To expand the role of finance, CFOs need to become more adaptable and versatile to meet the evolving needs of their organisations. A new report from global software company Sage found that CFOs believe prioritising collaboration and technology integration will enable more strategic influence on day-to-day operations.
The report, The Secrets of Successful CFOs, found that finance leaders are “dismantling operational silos” to expand influence across departments traditionally not associated with the finance function; 30% of leaders note that collaboration across departments has increased over the last five years.
The role of the finance leader is “no longer confined to numbers”, the report said. In a normal week, 67% of CFOs’ responsibilities encompass areas relating to operations; 66% to troubleshooting and problem-solving; 64% to implementing new technology; and 64% to talent and employee management.
Finance chiefs are also focused on integrating technology to empower greater decision-making throughout the enterprise. According to the report, 78% of highly successful finance leaders identified keeping up with new technology knowledge as crucial to success over the next three years.
Sage surveyed more than 1,200 finance leaders across eight regions, including the UK and the US.
Embracing transformation means adapting their roles to meet changing business demands. Although some finance leaders have experienced this over the past few years, many others expect a significant change to their roles in the future.
“This evolution reflects a departure from conventional responsibilities, positioning CFOs as central figures in future direction due to their insight into the business,” the report said. Ninety-six per cent of CFOs feel finance roles will change in their organisation over the next three years, and 89% feel their role has changed in the past year.
Versatility: A key skill for leaders
In today’s finance sector, a “versatile skillset is crucial”, the report said. “CFOs who see themselves as successful prioritise problem-solving (79%) and leadership (78%), indicating the importance of these skills in navigating the complexities of finance.”
Sixty per cent of CFOs expect to engage more with IT to promote digital transformation in their companies, the report said. They also foresee greater engagement with their CEO (59%), board (59%), environmental, social, and governance (ESG) and sustainability department (58%), and the chief information officer (57%).
“This commitment to foundational finance skills forms the bedrock of CFO success, suggesting that being a ‘jack of all trades’ does not necessarily prevent you from excelling in your core responsibilities,” the report said. “Successful CFOs integrate their daily competencies with diverse responsibilities, enhancing their effectiveness and strategic influence.”
A tech-driven future, or is it?
Finance leaders believe artificial intelligence (AI) is necessary to advance the future of finance. However, many are still hesitant to implement those tools in their processes.
While 86% of organisations have embraced AI and 79% of leaders believe AI has the potential to revolutionise their organisation’s workflows, the report said, this sentiment has not translated into integration. Only 51% say they have used AI-powered finance tools.
“The impact on the bottom line is clear, with another 79% predicting AI will bolster revenue growth,” the report said. Gaps between what leaders believe and what they are actually doing means that AI’s potential has not been fully realised.
“Adopting [AI] tools could maximise efficiencies and position your teams at the forefront of the financial industry’s AI-driven future,” the report said. “[A] proactive approach to learning can provide a competitive edge, ensuring you are well equipped to leverage new opportunities that technology brings to the finance sector.”
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.