161. Navigating 2024: Agility, AI, and People-Centric Finance with Chris Ortega
Jan 23, 2024
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Chris Ortega, CEO at Fresh FP&A, discusses the transition from tactical to strategic roles in finance, the impact of AI on finance, the shift towards a more people-centric approach, the transition from traditional budgeting to rolling forecasts, and adopting new technologies to streamline operations and attract better talent.
The CFO role is evolving from being a cost controller to becoming a strategic visionary, presenting opportunities for finance professionals to drive their careers forward and lead with confidence.
Strategic agility is crucial for finance professionals to navigate uncertainties and challenges, involving moving away from tactical tasks and focusing on strategic initiatives that add value to the business.
Deep dives
The CFO role is changing rapidly to become more strategic
The CFO role is evolving from being a cost controller to becoming a strategic visionary. This transition presents opportunities for finance professionals to drive their careers forward and lead with confidence. The focus is on increasing agility and strategic leadership inside the business, moving away from tactical tasks and embracing technology and automation to position finance as a strategic partner. Additionally, the importance of leveraging generative AI in finance is emphasized, as it can enhance strategic leadership, business partnership, and overall value. Finally, there is a shift towards prioritizing people-centric leadership competencies, such as focusing on employee engagement and understanding the qualitative aspects of the business.
Strategic agility is vital in navigating uncertainty
Strategic agility is crucial for finance professionals in order to navigate uncertainties and challenges. It involves moving away from tactical tasks and focusing on more strategic initiatives that add value to the business. By proactively navigating uncertainties and turning business pain into productivity, finance professionals can become trusted partners to their business counterparts. The ability to be adaptive, innovative, and responsive to changing business landscapes is key to strategic agility. It is important to set clear expectations with business partners and be accurate, rather than seeking perfection, in order to react quickly and make informed decisions.
Forecasting should focus on accuracy and agility
Forecasting plays a vital role in navigating uncertainties, and the move towards rolling forecasts is highly recommended. A rolling forecast model, typically covering a six-month period, allows for more agility and flexibility, as it can be constantly updated with new information. The first three months of the forecast require precision, while the following months prioritize accuracy. In this way, finance professionals can anticipate potential changes, adjust their plans, and provide insight to business partners. It is essential to involve the business throughout the forecasting process and create a range of forecasts to adapt and keep a realistic view of the future.
Leveraging technology and attracting talent are key for success
Embracing technology is critical for finance professionals to streamline processes, gain efficiencies, and focus on strategic value-added activities. Moving away from over-reliance on complex Excel models and adopting tools that automate data aggregation and manipulation can free up time and enhance finance professionals' ability to contribute strategically. Additionally, attracting and retaining talent is becoming increasingly important. Understanding the business, leveraging generative AI, and building a high-performing finance team are essential in ensuring success in today's dynamic business environment.
In this week’s episode of the CFO 4.0 podcast host Hannah Munro welcomes Chris Ortega, CEO at Fresh FP&A, for an engaging discussion, diving into the evolving world of Finance in 2024.
In this episode, we cover:
How finance professionals can transition from tactical to strategic roles
Delving into how AI is reshaping finance, from theoretical understanding to practical applications.
Exploring the shift towards a more people-centric approach in finance.
Discussion on the transition from traditional budgeting to rolling forecasts
How adopting new technologies can streamline operations, attract better talent, and push finance professionals to evolve beyond traditional tools like Excel.
Understanding the changing landscape of finance careers
