# The changing CFO: an organization’s voice of conscience Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-02-22 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: The 360° CFO: Navigating Business Challenges with Empathy Meta Description: Discover how CFOs are becoming key strategists, decision-makers, and empathetic leaders in navigating businesses through the challenges of the global economy URL: https://financedigest.com/the-changing-cfo-an-organizations-voice-of-consciencehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/untitled-design-48-1736838565679-compressed.jpg) _By **Marc Linden,** EVP, Medium Business Segment at Sage_ The global economy has put the spotlight firmly on the CFO. They will be the main strategist and driver behind organizational restructuring, divestments, and acquisitions. Today, however, a [CFO’s top priority is to ensure their business](https://www.financedigest.com/cfos-its-time-to-own-the-business-model.html "CFOs: It’s time to own the business model") survives during the pandemic. Being the CFO requires a tough mentality and the ability to make difficult decisions under challenging circumstances. Many are chosen for the job based on those qualities. Indeed, according to a report by PWC, 82% of CFOs are focused on cost cutting for the foreseeable future to mitigate the impact of COVID-19. However, now is the [time for CFOs to also embrace](https://www.financedigest.com/why-the-time-is-right-for-finance-to-embrace-digital-change.html "Why the time is right for finance to embrace digital change") other skills. Decisions must be made with empathy and redoubled [support for their employees and customers](https://www.financedigest.com/why-now-is-the-time-for-banks-to-use-their-data-to-support-customers.html "Why now is the time for banks to use their data to support customers"). When times are difficult, the CFO has to use their unrivalled insight to do what’s right. [It’s not about creating an organization that can survive the next](https://www.financedigest.com/run-dtc-its-tricky-but-heres-what-the-next-evolution-of-ecommerce-will-look-like.html "Run DTC’: It’s tricky, but here’s what the next evolution of ecommerce will look like") quarter, but years into the future. **The 360° CFO** The pandemic has sent shockwaves across the [global economy](https://www.financedigest.com/imfs-georgieva-sees-darkening-outlook-for-global-economy-rising-recession-risks.html "IMF’s Georgieva sees ‘darkening’ outlook for global economy, rising recession risks"), upending many businesses. One of the CFO’s most important roles is to guide the organization through that disruption, using empathy and their [personal conscience to help the business](https://www.financedigest.com/should-you-take-out-a-personal-loan-to-start-or-grow-your-business.html "Should You Take Out a Personal Loan to Start or Grow Your Business?") make the right decisions. Yet, consciousness is a [key part](https://www.financedigest.com/auto-parts-cleaning-machine-market-the-report-gives-immense-knowledge-on-the-competitive-nature-of-key-players.html "Auto Parts Cleaning Machine Market: The Report Gives Immense Knowledge On The Competitive Nature Of Key Players") of conscience. In order to make the right decision, a CFO has to be cognizant of the long-term repercussions of their actions [across all areas of the business](https://www.financedigest.com/eliminating-financial-leaks-across-your-business.html "Eliminating financial leaks across your business"). Another aspect of being the organization’s conscience is helping to digest [rapidly changing](https://www.financedigest.com/rapidly-changing-fashion-lifestyle-is-expected-to-spur-demand-for-clothes-closets-market.html "Rapidly Changing Fashion Lifestyle Is Expected To Spur Demand For Clothes Closets Market") assumptions about the business and understanding what that will mean. It’s the CFO’s responsibility to look forward rather than back, to predict and plan for a wide range of [business impacts](https://www.financedigest.com/how-technology-consultants-impact-business-growth.html "How Technology Consultants Impact Business Growth"). A CFO cannot simply be reactive; they need to drive the conversation, always considering what might happen should conditions worsen. While [CEOs are under great pressure and busy dealing](https://www.financedigest.com/exclusive-naftogaz-ceo-prepared-to-step-down-if-it-would-facilitate-debt-deal.html "Exclusive-Naftogaz CEO prepared to step down if it would facilitate debt deal") with countless other issues, the CFO needs to make sure they keep challenging those questions. With full access to [organization](https://www.financedigest.com/six-reasons-why-digital-world-classtm-finance-organizations-outperform-peers.html "Six Reasons Why Digital World ClassTM Finance Organizations Outperform Peers") data and financial management tools, CFOs are in an ideal position to gain a forward-looking, 360° view of their organization. Coupled with this view, the CFO must also analyse and interpret the numbers to inform the [decision-making process](https://www.financedigest.com/gary-mcgaghey-explains-how-cfos-can-strengthen-decision-making-processes-and-reimagine-the-finance-model.html "Gary McGaghey Explains How CFOs Can Strengthen Decision-Making Processes and Reimagine the Finance Model"). However, according to research by Sage, [70% of CFOs still make decisions based on gut feeling](https://www.sage.com/en-gb/cfo/). Scenario [planning and analysis should now take on a whole new level of importance and be performed on a rolling](https://www.financedigest.com/should-i-roll-my-old-retirement-plans-into-a-roth.html "Should I Roll My Old Retirement Plans into a Roth?") basis. It’s [crucial for knowing where the organization](https://www.financedigest.com/asset-management-it-solution-market-asset-management-grow-crucial-for-various-organizations-to-evaluate-entire-business.html "Asset Management IT Solution Market – Asset Management Grow Crucial for Various Organizations to Evaluate Entire Business") is, and where it could be headed. **A time for activism** As markets across the world fall into recession, COVID-19 won’t be the end of the shocks and upheavals [businesses face](https://www.financedigest.com/saving-on-water-bills-more-than-just-a-drop-in-the-ocean-for-businesses-facing-the-cost-of-living-crisis.html "Saving on water bills: More than just a drop in the ocean for businesses facing the cost-of-living crisis"). As the context changes daily, [CFOs need](https://www.financedigest.com/cfos-need-to-embrace-todays-technology-for-tomorrows-success.html "CFOs need to embrace today’s technology for tomorrow’s success ") to be the ones who assess the situation with an empathetic, activist eye. When an organization enters into a challenging period, the [CFO’s role](https://www.financedigest.com/the-new-role-of-the-cfo-the-de-facto-chief-growth-officer.html "The New Role of the CFO: The De Facto Chief Growth Officer") is too often framed as the wielder of the axe, and their judgement condensed down to deciding where the axe will fall. Its [time organizations took on a broader definition of what CFO](https://www.financedigest.com/deliveroos-financial-hot-potato-time-for-new-cfo-to-step-up-to-the-plate.html "Deliveroo’s Financial Hot Potato: Time for new CFO to step up to the plate") success looks like. Crisis or no crisis, it should remain focused on helping the [business invest](https://www.financedigest.com/more-businesses-investing-in-assets-like-virtual-credit-cards.html "More Businesses Investing In Assets Like Virtual Credit Cards") successfully for maximum returns in the long term. Making cuts might not be the best thing to do; instead, a CFO may [see greater benefits from investing in building lasting relationships with employees and customers](https://www.financedigest.com/britains-metro-bank-returned-to-profit-in-september-sees-no-customer-stress.html "Britain’s Metro Bank returned to profit in September, sees no customer stress"). For example, as large sections of the economy continue to work from home, CFOs have an important role to play in making sure [remote working](https://www.financedigest.com/digital-insurance-and-the-remote-working-and-studying-boom.html "Digital insurance and the remote working and studying boom") is driving value for the business. Many [organizations have resisted spending any money on ergonomic improvements for home workers](https://www.financedigest.com/exclusive-teamsters-organizing-workers-unions-at-9-amazon-com-facilities-in-canada.html "Exclusive-Teamsters organizing workers’ unions at 9 Amazon.com facilities in Canada"), or home office equipment in the past. This is a clear example where the CFO has a unique ability to break through the barriers and [boost productivity](https://www.financedigest.com/flexible-pay-can-boost-low-productivity-in-the-uk.html "Flexible pay can boost low productivity in the UK"). Redundancies and budget cuts are sometimes necessary, but if they’re the first recourse then an organization is in danger of falling into the trap of spiraling productivity and collapsing [cash flow](https://www.financedigest.com/should-your-business-reconsider-invoice-financing-top-tips-on-why-reappraising-this-method-liberates-business-cash-flow.html "Should your business reconsider invoice financing? Top tips on why reappraising this method liberates business cash flow"). Doing little things to help during a [tough time](https://www.financedigest.com/building-economic-resilience-in-tough-times.html "Building Economic Resilience in Tough Times") can make a lasting difference in a relationship. CFOs are the ones with the power to advocate investment in [customer service](https://www.financedigest.com/how-can-financial-firms-improve-customer-service-after-the-pandemic.html "How Can Financial Firms Improve Customer Service after the Pandemic?"), employee productivity and satisfaction. **A source for good** COVID-19 has affected people and [businesses in ways](https://www.financedigest.com/five-ways-businesses-can-prepare-themselves-for-the-digital-economy-be-kaler-pilgrim.html "Five ways businesses can prepare themselves for the digital economy – Be Kaler Pilgrim") we couldn’t have imagined. Organizations must proceed with empathy, while the CFO emerges as the champion of employees and customers. More than any other leader, the CFO has the ability and insight to chart a course through the disruption with positive, targeted investment. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---