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Keeping pace with the future: Confident CFOs look ahead
CFOs bring unique knowledge of their company’s potential for resilience and reinvention based on its financial health. In PwC’s June 2024 Pulse Survey, we find finance leaders balancing the need to drive near-term performance with the need to invest for the future.
By investing heavily in tech initiatives, focusing on performance improvement and exploring new ways to reach customers, CFOs are bolstering financial foundations to weather economic uncertainty, geopolitical volatility and keep pace with rapidly advancing technology. They also appear to be more optimistic than other executives, perhaps because of realizing cost efficiencies and value-based opportunities from their tech investments.
CFOs spending more time on finance fundamentals, tech investment
58%
of CFOs say they’re dedicating more time to business performance compared to a year ago
Compared to a year ago, 58% of CFOs say they’re dedicating more time to financial planning and analysis (FP&A) and business performance management. In fact, half or more of CFO respondents say they’re spending more time digging in on other foundational aspects of their role, including compliance, financial reporting, risk management and capital management activities.
At the same time, innovative CFOs are making the time to help unlock tech ROI, with 58% saying they’re spending more time on tech investment and implementation compared to a year ago. As practical strategists with an enterprise-wide view, CFOs can aid in the business case for funding new ways to do business, and 44% say increasing the use of tech to reduce costs is very important to fund in the next 12 months.
What you can do
Concentrate on the basics to fund tomorrow. Driving performance management, cost reduction and tech investment implementation are critical ways CFOs can lead on reinvention.
Leverage AI for better predictive forecasting and complex scenario modeling. AI can enhance scenario planning by predicting revenue growth, cost fluctuations or market changes. This can help you make more informed strategic decisions and better scenario plans.
Get more on this topic
- Executives are increasingly optimistic about the business environment and their companies’ ability to mitigate risk. Find out more.
- What are the top strategic priorities for sector executives?
- What else is important to CFOs right now?
CFOs optimistic on economic environment
Only 31%
of CFOs say achieving measurable value from adopting new tech is a significant challenge
As the holder of the company’s purse strings, CFO backing for disruptive technologies is critical — especially those that create new business models for long-term viability and growth. Nearly nine in 10 CFOs say implementing tech to improve capabilities is a priority for their function. Yet in a capital-constrained environment, tech investments need to help advance enterprise strategy and modernize the finance function. Cost reduction through automation accomplishes both, and 44% of CFOs say it’s very important to fund the increasing use of tech to reduce costs in the next 12 months.
CFOs may be gaining more confidence in the market's direction and see the economic tide beginning to turn. Only 8% strongly agree that there will be a recession in the next six months, compared to 18% of all executives. Although it’s still a tenuous environment, cautious finance leaders may see a brighter future.
As they think about the next three to five years, CFOs also see fewer significant challenges related to cost (36%) and value extraction (31%) from tech compared to other executives overall, (42% and 36%, respectively). By nature of their roles, CFOs can help their C-suite peers connect dots and address these challenges. CFOs have a good view of the overall health of the company and what is needed to position the business for success.
What you can do
Carve a path forward with advanced digital tools for the finance function. Don’t underestimate the potential of aggregated data from multiple areas.
Use your knowledge of your company’s long-term financial outlook to help your C-suite peers. Consider working closely with the CEO, CMO and tech leaders on strategic areas beyond the finance function, such as customer value creation and operations.
Talent a top priority for CFOs
52%
of CFOs say hiring people with the necessary skills is a high priority
Finance leaders are focused on driving the strategic agenda — and they’re looking for new ways to use their tools and investments to move beyond managing the numbers to also look at trends in markets and customers, including profitability on existing and new products.
The CFO’s new orientation as a strategic, tactical, technical and now more customer-focused leader requires having the right talent in the finance function. CFOs say hiring people with the necessary skills is their top priority, with 52% calling it a high priority. This mandate also underscores the need for CFOs to bring the C-suite together around strategic funding priorities — particularly COOs and CIOs prioritizing enterprise-wide tech needs and CMOs on customers.
While 33% of CFOs say expanding their function’s influence across the C-suite is a high priority, CFOs may already be making connections. They may, for instance, be bringing that data on customers to the CMO to identify where investments can be made to enhance the customer experience. The CMO can then share customer feedback and market trends to inform the CFO's financial planning and forecasting.
CFOs also play an important role in facilitating alignment between tax leaders and the CEO. As a key member of the C-suite, the CFO can act as a bridge between the tax department and the CEO. The CFO can also help the CEO understand the importance of tax considerations in their decisions and the company’s strategy.
What you can do
Collaborate across the C-suite today to succeed for the future. Align with your CEO and tech leaders on strategic areas beyond the finance function, like customer value creation and operations.
Focus on finding and funding skilled talent for the finance function and beyond. As evolving regulation, cybersecurity risk and automation permeate areas like reporting, finding talent with deep technical knowledge is crucial.
Get access to the complete survey response data and future insights
View the main Pulse Survey
Finding opportunity in reinvention
About the survey
Our latest PwC Pulse Survey, fielded from May 15 to May 22, 2024, surveyed 673 executives and board members from Fortune 1000 and private companies about the current business environment, the risks executives are facing and their company’s strategic plans and priorities. Of the respondent pool, 84 were CFOs.
Past surveys
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