Yuval Atsmon, the newly appointed head of McKinsey's finance function and a senior partner specializing in growth-led transformations, sheds light on the evolving role of CFOs. He discusses the challenges finance leaders face, including managing uncertainty and integrating generative AI into decision-making. Yuval emphasizes the importance of critical thinking and emotional intelligence in leadership, as well as the need for human oversight in an automated world. His insights provide a roadmap for navigating the complexities of modern finance.
CFOs today must excel in strategic planning and risk management while effectively managing talent to drive necessary finance transformations.
Generative AI can revolutionize finance by enhancing decision-making and performance insights, though careful human-machine interaction is essential for accountability.
Deep dives
Evolving Responsibilities of CFOs
CFOs today are facing an increasingly complex environment marked by uncertainty and volatility. This evolution requires them to excel in strategic planning, performance management, and risk management while also serving as role models for their teams. One critical challenge these leaders encounter is managing talent effectively to drive the necessary changes in the finance function. The need for enhanced critical thinking and emotional skills is also emphasized, as finance professionals must connect various dots across the organization to support decision-making and create a sense of collaboration rather than control.
Impact of Generative AI on Finance
Generative AI presents a significant opportunity to transform the finance function by enabling better insights, foresight, and resource allocation. This technology allows for more accurate predictions of patterns and trends which aids in performance discussions and strategic planning. AI can also simplify and automate mundane tasks, freeing finance professionals to focus on value-added activities. However, successful implementation requires a careful balance of human-machine interaction to ensure accuracy and accountability in financial processes.
Lessons from Operational Experience
A previous stint outside of the firm allowed the CFO to gain valuable operational insights, which now inform his approach to leadership. This experience underscored the importance of not just planning but also executing strategic objectives on the ground. Returning to the firm with a renewed vision, he aims to blend his previous consulting skills with operational responsibilities to foster growth and development. Embracing the lessons learned has brought a deeper humility and understanding of the challenges CFOs face, reinforcing the idea that knowing what to do is often much easier than actual implementation.
This week, Yuval Atsmon, the newly appointed head of McKinsey's finance function, joins us to share his perspectives on the chief finance role.
Yuval is also a client-serving senior partner in our firm's Technology, Media & Telecommunications, and Consumer Packaged Goods practices, where he’s focused on helping companies with growth-led transformations. Yuval is based in London, where we recorded our conversation during our 22nd annual global CFO forum.
Our conversation delves into the evolving role of CFOs and the challenges today’s finance leaders face, from managing uncertainty and volatility to strategic planning and performance management. We’ll also discuss the impact of generative AI on finance, exploring how it can transform traditional processes and decision-making.