The skills required for a CFO to meet today’s FP&A demands continue to expand. CFOs are more active in the decision-making processes of the business, must leverage cost-efficient technology both within the finance function and beyond and using data in the decision-making process. Because of this, finance leaders are looking at improving their FP&A skills and talent to help further the business.
In the most recent PwC Pulse Survey, this transformation continues to be evident. More than half of the CFOs they surveyed (58%) said they’ve increased their FP&A focus since last year.
FP&A and technology
Alongside a strong focus on FP&A, there’s an equal amount of focus on business performance management and digital transformations. Nearly half (44%) of CFOs said increasing the use of technology to reduce costs — without being specific on what types of costs — is very important to them over the next year.
Surveyors suggest leveraging AI for “better predictive forecasting and complex scenario planning.” However, the details — the type of AI provider to use, the cost-benefit associated with AI or the cybersecurity implications of the technology — are still unclear.
Generally, CFOs were confident about technology without being specific about AI’s role within it. Less than a third said achieving measurable value from new technology is a significant challenge. This challenge, although it can come from the technology implementation process or tool itself, can also stem from challenges around data quality — something CFOs are familiar with.
CFO spend targets
When asked about where they intend to allocate dollars over the next 12 months, CFOs were pretty split. More than half (56%) said improving the margin — the only individual choice selected by the majority. Other areas were increased use of technology with the goal of reducing costs (44%), optimizing supply chain (39%), C-suite collaboration (37%) and portfolio adjustments (29%).
Surveyors highlighted the importance of C-suite collaboration, noting that CFOs who share long-term financial outlook with their fellow leaders like the CEO or chief marketing officer can help collaborate on technology improvements across the business.
Talent prioritization
A majority of CFOs (52%) continue to prioritize talent across the organization. While surveyors aren’t specific about the skills that are valuable other than deeming them as “necessary skills,” they also suggest these challenges can further be addressed by collaboration between finance chiefs and their fellow executives.
A third (33%) of CFOs said expanding their influence across the C-suite is a high priority. Surveyors mention that CFOs can act as a bridge between the CEO and tax leaders within the organization, creating an environment of collaboration between the CEO, CFO and tax that can help “understand the importance of tax considerations in their decisions and the company’s strategy.
The PwC Pulse Survey was fielded from May 15 to May 22, 2024. It surveyed 673 executives and board members from Fortune 1000 and private companies about the current business environment, the risks executives are facing and their company’s strategic plans and priorities. Of the respondent pool, 84 were CFOs.