Source: EY 2023 Global DNA of the CFO
Effectively balancing short-term demands with long-term value can require collaboration, cooperation and trust between finance leaders and the executive team. Sixty-seven percent of finance leaders surveyed say that there are tensions and disagreements within their leadership teams regarding prioritizing short-term and long-term values.
Fulfilling this role will require a CFO with the credibility and influence to challenge the CEO and executive team. However, less than one-third of respondents (32%) speak up when they have a differing opinion, and only 30% of respondents strongly challenge members of the executive team when they disagree on a key issue.
Balancing risk with innovation and bold transformation
Overall, 72% of respondents say traditional back-office behaviors and mindsets are slowing the modernization of the finance function.
“The finance function needs to foster a culture that encourages innovation while maintaining risk management practices. This will help CFOs to position finance as a strategic driver of sustainable growth within their organization.”, Waraporn said.
As CFOs look to build digitized finance functions to drive sustainable, long-term growth, their top priorities are transforming finance technology (37%) and advanced data analytics (27%), alongside sustainable growth capability of the organization.
Balancing the evolving role of the CFO with traditional skill sets
Two-thirds of finance leader respondents (66%) recognize the willingness of companies to appoint CFOs with limited finance experience. This highlights a move toward valuing strategic and inspirational leadership over solely domain expertise.
“Supported by a high-performing finance function, CFOs can reconcile the three critical paradoxes. To benefit the wider business, CFOs should articulate a strategy for long-term value while setting achievable targets. Transforming the finance function will likely require a cultural shift, fostering new mindsets and behaviors within the team. Additionally, CFOs should focus on fulfilling their strategic remit and preparing for future CFOs. By prioritizing these areas, CFOs will be better equipped to navigate the challenges and make a meaningful impact on their organization.”, Waraporn said.
For more information about the survey please refer to EY 2023 Global DNA of the CFO.
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