Tackling hard truths in the generative AI era
The generative AI era has arrived, and it's a make-or-break moment for CFOs. Finance leaders must be both guardians of stability and agents of change, working hand-in-glove with CIOs, CTOs, and other IT leaders to supercharge technology as the transformative force in their organization.
As part of our global C-suite series, the 2024 CFO Study from the IBM Institute for Business Value reveals that leading CFOs are already making powerful moves to drive innovation and prepare for the future. But what sets these leaders apart, and how can other CFOs follow their lead?
Our report explores six power moves that CFOs must make to succeed in this era.
Here’s a preview of the first two moves:
Power move #1: Champion tech as core
When organizations treat technology as an enabler, they risk missing out on new opportunities and falling behind the competition. By recognizing technology as the transformative force at the core of innovation, organizations can seize first-mover advantages, define markets, and gain economies of scale.
To champion tech as core, CFOs should proactively advocate for tech leaders' expertise in the boardroom, integrating evaluation, investment, and planning to ensure that technology initiatives align with the company's overall strategy. By doing so, CFOs can form a powerful coalition with CTOs, CISOs, and other tech leaders to drive growth.
This requires a shift in mindset, from evaluating tech investments solely on financial returns to considering the broader operational, customer, and financial impacts. By taking this holistic approach, CFOs can harness the potential of technology, inform strategy, and capture value, ultimately driving innovation and competitiveness.
Power move #2: Make execution the yin to strategy's yang
As CEOs accelerate transformational objectives, CFOs must balance precision and agility while navigating a variety of new factors that influence operations.
That’s easier said than done, and will require CFOs to adopt a more agile and adaptive approach to strategy execution. This means partnering across business units to translate high-level goals into financial targets and metrics while enforcing financial discipline by monitoring performance against objectives and benchmarks.
By promoting a culture of accountability and empowering leaders to take ownership of their decisions and outcomes, CFOs can drive business evolution and ensure that execution is a reality, not just a promise.
Start making moves
Read the 2024 CFO Study to learn more about the six power moves that CFOs must make in the generative AI era. The report also contains the findings of our survey of 2,000 CFOs and case studies about how finance leaders are driving transformation across industries.
Also, subscribe now to receive complimentary reports from the IBM Institute for Business Value that will help you drive business growth, innovation, and success.
