More than half of CFOs say their CEOs are asking them to focus on cost reduction, according to a new report.
A new report from Deloitte says that CEOs are putting the pressure on CFOs to reduce costs, focus on working capital efficiency, and risk management—all seemingly a no brainer for healthcare CFOs.
According to the report, 54% of CFOs indicated that their CEOs are asking them to focus on cost reduction while 40% said their CEOs want them focused on strategy/transformation.
More than one-third of CFOs said their CEOs want them focused on strategy, performance management, revenue growth, investment, and capital/financing, according to the report.
"External challenges like inflation and high interest rates and geopolitical uncertainties seem to be impacting CFOs' assessments of macroeconomic conditions. We saw optimism tick upward last quarter, but presently, CFOs are expressing more caution and have a weaker appetite for taking greater risks.” Steve Gallucci, national managing partner of the U.S. CFO Program at Deloitte said in the report.
While this survey gathers data from across all business sectors, the results align with expectations, and are not at all surprising, for healthcare CFOs.
So how can healthcare CFOs work to meet their CEOs' continued expectations in 2023 and beyond?
Developing strong relationships across the c-suite, management, clinical leadership, and finance teams will ensure CFOs can support operational and clinical priorities, which in turn will support strategic growth priorities.
“It is important to develop a culture in which leaders seek continuous improvement, while also measuring the appropriate risks and benchmarking yourself in key areas against best-in-class organizations,” Jim Molloy, executive vice president, CFO, and treasurer, at Ochsner Health recently told HealthLeaders.
And, while its important to always keep your focus on reducing expenses, the true key to success for any organization is disciplined growth, Molloy said.
When it comes to risk-taking, in healthcare balance is key. The key for a healthcare CFO is strong discipline and appropriate risk-taking, Molloy says. Molloy adds that he utilizes his industry connections to identify new ideas and investment opportunities to ensure financial stability and help meet c-suite expectations.
The Deloitte CFO Signals survey for the second quarter of 2023 was conducted between May 1 and 15, 2023. A total of 122 CFOs participated in this survey and gathered responses from CFOs where the vast majority are from companies with more than $1 billion in annual revenue.
Amanda Norris is the Director of Content for HealthLeaders.
KEY TAKEAWAYS
54% of CFOs indicated that their CEOs are asking them to focus on cost reduction while 40% said their CEOs want them focused on strategy/transformation.
While this survey gathers data from across all business sectors, the results align with expectations, and are not at all surprising, for healthcare CFOs.