As a new year approaches, Fractional CFOs or finance professionals should reflect on the previous year. From reflecting upon this, you can set goals for the coming year. Being a Fractional CFO means you must balance the financial health and make growth easier during the new year; you need to implement a distinct set of resolutions.
This guide has been provided to help Fractional CFOs, seasoned or beginners, create a roadmap for success in the new year. We will look at the top three resolutions that Fractional CFOs should consider. These top resolutions for 2024 can help fractional CFOs drive business growth. Read on as we unfold these resolutions and provide practical tips to apply them effectively.
The new year presents a suitable time for professionals to reflect on their goals and aspirations. To help with that, we will address the key resolutions that every Fractional CFO should integrate into their business model. Therefore, the top three resolutions that every finance personnel needs to elevate their performance to new heights are;
Now, let us expressively investigate resolutions and discover how CFOs can pave the way for a successful year ahead.
Strategic ability is key to thriving in the finance world. It involves a CFO being agile and able to adapt to changes. It's beneficial not only for a fractional CFO but also for their clients. You can create a strategic funnel for your clients with strategic planning and agility. The funnel begins at the top with strategies and involves tactics, metrics, milestones, and execution plans.
Another reason why this should be amongst your top resolutions is that certain clients may suffer from 'Fractional CFO remorse.' This can be caused by partnerships with previous CFOs that ended in a dissatisfying way, which could overwhelm them. Your strategic ability is the only way to prevent this and change the narrative. Therefore, you must work closely with your team and clients to build a collaborative environment.
The resolution of strategic ability is seen as fun. However, a key aspect of this resolution is translating strategies into tactics. This is turning your ideas into actionable execution plans. The ability to transform strategy into action would see the expansion of a Fractional CFO's clientele. Transforming strategies into tangible tactics that can be acted upon will ultimately drive organizational results.
Lastly, navigating the macro economy, the private equity economy, and the continued uncertainty requires a strategic ability beyond the basics. As a Fractional CFO, you must be a strategic sparring partner for your clients. This means being there to challenge, push, and help them navigate the complexities of finance.
In finance, technology has become a required tool. Fractional CFOs need to be technology adaptors to scale in the modern financial world. This is why it is second on our list of key resolutions. Tech-Forward Finance is about learning how to use technology and leveraging it to drive financial growth. With technology, CFOs can become more efficient and strategic.
The role of a Fractional CFO has evolved. Gone are the days when the value brought by a CFO to a business was solely to crunch numbers. Today, more is expected as CFOs are to operate as strategic partners. This is now largely dependent on technological advancements, such as the introduction of Generative AI, automation, and machine learning.
Generative AI is a game-changer. It's not something that CFOs can afford to miss. To truly embrace Tech-Forward Finance, CFOs need to explore AI technology, predictive analytics, and more. "Technology is how finance scales," and finance personnel can use it to enhance various aspects of an organization while driving better outcomes.
For those unfamiliar with these technologies, a structured learning plan can be beneficial. This could involve dedicating 30 minutes a day for 15 days to learn. It's not about becoming an expert but about finding one or two areas of curiosity and learning about them. This way, you have an added advantage and can look forward to a year of growth and success.
Leadership is often perceived through a quantitative lens. In the new year you should have a 'People-Centric Leadership’ mindset. A people-centric leadership means emphasizing the importance of people, which could be your team or your clients. With this mindset, a Fractional CFO is able the bridge the gap between the qualitative and quantitative aspects of an organization.
People-centric leadership is about more than just numbers. It's about recognizing the value of people. For example, a client might be looking to establish a new business. As a Fractional CFO, you can leave your comfortable zone by partnering with the HR and recruitment team to ramp up resources. That way you are involved in ensuring that the right people with the right core competencies are hired.
This resolution also extends beyond the internal team. It's advisable to build relationships and branch outside the usual finance space. You could partner with other Fractional CMOs, Fractional Chief Human Resource Officers, or Fractional COOs. These relationships could open several doors and referrals, and you get to build an understanding of several business models and operations.
One major hurdle is the expected talent gap in accounting, finance, and qualitative roles in the next five to ten years. This makes the role of a people-centric leader even more critical, as they must not only recruit the right talent but also ensure their development and retention.
Success as a fractional CFO in the new year requires a focus on three key resolutions: strategic ability, tech-forward finance, and people-centric leadership. These resolutions will empower you throughout the year, elevating your performance to new heights. Read, digest, and put it to use!
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