Champion tech as core.

With technology becoming core to the enterprise—not just an enabler—CEOs recognize that collaboration between finance and tech is crucial to success. Leading CFOs say CTOs are their most important relationship, with 72% identifying them as highly important or critical. CFOs need to elevate the CTO/CIO’s expertise and respect in the boardroom by integrating evaluation, investment and planning, forming a powerful coalition that drives strategic growth.

With time of the essence, and detailed business cases too often yesterday’s “nice to have,” it is on CFOs to make sure that tech is at the table, providing invaluable context and knowledge. One telling trait of a leading CFO? They recognize that, when pursuing enterprise success, the most important relationships are technology related.

Make execution the yin to strategy’s yang.

CEOs are accelerating transformational change in 2024, with 77% maintaining or increasing their pace. With decision-making processes and performance management intertwined, CFOs are poised to be agents of change. To succeed, CFOs must balance precision and agility while navigating new factors influencing strategies, requiring a harmonious “dance” of strategic planning and execution. In fact, 36% more leading CFOs are able to respond with agility to changes in strategy than their peers.

The strategic direction of the enterprise can only be steered by thoughtful metrics to drive behaviors needed to achieve the organization’s objectives. CFOs have shifted from evaluating strategy performance using siloed views of financial and operational metrics toward a broader outlook that’s more suitable to their role as cross-organizational leaders.

Show me the ROI.

CEOs sacrifice long-term innovation for short-term gains, citing short-termism as their biggest hurdle. 57% of CFOs succumb to prioritizing short-term targets over long-term investments—often increasing technical debt, for example, by sacrificing long-term maintainability for short-term functionality. Opportunities in tech, sustainability, and emerging markets demand a departure from traditional investment strategies. With their strategic oversight and financial acumen, CFOs must guide investment decisions that balance short-, mid-, and long-term horizons.

While their peers sometimes get mired in short-termism, leading CFOs play the long game. They’re not sacrificing growth for short-term gains; instead, they strike a balance between efficiency and innovation. 30% more of these top-of-game CFOs hit that sweet spot, balancing both cost reduction/efficiencies and growth opportunities.

Determine your risk tolerance, then place your big bets.

CEOs are willing to take bold risks to stay ahead, with 62% increasing risk-taking to maintain their edge. CFOs need to use their influence and lean into risk, making strategic data-based decisions that align the organization’s risk appetite with its financial well-being. This brave move separates winners from wannabes, with only the most daring organizations reaping the rewards. To that point, 67% more leading CFOs continually scan for possible threats and opportunities than their peers. Given the rapid pace of technological innovation, inaction or overly cautious approaches may actually pose the greatest risk.

CFOs are heroes in embracing calculated risks as they make strategic choices, facilitating innovative ideas and aligning those risks to overall enterprise tolerance. This requires incessant calibration, replacing static strategies with dynamic initiatives that flex according to real-time data and changing circumstances.

Make data your AI’s oxygen.

AI’s potential in finance is largely untapped, despite demonstrated benefits: only 34% of finance operations are operating or optimizing traditional AI. AI depends on clean, timely, and secure data. To safely adopt AI in all its forms, CFOs must create a strong foundation of simplified data access, integration, and evaluation. This requires coordinated advancement of data management practices and financial system modernization, boosting the effectiveness of finance teams.

How? Establishing a data ecosystem builds a solid foundation for AI, an effort that must create easier access, integration, and evaluation of data. Of course, strong relationships between CFOs and tech leaders help accelerate a robust, accessible data environment. Leading CFOs set a winning pace by using data management practices for product/service master data 77% more than their peers. More of these leaders have appointed enterprise data owners and use enterprise data standards than their peers.

Ignite your talent revolution.

Finance is experiencing a shortage of skills at the crucial intersection of technology and domain knowledge. This is the key ingredient to unlocking the value of AI. To put technology at the core of business, CFOs must evolve finance skills and mindsets, empowering teams to contribute strategically to the broader organization. CFOs must foster open communication, value employee input, and invest in data-driven skills. Leading CFOs set the pace here by implementing employee training on data understanding and usage 63% more than their peers. Integrating business partnering with insightful decision-making creates a potent pairing to help organizations pivot as priorities change.

CEOs acknowledge the crucial role of people in driving successful technology adoption, with 64% saying that succeeding with AI will depend more on people’s adoption than the technology itself. For CFOs, this entails empowering staff to contribute strategically beyond their financial duties. Their tech adoption and engagement are essential to the CFO’s ability to execute their strategic imperatives.