Top 5 CFO Priorities 2024: Achieving Success with Financial Planning Software
Amid persistent economic uncertainty, the role of a CFO has evolved way beyond traditional financial reporting.
Modern CFOs walk a tightrope: they must leverage the power of data, predictive analytics, and financial intelligence to guide their companies toward more successful outcomes - at the same time, with an eye on cutting costs.
No wonder in PwC's 2023 Pulse Survey, 89% of CFOs and finance leaders said striking the right balance between cost-cutting and investment for growth is their top challenge.
As we sit at the start of a new year, we use our insights and industry reports to highlight CFOs' priorities in 2024 and how financial planning software, particularly with Jedox's capabilities, can help them make the next transformational leap to ensure sustainable success.
CFO Priorities 2024 - #1: Making the Next Transformational Leap Stick
In today's rapidly changing digital landscape, 70% of finance transformations are either less impactful or moving slower than expected (Gartner, 2023).
And according to PwC, an incredible 88% of executives struggle to extract measurable value from new technology investments.
To overcome this challenge, CFOs who co-lead digital initiatives, investing from beginning-to-end in digital delivery, set their companies apart. Technology that aligns with strategic goals is not enough - delivering tangible returns is the bare minimum in 2024.
And it's more than feasible for CFOs to take the reins to make tech stick.
Research from Gartner indicates that CFOs who actively participate in digital leadership are more likely to capture value from technology investments. This involves improving digital leadership proficiency, rethinking talent strategy, and fostering authentic partnerships with CIOs.
#2: Creating Reporting that Tells a Story and Compels Action
Despite the increasing analytics spending in finance, 54% of finance organisations still struggle to provide reliable data and reports.
From Gartner: "Finance metrics are useful only if they are easy to understand and helpful in decision making. As analytics become more advanced and complex, the insights they generate must be consumable in a low-effort way."
A CFO's priority in 2024 should be improving data visualisation and storytelling capabilities. By coaching financial planning and analysis teams to design dashboards with a storyboard, cut unnecessary details, and tailor visualisations to different stakeholder groups, CFOs can enable quicker decision-making and enhance the overall impact of financial reporting.
"At the end of the day, finance leaders must be proper storytellers. You have to be constantly on top of your data and tell the story behind the numbers." — Gerardo Adame
#3: Embracing Gen AI and Automations Now!
It's shocking, but the financial management solutions in many businesses are the same ones used forty years ago. Time has been called on Excel and many other manual processes that create considerable inefficiencies for finance teams.
The burden often falls to CFOs: one survey suggested that 81% of CFOs suffer from the most intensive daily manual work compared to any other role in the C-suite.
A CFPO priority for 2024 is to move on from manual and embrace smart automation and intelligent recommendations generated by AI or machine learning (ML) to reduce the time spent preparing forecasts.
Planning and forecasting, based on historical data, can significantly benefit from the acceleration and automation offered by AI.
Predictive forecasting and planning not only shorten cycles but also increase the accuracy of forecasts, providing smart guidance during times of high uncertainty.
As well as predictive forecasting, Jedox's enterprise performance management (EPM) and business intelligence (BI) solutions leverage AI I in the following ways:
- Intelligent Recommendations:
- AI and machine learning can provide intelligent recommendations for decision-making.
- This might include suggestions for budget adjustments, resource allocations, or other strategic decisions.
- Automation of Routine Tasks:
- AI can automate repetitive and time-consuming tasks, allowing finance teams to focus on more strategic activities.
- This includes automating data entry, report generation, and other routine financial processes.
- Data Analysis and Insights:
- AI algorithms can analyse large datasets quickly, extracting valuable insights and identifying anomalies.
- Natural Language Processing (NLP) capabilities enable users to interact with the system using natural language queries.
These benefits account for the fact that in one survey, 64% of CFOs said they were investing in AI tech now.
#4: Addressing Overlooked Drivers of Change Fatigue
While growth and evolution are good - and necessary - they come hand-in-hand with burn-out and cynicism unless managed effectively.
Change fatigue in employees is often driven by more than just the volume of change. CFOs should be aware of overlooked drivers such as exertion and disruption.
To mitigate the risk of change fatigue, a CFO priority for 2024 is to maintain an up-to-date awareness of change impact, involve employees in bottom-up action planning, and proactively plan transformation initiatives by assessing the level of effort, disruption, and the ability to minimise change.
The support of an external consultancy and strategic partner is one way to plan and execute change well - enabling teams' capacity to combine change with business-as-usual activities - and reducing change fatigue.
#5: ESG Reporting with Jedox
Exacting ESG reporting is a CFO priority for 2024.
As environmental, social, and governance (ESG) reporting requirements grow, CFOs must take action on climate and integrate sustainability into their business strategy. Delivering reliable ESG reporting is just the beginning. Nearly a third of CFOs are analysing how climate change scenarios could impact financial performance. (PwC Pulse Survey, 2023).
Using Jedox's reporting capabilities, CFOs can seamlessly navigate the complex transition to investor-grade reporting. Sustainable strategies comply with ESG requirements and deliver growth, viability for the future, return on investment, and a positive impact on the societies they serve.
Bottom Line: What's your CFO's priority in 2024?
Despite the above, it's no surprise that strategic cost reduction remains a key focus. Six in 10 (59%) CFOs say cost-cutting is a top priority for the finance function in the next 12 months - in 2022 this figure only 38% listed cost-cutting as a top-3 priority (PwC).
However, the role of the CFO in 2024 is evidently more complex and strategic than merely cost-cutting.
CFOs are also responsible for growth - in ever more challenging circumstances. The role, therefore, demands a strategic, often visionary, approach to navigating the uncertainties of the business landscape.
Financial planning software, particularly with Jedox capabilities, can be invaluable in achieving CFO priorities in 2024 when coupled with a consultancy that cares to make that transformational leap stick.
Insight Models can support CFO priorities in 2024 with software and expertise to help teams create compelling reports and embrace AI and automation.
We can audit your current financial planning processes, support your implementation of new software and deliver ongoing training to ensure your teams can use it to optimise the performance of your business and address change fatigue.
Get in touch with our team for a no-obligation discussion about your business priorities - and learn how we support CFOs to lead their organisations to sustainable success: info@insightmodels.co.uk