With their evolving role, from traditionally reporting financials to now becoming strategic business partners, CFOs have embraced new priorities. According to Nandita Pai, Partner and CFO Program Leader at Deloitte India, these new priorities include value creation, talent management, technological advancements, resilience, climate sustainability, and cybersecurity. However, traditional priorities such as revenue growth and cost control remain important for them.
“The modern-day CFO’s role has undergone a significant transformation, evolving from merely reporting financials to actively collaborating as a strategic business partner alongside the CEO. This shift brings forth new expectations, primarily centered around value creation for various stakeholders, including the CEO, board, and shareholders,” Pai told ETCFO.
“Talent management and fostering a culture of innovation are imperative, especially amidst technological disruptions. CFOs need to grasp concepts like AI and digital transformation to drive operational efficiencies and navigate today’s uncertainties with resilience,” Pai emphasised.
“In addition to these, priorities such as climate sustainability, giving back to the community, and cyber enterprise security and risk occupy the forefront of the modern CFO’s agenda,” Pai said. “These factors continually challenge and engage modern CFOs, keeping them vigilant and proactive in their strategic approaches.”
CFOs are expected to partner with business units, providing strategic insights and suggestions to enhance efficiency and drive growth. This involves understanding business challenges and leveraging data and technology to make informed decisions.
CFOs are increasingly adopting technology to streamline processes. Technologies like robotic process automation and AI are being used in finance functions. Most CFOs recognise the importance of technology and are integrating it into their operations, although the extent of adoption can depend on the company’s size and resources.
However, the CFO program leader emphasised that traditional priorities such as revenue growth and cost control will always remain important for them. Highlighting insights from the Deloitte Asia-Pacific CFO survey conducted last year, Pai stated that 73 per cent of CFOs in India feel that driving revenue growth should be their first top priority, followed by a focus on cost control and productivity improvement.
Compliance
Pai highlighted that compliance is another major focus for CFOs due to regulatory requirements. Companies have dedicated compliance teams, and ” there is a suggestion that having a consolidated list of all compliances would be beneficial,” she said. The challenges in compliance include understanding regulations, data management, and timely reporting.
Optimism Amid Challenges
Pai said that despite global economic uncertainties, Indian CFOs exhibit remarkable confidence in the nation’s economic future. Referring to a survey she said that 94 per cent of Indian CFOs are optimistic, the highest across the Asia-Pacific region. Pai attributes this optimism to the resilience and proactive strategies adopted by Indian financial leaders. “CFOs are navigating through economic fluctuations, inflation, and elevated interest rates with a strategic focus on growth and sustainability,” she noted.
