Digital transformation is no longer the main theme of ISD. In the 21st century, CFOs and monetary groups have a fundamental role to play in harnessing the power of knowledge and generation to drive power and growth. This was the main topic discussed in a recent interview with Katherine Motlagh, CyrusOne’s chief financial officer, leader and in-house in the mid-knowledge industry In addition, we discussed the evolutionary state of ESG reports, gender inequality in finance and the importance of adopting diversity, equity and inclusion (DE
Jeff Thomson: Business digitization has been a long-standing trend, but the Covid-19 pandemic and the consequent increase in remote paintings and virtual business models have accelerated the momentum toward virtual infrastructure. How do you profile the “digital CFO” in terms of skills, abilities and intervention spaces?
Katherine Motlagh: The pursuit of power and improved procedures in the subsequent workplace has long been on the monetary managers’ schedule. In the early stages of the optimization procedure, automation is the fruit at your fingertips. Investments in equipment are justified by saving resources The digitization of companies has taken this search to the next point where the good fortune of the company is explained through a change in mindset, a review of procedures and a realignment of the skills that are fundamental to organizations. they will first have to take the lead for themselves and then their organizations.
Digitization of the business component of business roadmaps prior to Covid-19, and CFOs discussed how to balance the ROI of virtual transformation with investments in short-term tangible business objectives. Despite business continuity in the virtual world, this redefinition of priorities is redefining the strategic direction of the business. Organizations try to remain applicable and maintain speed in the new environment, allowing them to prioritize digitization efforts, take much-needed steps toward virtual transformation, and justify investments.
Digital transformation is about leveraging knowledge to make the business more agile and agile, how to achieve flexibility and operational efficiency. Becoming the digital CFO is about creating the environment that can enable the knowledge needed to provide accurate, concecised and applicable monetary knowledge to help businesses. make decisions at the right time. The purpose is not only the day-to-day of operations, but also to locate new lenses to see how those decisions contribute to the company’s long-term strategic vision. time to execute the most productive business decisions as close to real time as possible. This requires a different attitude about procedure adjustments and AI automation, and in particular transforms the nature of the CFO-CEO partnership.
Thomson: Risk control is increasingly a more sensible priority for CFOs and monetary function, and one of the biggest dangers to a virtual enterprise is cyberattacks. Cybersecurity has been IT maintenance, but the monetary team is necessarily playing a bigger role in mitigation. Why do you think finance is a key spouse in cybersecurity?How can monetary professionals leverage their existing capabilities to help protect their organizations’ IT networks?
Motlagh: CFOs are the company’s top asset managers and have a duty to protect [your] company’s capital, assets and records. Enterprise digitization has created an environment in which enterprise assets are virtual, records are stored and available remotely, and Capital extends beyond fitness in a cloud and virtual substance. Access to assets and capital is increasingly adapted to technological advances, such as synthetic intelligence, automatic computing, and the laws of great knowledge. External force has reached degrees where undeniable firewalls and security responses are no longer enough.
Of course, monetary groups have led the fight against cybersecurity because of the delicate nature of their access to monetary data and the mandate to comply with knowledge coverage laws. OCF plays a vital role in raising awareness of the dangers of cybersecurity. organization-wide, forward-looking exposure, advertising, and monetary dangers created through cybersecurity threats and attacks, [and] can help identify gaps in employee general knowledge.
Financial organizations tend to be the ultimate goal because of the delicate nature of their responsibilities, and they have the courage to work with the organization at large to mitigate this risk. As such, the monetary team is an essential element, if not the maximum. , spouse in the organizational landscape of cybersecurity.
Recently, the focus is even more on cybersecurity in . . . monetary organizations. This is largely [related] to the effects of the pandemic and . . . remote work. With everyone accessing, processing and communicating data remotely, new attack vectors As monetary groups tend to be among the most sensitive targets, it is very vital to equip them with technical knowledge, anti-phishing and authentication equipment, as well as advanced processes to be able to operate with a high security point and resist the constantly changing bureaucracy of cyberattacks.
Thomson: Investing in innovation, i. e. in the virtual technology box, is very important for the company’s long-term expansion, but shareholders also want to see short-term profitability and dividends, in a different way that corporations can bleed capital. Do you advise CFOs on how to balance expansion with the net source of revenue and shareholder yields?In addition to pursuing successful expansion through their actions, how can CFOs effectively talk to investors with a balanced strategy?
Motlagh: In the short term, virtual generation is about expanding the speed and flexibility that contribute to rapid expansion functions, and in the long term it’s about [developing] the features of continuous improvement, scalability, benefit expansion, and load. reduction. . . When it comes to innovation and virtual transformation, we want to look at them from many angles and the key is a balanced and open-minded approach. It’s not just about technological innovation that allows you to generate revenue, but also business innovation that allows you to grow faster than your competitors, stay applicable in the conversion market, and maintain speed to adjust and make corrections to the market site trajectory. Demands change.
Business digitization is based on the premise of a knowledge-based operating style that allows other parts of the organization to exchange applicable knowledge in an agile and effective way. It’s about developing cost-effectively with cost reduction by reducing friction between processes and organization priorities. , where greater integrity, quality and accuracy of knowledge lead to more important and faster business decisions backed by optimized knowledge governance.
Investments in innovation are sometimes difficult to justify only if reversed in investment. They require a longer-term attitude and greater tolerance for threats. They are not compared to investments in the core business or are considered alternatives. invest in innovation and CFOs consider it a mitigation strategy opposed to the threat that the core business will become obsolete.
The key to a good lucky innovation program is to take on the dangers in a calculated way and in the field. In some cases, it makes sense to create a separate organizational structure, in which the definitions of good fortune and evaluation criteria are different from the main activity and leadership. Encourage creativity and openness. Sometimes it makes sense to allocate safe capital to express reasons with expectations of changed results. OCF plays a vital role in setting parameters, or so-called “swimming lanes”, and in maintaining the course to ensure good luck. innovation systems and, in the end, increase the price for shareholders and good business fortune.
Thomson: A consensus is emerging in accounting and finance that environmental, social and governance objectives (ESGs) drive monetary performance. How do cfos evolve their thinking about GSS and make a contribution to the sustainability of companies?What is your view on recent developments with SASB and the IFRS Foundation to create a set of non-unusual criteria around embedded reporting and sustainability?How vital are these initiatives?
Motlagh: Integrated monetary reports and ESG provide a holistic and balanced view of price creation as opposed to corporate sustainability. A non-unusual set of globally accepted criteria deserve to be mandatory, not just to provide [a] universal reporting framework . . . but also to inspire corporations to become replacement operators on sustainability issues.
While the key facets of the GSS are the attention of investors, corporations that prioritize ESG projects are greater opportunities for long-term profitability. While governance and compliance are key issues in ESG reports, there is a transparent shift in company priorities since ESG compliance. price creation. The link between ESG’s smart practices and quality returns becomes more transparent and the more sensible tone paves the way for corporations to describe what ESG means and how to generate its impact.
ESG’s good fortune is decided not only through measures taken to ensure ESG compliance, but also through clarity and consistency in communicating ESG messages to the right audience when stakeholders consult the quality and authenticity of the data. The adventure of continuous improvement and monetary leaders have become key educators and communicators of ESG’s problems for their stakeholders. Reporting progress and innovations in effects over time has become a key priority for CFOs.
In addition, built-in reports deserve to count and be a component of policy decisions that have an effect on global sustainability issues over time. The challenge many organizations face is to build, accept as true, and have credibility in the knowledge and messages that support progress. and the governance of ESG’s objectives and their achievement. The set of non-unusual criteria will allow organizations at other stages of adulthood to integrate the reporting of ESG projects in a more coherent and transparent way so that their movements and projects are better understood through consumers, the broadest network of investors and key stakeholders.
Thomson: From the beginning of his career as a spouse at PwC (formerly Coopers
Motlagh: Diversity, equity and inclusion begin with self-realization, expand in the circle of family members, and become larger in organization and community. It is like a seed that will have to be fed to the maximum fundamental degree before it becomes something it can withstand. Fruit and get advantages from others. My recommendation is not to be waiting for inclusion because of its gender, but to demand it because of its competence. Don’t be expecting equivalence but act as equivalent to everyone around you and ask for respect for what you have to say and the price you bring to the table. I bet there might be someone who doesn’t like what you have to say.
My recommendation is to do what you mean at the center of the discussion. Eliminate prejudice by decentralizing yourself to the message you need to convey. Diversity, equity and inclusion have been a very vital component of my life, because when I look in the mirror and see myself when I look at myself when I’m younger, I don’t forget the hesitations and insecurities I experienced when I had to raise my hand, communicate or give myself in a room full of men. I needed help and convenience and, above all, I needed courage. I was rejected from my first assignment at a bank because of my gender. “Girls can’t take care of the tension or carry out under pressure,” I was told.
Although it was a difficult time of adversity, he was also a wonderful motivator. I promised myself I’d get them wrong. Competition, conviction and trust were needed to be on an equal footing with male colleagues in the room. I didn’t hesitate and, taking advantage of my skills, I accepted the challenge.
At CyrusOne, inclusion means making sure all workers and teammates have equivalent opportunities and rights to participate in activities and contribute to the good fortune of our business.
We want to integrate our workforce, break down barriers and create [an environment] in which all teammates feel supported and contribute in a similar way. An inclusive environment is one in which everyone feels valued.
This article has been edited and condensed.
I am president and executive director of the Institute of Management Accountants (IMA).
I am president and chief executive officer of the Institute of Management Accountants (IMA). Before joining IMA, I was CFO of corporate sales at AT