What CFOs can do to help their controllers’ role keep growing

Introduction

Not very long ago, the role of the controller was evolving almost as speedily as the job of the CFO. With accounting, financial reporting, and compliance as their top responsibilities, controllers could also set their sights on gradually spending more time interpreting data, moving beyond collecting it and offering input into strategic decision-making.

As a result, the controller or chief accounting officer¹ role could be viewed as preparation for the CFO post. In recent years, the breadth of the CFO's role has expanded. Rather than having experience mainly in accounting, candidates can come from non-traditional backgrounds in investment banking or marketing.

When the executive search firm Korn Ferry surveyed CFOs of the 1,000-largest public companies three years ago, it found that the percentage with accounting backgrounds was in sharp decline—falling from 46% in 2014 to 36% in 2019.² And when Korn Ferry Principal Ashley Bowes Johnson crunched a more recent set of numbers—this one focused on Fortune 500 CFOs—she found that only 26% of 2022’s sitting CFOs had come up through the controller ranks.

Once the COVID-19 the pandemic hit, some controllers rededicated themselves to day-to-day responsibilities, with insufficient resources, capabilities, or time for them to plan on broadening their business acumen. In the midst of so much uncertainty, even CFOs who may otherwise have sponsored their controllers’ growth may have had an even harder time than usual finding the necessary ROI to make those investments. Even as CFOs’ duties expanded into overseeing such areas as IT and operations, controllers would have to wait until things returned to normal to sharpen their skills as strategists and catalysts.

But “normal,” has yet to return. Since 2020, there’s been a never-ending stream of external disruptions—COVID, supply chains, the Great Resignation, inflation, social unrest, soaring interest rates, the M&A boom, prepping for ESG compliance, and on and on. Some controllers had to stay focused on managing accounting operations, never mind trying to expand their purview. The COVID-19 pandemic and subsequent disruptive economic events redirected controllers' focus to their core role: making sure their organization could steadily and accurately transact and report--while navigating a virtual work environment that was new to most. Controllers were also responsible for closely monitoring variances and financial measures amid so much uncertainty; redeploying and training teams as a result of increased employee turnover; and performing additional reviews as teams undergo transitions.

In this edition of CFO Insights, we explore the role CFOs can play in enabling controllers to keep broadening their skills. What duties should controllers start—or stop—doing? What types of positions should CFOs encourage their controllers to take? And how might the overall company benefit from having the CFO help elevate the controller?

Endnotes

¹Throughout this article the term controller also refers to chief accounting officer. 

²“Why You Don’t Need to Be an Accountant to Be a CFO,” the Wall Street Journal, January 29, 2020.

Contacts