It’s only a fortnight into 2023, but it’s already time for the modern CFOs and finance leaders to have a plan of action for navigating the changing landscape of finance and business operations as we know it (rounding off a tumultuous 2022 with global supply chain issues, skyrocketing inflation, a global war, an impending economic recession, and attrition as we’ve never seen before). With AOPs and KPIs being finalised for the upcoming year, I thought it would be a good idea to speak to a few industry veterans to understand their professional resolutions for 2023 – so that we can all benefit from some collective wisdom.
What is the big deal with ‘Modern CFO Resolutions’ you ask?
Well, it’s a peek into how the best minds in finance operate, managing their personal learning and development goals with their focus on scaling and managing their company’s finance and business operations. CFO resolutions affect not just themselves, but their whole finance function, while also setting the course for the company’s performance in the upcoming year!
I have summarised some of my conversations with senior leaders and modern CFOs about how they’re turning trying times into opportunities for growth. Let’s look at some of their leadership resolutions, and their finance transformation goals for 2023!
Get control over your cash flows
Mahesh Iyer, the group CFO at Stellar Value Chain, one of India’s leading providers of comprehensive supply chain innovation and management has a broad leadership experience spanning more than 25 years. He had a lot of insights to share with me, and to paraphrase him, “Gaining control of your organization’s cash flow is extremely crucial. I would urge CFOs and finance leaders to utilize modern financial management tools to forecast project-based cash flows and focus on having your team periodically review EBITDA associated metrics. It goes without saying that, as finance leaders, we must try to devise a means to eliminate manual data collection process as much as possible. Automating cash flow management has tail winds of increasing business agility and process efficiency. So a good resolution for 2023 would be to automate tasks and make more informed decisions with the help of technology.”
Improve transparency in financial reporting by strengthening risk and compliance management
“The financial statements are the true mirror of the organization’s performance and ultimately the buck stops at the CFO to show the stakeholders a true picture through it. This year one of my ‘resolutions’ so to speak, will be to continue to ensure transparency in the reporting process and strengthen the periodic books closure and compliance process” says Vaibhav Joshi, an IIM Alumni and veteran Chartered Accountant who is currently the CFO at NephroPlus, spearheading the global finance team of India’s largest dialysis service provider.
With over a decade of finance leadership experience, he adds, “The focus should be on urgency to create and nurture best practices around compliance and reporting throughout the organisation. This will generate efficient and accurate information—not just to improve transparency and compliance, but to drive change. By improving the quality of information out there, companies will empower stakeholders, including investors; the latter will reward companies that are delivering for society and managing environmental, social and governance (ESG) risks.”
Develop your team’s talent and leadership skills through continuous learning and development
“In 2022, I consciously made the effort to take time out for my personal L&D goals,” says industry veteran Ravindran Jadarayalu, who currently heads the India Finance operations of Wittur Elevator Components.
“In 2023, I look forward to encouraging my team’s growth and success by investing in continuous learning and development opportunities. From training programs to coaching and mentorship, there are many ways to support your team’s professional development. Not only will this help your employees grow and succeed in their roles, it will also foster a culture of growth and development within your organization. I have found that these initiatives help with employee retention while improving the efficiency of your finance teams.”
Increase FP&A (Financial Analysis and Planning) capabilities internally to promote growth and develop stronger connections with key stakeholders
Herat Raval, finance controller of Checkmarx (a leader in application security testing), with over 15 years of leading finance operations, says, “From forecasting and resource allocation to risk management and performance measurement, FP&A keeps the wheels turning and helps businesses reach their goals. Without it, a company might as well be driving with its eyes closed.
Juxtaposed with building a strong FP&A practice within companies, is setting up the foundation for exponential growth for the organisation. A solid foundation to getting there is by ensuring all stakeholders are aligned with the organisation’s vision, the plan for getting there, and the KPIs and metrics to be tracked. This is where the interplay between FP&A and managing stakeholders becomes all the more vital”.
We concur, Herat! It is truly important to drill down the business KPIs and ensure all functions are working towards the broader vision of the company. Business finance teams are the ‘north star’ of the company, constantly checking metrics to ensure companies are on track to achieve their goals for the year!
Drive financial sustainability and responsibility
Anshul Goyal, the Finance Controller of Dubai World Trade Centre, has an enviable experience of more than 20 years as a savvy finance professional. When I asked him about his 2023 resolution, he said, “Aligning every employee with the broader organisation vision remains a priority for me in this year. Fostering a culture of financial responsibility and accountability is essential, which can be achieved by setting clear financial goals and expectations, and regularly reviewing progress towards these goals. Finally, seeking out partnerships and collaborations with other organizations or businesses that share a commitment to financial sustainability can help to further drive financial responsibility and sustainability efforts.”
Invest in technology and digital transformation
The CFO is the true champion of digital transformation. Currently, a CFO’s top priority of the year should be to ensure our technological capabilities when it comes to finance operations are at their optimum peak. At the ground level, digitalisation is what sustains the soaring growth of an organisation. They should be smart about leveraging AI and automation technologies to increase operational efficiency significantly.
The selection of the right finance automation tools and ensuring the right customisations to suit your company’s business model is what all finance leaders should keep in mind. Embracing smart digitalization is the need of the hour.
Well, so we have it – some of key 2023 resolutions of some of the most enterprising finance leaders I know. But what about you? What resolution did you make this year? Let me know in the comments below!
Are you looking to champion L&D initiatives for your employees? Still seeking an efficient and accurate way to prepare the impending year end and deal with audit closure? Confused on which ERP is the best suited for you?
Well, look no further!
At Contetra we work with CFOs and senior finance leaders across the world by helping them get the competitive advantage they need – whether it’s creating financial statements that make more sense for a global world or finance transformation initiatives that drives businesses to new heights.
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The blog and interviews are usefull. But now are the times when organizations are cutting down on opex budgets. So the high talk about L&D remains only on paper. I am yet to see any organization do meaningful spending on employee education in current times, nor is there any visibility for the same in near future.
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Dear contetra.com administrator, Thanks for the informative post!
To the contetra.com admin, Thanks for the informative and well-written post!