It’s 2022 – Forget the “old normal” as Omicron’s rise throws any remaining semblance of normalcy to the wind.
But even as the ever-shifting regulatory environment, socioeconomic forces and work practices make the future harder to predict than ever, some things aren’t likely to change. One of them is companies’ need to worry about their bottom lines.
And, as always, much of this burden will fall on the CFO.
Given what will likely be an unstable financial year ahead, it is key for CFOs to set early goals for themselves and those they work with. Here are five new year’s resolutions for Chief Financial Officers that can help guarantee a solid financial outcome to an already turbulent 2022.
Resolution 1: Maintain a digital transformation journey
Technology can simplify financial processes like analysis, reporting, and profit and loss (P&L). Automated financial planning and analysis (FP&A) saves time and money and reduces risk of error – a growing trend in the industry exemplified by rebounding investments by businesses in automation and digital transformation.
Beyond automation, technology is also key to making day-to-day office functions run smoothly in an age that is anything but. It’s no surprise that in a recent PwC survey, 56% of CFOs said they believe technology will help their company improve in the long term.
Talented CFOs recognize that, despite its uncertainty, 2022 presents a unique opportunity for top-down adoption of digital technology and the integration of new tools – and 68% of CFOs are increasing their investments in digital transformation accordingly.
Resolution 2: Continuously build and retain the right team
The impact of team building cannot be overstated as part of making financial teams succeed. 48% of CFOs said they view the loss of in-person culture as a major challenge to the new hybrid work model.
Though the implications of remote working remain unclear, it is clear that CFOs must keep their finger on the pulse of their team’s productivity and well-being, to ensure that neither tenet of success is harmed.
But with turnover and labor shortages an increasing concern for CFOs with regards to revenue growth (81% of them, in fact), today’s financial professionals must make retention a top priority – investing in a diverse team, instilling in them a sense of purpose, and offering opportunities for growth: both professional and compensatory.
Resolution 3: Ensure actionable communication of data
CFOs’ core responsibilities include making key financial decisions, increasing profitability, and identifying opportunities for growth.
Juggling these tasks is a marathon. Data provides the raw information necessary to formulate KPIs, gather relevant inputs, and measure and analyze them. Accordingly, CFOs are embracing tools such as data consolidation, data streaming, and API networks to ensure that data is unified and well organized.
However, data is insufficient if it isn’t communicated in an accessible, actionable manner – even the most impactful insights are useless if they aren’t widely understood. To truly make an impact, CFOs must be able to bridge the gap between analytics and the strategic implications for the company, or these insights will get lost in translation.
Resolution 4: Strategize and plan ahead
Building the right financial models are essential as businesses battle challenges like inflation and a fluctuating job market. But this shouldn’t be dependent on the CFO alone. Increased collaboration with other C-suite executives and the board of directors is the only way to ensure that all departments are working cohesively towards the same goals.
Another increasingly important factor is sustainability, and environmental social and governance (ESG). While ESG integration may strain costs today, it will open new avenues for expansion as the world goes green – and might make the workplace a more sustainable environment, both physically and socially.
Resolution 5: Recognizing the buck stops here
CFOs must take responsibility to help implement workplace policies designed to improve workflow. If the technological transformation is inconsistent, or if employees are not satisfied and throw their hands up in frustration, it is up to the CFO to help turn such issues around.
Given the importance of 2022 as a pandemic era turning point for companies, CFOs should take advantage of the leadership opportunity it presents – identifying potential obstacles and laying out plans for handling them.
Though challenges surely await, most CFOs remain bullish about the future. With the right leadership to guide their teams through the inevitable flux, 2022 can be a great financial opportunity for businesses. By embracing good tech, great people, strong communication, and thoughtful planning, businesses will be well poised to turn the proverbial crises of 2022 into a real opportunity.
