How do CFOs leverage technology for business growth

C-suite

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Wondering how a CFO leverages technology for business growth?

Technology’s transformation of the CFO role
Essential technology skills for today’s CFO
Staying ahead of the technology curve
Navigating technology implementations and risk

When it comes to leveraging technology for business growth, new research shows that CFOs are taking a more assertive role in these decisions.

Research covering Australia & New Zealand from software solutions firm Rimini Street has shown that CFOs are often the ones guiding underlying technology decisions in 2024.

Despite being a responsibility traditionally held by company CIOs, this latest research reveals that up to 70% of technology decisions now involve CFOs. Furthermore, 60% of CFOs say they are the ones responsible for underlying technology decisions to achieve business results, signalling a shift in how decisions are made.

In an era where technology intertwines with every facet of our professional and personal lives, the financial landscape stands out as a domain deeply influenced by technological advancements. So, exactly how essential is technological proficiency for a CFO? And, how much has technology changed the CFO role?

These are the questions at the centre of Robert Half’s latest session of the Aspiring CFO Series. This fifth session explored insights from Sheila Lines, CFO at Nick Scali, and Jaco Jonker, CFO of hipages Group Limited. Both shared invaluable wisdom about navigating the intersection of finance and technology throughout their illustrious careers.

Both professionals boast extensive experience in finance and leadership roles, with Sheila and Jaco both beginning their careers at Deloitte. Beginning in accounting after graduating with top honours, Sheila assumed various executive positions including CFO roles with companies including oOh!, Cabcharge Australia and BPay.

Commencing his career in audit, Jaco brings over 20 years of senior finance and executive experience across Australia, South Africa, the USA and the UK. Jaco was the CFO and COO at Open Colleges Australia, where he was instrumental in successfully selling the business to Australian private equity owners. Before this, he led the highly successful South African e-commerce platform and online marketplace, bidorbuy.

Together with John O’Leary, Director at Robert Half, these subject matter experts deliver a not to be missed conversation, providing firsthand insights into technology in the finance workplace.

In the digital age, leveraging technology for business growth isn’t optional, it’s essential.

While it is considered a critical component of modern business, the panellists shared differing opinions about its overall impact on the CFO role.

From a recruitment standpoint, John stressed that “there's seldom mention of specific technology in CFO recruitment ads unless the company is data-centric.”

John explained, “In my experience, the focus of data-centric companies would shift towards data management and security. Generally speaking, for all other CFO roles, the emphasis is likely to be on a CFO’s past experiences with technology-related challenges and solutions, as opposed to their specific software proficiency.”

When asked ‘Has technology changed the role of CFO?’, Sheila and Jaco expressed differing opinions. Sheila believes that technology hasn't fundamentally changed the role of the CFO. However, she emphasised the need for CFOs to stay abreast of technological advancements and their relevance to specific business models.

“I suggest working closely with the CIO to gain a deeper understanding of the company's technological direction. As the CFO, you are the business owner of finance systems. The buck stops with you. You can lead the charge in ensuring organisational buy-in throughout the design, implementation, and usage phases of new technology,” says Sheila.

“While I don’t see technological proficiency as a general requirement for the CFO role, I believe it’s important to exercise curiosity and awareness when it comes to technology in your business. This will help the IT function add value and implement business process change effectively, which will have positive, long-lasting effects on the finance team and wider business.”

Contrastingly, Jaco believes that technology has significantly changed the role of the CFO, particularly in relation to data. He says, “The abundance of data now available to CFOs is unprecedented. The ability to access information in various dashboards, reports, analytics, and forecasting tools has enabled us to make better, quicker, and more informed decisions. It also allows for a much better view of the major metrics of a business.”

With great data power comes great responsibility. While Jaco acknowledges that technology and data help him to keep a pulse on his business functions, he recognises the challenge that lies in data interpretation. He says, “We have a wealth of information at our fingertips. As CFO, it’s important not to get lost in the details – focus solely on strategic data analysis.”

“As a CFO, one of your key areas is risk management. You must keep a pulse on business risk to understand where the business is going. Always be strategic – know how to change metrics to create a view of where the business is going, and then change direction needed,” he says.

The panellists shared some valuable tips about the fundamental skills required for aspiring CFOs.

Sheila emphasised, “When you're in the CFO role, you rarely work directly with actual systems - these tasks are usually handled by Financial Controllers (FC) and other accountants. The advantage of growing into the CFO position is that you already have a solid understanding of how your team utilises technology.”

“In my opinion, once you reach the CFO level, you only need PowerPoint and Excel skills. I can’t stress enough how important it is to master PowerPoint to create visually appealing presentations that reflect well on you. If you're going to invest time in learning a specific skill, prioritise PowerPoint,” she says.

Jaco agreed, citing the importance of Excel proficiency for CFOs. “I firmly believe that Excel remains the most essential tech skill for modern CFOs – it is crucial for career advancement. Expect to fall behind if you choose to rely on outdated tools. If you’re an aspiring CFO, I would also stress the growing importance of dashboarding tools like Domo, Tableau, and Power BI. These applications enable CFOs to make more strategic decisions based on real-time financial insights.”

However, Jaco believes that as a specialist, ever-changing area, technology isn’t widely understood by many executives. “Overall, I don't believe that there is a vast understanding of technology, its impacts, and the associated risks,” he says.

“In my experience, understanding of technology for a wider executive team has been fairly average. However, I don’t believe that CFOs necessarily need a deep understanding of specific automation technologies in finance. Even at hipages, when considering system improvements, the focus is first on identifying the need, opportunities, and realistic areas for change. Then, we explore existing solutions and their capabilities.”

“Leveraging technology for business growth is impossible without a sound awareness of new and emerging technology,” John said.

“I shared a recent conversation with a Finance Director who was unaware of common platforms like Power BI. This floored me - it highlighted a knowledge gap among finance professionals about available tools that could benefit their organisations.”

Acknowledging John’s opinion, both CFOs emphasised the importance of collaboration with other executives like CIOs and CTOs. Jaco says, “It’s a collaborative process – the CFO must clearly understand the potential outcomes of technology implementation. It's not just about the immediate cost, but also the future implications of upgrading and adapting to new technologies.”

Sheila agreed, highlighting that CFOs don’t need to be experts in technology tools and the current landscape. She says, “It's not a productive use of their time as the field is constantly evolving.”

“In my experience, most FC’s will experience an Enterprise Resource Planning (ERP) conversion at some point in their career. When this time comes, it’s pivotal to seek guidance from someone with experience, such as a CTO or CIO, to navigate the process and avoid common pitfalls. This will help to ensure you are strategically leveraging technology for business growth,” says Sheila.

When it comes to strategic planning, Jaco and John stress the importance of understanding technology use cases and aligning them with strategic objectives. Jaco says, “CFOs can identify opportunities for improvement by actively seeking out and understanding potential pitfalls, scope creep, and setting realistic expectations. Be sure to create a benchmark and a base case before implementing any process, carefully weighing the potential benefits against the costs. Thorough research is critical - understand what technologies can deliver the desired outcomes and build business cases for each vendor.”

John says, “In my experience, many finance professionals' tech knowledge is limited to what they've personally used. I encourage all CFOs to actively research all available tools, rather than relying solely on past experiences.”

John cautions all CFOs (and aspiring CFOs) to remember, “You are competing with the next generation of CFOs – those who are AI-minded and tech-savvy.”

With this in mind, staying ahead of the technology curve is pivotal.

Jaco says, “While technological change is rapid, the process of implementing new technologies is rarely quick or seamless. Vendors often present an idealised picture, and the reality often involves unforeseen complications. Whether you’re adapting new tech or migrating from existing systems, it’s important to apply due diligence and realism.”

To effectively keep up with evolving technology, Jaco encourages all CFOs to:

Go through a meticulous review process with each vendor before making any decisions. This ensures that CFOs comprehend the potential challenges and benefits, enabling them to make informed choices that align with their company's goals and resources.

Acknowledge FCs as the “gateway for innovation within the finance team.” A qualified FC will harness the skillset and intellect to identify opportunities, grasp new concepts, embrace innovation, and implement solutions.

Foster an environment that promotes continuous learning at all levels of the business. CFOs should create a workplace where team members feel empowered to contribute ideas and drive process improvement while exposing finance teams to new technologies and opportunities.

Exercise a willingness to learn. Jaco says, “A CFO doesn’t need to understand every technical detail, but by building strong relationships with your IT professionals and engaging in open communication, you can solve problems and collaborate effectively.”

Attend industry conferences. Jaco reflected on “attending IT standups as a CFO. This demonstrated my commitment to learning - these events were crucial to expanding my knowledge about Scrum methodologies and ticket estimation.”

Being uniquely positioned to influence IT decisions, CFOs face a range of challenges and complexities around technology implementations.

The panellists spoke at length about the example of ERP conversions. Serving as the backbone of entire businesses, these software systems help to support automation and processes in finance, human resources, supply chain, manufacturing, services, and more.

With so much at stake, Sheila encourages CFOs without firsthand ERP experience not to be complacent. She says, “These implementations are highly complex and not without challenges. I suggest that you become familiar with common problems like inadequate data cleansing in the old system while prioritising change management and user training.”

“Commit to leveraging this technology for business growth - identify champions within the business who understand the system changes and can provide on-the-ground support during the transition. Leverage their technological expertise – when you’re interacting with them be sure to practice active listening, understanding, and critical thinking. Acknowledge that your primary role is a CFO, not a technologist. Spending excessive time attempting to be the CIO could detract from your ability to excel as a CFO,” says Sheila.

Jaco also believes in building solid relationships with tech teams to navigate implementations and risks. He says, “A CFO must have a strong understanding of the technology team and its functions. During my time at Retrim Holdings, I worked closely with the head of technology to implement a new ERP. Despite having to learn on the job, I gained invaluable insights into the potential impact of ERP implementations, drawing attention to the critical nature of understanding technology's role in the business.”

The panel emphasised that a CFO plays a crucial role in ensuring successful ERP conversions, primarily by leading the development of the business case. Sheila says, “During these periods, the team looks to the CFO to assess the business impact and make informed decisions. I can’t overstate how important thorough planning, process documentation, and change management are during this time. Due diligence is vital - thoroughly understand all requirements and potential changes before implementing any new system.”

Jaco emphasised that another crucial role for any CFO, is managing technology risk, especially cyber risk. With businesses facing ongoing cyber threats, Jaco says technology awareness is critical in the digital age.

“As a CFO, you must be aware of, and understand, the implications of cybersecurity, given the significant amount of data businesses store. You must work with other executive leaders to foster a culture of cybersecurity awareness and promote a learning environment within the organisation. Protecting the business starts with cybersecurity education – this applies to every employee, including senior leaders,” he says.

Sheila couldn’t agree more, stressing that “The biggest risk to businesses today stems from employee cyber risks, such as clicking on phishing emails. It’s this behavioural aspect of cybersecurity that CFOs need to address together with HR and executive leadership.”

Both Jaco and Sheila shared valuable strategies around risk mitigation and response planning for CFOs.

Jaco says:

“In my opinion, there is great value in engaging skilled professionals who you can work closely with to manage cybersecurity risks effectively. This includes implementing data retention policies, security measures, and ensuring the organisation is trained and aware of potential consequences.”

“Build a strong relationship with your FC. In an ideal world, the CFO would have a close relationship with the FC, ensuring they are involved in audit committee meetings, policy creation, and discussions about risk management. While the FC might not take ownership of risk management, they should be well-informed about its significance and impact, as it's a company-wide responsibility.”

“Focus on knowledge-sharing with your FC, as a way of succession planning. This will empower them to step up if needed – especially if they understand the daily operations and risks associated with the business.”

Sheila says:

“Ignore the allure of new tools - balance enthusiasm with a pragmatic understanding of the challenges involved in adopting new technologies.”

“Develop the skill of asking ‘uncovering’ questions. These questions help to minimise surprises – they delve into the core business issues, the challenges, potential positive impacts, risks and the definition of a successful implementation.”

“Don’t discount the importance of due diligence! I’ve seen many businesses fail to conduct thorough research before adopting new technologies, or who fail to research vendors before engaging them. These oversights have consequences - projects remain unfinished, budgets blow out, and vendors fail to deliver on expectations.”

“My mantra is ‘slow and plan, plan, plan.’ Be thorough in everything you do because once you’ve integrated a new technology into your workplace, it’s very difficult to remove it.”

Leveraging technology for business growth is considered an inevitable strategy in 2024 and beyond.

As the latest session of Robert Half’s Aspiring CFO Series showed, technology has changed the role of CFO to varying degrees. While it may not be entirely realistic for a CFO to assume the role of a technology expert. However, when it comes to evolving a business through technology, CFOs have an important role to play. As Sheila expressed, “True transformation only occurs when frontline staff actively participate in the project. They need to understand the change, buy into it, and contribute to the correct implementation for their specific processes. Herein lies the responsibility of a CFO.”

The panel asserted that to spearhead tech initiatives effectively, CFOs (and aspiring CFOs) should stay abreast of technology trends, embrace a growth mindset, and harness opportunities to expand their technology knowledge.

Put simply, if you want to bolster your chances of CFO success, don’t evade technology, embrace it.

What technologies should CFOs be investing in?

CFOs should look to invest in technologies that enhance data-driven decision-making, automation, and cybersecurity.

Other areas that should be considered include:

Advanced analytics platforms

Robotic process automation (RPA)

Cloud-based financial systems

Artificial intelligence (AI)

Blockchain

How can technology help CFOs make better decisions?

Technology has given rise to an abundance of data that CFOs can leverage to make better business decisions. The ability to access information in various dashboards, reports, analytics, and forecasting tools has enabled CFOs to make much better, more informed, and quicker decisions. It also allows for a much better view of the major metrics of a business.

How can technology improve financial forecasting and planning?

The power of technology to provide advanced analytics, machine learning algorithms, real-time data, and automation can significantly improve financial forecasting and planning.

What is the role of the CFO in digital transformation?

The CFO can lead the charge in digital transformation by ensuring organisational buy-in throughout the design, implementation, and usage phases of new technology.

From a functional perspective, CFOs should ensure their team is well-trained while collaborating closely with the tech team for upgrades and maintenance.

From a collaboration perspective, CFOs should strive to work effectively with other departments, especially the IT leadership team, to create business cases and achieve realistic targets.

In terms of oversight, CFOs should not only provide financial support and articulate business cases but also ensure projects are set up correctly, with a robust budget, a realistic timeline, and adequate preparation.

How can CFOs use technology to drive innovation?

By harnessing data analytics, automation, and artificial intelligence (AI), CFOs can transform financial processes and uncover new business opportunities.

Advanced financial software and predictive analytics can help CFOs identify trends and insights that inspire more informed decision-making.

Automation of routine tasks can optimise efficiency, reduce costs and support innovation (while freeing up time for CFOs to focus on strategic initiatives).

AI can enhance forecasting and resource allocation.

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