CFO Wave of Change

Insights and Strategic Directions from 300 finance leaders in Australia and New Zealand

Factor conducted the CFO Wave of Change Survey with over 300 respondents (CFOs and finance leaders) across Australia and New Zealand from November 2023 to March 2024, identifying their challenges, strategic focus, investment opportunities, and digital priorities.These insights can help industry participants navigate the complexities of the modern financial landscape, develop effective strategies, and achieve sustainable growth in an increasingly dynamic environment.

Key Findings

‍Interactive and Ongoing Engagement: Finance leaders prefer interactive and ongoing engagement methods to align departmental strategic initiatives with broader financial goals. Collaborative workshops with business unit leaders (38%) are the most common method, followed by continuous feedback loops with departmental heads (30%), and representation in strategic planning sessions (25%).

‍Preparedness for Global Economic Shifts: The survey reveals that CFOs are not fully prepared to handle global economic shifts.

• A majority feel moderately equipped, with 42% rating their preparedness as a 3 out of 5.This indicates a moderate level of confidence among finance leaders in managing economic changes but also highlights a significant opportunity for improvement.
• Developing more robust risk management strategies and enhancing the ability to respond swiftly to economic fluctuations will be crucial for CFOs to navigate the complex and dynamic global financial landscape.

Addressing Skills Gaps and Organisational Change: Skill development and managing organisational change are critical areas for improvement in promoting financial acumen.

• The most significant challenge faced by CFOs is addressing skills and knowledge gaps(27%), followed by overcoming resistance to change (22%).
• Balancing short-term gains with long-term stability and ensuring accurate and transparent financial reporting (both 18%) are also major concerns.

Revenue Growth and Profitability: Focus on profitability and revenue growth reflect a balanced approach to financial management, where both are pursued alongside efficiency improvements and risk mitigation to ensure long-term stability and success.

• A strong inclination towards strategies that directly enhance financial performance is evident, with revenue growth and profitability (45%) being the key motivation for respondents.
• Cost reduction and efficiency (30%) and risk management and compliance (10%) follow as major focuses.