CFOs are Focusing More on Driving Digital Change, Says Study

CFOs are Focusing More on Driving Digital Change_ Says Study (1)

A new study from TCS says nearly 60% of CFOs believe they are responsible for bringing digital change

The TCS 2020 CFO Study says that 58% of CFOs believe they play a significant role in driving digital change. Meanwhile, half of them admit their company’s execution of change management is lagging.

The report based on a survey of 500 CFOs also said that they find workforce evolution a pressing challenge. The majority of respondents said that CFOs would play crucial leadership roles beyond finance and investment decisions within five years.

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Today, finance leaders are struggling in terms of recalibrating the workforce for digitization. CFOs need to focus more on whether a specific tool is used to its full potential and train the workforce to accept it before embedding that technology.

As per the report, many CFOs fail to focus on skills development in the digital arena, which could result in their workforce transformation efforts to fall short. Close to half of them believe empowering teams with new digital leadership approaches would most effectively change employee behavior. About 40% of CFOs cited the introduction of performance metrics and key performance indicators (KPIs) as vital tools.

The role of the CFO has radically changed over time, certainly in the past 20 years. While he is responsible for controlling the purse strings of an enterprise, he is also a catalyst for change and innovation. And today, most of them view themselves as responsible for digital transformation. Moreover, they believe they are accountable for delivering the synergy benefits via essential mergers and acquisitions, along with the profitability of new innovative products and service offerings.

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The report stated that CFOs are responsible for driving the change and helping their teammates get on board.  Along with being on the owner or sponsor side of digital transformation, they also need to own the people side of things. The main reason for failure in any transformation effort is the lack of prioritizing change management.

Traditionally, companies have been more focused on driving people to achieve projected numbers. However, the future is more about getting executives and team members to own the numbers achieve their annual plans, and improve yearly.