17 May Planning mid-year priorities? 5 focus areas to consider in 2024
As we approach the midpoint of 2024, it’s time to take stock of our financial progress, re-evaluate goals, and reassess priorities for the remainder of the year. This reality check allows organizations to adapt to an ever-evolving landscape. Whether you are group CFO, finance manager, or financial controller, staying ahead of the curve in this rapidly evolving business landscape is essential.
With the growing influence of Artificial Intelligence (AI) and the increasing significance of Environmental, Social, and Governance (ESG) factors, finance teams must become even more well-prepared for a higher focus on measurements.
In this piece, we delve into five key focus areas that demand your attention for the remainder of the year to drive business growth and success in the years ahead. Let’s explore these priorities and ensure they all are included in planning your mid-year priorities. So, if you include all five points to prioritize your projects, you are well on driving business growth and success.
5 areas for the group finance controller to consider in your 2024 mid-year priorities:
- Forecasting: Is your budget still on point?
- Financial planning and analysis: Improve your decision-making.
- Risk management: How good are you at keeping a log?
- Emerging technologies: Do you have your digital business plan in place?
- Sustainability: are you ready for ESG?
Forecast: Is your budget still on point?
The first step on the agenda is one most in finance know well. It is time to review your budget so that you can make realistic adjustments for the remainder of the year. We might as well admit that only a few can plan and stick to the same budget made the year before without adjusting, especially when you can’t always prepare for changing markets and organizational changes. And what better time to review than mid-year?
Working in group finance, there are several key areas to consider when preparing your forecast for the rest of the year:
- Review and update budgets
- Monitor cash flow
- Cost optimization
- Forecast accuracy
Remember, these priorities may vary based on your company’s specific industry, size, and strategic objectives. Therefore, regularly assess the evolving business landscape and adjust your forecast and priorities accordingly.
Financial planning and analysis: Improve your decision-making
The second focus point, Financial Planning and Analysis (FP&A), is critical for informed decision-making and ensuring your group’s financial stability. When your forecast is ready, you have the foundation for your financial planning and analysis. However, you can enhance your financial planning processes by including these two different angles: technology use and finance business partnering.
Embrace technology to:
- Streamline financial reporting
- Develop scenario analysis capabilities
Financial business partnering will help to:
- Foster collaboration with other departments
- Align financial forecasts with strategic goals
If the company aims to expand into new markets, consider the financial implications of entering those markets and adjust your forecasts accordingly. By implementing these strategies, you can enhance your FP&A processes and make more accurate financial forecasts, leading to better decision-making and improved financial performance.
The role of the CFO is changing. It is no longer enough to be a number cruncher. Instead, you need to transform into the most trusted advisor for your management. But, taking on a new role means not only means you have to change procedures but also your mindset.
Risk management: How good are you at keeping a log?
Ensuring business resilience and long-term success heavily relies on effective risk management practices. And the most simple and efficient way is to keep a log open, where you keep track of emerging risks during the year. Organizations can safeguard operations and confidently seize opportunities by proactively identifying and mitigating potential financial risks. The key four things to consider are the following:
- Assess the current risk management framework
- Understand emerging risks
- Proactive risk management strategy
- Regularly review and update
If you do this, your organization can navigate uncertainties more confidently by prioritizing effective risk management and seizing opportunities while mitigating potential pitfalls.
Emerging technologies: Do you have your digital business plan in place?
We have seen technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Robotic Process Automation (RPA) emerging to streamline operations, enhance customer experiences, and drive innovation. With the emerging trends, the finance department needs to have a plan in place now – it is not enough to say we’ll wait. We in finance need to start understanding what we can do with it and how to make our existing process more efficient. Incorporating these trends into your mid-year priorities can elevate your finance team’s capabilities and drive greater organizational value. Consider the following steps:
- Embrace automation and streamline repetitive tasks.
- Implement advanced analytics tools, such as ai-powered algorithms.
- Break down silos and align financial insights with operational data, sales forecasts, and marketing strategies.
- Leverage cloud-based platforms for enhanced accessibility, scalability, and data security.
- Stay agile and adaptive: continuously monitor market trends and emerging technologies.
Be open to embracing innovative tools and approaches to enhance your finance operations and adapt your strategies to meet evolving business needs. By incorporating these trends into your finance team’s mid-year priorities, you position yourself for success in the digital era. Embrace the power of automation, data analytics, and collaboration to drive efficiency, make informed decisions, and propel your organization toward greater financial agility and success.
Sustainability: Are you ready for ESG?
Last but definitely not least, ESG. There is no way around it; the new ESG reporting is here to stay. And with 12 drafts ESRs (+1), 82 disclosures, and 1144 data points so far and maybe more to come, you might as well start appointing one in your team to look into what, when, how and readjusting the KPIs already now. The importance of ESG considerations in groups cannot be overstated; the new rules might not come into effect now – but they will, and then the change will be comprehensive unless you have adequately prepared. Environmental sustainability, social responsibility, and strong governance practices are now paramount to long-term success. To effectively incorporate ESG principles into your business strategy, consider the following action points:
- Assess your organization’s environmental impact, social initiatives, and corporate governance practices.
- Conduct an ESG assessment to identify strengths and weaknesses you need to follow up on.
- Set goals aligned with your organization’s values.
- Develop a roadmap with actionable steps to achieve your sustainability objectives.
Conclusion
As the second half of 2024 is approaching, taking stock of your mid-year priorities is essential for driving business growth and success. By prioritizing sustainability, incorporating a robust digital business plan, strengthening risk management, optimizing financial planning and analysis, and focusing on equipping your organization with the necessary tools to navigate the challenges and opportunities that lie ahead. Embrace these focus areas, take action on the outlined steps, and position your business for sustainable growth and thought leadership in the coming years.