The New CFO – The Value Proposition for a Flourishing Enterprise and it’s Chief Flourish Officer

Value Proposition

1. Enhanced Profitability: Evidence suggests flourishing enterprises often outperform peers financially, with potential for radical (>15:1) outperformance compared to traditional businesses.
2. Long-term Viability: Taking a long-term view in decision-making and strategy positions the organization for sustained financial success.
3. Risk Mitigation: A flourishing approach helps address emerging risks – regulatory, reputational, social, market and others.
4. Access to Capital: Increasing investor interest in companies with strong environmental, social, and governance (ESG) performance improves access to capital.
5. Cost Reduction Opportunities: Through efficiency gains and sustainability initiatives.
6. New Revenue Streams: Focus on solving societal problems can drive innovation and open new markets.
7. Improved Resource Efficiency: Better management of all capital types – financial, manufactured, human, social and natural.
8. Brand Value Enhancement: Stronger reputation among consumers and stakeholders who prefer companies with positive social/environmental impact.
9. Talent Attraction & Retention: Reduced hiring and turnover costs as purpose-driven companies attract top talent.
10. Regulatory Advantage: Proactive stance on social/environmental issues can position the company favorably for future regulations.

Pains Addressed

1. Short-term Financial Pressures: Balances short and long-term financial perspectives.
2. Resource Volatility: Better positioned to handle volatility in energy, materials, and other resources.
3. Reputational Risks: Mitigates risks associated with poor sustainability performance.
4. Investor Pressure: Addresses growing investor demands for ESG performance.
5. Regulatory Compliance Costs: Proactive approach may reduce future compliance costs.

Gains Created

1. Integrated Reporting: New metrics and reporting methods that capture full enterprise value creation.
2. Strategic Foresight: Better anticipation of future economic, social and environmental challenges.
3. Stakeholder Relationships: Improved relationships can lead to better financial outcomes.
4. Innovation Opportunities: New products, services and business models that create financial value.
5. Employee Productivity: More engaged workforce leading to improved financial performance.

This value proposition emphasizes how a flourishing enterprise approach can drive financial performance while also creating broader value, aligning with the CFO’s core responsibilities and concerns.