We live in uncertain times. There is inflation, an economic crisis, a lack of jobs as well a lack of talent. CFOs shoulder the responsibility of keeping the financial situations stable for their organizations. These uncertain times can put their ability to drive and manage growth to test. Most firms are struggling. During these critical times, CFOs are compelled to make difficult decisions that require them to dig deeper into the organizational processes and structures.
The CFOs must build agility. What it means is that they need to renew, respond, and adapt to a rapidly changing environment. CFOs should be willing to embrace change and be proactive in their approach to ensure revenue growth. They need to rethink their strategies with forecasting and scenario planning and examine portfolios within the organization.
How can CFOs build agility in the current scenario?
- Embrace technology:
We live in the era of digitalization and technology. Organizations that fail to adopt and advance with the modern-day tech, fail to remain relevant. A recent study by PwC found that 600 CFOs believe that embedding new technology acts as a strategic tool for growth. There is a constant talent crunch and costs are on the rise. Technology is a key element in combatting these struggles. Some of the key ways include cloud-performance analytics, AR/AP automation, and Robotic Process Automation.
In cloud-based performance analytics, CFOs can use web-based automated finance platforms to track different KPIs and provide real-time dashboards to help speed up manual processes. Affordable automated expense management can help financial teams and CFOs manage cash flows and provide advanced finance metrics for better analysis and decision-making. Robotic Process Automation helps automate tasks, such as data entry and file transferring that help CFOs tackle delays, improve error-prone processes, and get better transparency into the operations.
These help CFOs analyze the operational bottlenecks and create roadmaps for the organization, enabling better decision-making, greater efficiency, and better employee satisfaction and retention.
- Make strategic investments:
With inflation right around the corner, CFOs and other organizational leaders are apprehensive about making investments. CFOs are levied with the responsibility of cutting costs and establishing initiatives that make a difference. This can lead to utter confusion and sometimes, incorrect decision-making. While the role of CFOs does involve cutting costs, it is important to make strategic investments to balance potential benefits. To analyze what is the right kind of investments, CFOs should also get in touch with the Chief Information Officers (CIOs) and Chief Transformation Officers (CTOs) to understand the risks and controls, sync their priorities with those of the organizations, and make investments that align with the bigger scheme. Making strategic investments can also play a key role in employee satisfaction and growth.
- Adopt a creative mindset:
To be more agile and continue to remain relevant in the current accounting and economic landscape, adopting a creative mindset is inevitable for CFOs. By instilling creative efforts and being accountable, CFOs can harness and drive the company’s growth. Gone are the days when accounting was merely about crunching numbers. The modern-day CFOs need to adopt a problem-solving mindset, which is fueled by creativity. It also allows them to support others while getting their jobs done. This can lead to a more flexible way of leading the organization by example.
- Grow your communication:
As we continue to live in uncertain times, all stakeholders need to be on the same page. And that is where clear and effective communication comes into play. Most leaders across accounting firms feel that good communication skills are one of the most sought-after qualities in finance professionals. When in crisis, CFOs should be comfortable and confident to talk about the tough times, while paving the path towards the future. Having clear communication also helps develop relationships with stakeholders who can help sail the boat during tough times. Gaining experience with a diverse range of stakeholders is also needed to develop a CFO’s agility and ability to lead effectively.
- Manage risks and protect the organizational interests:
The role of CFOs extends way beyond their financial duties. In the current situations, they need to act as a risk manager, one that is responsible for protecting the company’s assets. The current crisis in the accounting industry and the business landscape as a whole makes organizations vulnerable, exposing them to several risks. To be an agile leader, CFOs need to be aware of the diversification of assets, secure vendor chain management, and mitigate the risk of monitoring payments. This factor can help organizations stay competitive in the face of the mounting shortage in the industry. Investing in cyber security to prevent data theft, phishing and other forms of attacks is more important than ever.
How can outsourcing help in building resilience and agility?
When it comes to situations like cost-cutting and building resilience, one of the key ways to do so is by outsourcing. It helps reduce the additional burden of building a team, infrastructure, software, etc. Some of the key ways to use outsourcing to your advantage includes:
- Providing flexibility and scalability:
Outsourcing important functions can provide with flexibility and scalability needed to adapt to the changing conditions. By outsourcing, CFOs can quickly scale up or down their operations, reduce fixed costs, and increase operational efficiency. This is especially beneficial during times of uncertainty.
- Helps save on additional costs:
By outsourcing certain functions, organizations can save a lot in capital investments in infrastructure, tech, and people. Outsourcing providers often offer services at a low cost due to economies of scale and specialized expertise. This enables CFOs to allocate resources effectively and invest in areas that drive value.
- Enables focus on core expertise:
By outsourcing non-core functions, CFOs can focus on strategic initiatives that drive growth and innovation. This allows the organization to concentrate its resources and efforts on core competencies by positioning the company for long-term success.
Preparing for uncertain times – Summing up
CFOs must prioritize resilience and agility as we navigate through tough times and uncertainty. By adopting a strategic approach to planning, digital transformation, and investment in talent management, CFOs can build a robust foundation for their organizations. Additionally, outsourcing can play an essential role in overall growth. Outsourcing can play an important role that CFOs can leverage towards sustainable growth and success.
Want to improve your resilience with outsourcing? Write to us at connect@finsmartaccounting.com.
Maanoj is Co-founder & Director of Growth Strategy & Alliance at Finsmart Accounting. He is an Outsourcing Expert, a People Champion, and a Dynamic Leader with strong Business Strategy and Scaling-up experience. He has incubated businesses, sold & exited ventures; helped build strong enterprises in very diversified verticals like Fintech, HR & Consulting spaces in various CXO capacities over the last 20 years.
