One Step at a Time: Insights from CFO Roundtables
Our current environment is a challenging one to navigate. Aside from business complexities finance leaders may normally face, they’ve also been met in 2020 with the abnormal: the onset and continuation of the COVID-19 pandemic coupled with social, political, and policy uncertainty in an election year with implications for businesses and people. One thing is for sure: there is undoubtedly a lot on the minds of CFOs with a need for speed and precision to navigate this period of tremendous disruption.
These past two weeks, I had the opportunity to lead a series of virtual CFO Roundtable discussions, a truly unique and valuable forum. While the dialogue was framed around PwC’s Road to Election 2020 Pulse Survey series, the CFOs who work with businesses of all sizes and in all sectors engaged in appropriate, meaningful, peer-to-peer conversations about their top priorities.
The in-the-moment insights are nearly impossible to get anywhere else. And overall, there’s a sense among these CFOs that it’s time to focus on the path forward. While no one has all the definitive answers, I wanted to share a few of my key takeaways from these discussions:
CFOs are matching their business operating model to what return to work “looks like.” Consistently, CFOs told us that COVID-19 and their company’s return to work plans were the number one priorities, regardless of their industry or geography, with safety being the most important concern. They are fighting the impulse to count on a snap back in the business the way it was, pre-COVID, and locking in and learning from the innovations and process improvements we’ve achieved in a period of upheaval.
The current environment is shaping the narrative around revenue and cost. Another area of focus, also related to the pandemic, was how best to communicate their story — internally, to the board and externally — around revenue and cost. Businesses are on the move, focusing on things we can control and considering possible impacts of factors we can’t control without getting bogged down. They are taking action to return to revenue growth - considering organic and acquisitions - to stay in touch with customer preferences, often framed around more value for money and an integrated digital experience. They are putting the effects of these changes into perspective for investors and others.
CFOs are taking a “wait and see” approach towards Election 2020 and planning for varied scenarios on tax, trade, tariffs and pandemic response. We know that CFOs are keeping a close eye on business risks associated with certain outcomes of the upcoming presidential election. And most see changes to the US corporate tax code and the federal COVID-19 response as the top areas of potential policy risk. At the same time though, our roundtable discussions revealed that CFOs are planning now around these issues for next steps that may come later.
At the core, these discussions were filled with hope and purpose. While the uncertainty is still ongoing, so is the perseverance of CFOs and financial leaders. As they continue their efforts to lead their companies and strengthen financial stability, they’re using all the tools at their disposal to carve out the best path forward. CFOs are problem solvers who do not shy away from a challenge, and they've got a strong handle on where to go from here.