Leaders chart the path forward in post-pandemic recovery
The Evolving Role of the CFO in a Post-Pandemic World
The COVID-19 pandemic thrust unprecedented changes upon small business leaders, forcing them to adapt amid massive disruption across operations, finance, and administration. In this tumultuous environment, the CFO emerged as a critical leader, driving business strategy and overall leadership in the post-pandemic landscape.
Implementing Effective Strategy
As businesses grapple with new ways of operating, the CFO is central to defining strategy and identifying the necessary catalysts for a post-pandemic rebound. Of the four key roles associated with the CFO—operator, steward, strategist, and catalyst—the latter two gained significant prominence during the crisis. The CFO is uniquely positioned to devise recovery strategies and harness technology and talent to guide a company through its rebound.
Getting the right people in the right positions to excel is not new for CFOs, but their ability to strategize, leverage technology, and manage talent is now even more paramount. As Martin Naraschewski, a Global Finance Leader at SAP, notes, CFOs, as owners of significant data and information, can analyze past results to chart future paths. “See the patterns behind and pull learnings from that. Information is even more important now for the company than it was already before. The CFO is the person to drive this insight,” says Naraschewski.
Watch High Costs of Legacy Systems
During a crisis, the costs of running legacy systems skyrocket. Maintenance expenses, a lack of flexibility, and inadequate decision support become a heavy financial drain. These costs escalate even further during a recovery due to a scarcity of real-time insight. According to Naraschewski, in a recovery “we are in a situation where real time insight into liquidity and cash has become extremely important. Here, the system environment is creating a lot of indirect costs by not providing business information and solutions.” While profitability may be relatively stable in normal times, a crisis demands real-time awareness of liquidity and cash.
Investment in Technology
The rise of virtual environments and remote functionality offers a significant advantage for companies seeking to make tech investments during the economic rebound. In an era where nearly all work is virtualized, the time required to build platforms and establish flexible financial enterprises can be realized much more efficiently within an organization.
Financial Transformation
The rise of automation has led many businesses to experience significant cost savings. Furthermore, operating a business in a more virtual manner provides greater real-time access to information. Automation can also free up talent, allowing skilled individuals to focus on higher-value activities rather than day-to-day administrative tasks.
Finance teams must remain flexible and maintain the right technology to support supply chain issues, especially given increased customer awareness. Maintaining integrated solutions in the cloud also enhances team flexibility, enabling a more ‘location-independent’ workforce that can access information, leading to greater agility and ‘end-to-end’ process visibility and execution. The pandemic highlighted numerous digital shortcomings across various sectors. With persistent CFO leadership driving digitalization and data, the rest of the business will continue to grow.
Focus on Leadership
Ultimately, vigorous and focused leadership will determine success in navigating these challenges. Whether it’s technological advancement, transformative actions, cost savings, or risk management, effective leaders maintain a shared vision and focus within their communities, fostering strong connections with their customers and clients to promote advancement or the necessary navigation to weather any crisis.
