“In difficult times, CFOs tend to default to the guardian role of looking for a risk or area of uncertainty, and protecting their organizations from the downside,” said Bulman. “They are asking themselves, ‘What do I cut? Where should I pull back to reduce risk?’”
Guardian CFOs
Catalyst CFOs
Catalyst CFOs figured out which goods and services were critical in the new environment and adapted their offerings. They built strategic partnerships to reach and understand new markets. They diversified suppliers and improved logistics.
Guardian CFOs
Catalyst CFOs
Catalyst CFOs figured out which goods and services were critical in the new environment and adapted their offerings. They built strategic partnerships to reach and understand new markets. They diversified suppliers and improved logistics.
Four Key Habits of Catalyst CFOs
- Talk Differently About Themselves: Finance leaders should use language reflecting innovation, agility, and problem-solving capabilities. By consistently employing language that aligns with a catalyst identity, leaders can reinforce their roles as strategic drivers rather than mere custodians of financial control. Articulating a clear and aspirational vision can inspire teams to align with the new identity.
- Embrace Complexity: Finance teams should pivot towards complex and novel challenges that require human insight and creativity, especially as AI handles routine tasks. Organizations should shift their reward systems to value complexity and innovation over routine efficiency, thereby motivating teams to tackle ambiguous problems and focus on strategic, high-value work that drives growth.
- Deploy Business Tools, Not People: Instead of expanding human resources, finance leaders should focus on developing and deploying technological tools that empower business units to make informed decisions independently. Building scalable tools allows finance teams to address the growing complexity and volume of business decisions without proportionally increasing headcount.
- Focus on Products, Not Processes: Transitioning from a process-centric to a product-centric approach enables finance teams to better meet the dynamic needs of business leaders. Finance leaders should adopt a customer-centric approach, focusing on delivering tools and models that provide on-demand insights and solutions. Viewing finance functions as providers of strategic products rather than executors of processes helps break down silos and fosters innovation and collaboration across departments.
“Now is the moment for CFOs and their teams to embrace the identity of catalysts and lead their organizations on a long-term positive path,” said Bulman.
