Traditionally, the role of finance leaders has been to ensure the financial health and stability of their organisation. But with digital advances, gone are the days of focusing primarily on areas such as financial planning, accounting, reporting and compliance.

Today's finance leaders need a more strategic perspective. They are called upon to use their financial expertise to navigate a complex regulatory environment and support multiple, ever-evolving business objectives. They are also counted on to lead and guide teams, to motivate employees and bring them on board with changes introduced.

To succeed, it is no longer sufficient to rely on the skills of the past. Rather, finance leaders need to refresh, expand and update their knowledge, especially in these areas:

#1 Understanding of digital trends

According to Gartner’s 2024 Finance Executive Priorities, financing tech investments, particularly in the area of AI, is now a top priority for chief financial officers (CFOs). 

This is because generative AI has released the floodgates to personalised financial planning and investments. Digital financial services are expanding rapidly, achieving double-digit growth in Europe. Super apps such as WeChat and Grab are predicted to hit a CAGR of 27.8 per cent and neobanks are expected to grow around 13.5 per cent between 2024 and 2028.

At the same time, Bitcoin is recovering from its crash in 2021, reviving interest in cryptocurrencies. In fact, over 130 countries are exploring the use of central bank digital currencies (CBDCs).

All of these trends point to how digitalisation goes beyond the automation of routine back-office processes. Instead, it has the power to revolutionise customer experiences, boost fraud detection, create investment opportunities and much more. 

The message to finance leaders is clear: To thrive, bridge the digital knowledge gap.

 

A finance professional working on forecast charts, with their hand and paper charts in the foreground

 

#2 ESG knowledge and skills

The rising urgency to combat climate change has also significantly altered the role of CFOs. In another survey of over 900 finance leaders worldwide, environmental, social and governance (ESG) metrics and measurements rose from 14th place to first place in 2024. 

This change is not unexpected, as with skills in areas such as monitoring, cost optimisation and risk management, finance professionals are well-positioned to support ESG initiatives such as investment and reporting.

But to take on such roles, finance leaders must first be knowledgeable about ESG issues. They need to educate themselves and keep up to date with the ever-evolving ESG landscape.

 

#3 Strategy and decision-making 

Worth noting is that despite the global push for digital transformation, AI still remains vastly underutilised. In fact, 88 per cent of CFOs struggle to capture value for their technology investments, a challenge that is exacerbated by the need to ensure short-term profitability.

In an EY study of CFOs, 78 per cent of respondents said it was difficult to balance short-term and long-term priorities. 76 per cent also felt that the challenging market environment puts pressure on them to increase cost efficiency and meet short-term revenue targets—which can inevitably compromise digital or ESG objectives.

To overcome these challenges, CFOs need to hone their strategic thinking and decision-making skills. For example, rather than forcing AI solutions into their organisations, it is imperative that they find use cases that align with their unique business needs, and are able to leverage a variety of digital tools to guide their choices. 

a group of finance professionals sitting side by side on a desk and discussing financial results, looking at their laptops

 

#4 Data analytics and storytelling

To augment their strategy and decision-making skills, finance leaders must develop fluency in data analytics and storytelling.

Data analytics skills offer a host of benefits from supporting bottom-line savings to real-time decision-making. When these skills are used in combination with advances in AI and machine learning, finance leaders become formidable strategists—able to more accurately forecast trends, simulate scenarios and evaluate risks to bring their organisation to the next level.

And with data storytelling complementing their arsenal of skills, they will be equipped to educate and convince stakeholders of all levels, ultimately positioning themselves as partners crucial to driving organisational success. 

 

#5 Leadership and change management

As expectations for finance leaders continue to rise, the ability to drive change is increasingly essential. 

This is even more so as 72 per cent of respondents in the EY study cited traditional back-office behaviours and mindsets as obstacles to modernisation. Only 32 per cent of those surveyed would “always” speak up when their opinion differed from the majority. Even fewer were comfortable “always” challenging leadership team members over differences of opinion on important issues.

To bring both management and employees on board, finance leaders must possess strong people management, leadership and communication skills. Only with the ability to foster trust and build consensus will they be able to guide teams through transformation and position organisations for long-term success. 

 

Two female and two male finance professionals having a light moment during a team meeting, laughing and smiling at each other.

 

#6 A global perspective

Finally, in today’s interconnected world, one cannot discount the value of finance leaders with a global mindset. Geopolitical risk is cited by CFOs as the top factor likely to pose a risk to their business over the next year. The third biggest challenge? Finding skilled workers.

Possessing a global perspective is an advantage in this landscape. It allows leaders to recognise emerging markets and navigate geopolitical challenges that inevitably impact markets worldwide. It also feeds into cross-cultural communication skills, which will support the management of multicultural, diverse teams and foster strong relationships with internal and external stakeholders to carry their organisation into the future.

 

Stay ahead with the INSEAD Executive Master of Finance

For finance professionals to proactively close knowledge gaps in the above areas and keep pace with change, further training may be needed.

On this front, INSEAD’s Executive Master in Finance (EMFin) stands out because it goes beyond offering an update of one’s financial knowledge to provide a thorough understanding of the key competitive and management issues in the sector. 

The programme includes a wealth of electives on topics such as AI, fintech and sustainable finance, which evolve and update with global trends. And to meet the demands of change management, it has a dual focus on business and leadership to equip finance professionals with the essential analytical and people skills they need to drive change. 

Leadership concepts are woven into all modules, and there is a choice of courses covering specialised areas such as Negotiation, Managerial Decision Making and Blue Ocean Strategy—which is arguably particularly beneficial for those from a pure finance background.

Berry Schrijen, Group CFO at Alliance Nutrition Group, confirms this: “Thanks to EMFin, I now know what 'value' really is and how to benchmark any strategic or operational decision against it.”

“The INSEAD EMFin has provided me with practical tools to lead the strategic transformation of companies towards this operational excellence by using value as a catalyst,” he affirms.


Find out more about the EMFin programme and join us at the EMFin events here!

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