Navigating the Talent Shortage: The role of just-in-time-talent and virtual CFOs.

• Author: Francis, Charlie
• Position: NAVIGATING THE TALENT SHORTAGE

As demand for local government public finance officers grows, local governments are facing challenges in recruiting and retaining top talent in this field. A report from GFOA and Lightcast, "Meeting Demand for State and Local Government Finance Jobs" [available at gfoa.org/meetingdemand-public-finance], demonstrates that demand for state and local public finance officers is outstripping the current supply of workers in the sector and that increasing the pace of hiring and the breadth of recruitment will be necessary to reverse the growing gap between supply and demand. Local governments are also facing the prospect of a wave of retirements, which is expected to exacerbate the shortage of public finance officers.

As local governments struggle to find and hire skilled finance directors and key finance staff, the use of virtual CFOs and just-in-time talent is becoming an increasingly popular option. A virtual CFO is a remote professional who provides high-level CFO services to organizations either full-time or on a part-time or project basis, while just-in-time talent refers to the use of highly skilled contract workers who can be brought into an organization remotely or onsite--on a project or part-time basis-to provide specialized expertise and support. These approaches can help local governments access specialized financial expertise and support when they need it.

In this article we will explore the evolving role of local government finance directors and the benefits and challenges of using virtual CFOs and just-in-time talent in local government, as well as provide insights and best practices for local governments considering these approaches to support their financial operations.

THE ROLE IS CHANGING

The role of the local government finance director is evolving in response to changes in the political, sociological, and economic landscapes, along with the increasing complexity of financial operations. As local governments face new challenges and opportunities, finance directors must adapt and develop new skills and expertise to meet these changing needs.

One of the key changes in the role of the local government finance director is the increasing focus on analytics. With the proliferation of data in the digital age, finance directors are expected to be able to collect, analyze, and interpret financial data to inform decision-making and strategy. This may require expertise in data analysis and visualization tools, and an understanding of how to use data to drive financial performance and growth.

There is also an increasing focus on external-facing goals such as customer satisfaction and forward planning. Finance directors are expected to be more in tune with the local community and to have a broader perspective on the financial needs and goals of the local government--meaning that CFOs need to have effective communication and collaboration skills, as well as an understanding of how to build relationships with stakeholders and partners. They also need to know how to deploy social media tools to monitor the needs of the local community.

Local governments have also been moving toward more decentralized and distributed models of work, which means finance directors are expected to have the ability to manage horizontally, working in more direct collaboration with other business units beyond the traditional boundaries of the finance department. This may require finance directors to...