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CFOs spend more time on long-term planning in an age of uncertainty, McKinsey finds

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CFOs spend more time on long-term planning in an age of uncertainty, McKinsey finds

Good morning. Finance chiefs are starting to look beyond short-term concerns in a way they haven’t in previous years, according to new McKinsey research. Emerging risks to their companies’ growth and a focus on strategy require their attention and management.

“I think CFOs continue to deal with a lot on their plate,” Ankur Agrawal, a partner in McKinsey’s New York office, and co-author of the report, told me. “So in many ways, this survey is consistent with the expanding challenge of the CFO role.”

Supply chain disruptions, weak demand, geopolitics, and also technology disruption are among the challenges finance chiefs say need to be addressed. Fifty-five percent of CFOs surveyed pointed to long-term planning and resource allocation as a top priority for finance, up from 30% in Q1 2023. And 60% now say strategic planning is a top priority, compared to 38% who said the same last year, according to the report.

It’s not that managing the short term has become easier for CFOs. There’s still uncertainty in the macro environment. But there’s a bit “more confidence on visibility in the near term,” Agrawal said. “The variables are more understood than not.” 

McKinsey research also points to challenges with implementing technology. Nearly all respondents (98%) say their finance functions have invested in digitization and automation, and believe that gen AI has the potential to create value. However, the majority of CFOs surveyed say just one-quarter or less of their processes were digitized or automated in the past 12 months. And less than half of respondents say they currently have their finance processes automated.

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What is causing the slow pace? “I think the biggest challenge and roadblock is, honestly, talent,” Agrawal said.  

More than limitations due to infrastructure, tools, and data, CFOs say the main hurdle is finding finance professionals who can really leverage and deploy these advanced technologies, he said. 

Another finding is that CFOs are twice as likely than in Q1 2023 to predict their companies’ investment levels will remain unchanged—a departure from the past two surveys, when CFOs predicted an increase in investment. Why does Agrawal think there’s a hesitation in investments? With elections in the U.S. and in other parts of the world and economic volatility still a concern, “you can call it cautious steering,” he said.

Sheryl Estrada
sheryl.estrada@fortune.com

Leaderboard

Aaron Rosenberg was named CFO at BeiGene, Ltd. (Nasdaq: BGNE), a global oncology company, effective July 22. Rosenberg will succeed Julia Wang, who is departing to pursue external opportunities and will stay with the company through August. Rosenberg has more than 20 years of experience at Merck & Co., Inc., most recently serving as SVP and corporate treasurer. He also held roles such as SVP of corporate strategy and planning and VP and finance lead of Merck Animal Health. 

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Logan Powell, global president and CFO at Puttshack, a provider of tech-infused mini-golf venues, was promoted to CEO, effective immediately. Powell succeeds Joe Vrankin, who oversaw the company’s growth in the U.K. as CEO and subsequently brought the concept to the U.S. in 2021. Powell and Vrankin have collaborated on this transition, as Vrankin will be moving on from the company. Powell has served as CFO since 2019. Before joining Puttshack, he was a partner at Copper Beech Capital, LLC.

Big Deal

Don’t drown in data debt; champion your Data First culture is a new report released by HFS Research, a global research and analysis firm, in partnership with Syniti, a data management provider. More than 80% of enterprise leaders say that effective data management significantly drives the top line, bottom line, and shareholder value. However, over 40% of their organizational data is unusable and is not trusted, according to the report.

“Many business leaders still take a backseat when setting key data objectives, causing data to remain siloed across departments, and resulting in misaligned expectations across IT and business professionals,” Phil Fersht, CEO and chief analyst, HFS Research, said in a statement. The findings are based on interviews of more than 300 Global 2000 business leaders (49% from the U.S.) across industries to find out how organizations are navigating a complex landscape of data management.

Going deeper

“Here’s how Wall Street and business leaders are reacting to Biden’s exit from the presidential race” is a new report by Fortune’s Jason Ma, in light of President Joe Biden’s announcement on Sunday that he won’t seek reelection. For example, Gina Bolvin, president of Bolvin Wealth Management Group said in a statement: “Biden stepping down is a whole new level of political uncertainty.”

Overheard

“One mistake has had catastrophic results. This is a great example of how closely tied to IT our modern society is—from coffee shops to hospitals to airports, a mistake like this has massive ramifications.”

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—Nick Hyatt, director of threat intelligence at security firm Blackpoint Cyber, told CNBC in an interview regarding the botched software update from the cybersecurity company CrowdStrike on Friday that caused a global IT outage.

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Finance

Departing inspector general targets Council Office of Financial Analysis

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Departing inspector general targets Council Office of Financial Analysis

The $537,000-a-year office created in 2014 to advise the City Council on financial issues and avoid a repeat of the parking meter fiasco has failed to deliver on that mission, the city’s chief watchdog said Tuesday.

Days before concluding her four-year term, Inspector General Deborah Witzburg said a shortage of both adequate staff and financial information closely held by the mayor’s office prevents the Council’s Office of Financial Analysis from helping the Council be the the “co-equal branch of government” it aspires to be.

In a budget rebellion not seen since “Council Wars” in the 1980s, a majority of alderpersons led by conservative and moderate Democrats rejected Mayor Brandon Johnson’s corporate head tax and approved an alternative budget, including several revenue-generating items the mayor’s office adamantly opposed.

But Witzburg said the renegades would have been in an even better position to challenge Johnson if only their financial analysis office had been “equipped and positioned to do what it’s supposed to do” — provide the Council with “objective, independent financial analysis.”

“We are entering new territory where the City Council is asserting new, independent authority over the budget process. It can’t do that in a meaningful way without its own access to financial analysis,” Witzburg told the Chicago Sun-Times.

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Chicago Inspector General Deborah Witzburg’s latest report focuses on the Chicago City Council’s Office of Financial Analysis.

Jim Vondruska/Jim Vondruska/For the Sun-Times

But the Council’s financial analysis office, she added, “has never been equipped or positioned to do what it needs to do. It needs better and more independent access to data, and it needs enough staff to do its job. It has a small number of employees and comparatively limited access to data.”

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The inspector general’s farewell audit examined the period from 2015 through 2023. During that time, the financial analysis office budget authorized “either three or four” full-time employees. It now has a staff of five .

Witzburg is recommending a staffing analysis to identify how many people the financial office really needs — and also recommending that the office “get data directly” from other city departments, “ rather than having it go through the mayor’s office.”

The audit further recommends that the office develop “better procedures to meet their reporting requirements” in a timely manner. As it stands now, reports are delivered “sometimes late, sometimes not at all,” the inspector general said.

“We find that those reports have been both not timely and not complete in terms of what they are required to report on and that those reports therefore have provided limited assistance to the City Council in its responsibility to make decisions about the city’s budget,” she said.

The Council Office of Financial Analysis responded to the audit by saying it hopes to add at least three full-time staffers in the short term and has made “some progress” over the last three years in improving their access to data, but not enough.

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The office was created in 2014 to provide Council members with expert advice on fiscal issues.

For nearly two years the reform was stuck in the mud over whether former 46th Ward Ald. Helen Shiller had the independence and policy expertise to lead the office.

Shiller ultimately withdrew her name, but the office was a bust nevertheless. In an attempt to breathe new life into it, sponsors pushed through a series of changes.

Instead of allowing the Budget chair alone to request a financial analysis on a proposal impacting the city budget, any alderperson was allowed to make that request.

The office was further required to produce activity reports quarterly, not just annually.

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Now former-Budget Chair Pat Dowell (3rd) then chose Kenneth Williams Sr., a former analyst for the office, as director and gave him the “autonomy” the ordinance demanded.

Two years ago, a bizarre standoff developed in the office.

Budget Committee Chair Jason Ervin (28th) was empowered to dump Williams after Williams refused to leave to make way for a director of Ervin’s own choosing.

The standoff began when Williams said he was summoned to Ervin’s office and told the newly appointed Budget chair was “going in a different direction, and I’m putting you on administrative leave” with pay.

“He took all my credentials and access away. I would love to come to work. I wasn’t allowed to come to work,” Williams said then.

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Williams collected a paycheck for doing nothing while serving out the final days remainder of a four-year term.

Ervin’s resolution stated the director “may be removed at any time with or without cause by a two-thirds” vote or 34 alderpersons. He chose Janice Oda-Gray, who remains chief administrator.

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Finance

Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant

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Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant

Little League® International has announced that Reilly Barnes accepted a new role as Purchasing/Finance Assistant, effective April 6, 2026. Barnes transitions from a temporary Purchasing Assistant to this full-time position to assist in the year-round demands of purchasing for the organization, as well as the region and Little League Baseball and Softball World Series tournaments. 

“We are thrilled to welcome back Reilly to our team as a full-time Purchasing/Finance Assistant. Reilly’s prior experience, time management, and attention to detail make him an invaluable asset to the purchasing team,” said Nancy Grove, Little League Materials Management Director. “We look forward to the positive contributions he will have on our organization.” 

In this role, Barnes will be responsible for processing purchase requisitions, coordinating souvenir products, and tracking order fulfillment. He will also assist with evaluating suppliers, reviewing product quality, and negotiating contracts for effective operations.  

After most recently working as a Logistician Analyst at Precision Air in Charleston, South Carolina, Barnes, a Williamsport native, returns after honing his skills in the fast-paced environment. Prior to his time at Precision Air, Barnes served as a Procurement Specialist at The Medical University of South Carolina, where his expertise and knowledge were instrumental in supporting both education and healthcare needs.  

“I am thrilled to return to Little League in this full-time role,” said Barnes. “Coming back to my hometown and having the opportunity to work for an organization that has played such a special part of my upbringing means a lot. I can’t wait begin this new opportunity.” 

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Barnes graduated from the University of Pittsburgh in 2022 with a B.A. in Supply Chain Management, Finance, and Business Analytics.  

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Finance

Why this sleepy Swiss town has become a ‘bolt-hole’ for the Gulf elite

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Why this sleepy Swiss town has become a ‘bolt-hole’ for the Gulf elite

As conflict continues to destabilise the Middle East, the Gulf States elite are seeking solace in European alternatives that offer comparable financial benefits with a far lower risk of war on the doorstep. One such destination is the small Swiss town of Zug, which is becoming a “bolt-hole” for Gulf-based wealth, said the Financial Times.

‘Swiss Monaco’

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