and environmental matters have changed how an organization perceives and creates value. Nonfinancial matters, like sustainability and human capital, are now an important link in generating value — thus changing the role of the CFO.
A CVO augments these practices by monitoring other factors of value and can subsequently tell a more precise story of an organization’s health. These factors can include brand loyalty, intellectual capital and innovation, diversity and inclusion, sustainability, and business partnerships. Here, a multidisciplinary approach is a must: metrics and data from across departments will need to be gathered, monitored, analyzed, and placed in reports.
Problems solved faster with a holistic view
The holistic view of the CVO helps problems get solved faster.
When the CVO and their team deliver ESG targets, it could attract future investors, solidify brand loyalty and diversify supply chains minimizing disruptions. And if they focus on improving employee satisfaction and workplace culture, the CVO can boost productivity and innovation.
It doesn’t take being a team leader to employ a CVO mindset. Any professional looking to expand their career and knowledge can benefit from learning this integrated and future-forward approach to business enterprise.
Explore the benefits of CAS Core courses from AICPA & CIMA and enable your team to add more higher-level strategic value to your organization.