The future-ready CFO: Redefining leadership in a digital-first landscape
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We’re in an age of digital disruption. And Chief Financial
Officers (CFOs) are standing at a crossroads.
It’s no longer a question whether technological
transformation will shape the future of finance - it already has. The global
fintech market is projected to grow from $340.10 billion in 2024 to
$1,152.06 billion by 2032. Clearly, the pace of innovation is an unstoppable
force.
The more pressing question today is how can CFOs guide their
organisations through the change - and perhaps more importantly, how they
themselves can evolve to meet the challenge.
Too many CFOs remain conservative, hesitant to seize the
digital future that will define the next generation of financial services (FS).
But to lead successfully, CFOs must jettison this mindset and undergo their own
transformation, embracing a digital-first approach to ensure their companies
not only survive, but thrive in tomorrow’s world.
The CFO of the future is more than just a number cruncher
Traditionally, the path to becoming a CFO was paved with roles in accounting, audit and compliance. Yes, these set the stage for success when it comes to maintaining financial discipline and keeping an eye on costs. But the landscape has shifted dramatically, and in response, the remit of CFOs must expand:
- 82% of CFOs say they have taken on additional responsibilities in the last two years
- 62% say that strategic planning is their most valuable skill - not financial reporting
Today’s CFOs are expected to wear many hats - to be
strategic leaders, changemakers, who can navigate a complex mix of
financial responsibilities while driving innovation, promoting collaboration
and advocating for technology.
In other words, the CFO of the future is not just a steward
of financials but a key architect in shaping the business' direction. This
transformation requires a new mindset, one that is open to collaboration,
commercial thinking and, crucially, technology.
Embracing technology: The key to achieving CFOs’ biggest priorities
According to Deloitte’s 2024 survey, the top priorities for CFOs are:
- Reducing costs (51%)
- Increasing cash flow (35%)
- Expanding into new markets (24%)
The ironic thing is that finance leaders are reluctant to
fully embrace the tools that could help them achieve these goals. 90%
of CFOs admit to having little trust in artificial intelligence (AI), and Blackline
reveals that a further 73% are concerned about the impact of disruptive
technologies on their business.
This presents a paradox. While CFOs are worried about AI adoption and technological transformation, a lack of it is driving down innovation and opening them up to more risks. Per Blackline:
- 37%
of CFOs don’t fully trust the accuracy of their organisation’s financial
data, hindering strategic decision-making
- 98%
lack confidence in cash flow visibility, and 48% say this makes it
harder to respond to market fluctuations
- 64%
say that the rise of manual work impedes proper financial planning, while
68% say it leaves their organisation vulnerable to errors that undermine
decision-making
Embracing a digital-first attitude, and leveraging tools
such as AI, machine learning and blockchain, can help CFOs address many of the
issues that hold them back today.
For instance, AI-powered systems can automate mundane tasks,
freeing up time for CFOs to focus on strategic decisions. And blockchain, with
its promise of secure and transparent transactions, can reduce fraud and
enhance financial reporting. When CFOs start honing these technologies, they
unlock the potential for greater efficiency, security and growth.
Driving innovation and breaking down silos
Beyond adopting the latest technology, digital
transformation is about creating a culture that is open to change. CFOs must
lead by example, advocating for data-driven decisions and breaking down the
silos that halt innovation.
Collaboration is crucial here. CFOs need to step outside
their comfort zones and engage with other departments - whether it’s risk,
operations or commercial. It’s about recognising the value in other
perspectives, particularly when it comes to technology.
Top CFOs are already demonstrating this behaviour. In ’The Secrets of Successful CFOs’ report:
- CFOs
have increased cross-departmental collaboration by 30% to enhance
their company-wide influence
- 64%
of CFOs’ responsibilities include implementing new technology, with
88% leveraging AI and automation to drive better decision-making
- 60%
of CFOs expect to engage more with IT to promote digital
transformation in their companies - and 78% identify keeping up with new
technology knowledge as crucial to success over the next three years
This willingness to collaborate and promote digital
transformation fosters a culture where innovation - and success - can flourish.
By breaking down barriers between departments, CFOs can ensure that digital
initiatives succeed across the organisation.
Upskilling for the future
One of the most important aspects of digital transformation
is the need for upskilling. As technology continues to evolve, so too must the
skill sets of those in leadership positions. This includes not only technical
skills, such as understanding AI and blockchain, but also soft skills like
communication, strategic thinking and leadership.
The future CFO will need to build a workforce that is agile
and capable of dealing with constant change. That means creating a culture
where digital skills are prioritised, and employees are encouraged to try new
ways of working.
By investing in upskilling, CFOs can help their
organisations stay ahead of the curve, ensuring they remain competitive in an
increasingly digital marketplace.
Becoming a digital champion
To lead their organisations into the future, CFOs need to be
champions of change, advocating for innovation and collaboration, and forging a
culture that supports digital transformation.
Ultimately, tomorrow belongs to CFOs who are willing to
evolve. By adopting a forward-thinking approach, today’s CFOs can become the
leaders their organisations need to navigate the complexities of the digital
age.
If you’re a firm looking for this visionary talent, I can
help. Contact me
directly to learn more.