Rosalind Evans
In a rapidly changing business environment, Chief Financial Officers (CFOs) often find themselves in the crosshairs of transformation. From digitization to strategic repositioning, finance is central to many corporate transformation efforts. Yet, despite their pivotal role, many CFOs face challenges in driving successful transformation. According to a study conducted by the EY organization in collaboration with the University of Oxford’s Saïd Business School, many CFOs overlook the profound human elements that underpin transformation success. So, what can CFOs do differently?
“Transformation during uncertain times is critical. Success is more likely if CFOs can focus on six specific yet complex human factors,” the research notes. These six factors emerge as powerful levers that CFOs can pull to enhance the odds of success in their transformational journeys.
The report highlights that while three-quarters of CFOs surveyed have encountered underperforming transformations in the past half-decade, nearly half believe their organizations lack the required capabilities for a successful transformation. Interestingly, almost 50% of finance staff see “transformation” as a mere synonym for cost and staff reductions. Such perceptions can result in heightened anxiety and uncertainty during challenging economic times.
These nuances are explored in depth in the recent edition of the CFO Imperative Series. The research underscores that successful transformation leaders are adept at managing workforce stress and that focusing on six key factors can boost the likelihood of success dramatically – from a mere 28% to an impressive 73%. These six transformative levers are:
1. Inspire: Cultivate a vision that resonates with everyone and elucidates a compelling “why.”
2. Lead: Foster an empathetic and genuine leadership style to rally the troops behind the financial vision.
3. Care: Establish a nurturing environment for team members who feel their roles are endangered.
4. Empower: Delegate decision-making rights and prioritize a culture of secure experimentation.
5. Build: Rapidly demonstrate how technology aligns with and advances the finance vision.
6. Collaborate: Champion collaboration and devise novel operational paradigms collectively.
“Our research shows that successful transformational leaders are more effective at managing the stress and pressure on the workforce,” the study emphasizes. CFOs have a monumental opportunity, and arguably a responsibility, to align their leadership style and strategy with these six factors.
In conclusion, transformation is not just about charts, numbers, or technological advancements. It’s inherently about people. Successful CFOs recognize this and prioritize the human element in their strategies. By weaving these six levers into their transformational tapestry, CFOs can drive success and foster a culture of innovation, collaboration, and resilience.
