CFOs taking strategic roles after overcoming COVID-19 challenges

CFOs are taking up larger strategic and enterprise-building roles after guiding their organizations by way of the challenges of COVID-19.

CFO Research of Argyle Advisory & Analysis Companies and FTI Consulting surveyed 325 company finance executives to raised perceive how CFOs and the finance perform drive enterprise worth.

5 key themes

• The work of CFOs in the course of the pandemic has earned them the appropriate to be strategic leaders of their organizations, because the pandemic shined a highlight on their potential to steer through company state of affairs modeling and planning.
• Within the face of a “new regular” financial atmosphere, CFOs maintained productiveness with distant groups. In response to COVID-19, 71% of their bodily finance groups will stay distant or largely distant, the survey reveals.
• The digital workforce continues to develop. Whereas most CFOs have began to undertake automation, the survey outcomes recommend automation has not reached its full potential in most organizations.
• The CFO concentrate on enterprise worth and price targets is driving adjustments within the Finance Working Mannequin. The overwhelming majority of survey respondents agree it’s finance’s function to drive optimization of enterprise value.
• Trying forward, the CFO is well-positioned to prepared the ground as an enterprise worth creator. The finance perform’s potential to supply insights on predictability in an ambiguous market will information firm choices on value, working capital, liquidity, danger and capital markets.

CFOs embracing strategic management

“Prior to now 12 months, significantly with the worldwide affect of the COVID-19 pandemic, CFOs and finance leaders have proven larger resolve and strategic management than ever earlier than,” stated Gina Gutzeit, Chief of the Workplace of the CFO Options observe at FTI Consulting.

“There are excessive expectations for the CFO to drive efficiency whereas defending the enterprise from dangers. In a post-pandemic world, there can be no substitute for stable planning and management, and Finance’s function in driving change throughout the enterprise can be crucial to thriving in future disruptions and shaping the group for achievement.”

Greater than 90% of the surveyed executives say that:

• CFOs and the finance perform play a distinguished function in guiding enterprise technique, making operational choices and driving enterprise worth throughout the group.
• Finance gives correct real-time planning, reporting and information evaluation to assist the enterprise obtain its objectives.
• Their CFO leverages the newest applied sciences to ship well timed, correct, related info.

CFOs have began to undertake automation

Most CFOs have began to undertake automation, with practically 80% of respondents indicating that at the least 5% of their finance staff consists of a digital workforce by way of automation — utilizing Robotic Course of Automation (“RPA”) or different automation.

Greater than 40% of the surveyed executives say the pandemic had a big affect on value administration, monetary planning and evaluation, and budgeting and forecasting. Multiple-third of the survey respondents say danger administration, treasury and dealing capital administration, know-how adoption, and accounting and monetary reporting have been considerably impacted.

The survey additionally reveals CFOs are main the way in which in environment friendly supply of useful companies, with 89% of the respondents indicating that they use World Enterprise Companies (“GBS”), Enterprise Course of Outsourcing (“BPO”) or Captive Shared Companies to execute finance processes.

Pre-pandemic issues have intensified in the course of the disaster

Lots of the executives’ pre-pandemic issues, reminiscent of these associated to provide chains, have solely intensified in the course of the disaster, the survey reveals. Different issues embody international financial uncertainty, information safety compliance, and cross-border provide chain bills and administration.

“Going ahead, CFOs can be using ‘purpose-built’ interplay fashions, redefining their places of work as a gathering spot for efficient, in-person collaboration. This may require actual property choices, compensation changes throughout geographies and concentrate on their staff’ psychological well being and engagement,” stated David White, a Senior Managing Director within the Workplace of the CFO Options observe at FTI Consulting.

“Difficult occasions necessitate that CFOs develop or refresh finance methods to make sure there’s imaginative and prescient and functionality to proactively handle business-cycle volatility, lead enterprise efficiency administration and create worth throughout the enterprise.”