Today s Finance Priorities: Security, Data, Analytics …...protiviti.com Today’s Finance Priorities: Security, Data, Analytics and Internal Customers · 1 In our survey, respondents

CFOs and finance leaders are focused as much

on strategic matters as operational issues

TO DAY ’ S F I N A N C E P R I O R I T I E S : S E C U R I TY, DATA , A N A LYT I C S A N D I N T E R N A L C U STO M E R S

2019 Global Finance Trends Survey Report

E X E C U T I V E S U M M A R Y

The single factor that distinguishes top-performing finance organisations from the rest of the pack is “more.”

CFOs and finance executives are more determined than ever to exceed the increasing expectations of internal customers. They are more concerned with data security, privacy and governance. They are more focused on robotic process automation (RPA), artificial intelligence (AI), blockchain, predictive analytics, cloud-based applications and other advanced technologies. They want to make their financial planning and management reports more insightful to more stakeholders. And they are embracing and espousing a more strategic mindset and operating model.

This is good news. Doing more is necessary given how much more complex the business, economic and geopolitical landscapes have become over just the past year. As new threats (e.g., cybersecurity and data breaches) and opportunities (e.g., the emergence of new talent management models and powerful new technologies) appear, organisations count on their CFOs and finance teams to drive the behavioural changes needed to execute more, and increasingly strategic, finance priorities whilst improving their service to internal customers.

We take a look at these and other trends in breaking down the findings of our latest Global Finance Trends Survey.

protiviti.com Today’s Finance Priorities: Security, Data, Analytics and Internal Customers · 1

https://www.protiviti.com/

In our survey, respondents were asked to rate 40 different finance areas based on a 10-point scale, where “1” reflects the lowest priority and “10” reflects the highest priority for the finance function to improve its knowledge and capabilities over the next 12 months. Rankings are based on the percentage of respondents who scored these areas at “8” or higher.

Security and privacy of data 84%

Enhanced data analytics 79%

Process improvement: process and data analytics 75%

Changing demands and expectations of internal customers

73%

Embracing new technologies 73%

Internal controls 73%

Accounting and finance implications of IT 72%

Financial planning and analysis 71%

Strategic planning 71%

Profitability reporting and analysis 70%

TOP 10 OVERALL PRIORITIES FOR CFOs/VPs Finance

The CFO, controller and finance leader community have clearly earned a seat at the strategy table, and their interests

and concerns show a focused intent to add maximum value in that role. At the same time, they are mindful of the need

to cover important blocking and tackling, and contend with a changing financial reporting landscape, which requires

an emphasis on “and,” rather than “or,” as they plan and staff up for the coming years.

— Christopher Wright, Managing Director — Global Leader, Business Performance Improvement

Protiviti

As finance executives continue to evolve and enhance their relationships with key internal stakeholders, and align

themselves as true strategic partners to the business, it is more important than ever to capture feedback that allows

finance teams to have clear line of sight into internal customer needs and preferred engagement models.

— Bryan Comite, Managing Director, Business Performance Improvement

Protiviti

01 Data, privacy, analytics and customer service are top finance priorities — Finance organisations are becoming

more security-minded, more strategic, more data-driven, and more external and internal customer-focused.

02It’s time to embrace advanced technologies — More finance organisations are migrating from enterprise resource

planning (ERP) systems and related applications to a cloud model, implementing RPA and AI, improving how they

leverage and protect data, and investigating blockchain applications and virtual currencies.

K E Y F I N D I N G S

4 · Protiviti

03Deep, impactful and proactive insights delight internal customers — As is the case for every organisational function,

the finance organisation is now in the customer experience business. Financial planning/analysis, strategic planning, and

profitability reporting and analysis are highly ranked finance process priorities, in part, because these activities (services)

deliver the insights and analyses (products) that finance’s internal customers count on to make critical business decisions.

04 Skills and talent gaps drive workforce management innovations — CFOs and finance leaders increasingly are employing

new, more flexible labour models.

Our survey results are very encouraging in that they indicate finance organisations are looking for opportunities through

innovation and new technologies, and further, that these opportunities are backed by planned budget increases. Traditionally,

innovation is often seen as an opportunity or “nice to have,” with more risk-focused concerns such as controls operation and

“keeping the lights on” taking priority to deliver on regulatory-driven deadlines. Consider Sarbanes-Oxley, for example. This

has resulted in an environment where processes are often manual and inefficient. But with changing demands from internal

customers, CFOs are having to invest in emerging technologies and capabilities to meet these demands.

— Scott Bolderson, Managing Director, Business Performance Improvement

Protiviti



The results of our research offer compelling evidence that finance organisations are operating with a more strategic mindset whilst prioritising security, innovation and customer service.

We see that finance leaders want to optimise security and data management capabilities and improve how they meet the rapidly changing expectations of a growing body of internal customers. They realise that failing to make progress in protecting and leveraging data assets, whether on-premises or in the cloud, and addressing the needs of internal customers could result in a failure to meet the business’s strategic-level expectations.

It is understandable to find security and privacy of data atop the list of priorities for CFOs and finance leaders. They see what is going on in the market and read about it in the media. Continued reports of data breaches, involving the loss of millions of records, severe financial loss and significant operational impact, have

undoubtedly put finance teams on notice that the data they maintain must be secured and managed properly. Compounding these concerns is the reality that, in all likelihood, most finance leaders lack sufficient understanding of the technical aspects and requirements of appropriate security and privacy measures, resulting in a fear of the unknown and a substantial reliance on the effectiveness of others. Essentially, they may be unsure if they should feel comfortable about their current control state, whilst concurrently having regulatory responsibility to report a breach. Unlike other financial-related risks and controls, finance leaders rely on others — i.e., IT and security teams — to articulate and implement specific controls and protections for cyber risk. Of note, this dynamic drives many CFOs to be involved in the process of procuring cyber insurance for the organisation to help mitigate this risk from a financial perspective.

P R I O R I T I E S I N F I N A N C E : S E C U R I T Y , D A T A A N D I N T E R N A L C U S T O M E R S

6 · Protiviti

Amongst the other top-rated priorities, enhanced data analytics and related process improvements, along with meeting the changing demands of internal customers, all tie into providing the business with more, better and often real-time information. CFOs and finance leaders have more customers than ever before within the organisation. And those customers want more specific insights, metrics and analytics that provide insights into financial and operational performance, and thus drive strategic decision-making. From the board down to operational line managers and even third-party partners, there is greater demand for stronger and clearer financial metrics. The finance function is on notice to put into place processes and practices to deliver on these expectations. The finance function has also, though, earned a new or expanded seat at the table in strategic discussions, as this information is often requested or required in real-time.

These priorities, top areas of focus and related budgeting decisions also show that finance leaders and their groups are committed to supporting — and in some cases even leading — their organisation’s ongoing digital transformation and embrace of the innovation economy. As we can see in our results, there is growing interest in the use of, and investment in, advanced technologies such as data visualisation, RPA and blockchain. These and other leading-edge tools and activities are being implemented in tandem with the execution of the finance organisation’s core responsibilities, which include closing the books, filing periodic financial reports, and responding to regulatory and legislative changes (e.g., the ongoing ripple effects of the Tax Cuts and Jobs Act), resulting in a tough balancing act for finance leadership.

Key Action Items for CFOs and Finance Leaders

һ Ensure that the finance organisation understands and is involved in the enterprise’s overall security measures and data protection strategies whilst monitoring data security, privacy and governance related to all finance and accounting data and activities.

һ Consider mechanisms for monitoring and responding to changing internal customer expectations and demands regarding the financial analyses and insights the finance organisation produces to help their business partners make better, more forward-looking decisions.



Respondents were asked to rate 16 different finance areas based on a 10-point scale, where “1” reflects the lowest priority and “10” reflects the highest priority for the finance function to improve its knowledge and capabilities over the next 12 months.

Security and privacy of data 77%84%

Enhanced data analytics 70%79%

Process improvement: process and data analytics 68%75%

Changing demands and expectations of internal customers 61%

73%

Federal tax changes 58%70%

Cloud-based applications that support finance 55%70%

Mobile finance applications 53%70%

Challenges with regulations 62%69%

HIGH PRIORITIES (PERCENTAGES OF RATINGS WITH A SCORE OF 8—10)

CFO/VP Finance Non-CFO/VP Finance

Data visualisation 58%69%

The changing roles of human resources, leadership & development, and recruiting 52%

69%

Robotic process automation 48%68%

New lease accounting standard 53%66%

Blockchain/smart contracts 44%64%

Global mobility 51%60%

Outsourcing non-core activities 42%57%

Virtual currencies 36%52%

Respondents were asked to select the one finance priority deemed to be most important for their organisation to address over the next 12 months.



13%







MOST IMPORTANT FINANCE PRIORITIES FOR ORGANISATIONS TO ADDRESS OVER THE NEXT 12 MONTHS






3%





Respondents were asked to indicate if they are making adjustments (resources, budgets, etc.) in the finance organisation based on the potential impact of the following finance priorities over the next 12 months.


54%








PERCENTAGE OF COMPANIES THAT ARE MAKING ADJUSTMENTS IN THEIR FINANCE ORGANISATION BASED ON THE POTENTIAL IMPACT OF THE

FOLLOWING FINANCE PRIORITIES OVER THE NEXT 12 MONTHS



31%








Increase in 2019 Budget

Decrease in 2019 Budget

No Change

Changing demands and expectations of internal customers 64% 11% 25%

Security and privacy of data 62% 16% 22%

Data visualisation 58% 13% 29%

Cloud-based applications that support finance 58% 16% 26%

Enhanced data analytics 56% 12% 32%

Process improvement: process and data analytics 52% 18% 30%

Robotic process automation 52% 16% 32%

The changing roles of human resources, leadership & development, and recruiting 48% 18% 34%

Mobile finance applications 46% 16% 38%

Global mobility 45% 17% 38%

Challenges with regulations 44% 15% 41%

Blockchain/smart contracts 43% 17% 40%

New lease accounting standard 39% 18% 43%

Federal tax changes 38% 18% 44%

Outsourcing non-core activities 35% 25% 40%

Virtual currencies 34% 19% 47%

Respondents were asked to indicate if their 2019 budget increased or decreased based on the potential impact of the following finance priorities over the next 12 months (shown: CFO/VP Finance responses):

14 · Protiviti

There is an interesting take on finance priorities for the next 12 months amongst organisations that have their finance applications in the cloud. Cloud-based finance organisations appear to view the security and privacy of data, enhanced data analytics, changing demands and expectations of internal customers, and other priorities to be even more significant than finance organisations that have their finance applications on-premises.

Why is this the case? Do CFOs and finance leaders view cloud-based data and other activities to be more vulnerable than if these were on-premises? Probably not. Rather, those finance organisations that are cloud-based may be more sophisticated, with greater awareness of their risks and thus more likely to address them even more seriously. This is what we have termed a “digital paradox,”

where more digitally advanced organisations have a clearer understanding of the risk environment and therefore tend to view and report risk issues and vulnerabilities more frequently.1

It also is possible that there is some fallible thinking amongst finance organisations with their applications on-premises that they have more control of data and activities inside their walls. This, of course, is not the case, as evidenced by numerous security and data breaches that have occurred over the past several years in organisations where the information was maintained on-premises.

Still, for finance organisations with their applications in the cloud, it is vital for them to have clearly defined roles and responsibilities with regard to access, provider controls, key controls and more.2

S I D E B A R : D I F F E R E N T V I E W S F R O M T H E C L O U D

1 This digital paradox is discussed in a Protiviti-sponsored study, The Cybersecurity Imperative: Managing Cyber Risks in a World of Rapid Digital Change, available at www.protiviti.com/US-en/insights/cybersecurity-imperative.

2 For additional information on cloud security, view Protiviti’s on-demand recording of its webcast, “Enhancing Your Cloud Security Strategy,” available at www.protiviti.com/US-en/insights/enhancing-your-cloud-security-strategy-webcast.

http://www.protiviti.com/US-en/insights/cybersecurity-imperative

http://www.protiviti.com/US-en/insights/enhancing-your-cloud-security-strategy-webcast

Respondents were asked to identify where their current finance applications reside (cloud vs. on-premises). The chart below compares the views on top finance priorities amongst those organisations that have their finance applications in the cloud with those organisations that have their finance applications on-premises.

Finance Applications Reside in Cloud Others





79%





VIEWS ON FINANCE PRIORITIES - ORGANISATIONS WITH FINANCE APPLICATIONS IN THE CLOUD VS. OTHERS (PERCENTAGES OF RATINGS WITH

A SCORE OF 8—10)

The changing roles of human resources, leadership & development, and recruiting

74%45%




New lease accounting standard70%

45%

Global mobility65%

38%

Outsourcing non-core activities63%

31%

Virtual currencies58%

24%

When it comes to priorities for specific finance processes, CFOs and finance leaders are more concerned with internal controls along with strategic-level activities involving overall planning and analysis than they are with standard reporting and transactional activities.

The focus on internal controls is understandable, in that they tie back to most other priorities for CFOs and finance leaders. From digital transformation and cloud migration to customer service, the finance organisation needs a controls mindset to build out these capabilities effectively.

Whilst finance organisations always need to monitor and improve their accounting-focused processes and cycles — such as the period-end close, external financial reporting, procure-to-pay and order-to-cash — internal customers

are clamouring for more, sharper and more forward-looking financial insights to strengthen their strategic decision-making. This explains why strategic planning and profitability reporting and analysis capabilities are top finance process priorities — and why more CFOs and finance leaders point to competitive intelligencec as a rising priority.

Yet amongst all of the priorities related to finance processes and activities, internal controls top the list. As internal customers seek more data-driven analyses from finance organisations, CFOs and finance leaders are well-aware of the need to sustain an unwavering focus on strong internal controls. This attention is crucial to apply to data management activities given that the value of the finance organisation’s analyses hinges on the quality (and protection) of the data used to produce its forward-looking insights.

F O C U S I N G O N I N T E R N A L C O N T R O L S , S T R A T E G I C P L A N N I N G , F I N A N C I A L A N D P R O F I T A B I L I T Y P L A N N I N G A N D A N A L Y S I S

18 · Protiviti

Companies continue to look at ways to become leaner. As part of this, the cost of finance is constantly being assessed, as is how

to reinvest dollars saved into new technologies to enable the finance organisation and other parts of the business to become

leaner. By pursuing the right forms of transformation and change in areas such as strategic planning, financial planning and

profitability reporting, amongst others, finance organisations can become better positioned to deliver value for their companies.

— Ken Thomas, Managing Director, Business Performance Improvement

Protiviti


һ Recognise the ways in which financial planning and analysis, strategic planning, and profitability reporting and analysis can dramatically improve a wide range of decision-making and, by extension, the customer experience of the finance organisation’s internal stakeholders.

һ Take or keep a seat at the table where this information is used, in order to be more well-versed in the origins of its needs and in its uses.

һ Monitor and ensure that data security, governance and analysis remain sufficient to support the finance organisation’s insight-generation capabilities.

һ Sustain an intense focus on internal controls amid continual strategic, structural and procedural changes throughout the organisation.



Respondents were asked to rate 10 different finance processes and activities based on a 10-point scale, where “1” reflects the lowest priority and “10” reflects the highest priority for the finance function to improve its knowledge and capabilities over the next 12 months.

Internal controls 62%73%

Strategic planning 68%71%

Financial planning and analysis 68%71%

Profitability reporting and analysis 64%70%

Financial risk management 60%70%

HIGH PRIORITIES (PERCENTAGES OF RATINGS WITH A SCORE OF 8-10)


Period-end close 59%68%

External reporting (10-Q, 10-K, etc.) 55%68%

Competitive intelligence (competitor, customer, etc.) 52%

65%

Procure-to-pay 48%62%

Order-to-cash 43%59%

When CFOs, finance leaders and managers participated in our survey, many were confronting tight timelines for transitioning to a number of new accounting standards in the United States. Although the Financial Accounting Standards Board (FASB) subsequently proposed to delay (for private companies and certain other organisations) the effective dates for adhering to four new major accounting standards, our recent work with numerous affected organisations indicates that this relatively minor delay has not at all slowed progress on the extensive work required to comply with these new rules.3 This is important to keep in mind, given that our survey results show that few finance organisations have finished work related to two of the largest of these rules changes: the new lease accounting standard and the new accounting standard for Current Expected Credit Losses (CECL). Companies

that do not qualify for more time under the FASB’s proposed extension, which is expected to go into effect, are now staring down the barrel of transition deadlines.

Although the new lease accounting standard does not require the same extensive level of policy analysis as did the transition to the new revenue recognition standard that many companies conducted during the past two years, the new lease rules affect more companies and are especially challenging for organisations with large lease portfolios, which may result in much more work overall for many companies, especially those which are in industries relatively unscathed by the new revenue recognition standards.4 To address these challenges, four out of five finance organisations have used, or plan to use, an IT solution to support the new lease accounting standard.

T E C H N I C A L A R E A S : F U L L S T E A M A H E A D O N N E W A C C O U N T I N G S T A N D A R D S

3 “FASB Proposes Delays to Effective Dates for Four Major Accounting Standards,” Protiviti Flash Report, 26 July 2019: www.protiviti.com/US-en/insights/flash-report-fasb-proposes-delays.

22 · Protiviti

http://www.protiviti.com/US-en/insights/flash-report-fasb-proposes-delays

The new CECL rules transition is also complex. In short, it transitions loss reserve recognition to move from an “incurred loss” to an “expected loss” model.5 And, the CECL transition is likely to be limited to a more finite subset of affected companies (financial institutions and lessors, in particular); however, its adoption can be quite complex, resulting in large efforts for institutions required to adopt — perhaps even larger than any revenue recognition or lease accounting effort they may have previously undertaken.

Again, the FASB’s delay only applies to public business entities (PBEs), including SRCs, private companies, not-for-profit organisations and employee benefit plans. At best, the time extension allows for a breather given the need to develop a complete and thoughtful transition roadmap and then address all aspects of the new standards — as well as the prudence of transitioning to these new standards in advance of their effective dates.


һ Understand that the decision to delay effective dates for transitioning to new accounting standards signals 1) the FASB is closely monitoring the progress, or lack thereof, companies are making; and 2) the FASB is unlikely to issue additional deferrals.

һ Finance organisations that have yet to finalise the transition to new lease accounting and CECL standards should continue their efforts with minimal delay to avoid finding themselves short of time or resources next year.

4 “Here We Go Again — FASB Transitioning to the New Leases Standard,” Protiviti Flash Report, 1 March 2016: www.protiviti.com/US-en/insights/transitioning-new-leases-standard.

5 www.protiviti.com/CECL.


http://www.protiviti.com/US-en/insights/transitioning-new-leases-standard

http://www.protiviti.com/CECL


Respondents were asked to rate 6 different finance-related technical areas based on a 10-point scale, where “1” reflects the lowest priority and “10” reflects the highest priority for the finance function to improve its knowledge and capabilities over the next 12 months.

Accounting and finance implications of IT 62%72%

Readiness for adopting new and impending accounting pronouncements 56%

67%

SEC reporting requirements 52%64%

Domestic and international tax planning/forecasting 52%

63%

Stock-based compensation 49%62%

Sarbanes-Oxley reporting and disclosures 50%61%



Where are you in addressing the Lease Accounting standard?

Not started 9%4%

Just beginning 31%21%

In the middle 42%58%

Finished 18%17%

CURRENT STAGE OF ADDRESSING THE LEASE ACCOUNTING STANDARD


Yes

Are you currently using, or do you have plans to use, an IT solution to implement the new lease accounting standard in your organisation? (CFO/VP Finance responses)

KEY FACTS

83%

Where are you in addressing the Current Expected Credit Loss standard (CECL)?

Not started 9%4%

Just beginning 26%19%

In the middle 35%47%

Finished 12%22%

Not applicable 18%8%

CURRENT STAGE OF ADDRESSING THE CURRENT EXPECTED CREDIT LOSS STANDARD (CECL)


Companies fortunate enough to be granted a deferral for the new CECL and lease accounting requirements can take a

quick break, knowing they most likely have additional time to prepare for these complex accounting standards. Finance

executives need to remember, though, that the FASB is only granting a temporary reprieve; that is, do not expect any

further deferrals. CFOs and their teams should remain focused in their preparation to comply with these new standards.

— Charles Soranno, Managing Director, Financial Reporting Remediation & Compliance

Protiviti

Finance organisations are contending with a growing talent and skills challenge at a time when existing staffing models are being disrupted by numerous economic drivers, technological advancements and shifting generational expectations.

The pace of change for organisations is continuing to accelerate, which has a significant impact on finance. In a do-it-yourself model, this places tremendous strain on internal staff and demands a hero mentality (i.e., heroic efforts are needed on a constant basis).

Our results suggest that more CFOs and finance executives are reassessing the traditional finance labour model and associated

skillsets. Significantly more finance organisations leverage relationships with managed services providers (those that deliver a blend of full-time staff, contract professionals and third-party experts) compared to traditional outsourcing arrangements. CFOs and finance leaders are deploying a range of non-full-time equivalent resourcing approaches to staff larger portions of their tax, accounting operations, risk management, strategic finance (M&A) and treasury functions.

Finance organisations must continue to explore innovative ways to harness the power of an expanding talent ecosystem, as they will be well-positioned to access increasingly valuable expertise whilst thriving as strategic business partners.

R E S O U R C I N G T H E F I N A N C E F U N C T I O N : R E T H I N K I N G T H E T R A D I T I O N A L L A B O U R M O D E L




һ Assess the extent to which economic forces, technological advancements and changing generational expectations of the employer-employee contract are affecting the existing finance labour model.

һ Assess the effectiveness and efficiency of current resourcing approaches in terms of their success in supporting and increasing the finance group’s agility.

һ Evaluate which combination of resourcing approaches — training and retooling a highly skilled core of full-time staff, temporary staff sourced through long-term relationships with staffing and consulting firms that know the company, the use of contractors, etc. — are best suited to meet the finance function’s quickly changing and evolving talent needs.

һ Determine how to hire, develop and manage each of these labour pools in an optimal manner that leverages advanced supporting technology.

28 · Protiviti

Full-time employees

Staff augmentation (contractors,

freelancers, etc.)

Managed services provider (blend of full-time staff,

contract professionals and third-party experts)

Fully outsourced

Accounting Operations (AR, AP, GL, etc.) 81% 23% 17% 4%

Financial Reporting 68% 29% 19% 3%

Financial Planning & Analysis 70% 24% 24% 6%

Tax 54% 22% 31% 14%

Risk Management 61% 23% 27% 8%

Strategic Finance (M&A) 64% 25% 20% 7%

Treasury 67% 23% 19% 4%

Finance PMO 68% 25% 14% 7%

Respondents were asked to indicate how each of the following areas of the overall finance process is resourced/staffed in the organisation (shown: CFO/VP Finance responses):*

* Multiple responses permitted.



Increase in Workforce

Decrease in Workforce

No Change

Changing demands and expectations of internal customers 61% 12% 27%

Security and privacy of data 51% 15% 34%

Cloud-based applications that support finance 49% 14% 37%

Data visualisation 48% 14% 38%

Enhanced data analytics 45% 19% 36%

Process improvement: process and data analytics 44% 19% 37%

Global mobility 41% 18% 41%

Mobile finance applications 41% 17% 42%

The changing roles of human resources, leadership & development, and recruiting 40% 18% 42%

Robotic process automation 39% 28% 33%

Challenges with regulations 38% 14% 48%

Blockchain/smart contracts 37% 17% 46%

New lease accounting standard 37% 16% 47%

Federal tax changes 31% 22% 47%

Outsourcing non-core activities 30% 23% 47%

Virtual currencies 30% 19% 51%

Respondents were asked to indicate if they are making changes in their workforce based on the potential impact of the following finance priorities over the next 12 months (shown: CFO/VP Finance responses):

30 · Protiviti

Competition for talent, especially resources with advanced technology skills, has never been fiercer. In recent months, several of the world’s largest companies have committed hundreds of millions of dollars to long-term programmes designed to reskill their existing workforces with the technology capabilities needed to thrive in an increasingly digital business environment. This pervasive need to reskill, or upskill, is placing significant strain on existing talent management capabilities, especially on traditional recruiting and retention approaches that fail to help finance groups pivot, let alone get ahead of the curve, in response to or in advance of changing strategic objectives in a highly effective and agile manner.

The staff skills priorities that CFOs and finance leaders identify are especially notable in that they reflect a need to access certain abilities, such as those related to leadership, change management and embracing advanced technology, and a desire to devise new approaches to recruiting, retaining, retooling and resourcing those skills. CFOs and finance leaders place a high priority on working effectively with external partners to develop new methods of accessing and instilling new skills.

S T A F F S K I L L S : E M B R A C I N G A D V A N C E D T E C H N O L O G Y




һ Assess the type of leadership capabilities needed to drive the behavioural changes that will foster an innovative mindset — with respect to an embrace of new technologies, a stronger focus on internal customers and new staffing models — throughout the finance function.

һ Work closely with external partners to develop new ways to address short-term and long-term skills needs.

һ Consider a comprehensive finance reskilling strategy aligned with the organisation’s talent and change management strategy.

The escalating challenges finance organisations are facing are driving CFOs to rethink the traditional finance labour model,

both skills and scale, at a time when existing staffing models are being disrupted by regulatory and economic drivers,

technological advancements and shifting generational expectations. Those who harness the power of an expanding talent

ecosystem will be well-positioned to access increasingly valuable expertise whilst thriving as strategic business partners.

— Jay Thompson, Managing Director, Managed Business Services

Protiviti

32 · Protiviti

Respondents were asked to rate 8 different staff-related skills and topics based on a 10-point scale, where “1” reflects the lowest priority and “10” reflects the highest priority for the finance function to improve its knowledge and capabilities over the next 12 months.

Embracing new technologies 58%73%

Recruiting and retaining talent 59%70%

Leadership (within your organisation) 64%69%

Working effectively with outside parties 59%65%

Six Sigma/continuous improvement 50%65%

Coaching/mentoring 52%62%

Soft skills 50%62%

Change management 52%61%



More than 800 (n=817) finance leaders worldwide, including CFOs, vice presidents of finance, and a broad range of finance directors and managers, participated in Protiviti’s 2019 Finance Trends Survey, which was conducted online during the second quarter of 2019. Respondents represent a broad cross-section of public and privately held companies. Survey participants also were asked to provide demographic information about the nature, size and location of their businesses, and their titles or positions. We are very appreciative of and grateful for the time invested in our study by these individuals.

POSITION

Chief Financial Officer 25%

Financial Reporting Director/Manager 19%

Finance Process Manager 16%

Vice President, Finance 14%

Finance Transformation Director 8%

Finance Transformation Manager 4%

Budgeting/Planning Director/Manager 4%

Corporate Controller 4%

Assistant/Divisional Controller 3%

Corporate Management 1%

SEC Reporting Manager 1%

Audit Committee Member 1%

M E T H O D O L O G Y A N D D E M O G R A P H I C S

INDUSTRY

Financial Services — Banking 24%

Financial Services — Asset Management 15%

Manufacturing (excluding Technology) 11%

Retail 8%

Technology (Software/High-Tech/Electronics) 5%

Construction 3%

Financial Services — Broker-Dealer 3%

Services 3%

CPA/Public Accounting/Consulting Firm 3%

Healthcare Provider 3%

Real Estate 2%

Transportation and Logistics 2%

Consumer Packaged Goods 2%

Financial Services — Other 2%

Insurance (except Healthcare Payer) 2%

Automotive 2%

Telecommunications 2%

Biotechnology/Life Sciences/Pharmaceuticals 1%

Distribution 1%

Power and Utilities 1%

Oil and Gas 1%

Chemicals 1%

Private Equity 1%

Hospitality 1%

Media 1%

SIZE OF ORGANISATION (WITHIN FINANCIAL SERVICES) — BY ASSETS UNDER MANAGEMENT

$250 billion or greater 11%

$50 billion — $249.99 billion 13%





Less than $1 billion 0%

SIZE OF ORGANISATION (OUTSIDE OF FINANCIAL SERVICES) — BY GROSS ANNUAL REVENUE IN U.S. DOLLARS

$20 billion or greater 9%




$500 million — $999.99 million 20%

$100 million — $499.99 million 22%

Less than $100 million 0%

TYPE OF ORGANISATION

Privately held 60%

Publicly held 40%

ORGANISATION HEADQUARTERS

United States 53%

Australia 17%

India 12%

Italy 7%

Hong Kong 6%

United Kingdom 5%

ABOUT PROTIVITI

Protiviti is a global consulting firm that delivers deep expertise, objective insights, a tailored approach and unparalleled collaboration to help leaders confidently face the future. Protiviti and our independently owned Member Firms provide consulting solutions in finance, technology, operations, data, analytics, governance, risk and internal audit to our clients through our network of more than 75 offices in over 20 countries.

We have served more than 60 percent of Fortune 1000® and 35 percent of Fortune Global 500® companies. We also work with smaller, growing companies, including those looking to go public, as well as with government agencies. Protiviti is a wholly owned subsidiary of Robert Half (NYSE: RHI). Founded in 1948, Robert Half is a member of the S&P 500 index.

HOW WE HELP CFOs AND FINANCE ORGANISATIONS

The role of finance executives is dynamic, constantly evolving to keep pace with changing demands of internal and external customers and technology. Protiviti helps finance leaders address their current challenges and explore opportunities for continuous growth, delivering innovative solutions and supporting finance as a forward-thinking, strategic partner to the business. At the core of our methodology is aligning people, process and technology to drive efficiency and productivity, enabling change and creating value for the entire organisation.

GLOBAL LEADERSHIP TEAM

Christopher Wright Managing Director Global Business Performance Improvement Leader +1.212.603.5434 [email protected]

Scott Bolderson Managing Director United Kingdom +44.207.024.7536 [email protected]

Anneke Wieling Managing Director The Netherlands +31.6.1505.7224 [email protected]

Marco Perrone Managing Director Italy +39.011.7771.811 [email protected]

Matthias Heintke Managing Director Germany +49.69.963.768.127 [email protected]

Nigel Robinson Managing Director Singapore +65.6220.6066 [email protected]

Craig Bretton Managing Director Australia +61.261.133.928 [email protected]

Hiroyuki Sadotomo Director Japan +81.3.5219.6600 [email protected]

Jamie Leith Director Hong Kong +852.2238.0499 [email protected]

David Cheung Managing Director China (Mainland) +86.215153.6900 [email protected]


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PROTIVITI GLOBAL MARKET LEADERS

ARGENTINA

Pablo Giovannelli+54.11.5278.6345pablo.giovannelli@protivitiglobal.com.pe

AUSTRALIA

Garran Duncan +61.3.9948.1200 [email protected]

BAHRAIN

Arvind Benani +973.1.710.0050 [email protected]

BRAZIL

Raul Silva +55.11.2198.4200 [email protected]

CANADA

David Dawson +1.647.288.4886 [email protected]

CHILE

Soraya Boada +56.22.573.8580 [email protected]

CHINA (HONG KONG)

Albert Lee +852.2238.0499 [email protected]

CHINA (MAINLAND)

David [email protected]

EGYPT

Ashraf Fahmy +202.25864560 [email protected]

FRANCE

Bernard Drui +33.1.42.96.22.77 [email protected]

GERMANY

Michael Klinger +49.69.963.768.155 [email protected]

INDIA

Sanjeev Agarwal +91.124.661.8600 [email protected]

ITALY

Alberto Carnevale +39.02.6550.6301 [email protected]

JAPAN

Yasumi Taniguchi +81.3.5219.6600 [email protected]

KUWAIT

Sanjeev Agarwal +965.2242.6444 [email protected]

MEXICO

Roberto Abad +52.55.5342.9100 [email protected]

NETHERLANDS

Anneke Wieling +31.20.346.0400 [email protected]

OMAN

Shatha Al Maskiry +968 24699402 [email protected]

PERU

Marco Villacorta +51.1.208.1070 [email protected]

QATAR

Andrew North +974.4421.5300 [email protected]

SAUDI ARABIA

Saad Al Sabti +966.11.2930021 [email protected]

SINGAPORE

Nigel Robinson +65.9169.2688 [email protected]

UNITED ARAB EMIRATES

Arindam De +9714.438.0660 [email protected]

UNITED KINGDOM

Peter Richardson +44.20.7930.8808 [email protected]

UNITED STATES

Christopher Wright +1.212.603.5434 [email protected]

VENEZUELA

Gamal Perez +58.212.418.46.46 [email protected]

38 · Protiviti

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