What happens when CFOs start running the show
For decades, the Chief Financial Officer (CFO) was considered the stalwart steward of corporate stability — a vigilant guardian of balance sheets, risk mitigation, and compliance. But as the world accelerates toward 2035, driven by technological upheaval and macroeconomic complexity, the CFO is stepping into a new, pivotal role.
No longer just the steward, today’s CFO must transform into a strategic catalyst — a leader who drives innovation, sustainability, and long-term growth.
According to Finance 2035: Return to Investment, a recent report by OneStream, CFOs are now recognized as the linchpins of business success. The study, which surveyed over 2,000 global business leaders and investors, reveals that CFO competence ranks as the second most important factor influencing investment decisions, ahead of even CEO competence.
This is not just a shift in perception; it’s a redefinition of responsibility. But the road to strategic leadership is fraught with challenges — from outdated systems to growing demands for sustainability and digital transformation.
The growing importance of the CFO is underscored by a fundamental shift in expectations. Nearly two-thirds (65%) of business leaders believe the role will be significantly more important by 2035. Investors are even more bullish: 88% anticipate that CFOs will become critical to strategic decision-making. The emphasis is clear — today’s CFO must operate as a master strategist, capable of navigating macroeconomic volatility, fostering resilience, and unlocking growth opportunities.
Yet this expanding remit comes with mounting pressures. CFOs are expected to be “masters of everything,” balancing governance with growth, operational efficiency with strategic foresight. A staggering 70% of business leaders believe that CFOs must now understand every aspect of a business’s risks and opportunities. The days of finance being confined to the back office are over. The CFO’s seat is now firmly at the head of the table.
Central to this evolution is the adoption of advanced technologies. As the report highlights, 74% of CFOs believe artificial intelligence (AI) and automation will completely reshape the finance function by 2035. Unified data systems, enhanced by AI, are seen as the cornerstone of this transformation. These systems consolidate financial and operational data, providing CFOs with a single source of truth to make informed, real-time decisions.
However, this transformation is not without its barriers. Legacy systems and siloed data remain significant obstacles. Over 70% of CFOs identify outdated technologies as a critical hindrance, while 72% point to limited cross-functional collaboration. The message is clear: the path to strategic leadership requires breaking down silos, modernizing infrastructure, and embedding data-driven decision-making into the DNA of the organization.
For CFOs, this is more than a technological challenge; it is an opportunity. Organizations that invest in technology and skills now will not only survive but thrive. As the report warns, 70% of CEOs and CFOs believe businesses that fail to make these investments within the next five years risk becoming obsolete.
The rise of environmental, social, and governance (ESG) considerations has added another layer of complexity to the CFO’s role. Nearly three-quarters (73%) of investors now prioritize ESG credentials when making investment decisions. Moreover, 88% of investors are more likely to back organizations with a comprehensive net-zero strategy.
The CFO’s role in this transition cannot be overstated. Beyond traditional financial metrics, CFOs are increasingly expected to quantify and improve measures of corporate value that extend beyond profit. This includes decarbonization strategies, diversity initiatives, and other sustainability efforts. The stakes are high: failure to meet these expectations risks not only losing investor confidence but also falling behind in an increasingly competitive global market.
Despite the growing importance of ESG and long-term strategy, a disconnect remains between investor expectations and CFO priorities. Investors rank strategic vision, risk management, and technological competence as the most critical attributes of an effective CFO. By contrast, many CFOs remain focused on operational efficiency and cost management.
This misalignment presents a challenge — but also an opportunity. CFOs who can bridge this gap, aligning their focus with investor priorities, stand to gain significantly. The report reveals that organizations with strategic CFOs attract an average of 2.6% more initial investment, rising to 3.6% for large asset managers. These are not just numbers; they are a testament to the value of a forward-thinking finance leader.
The journey to 2035 also requires a rethinking of the finance function itself. As finance teams grapple with the twin challenges of a shrinking talent pool and a growing skills gap, the need for upskilling has never been more urgent. Many teams lack proficiency in modern financial tools and technologies, hindering their ability to implement and leverage the resources needed for transformation.
In this context, the CFO must not only be a strategist but also a talent developer. Building a dynamic workforce equipped with the skills to navigate a digital-first world is critical. It’s not just about recruiting new talent but about fostering cross-functional collaboration and empowering existing teams to embrace change.