38 Finance Monthly. Bank i ng & F i nanc i a l Se r v i ce s 1. Businesses will be balancing growth and efficiency to survive The expectation that the postpandemic boom would continue unabated has left many business leaders at a crossroads. The macroeconomic factors and fallout from geopolitical events has meant that business models established while the going was good need to be course corrected. Many businesses, especially in the software and technology sector have proactively taken measures to ensure business continuity, shifting priorities from all out growth to sustainability. During the economic turmoil, businesses will need to ensure they are making the right investments and at the right time for such growth to be sustainable. After all, despite the economic slowdown, many businesses are still actively seeking growth. But to protect reputations and manage sustainable growth, businesses will need to plan their futures in a much more careful way. Throughout 2023, successful businesses will be focusing on their core proposition and doubling down on the segments of the business with the best productivity and economics – essentially those that provide the best ROI for sustainable growth. Unfortunately, this may mean divesting from longer term and experimental projects in a bid to reduce risk and cost for some companies will be required. International expansion will likely only be prioritised in areas where environmental factors allow for sustainable growth. 2. Finance will take on a larger leadership role Our research from 2021 found that a fifth (20%) of UK CFOs say they’ve seen a greater demand placed on them by the CEO and C-suite – this trend will be amplified throughout 2023 as finance takes on a larger leadership role. Finance should be at the centre of all strategic planning as businesses become more numbers-driven amid economically challenging conditions. New investments will need to be strategically timed and nuanced with different sensitivities at play. This requires focus and crucially, balance. The finance team cannot purely be in cost cutting mode; they will need to create a longer term plan for sustainability and profitability. Now more than ever, finance leaders will need to modernise with technology to remove manual processes, whilst increasing visibility and control. For example, automation can avoid duplication and wasted spend by approving of UK CFOs say they’ve seen a greater demand placed on them by the CEO and C-suite – this trend will be amplified throughout 2023 as finance takes on a larger leadership role.” “
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