The CEO plays a critical role in leading adaptive strategy, as outlined in the previous article Leading with Adaptive Strategy: A Blueprint for CEOs. However, effective adaptation requires a company-wide effort, and CFOs, as the guardians of financial resources and architects of financial planning, have a unique responsibility to champion this approach. Here’s why adopting an adaptive strategy is crucial for CFOs.
The past year has severely tested the confidence of CFOs and finance leaders. Coupa’s 2024 Strategic CFO Survey reveals a crisis of conviction, with 90% of finance chiefs concerned about hitting sales and revenue targets in the next 6-12 months amid economic headwinds. Escalating volatility, rising costs, and a lack of data visibility have left CFOs doubting their ability to steer their organizations towards sustainable profitability and growth.
Transforming Financial Oversight with Sapta’s Adaptive Strategy Platform
With nearly half (46%) of finance leaders lacking full visibility into financial data across the company and 22% needing multiple days to access data across disparate systems, CFOs are struggling to get an accurate, holistic view to base informed decisions on. Two in five (40%) admit their financial data is often outdated, impairing their ability to proactively navigate disruptions.
The traditional, static budget is no longer enough for today’s dynamic business environment. Imagine a financial roadmap that can bend and flex, continuously adapting to unforeseen opportunities and challenges. This is the power of adaptive strategy, and CFOs who embrace it will be instrumental in propelling their organizations towards long-term success.
This article dives into the transformative power of adaptive strategy, specifically tailored for financial leaders, and how Sapta’s adaptive strategy platform empowers them to achieve it. We’ll explore how to ditch rigid budgets, optimize resource allocation, and leverage data-driven insights – all facilitated by Sapta’s innovative tools. By embracing these elements, CFOs can navigate uncertainty with confidence and propel their organizations towards long-term success.
Empowering CFOs with 7 Key Capabilities
The antidote to uncertainty in this climate of perpetual change, volatility, and uncertainty, is agility. The ability to rapidly sense and adapt strategies has become fundamental to survival. Legacy tools, processes, and perspectives rooted in annual planning cycles are no longer enough. To rebuild confidence and effectively steer their organizations towards durable success, an increasing number of CFOs are turning to intelligent purpose-built platforms for adaptive strategy and real-time decision-making.
Sapta’s adaptive strategy platform is empowering finance leaders to regain their strategic edge by providing the critical capabilities they sorely lack:
1. Aligning organizational focus
Mere financial investment in new systems falls short; without unified direction, transformations often result in squandered resources and duplicated efforts. CFOs can harmonize all functions, teams and employees around evolving corporate objectives – combating silos and misalignment that can derail strategic execution.
By connecting strategic priorities to departmental OKRs and employee goals, Sapta fosters transparency and accountability. According to research conducted by Gartner, up to 67% of key functions do not align with the corporate strategy.
2. Boosting strategic foresight
Providing CFOs with a unified view to continuously monitor strategic performance across all initiatives, investments, KPIs and business drivers through AI-driven modeling, “what-if” scenario planning, and iterative course corrections enables a more proactive responses to shifting conditions. The survey found 46% of CFOs lack full visibility into company spend data, with data being siloed (44%) and manual processes to gather it (44%).
The SaptaAdapt module provides a single pane of glass view of how funds are allocated across strategies, initiatives, and spend categories, giving CFOs the comprehensive spend intelligence they’re lacking.
3. Accelerating business innovations
Critical for the 36% of CFOs prioritizing new product/service innovations and 35% targeting new markets as growth strategies.
SaptaInnovate can foster a culture of open innovation by crowdsourcing ideas from employees across the organization. SaptaCommunity further captures the voice of the customer.
4. Elevating data excellence
Connecting strategy, resources, innovations, and results on a unified AI-driven platform.
Sapta provides CFOs with the elusive capability they crave – full transparency across all financial data, spend categories, and strategic KPIs. This atomic-level precision eliminates blind spots while boosting confidence.
With real-time scenario modeling, CFOs can anticipate the impact of executive priorities on budgets and timelines, guiding discussions towards a financially sound approach and preempting major financial setbacks.
5. Increase digitization and automation
53% of CFOs cited increasing digitization as a top strategy for profitability, and 93% agreed more automation would help them respond better to economic challenges.
Sapta’s integrated suite of digital strategy execution tools allow CFOs to streamline strategic processes through digitization and automation.
6. Comprehensive decision intelligence
35% of CFOs are worried about increasing margins/profitability over the next 6-12 months. CFOs can develop robust, data-driven business cases for strategic investments, with each initiative rigorously scored and stress-tested against the company’s evolving priorities and risk appetites. AI-powered financial modeling, collaborative approvals, and rapid realignment of funds facilitate confident, coordinated decision-making.
Sapta’s strategic alignment capabilities in SaptaAlign and SaptaAllocation ensure all expenditure and initiatives map directly to current corporate objectives and key business drivers like cost reduction.
7. Ensuring executive alignment
Paramount for CFOs aiming to reap a return on investment (ROI) from technology transformations is alignment around a specific goal. Mere financial investment in new systems falls short; without unified direction, transformations often result in squandered resources and duplicated efforts.
SaptaAlign, fosters transparency by linking company strategies with specific goals (OKRs) and initiatives. This shared understanding among executives ensures alignment with overall business objectives.
By harmonizing people, data, processes, and technologies, Sapta empowers CFOs to operate with greater foresight, speed, and alignment. This translates to long-term growth, compliance, and a competitive advantage.
Sapta: The Path Forward for CFOs
The Coupa survey takeaway is clear: traditional planning cycles are obsolete. To trade doubt for data-driven confidence, CFOs must embrace intelligent technologies like AI and adaptive strategy platforms. The evolution of the CFO role is now widely recognized. Deloitte has developed a framework to delineate these changes, outlining the four key roles of the CFO: catalyst, strategist, steward, and operator.
Solutions like Sapta represent the path forward for CFOs to transform from crisis responders into adaptive innovators. With economic conditions unpredictable, the time to regain strategic conviction is now. By providing a unified platform for aligning strategy, innovating, optimizing resources, and monitoring results, Sapta can help CFOs navigate volatility with agility, make faster data-driven decisions, and maintain a sustainable competitive edge.
Ready to unlock the power of adaptive strategy for your CFO? Request a demo to explore the full range of Sapta’s capabilities.
Follow us on LinkedIn to get all the latest Adaptive Insights.
