From Scorekeeper to Futurist:
The Journey to Finance 5.0
The framework identifies the five dimensions of finance effectiveness, starting at Scorekeeper and culminating at Finance Futurist.
In this future state, finance delivers predictive insights and easy access to data and reporting in a well-controlled environment where risks are managed, and opportunities identified and seized. We are calling this phenomenon “Finance 5.0.”
Are you ready to see what the FAME Assessment can do for your performance as a CFO? If so, we've put together a "lite" version of the greater FAME Assessment to give you an idea of what areas you may need to address in order to move from scorekeeper to business partner to value creator and, ultimately, to finance futurist.
The Finance Assessment Model for Effectiveness (FAME) classifies the finance capability dimensions into five categories.
These dimensions, which mirror those in the Chartered Global Management Accounting (CGMA) Competency Framework, are derived from methodology developed by the AICPA & CIMA based on research conducted with over 5,000 finance professionals from 130 organizations across 20 key countries. They are also underpinned by the need for objectivity, integrity, and ethical behavior, as finance serves as trusted business finance strategists and futurists for their organizations.
Using assessment scores across the five FAME dimensions, FFLAG classified finance organizations into five levels, developed through a series of workshops with CFOs and finance leaders. FFLAG’s work gives users a robust framework to assess the finance function’s current state of effectiveness and chart progress toward its planned future state.
This dimension includes the capability to fulfill statutory and regulatory obligations and compliance with the required accounting standards, such as Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
Representing how effectively the finance function participates in strategic planning and execution, the business dimension assesses levels of participation in business operations, project management, and stakeholder management to drive change.
This dimension highlights the ability to harness and understand the technology ecosystem and leverage it to drive efficiency in finance and business processes. It also deals with the deployment of the technology stack and the use of data to drive data analytics and support decision-making.
Strong execution relies on effective communication, collaboration, and cross-functional partnerships. This dimension looks at the finance function’s ability to establish relationships, influence internal and external stakeholders, and develop cross-functional interactions to meet organizational objectives.
The finance function’s capability to build, take accountability for, and drive a culture of performance and innovation across the business is represented by the leadership dimension. It also involves maintaining talent and benchmarking strengths with the appropriate competencies developed through formal and informal learning, coaching, and mentoring programs.
At this level, the finance function has a basic understanding of the organizational environment, business operations, and financial performance. The Scorekeeper takes responsibility for the implementation of its own actions and delivers results through effective execution within the function. Work is typically performed in an episodic cycle of creating and refreshing annual plans, and the finance function is effective in gathering information, curating reports, and providing variance analysis to the business.
A moderate understanding of the organization’s environment, business operations, and financial performance enable the Advisor to participate in the strategic planning process. At this level, the finance function also delivers insights to business counterparts and acts as a consultative partner in the decision-making process.
A business partner that engages in execution support, the Partner has built a strong understanding of the organization’s environment, its current strategic position, and its direction. This level possesses strong analytical skills and can influence stakeholders and advise on strategic options for the organization.
The finance function possesses deep expert knowledge to develop strategic vision and provide proactive and unique insights to the overall direction and success of the organization. This level has formal responsibilities for business areas, participates in high-impact strategic decisions, and engages in co-creation of value.
At this level, the finance function demonstrates leadership in business performance, driving innovation and change across the organization. The Futurist generates value and regularly identifies and exploits growth opportunities through the adoption of technology and integration of new capabilities that elevate the customer experience.
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