How CFOs can work with human resources and IT teams through cross-functional collaboration
The role of the chief financial officer (CFO) has changed a lot over the past few years. Previously, the focus was primarily on financial reporting and cost management. Modern finance leaders are now more involved across their organisations than previously, working closely with IT and human resources (HR) teams to steer strategy and implement cost-saving measures. This new approach helps CFOs uncover growth opportunities for their companies, collaborating with leaders across various functions to drive business growth. However, despite the promise of increased C-suite collaboration challenges remain as economic uncertainty continues to pressure leaders to achieve better profit results, secure more investment capital, and boost employee satisfaction.
In light of these challenges, it's crucial for CFOs to foster strong relationships with other executives. By adopting effective collaboration strategies, CFOs can enhance their impact on organisational success and drive better business outcomes across the board. There are five key ways CFOs can collaborate with other executives to achieve better results.
1. Invest in HR as a strategic partner
CFOs increasingly see HR as a key strategic partner. In response to global skills shortages and high employee turnover rates, they are aligning financial resources with HR strategies to support initiatives like mentorship schemes, training programs, and tuition reimbursement. This collaboration creates a culture of continuous learning and ensures employees feel supported in their professional development.
2. Support and promote diversity, equity, and inclusion
To attract and retain top talent, businesses need strong frameworks supporting diversity, equity, and inclusion (DE&I). Addressing diversity challenges helps build a strong company culture, improving business outcomes and boosting employee engagement. At the same time, policies promoting fair practices, like equal pay, are essential, and CFOs can assist chief human resource officers (CHROs) with diversity initiatives and help address pay disparities by identifying inequities, allocating resources, and implementing fair compensation policies.
3. Enhance hybrid working models
Efficient hybrid working has become a cornerstone of modern business, reshaping the future of work. Employees now expect a mix of in-person and remote working, which presents challenges like managing remote collaboration and maintaining productivity. By working closely with IT teams, CFOs can assess infrastructure needs, allocate budgets appropriately, and procure solutions that add value to the business. Ensuring the availability of effective collaboration tools is crucial for supporting remote work and maintaining productivity.
4. Implement AI and prioritise security
CFOs have long been interested in artificial intelligence (AI) tools for accurate forecasting, automating tasks, and managing risks. However, there is often a knowledge gap when it comes to AI implementation. CFOs can collaborate with CIOs to align AI projects with long-term digital transformation strategies to ensure they get the most out of AI while avoiding pitfalls. This lets CFOs better manage cost control, set realistic budgets, and monitor return on investment. Additionally, developing cybersecurity strategies with IT teams is vital to protect sensitive data and mitigate AI risks.
5. Invest in user-friendly tools
User dissatisfaction with technology can hinder digital transformation efforts, so CFOs must work with IT and procurement managers to invest in user-friendly tools for data analytics, process automation, and travel and expense (T&E) management. These tools should integrate seamlessly with existing systems for real-time insights and reporting. By prioritising the employee tech experience, CFOs can ensure that investments deliver the intended returns and support overall business resilience.
Cross-functional teamwork empowers businesses to become more resilient, with CFOs playing an integral role in this process. By working closely with CHROs and CIOs alike, CFOs can help cultivate a culture that incentivises high performance and prioritises DE&I while enhancing remote work capabilities, ensuring secure AI implementation, and procuring best-in-class tools for the best employee experience and business results possible.
