Building a CFO Competency Framework to Support Strategic Learning and Development in a Major Retail Chain
The Brief
A major Australian supermarket and retail chain sought to build a Finance Academy to support the learning pathways of leaders and team members across its large CFO Function.
Before developing the curriculum and structure of the Academy, the organisation engaged Future Leadership to define the technical skills or competencies required for the CFO Function. These competencies would underpin the curriculum and serve as the foundation for career planning, talent management, and talent acquisition. The framework aimed to capture key emerging skills in Finance, Strategy, Business Development, and Investor Relations.
Improved Employee Engagement
Companies that undergo successful organisational transformation experience a 30% increase in employee engagement. Engaged employees are more productive, less likely to leave, and contribute to a positive workplace culture.
Reference: McKinsey & Company, "The People Power of Transformations" (2018)
Financial
Organisations that successfully implement transformation initiatives see an average 25% improvement in their financial performance, including revenue growth and profitability.
Reference: BCG, "The Role of Leadership in Transformation" (2020)
Return on Investment (ROI)
Transformation projects with effective change management practices are six times more likely to meet their objectives and achieve a 143% return on investment (ROI).
Reference: Prosci, "Best Practices in Change Management" (2019)
Reduced Time to Market
Organisations that undergo successful digital transformation reduce their time to market by 20-50%, allowing them to bring products and services to customers faster and stay competitive in rapidly changing markets.
Reference: Deloitte, "Digital Transformation: A Roadmap for Billion-Dollar Organizations" (2021)
The Process
Future Leadership’s scope of work included the following steps:
- Defining Framework Principles and Outputs: Establishing the guiding principles and desired outcomes for the competency framework.
- Stakeholder Engagement Plan: Developing a plan to engage with key stakeholders throughout the project.
- Reviewing Existing Material: Conducting a review of existing CPA frameworks, internal documents, position descriptions, and qualitative research on learning and skills gaps within the CFO Function.
- Drafting and Stress Testing: Creating an initial framework (straw man structure) and testing it through interviews and focus groups with key stakeholders.
- Collaboration with Corporate HR: Working in parallel with Corporate HR to ensure alignment with the Job Families/Segmentation process, particularly in building Success Profiles that included the identified technical skills and competencies.
The framework was rigorously stress-tested in workshops and integrated into the Success Profiles across various Job Families, ensuring no duplication with existing content.
Key themes for consideration included succession planning and talent retention, contracts and revenue outlook, current corporate services spend, opportunities for growth, and the development of new roles in the proposed structures. Future Leadership presented multiple organisational structures with features, strengths, and risks across maintenance, consolidation, and growth scenarios.
Future Leadership's Average Participant Indices Across Coaching & Transition Clients
32% Increase in Self Awareness
Individuals’ awareness of motives, values, strengths and development needs
21% Increase in Motivation
Individuals’ motivation to apply learning, insight and further develop
27% Increase in Confidence
Individuals’ confidence in their abilities and impact as a leader
30% Increase in Role Clarity
Individuals’ clarity around success factors associated with their role
The Outcome
The work was incredibly well-received and provided powerful input to ensure that the Finance Academy delivered modules that were relevant, cutting-edge, future-focused, and aligned with the business strategy for the CFO Function.
The framework supported the organisation in teaching finance skills for the future and aligning them directly with the CFO Function’s strategic objectives.
Just wanted to write a quick note to say thank you, and the team, for your highly valued and professional contribution to the project. Thanks, as always, for being so easy to work with and producing a really high-quality result for the team. Much appreciated.
"Delightful to work with you! Thanks for all your hard work & going with the flow!"
