For CFOs and finance teams, the shifts brought forth during a tumultuous 2020 have set the course for a challenging 2021. Already grappling with regulatory, market and technological changes, CFO offices face mounting pressure to control costs, drive value to the business, and support scalable growth. On top of that, they must cope with the global COVID-19 pandemic and the likelihood of tax policy and regulatory changes under a new U.S. administration.
Six Areas of Opportunity that are Critical for CFOs and Finance Teams
Nonetheless, opportunities abound for CFOs who continue to examine their operating models, organizational structures and processes, aligning them with their technology roadmap. Furthermore, as detailed in this report, DHG has identified and examined these six areas of opportunity: Business Resiliency, Operating Model and Location Strategy, Strategic Decisioning and Predictive Analytics, Digital Transformation, Operational Excellence and Talent Strategy.
How to Move Forward: Questions for CFOs in 2021
CFOs and their teams should contemplate these questions as they look to the future:
- Is your finance operating model flexible enough to adjust to a rapidly changing business environment – business regulation, tax, trade policies and other future disruptions?
- Are you able to meet/exceed the expectations of the business for insights and opportunities to drive strategic performance?
- Does your organization have a strategy and defined process for identifying and evaluating operational excellence opportunities?
- Do you fully understand the work that the finance team is performing today, and is it aligned to your business strategy?
- Have you benchmarked your finance processes and costs against best practices to identify opportunities for improvement?
- Have you defined your CFO future-state digital strategy, identified existing gaps, and is it aligned to your business and enterprise strategies?
- Have you assessed your finance talent holistically, identified current and future skill gaps, and a path to close those gaps?
During the next 12 to 18 months, CFOs and their teams must embrace the permanent changes brought forth by the pandemic and outline long-term strategies to weather the crisis, never losing sight of the crucial relationship among people, processes and technology.
DHG’s CFO & Business Advisory practice supports the growing expectations for the office of the CFO, partnering with clients to offer innovative solutions to their business needs. We stand ready to help CFOs and their teams build their finance organization of the future—helping them solve the most complex business problems and create technology-enabled solutions to power their organizations forward. Learn more by reaching out to us at email@example.com.