CFOs are embracing a new role: chief future officer.
Chief financial officers (CFOs), armed with data-driven insights, had a major role in helping their companies navigate through the storm of the Covid-19 pandemic. Now, as these leaders shift more attention toward preparing for the future, it’s time for them to embrace a new role: chief future officer.
What does it mean for a CFO to be a chief future officer? In the simplest terms, it means having the vision and agility to prepare the company for what lies ahead. A 2020 report from Microsoft, The New CFO: Meet the Chief ‘Future’ Officer, adds color to that definition: “Today’s financial decision makers must be versatile, fast-paced and digitally minded to be able to anticipate and respond to ever-changing circumstances. Those poised to achieve the greatest success are long-term visionaries, equipped with big ideas, the right technology and the ability to anticipate change in an unpredictable world.”
Here are three ways CFOs can make an impact as a chief future officer and help their organization become even more agile and future-ready:
1. Prioritize (More) Strategic Investments in Digital Technology
Many organizations that survived disruptions at the onset of the pandemic had CFOs at the helm who had already taken steps to lay the groundwork for the company’s digital future. Their impact in helping to enable those shifts should not be overlooked. Because of their actions, many CFOs are now well-positioned to influence future business investments in digital technology and support further innovation.
According to a Gartner, Inc. survey, 78% of CFOs plan to maintain or increase enterprise-wide digital investments in the next two years. Alexander Bant, chief of research in the Gartner Finance practice, points out that CFOs are ramping up digital investments with an aim to reduce business costs and identify new sources of profitability amid soaring inflation rates not seen for decades.
2. Help Leadership Move Past the Hybrid Work Hurdle
It’s difficult for a business to focus on the future if it’s not retaining its best employees. A key factor in workers’ decisions to quit or move on is the availability of remote work in some form. For companies, the central question is: Should we adopt a hybrid work model, where teams alternate between home and office? A recent study from AT&T suggests that the answer for most organizations will be “yes” — with 81% of executives reporting that they believe hybrid work will be the foremost working model by 2024.
Even so, many business leaders are struggling with the idea of employees working a hybrid schedule permanently. A cautionary tale: Many of those who have required their workers to return to the office full time have seen valued talent walk out the door. A study from WFH Research found that 40% of workers who are now working remotely at least one day per week said they’d quit or look for another job if their employer mandated a full-office return.
The CFO as a chief future officer can help resolve the issue by presenting to other company leaders data-driven evidence about the value and rewards of flexible work. Higher levels of workforce productivity, reduced real estate costs, a smaller carbon footprint, and meaningful progress toward diversity, equity and inclusion goals are examples that can help decision-makers see why flexible work is the future.
3. Upskill the Finance team
Give finance team members the chance to expand their technical skill sets and hire more data-savvy talent, such as data scientists. Emphasize with them the importance of collaborating more effectively with other functions, such as IT and human resources, to improve data sharing, analysis and reporting.
Increasing automation should be a priority for CFOs as well because it not only enhances efficiency and generates more data insights but also frees their teams to devote time to more satisfying work and come up with innovative ideas. Additional research finds that more than half (58%) of CFOs plan to increase their investment in automation over the next 12 months.
As CFOs evolve the finance function both technologically and from a talent perspective, the organization will become the engine that drives the business forward. Communicating the value of other digital investments and flexible work models will also help solidify the CFO’s role as a lighthouse for senior leaders as they chart a course for the company’s future.
