Mid-Market Chief Financial Officers (CFOs) will face a challenging landscape in 2024 as they grapple with skill gaps and execution risks, according to the latest findings from The CFO Alliance's Mid-Market CFO Sentiment Report. The research reveals a delicate balancing act for finance leaders, who must align team skills with strategic initiatives while contending with the pressing demands of day-to-day operations.
The report indicates a correlation between identified skill gaps and top initiatives, emphasizing the need for expertise in areas such as workflow automation. While 44% of CFOs pinpoint workflow automation skills as a significant gap, 37% have identified it as a priority initiative for 2024. This underscores the challenge of aligning existing team structures with the evolving demands of modern finance.
Despite the optimism among mid-market CFOs regarding the economic outlook for 2024, there is a noted decrease in the CFO Confidence Rating across various categories compared to the previous year. Excessive workloads remain a key challenge, with 35% of CFOs anticipating double-digit revenue growth and 40% expecting double-digit EBITDA growth.
Major initiatives for 2024 focus on system upgrades, organic growth, and technological advancements. However, talent gaps, small team sizes, and daily firefighting hinder the ability of finance teams to train and reskill, creating a pressing dilemma for CFOs striving for modernization and responsible growth.
The report highlights that 30% of teams are operating with at least one person down, and an additional 42% expect workloads to intensify in 2024. The resulting execution risk, driven by skill gaps and resource constraints, emphasizes the pivotal role CFOs must play as team leaders, resource directors, and energy allocators to meet targets and initiatives.
As the finance function evolves, CFOs recognize the transformative impact of automation, AI, cloud technology, and other advancements over the next decade. Technology remains a major focus in 2024, with 39% anticipating a major system change/update and an emphasis on data visualization as a top investment area.
However, the report notes a concerning gap between mid-market enterprises pursuing new technology initiatives and the share of finance and accounting teams planning investments in upskilling and training. This imbalance poses substantial execution risks for new technology initiatives, emphasizing the importance of dedicating appropriate time for learning and development.
Mid-market CFOs find themselves at a pivotal moment of transformation, grappling with skill gaps, execution risks, and the need for strategic upskilling. Navigating these challenges will require astute leadership, proactive training, and a careful balance between technological advancements and workforce capabilities.
