As inflation and economic volatility pose mounting threats to company growth, CFOs report high volatility in their own business’s performance—and little expectation that performance will stabilize in the near term. Yet in our latest CFO pulse survey,1 respondents say they’re adapting, not hunkering down. The results suggest that finance leaders are taking proactive steps in the face of economic headwinds and enterprise risk. Since our previous survey on the topic, CFOs say they have adjusted their own priorities with performance and productivity in mind. And in the months ahead, they plan to refocus the finance organization on managing operational value drivers and key performance indicators (KPIs).
CFOs continue to report a positive outlook on industry growth and investment, as they did in Q3 2022. More than half of finance leaders are still optimistic about their industries’ rate of growth in the next year, and 57 percent expect higher levels of investment (in capital expenditures, R&D, and marketing, for instance) at their companies.
That determination is particularly notable because surveyed CFOs overwhelmingly report high volatility in their companies’ business performance. Fifty-seven percent of them believe that company performance has been more volatile over the past 12 months. While the largest percentage of CFOs (51 percent) expect similar volatility in the next 12 months, another 36 percent expect more volatility over that time.
The past year has been fraught with volatility, and the overwhelming majority of CFOs we surveyed believe the next 12 months will be just as challenging—or even more so. Yet these leaders are adapting, not retreating. Even in the face of volatility, CFOs are staying positive on investment and growth.