In our current society, companies are constantly under pressure. It is therefore important to be able to respond adequately to rapidly changing circumstances and to plan the right scenarios for them. CFOs, who are responsible for a company’s financial goals, objectives and budgets, feel this pressure the most. Just a quick look back at the past nearly two years and it quickly becomes clear why. The pandemic has put financial leaders under severe strain and required them to be agile, make quick decisions and rethink processes to keep the organization afloat.
In addition to the uncertain state of the world, CFOs also have to deal with outdated systems and manual processes. This often results in insufficient data-driven insights and limited collaboration between finance teams and the rest of the company. This is not a sustainable strategy in an increasingly digital world. Now that companies are cautiously daring to be optimistic again about their future (financial) goals, it is therefore necessary for CFOs to position themselves as strategic leaders. It is important that CFOs not only know how to stabilize the company, but also how to take the lead and stimulate financial growth.
More data, more agility
We know from talking to our own customers that CFOs need to replace outdated systems if they are to be a strategic linchpin in their business. Financial leaders who have actually done this recognize that cloud-based technologies allow them to access and act on real-time data about their business. The CFO US Pulse Survey, a survey conducted by PwC in March 2021, indicated that a top priority for CFOs in 2021 was to make the finance department a business partner for the rest of the organization. Achieving that goal requires a more agile and efficient finance department. A department that can deliver value to all stakeholders within the company.
Forward-thinking finance leaders have discovered that bringing data together can have a significant impact on business performance and resilience. In addition to embracing the right technologies, the finance department must position itself as the trusted source for real-time data. Today, stakeholders want fast and accurate insights to take appropriate action on rapidly changing challenges. The ability to share and process data through digital, cloud-based systems enables the finance department to focus on strategy and analysis, rather than data collection and distribution. The more finance teams can make decisions based on insights and accurate, real-time information, the better those decisions will be. CFOs who opt for cloud-based technologies can obtain data that is currently locked in silos, as well as encourage a collaborative approach across the company.
The power of relationships
CFOs must not only know how to implement the right technology, but must also focus on building relationships with the rest of the C-Suite. Chris Dimuzio, Finance Transformation Leader at PwC, said ,”one of the most important relationships I’ve seen develop in the corona crisis is the one between the CFO and the COO.”
But the relationship between the CFO and the C-suite must go beyond the COO. Strong relationships between finance leaders and the CIO, CHRO and CTO are essential if companies want to accelerate their digital investments and achieve strong results. For example, close collaboration between the CFO and CHRO enables the finance department to better understand and plan for a company’s workforce, locations and employee experiences. In addition, a partnership with the CIO enables the CFO to align technology initiatives with the changing needs of the workforce and customers. By building strong relationships within the C-suite, finance leaders can better leverage their digital capabilities to plan and adapt to market conditions or changing business needs. This ongoing and collaborative planning process enables the CFO to act as a strategic business partner in the time after corona.
Once financial leaders embrace digital capabilities and use them to build strong relationships with stakeholders, there is ample potential for financial growth. In fact, PwC’s CFO US Pulse Survey shows that CFOs see significant growth opportunities in key areas surrounding the digital economy. Nearly half (46%) predict high growth, and more than a third (36%) expect moderate growth. Technologies such as cloud, predictive analytics and automation are making financial processes more efficient and giving the finance department a strategic role that provides data-driven insights and decision-making across the company.
The pandemic has given CFOs and their teams an opportunity to become business-critical strategic leaders. Financial leaders already hold the secret to a strong future. Over the past 18+ months, they have learned how to plan, how to adapt and how to respond quickly to the ongoing challenges their companies face. Now is the time for financial leaders to take these lessons into the future. Embrace the right technologies, build strong relationships with stakeholders, and foster their digital potential. CFOs who capitalize on technology will in turn become trusted strategic business partners.
Article written by Tim Wakeford, VP Financials Product Strategy, Workday
