A CFO's strategic insight into evolving trends

Approaching 2024, CFOs find themselves at the intersection of geopolitical shifts and evolving economic landscapes. What remains is the evolutionary nature of these changes, but it is still underscoring the need for CFOs to anchor themselves in core financial processes and fundamentals.

Reflecting on the trends of the past year, digitalisation remains a cornerstone, guiding CFOs to embrace change, prioritise cost efficiency, and stay attuned to the ever-changing technological landscape.

Equally, the role of the CFO is evolving in its leadership style along with the trends set to shape the next calendar year.

Navigating financial instability

Ongoing discussions of inflation and budget cuts echo across global organizations, urging CFOs to re-emphasise fundamental financial practices.

The next financial year anticipates a strategic focus on robust cost management, cash flow optimisation, and liquidity planning. The call is for a proactive financial strategy, urging CFOs to re-anchor within these core principles amidst the wavering economic climate.

Digitalisation: Simplifying and pivoting towards agility

Digitalisation will persist as a key theme in 2024, with more organisations anticipated to shift towards user-friendly, intuitive applications, upgrading from the overcomplicated enterprise software previously available.

This strategic pivot aligns seamlessly with economic dynamics, placing a renewed emphasis on simplicity and optimising resource planning.

New technologies are focusing on simplifying user experiences, enabling even non-specialist managers to utilise applications for decision-making purposes. As we anticipate these changes, CFOs should be proactive about scoping out new digital tools and continuously monitor how they adapt within their unique business environment.

Revolutionising reporting

Another notable trend we’re set to witness is a shift in reporting practices. Conventional monthly reports will give way to more specified and timely insights.

Technology, especially AI and automation, will streamline this process, providing CFOs – and soon also non-finance Managers – with the tools to generate specific insights based on automated intelligence.

This shift empowers us to swiftly respond to any financial concerns in real-time, ensuring a more agile and informed decision-making process.

Balancing automation and human intuition

The growth of AI and automation will require a delicate balance in finance—harmonising data-driven outputs with human intuition. x

CFOs should foster a collaborative approach in pivotal investment decisions, where technology becomes an enabler rather than a standalone solution. 

Despite economic uncertainties, people management will also remain a cornerstone trend in 2024. CFOs should focus on enhancing their leadership skills and creating environments that motivate employees to upskill and grow.

Often when a new year begins, and new financial strategies are set, employees may feel they are operating in a reactive ‘survival mode’ to a proactive ‘driving mode’.

CFOs are responsible for signalling that change is an opportunity for evolutionary growth and motivating their teams to thrive and adapt to new challenges.

Orchestrating optimal business outcomes

As well as demonstrating strong leadership skills, CFOs are set to evolve into integrators, establishing connections between departments for optimal business outcomes. Encouraging cross-departmental collaboration takes precedence, especially in a defensively inclined economic climate.

The CFO can be a powerful changemaker by not only deciding where to allocate investments and make cutbacks but also by building relationships and connections across the entire organisation.

In essence, 2024 emerges as a nuanced landscape, urging CFOs to navigate anticipated trends with a continuous improvement mindset.

The role of the CFO will continue to evolve beyond simply managing finances and cost-cutting measures. They now play a pivotal role in steering organisations towards embracing new strategies that drive growth and operational efficiency.

To make informed investment decisions, CFOs must stay attuned to technological advancements, consider process fit, and foster cross-department collaboration. As CFOs navigate the challenges and opportunities of 2024, their strategic insights will be instrumental in shaping the financial landscapes of the future.

Christoph Ott is the Chief Financial Officer at dizmo and project sponsor of Planisy, a recently launched application that signals the next wave in multi-resource planning technology – a drastic reinvention of how resources are planned, assigned, and scheduled for SMBs. Planisy is powered by dizmo (the interface of things).

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