Beyond the numbers with Grant Thornton: Listen now
Over the next few years, CFOs will face operational challenges from all corners of the business, and the winners will be those CFOs with a business model that can react and adapt, quickly and decisively, to both challenges and opportunities.
CFOs are in the box seat with a once-in-a-career opportunity to create a whole new – and ideally improved – business ‘normal’.
As the person the business relies on to drive growth, here are the key areas we see for CFOs to address in 2022… and beyond.
With CFO roles and responsibilities broadening, a changing skill-set is required of both you and your teams. Finding people with the right skills is a critical challenge.
As a key growth and change driver within the business, your team needs more than stellar financial acumen. You need to be able to collaborate, build consensus and communicate change across the business. This may require rapid upskilling or ultimately, changes to the team itself.
Tech staff are fast becoming the hottest property – particularly those who can take the detailed processes of a finance team and automate them. As companies look to digitise operations, automate processes, improve online channels, or use AI to drive productivity, the competition and investment in these skills is considerable.
Over the next few years, CFOs will face operational challenges from all corners of the business, and the winners will be those CFOs with a business model that can react and adapt, quickly and decisively, to both challenges and opportunities.
CFOs are in the box seat with a once-in-a-career opportunity to create a whole new – and ideally improved – business ‘normal’.
As the person the business relies on to drive growth, here are the key areas we see for CFOs to address in 2022… and beyond.
CFOs who are still navigating multiple, disconnected systems and databases should put the unification of legacy data and systems at the top of their 2022 ‘to do’ list.
The last two years has reinforced the importance of accurate, timely data to support nimble decision-making. Businesses with a single source of data benefit from greater efficiency, faster reporting, and more accurate forecasting, uncovering insights that can support your forward strategy.
Integration should also include more than just your financial data. Your marketing, operations, and even social media data can all provide actionable insights which can be transformative for your business.
Many CFOs viewed the turbulence of the pandemic as justification for long-delayed investments in technology – and not just to keep teams connected remotely.
Artificial intelligence and machine learning are starting to have broader impact, with automation tools particularly appealing to CFOs looking to improve cost efficiency and maximise business value.
It’s estimated that 80 per cent of finance tasks can be automated but only around one third have been. This is partly due to CFOs not feeling knowledgeable enough about automation technology to make a change, despite knowing that automating everyday tasks could free their finance team to do more creative and valuable work.
Cyber resilience has never been more important, especially with the daily economic and political uncertainty we continue to face globally. We’ve all experienced first-hand the business disruption that an unexpected event like the pandemic can bring – and with significant investment in technology already on the radar of many CFOs, data protection and cyber security needs to keep pace with your organisation’s technological change.
Risk management – finding and preventing fraud and ensuring data privacy and security – is critical in minimising your reputational, financial, operational and legal risk.
With growing data privacy controls and regulatory changes that expose directors to greater personal risk in the event of a security breach, even seemingly small incidents can have significant impact on business operations.
Many CFOs recognise that surviving the pandemic is not enough – it’s time to grow.
CFOs will be involved in all phases of growth working to ensure their organisation is well-positioned when the inevitable economic uplift arrives, and growth in a post-COVID world will largely be about innovation.
This means investment in the team and technology, in R&D, and in strategic transactions like acquisitions and joint ventures, all contributing to create a more flexible, more competitive, more dynamic, and ultimately more successful business.
There has been a significant cultural shift in the last few years in relation to diversity, equity and inclusion (DEI) efforts throughout organisations, with CFOs at large corporates citing cultural change among their top priorities, and DEI programs forming an important part of hiring and training initiatives.
Apart from being the right thing to do, businesses have realised the range of benefits a comprehensive DEI program can provide – elevating the business’ reputation in market, making it a more attractive workplace to potential staff, and more attractive to investors and customers who prefer to do business with organisations that value DEI.
Internally, employees feel empowered when they know their perspectives are valued by the business. Feeling able to speak up helps to reinforce a positive and collaborative culture – which also fosters innovation.
Teams have access to a wider range of skills, perspectives, and insights, which assists problem-solving and decision-making and results in increased profit.
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