The CFO'S Perspective

How Creating Connection is Helping Service Providers Improve Revenue

Creating authentic connections with customers can help companies to attract new customers, retain existing customers, and develop brand advocates to increase customer lifetime value across the organization. It can also benefit employees, strengthening the company from within. Having a meaningful connection with the people they are serving allows employees to find meaning in the work that they do, simultaneously increasing employee retention and making it easier to attract top talent for new roles. The net effect of these internal and external shifts is greater, more sustainable revenue.

Topics: Growth Strategy Service Providers

The Biggest Financial Shifts of 2023

As companies continue to battle unexpectedly high inflation and economic uncertainty, understanding this year’s prevailing trends across financial forecasting, fintech stacks, procurement, and customer attribution can help them to increase revenue and market share. Our ongoing research and conversations with other c-suite professionals in the industry have revealed several key shifts in these areas that can affect not only how a CFO does their job but also how their organizations develop and execute on strategic plans.

Topics: CFO Responsibilities Change Management Strategy Supply Chain Technology

Can ChatGPT Help or Hurt as You Pursue a Job as a CFO?

 

If you are reading this and don't know what ChatGPT is, you better Google the phrase and learn about what is starting to transform many aspects of society and business. It is an AI tool developed by Open AI, a company that Microsoft has recently announced it has invested billions in and is incorporating into its Edge browser. TikTok has run amok on the topic, and it was TikTok that helped create a million ChatGPT users in less than a week from launch in late 2022.

To give a very high-level summary, one aspect of ChatGPT is you will never have to start a writing project staring at a blank piece of paper. State what you want to write about in ChatGPT, and voila – a few paragraphs or much longer will quickly appear. Stories are being told of people using this tool for term papers, copywriting, and cover letters; you name it, even a judge in Colombia recently used it to write a legal opinion.

My focus is in the context of a person working on getting their first CFO job or a CFO making a change. I should issue a warning: if you have not used ChatGPT before, after reading this article, you may find yourself acting like Alice going down the rabbit hole – your family, co-workers, and friends may not see you for a while as you use the easy-to-use AI app.

Topics: Search Services Technology

Combating Inflation in the Tech Industry

With the US inflation rate still over 6% it continues to dominate business news headlines. And after a recent press release in which the Fed announced they were raising their longstanding inflation rate target from 2% to a range of 4.5-4.75% speculation continues to ensue over what may be coming next. US monetary policy is likely poised to shape these inflationary trends, but the timing and success of such efforts are yet to be determined.

What we do know is that the effects of inflation are being widely felt – both by consumers and by businesses. And while high inflation has affected every industry to some degree, data shows that it is taking a disproportionately heavy toll on the tech sector. Public and private tech companies alike are bearing the burden of soaring inflation that does not show any signs of slowing in the near future.

So, what can the technology industry do to strategically combat high inflation? The following 7 actions are essential for tech companies to weather high inflation:

Topics: Technology

How Nonprofits are Using Technology to Grow in a New Age

As in any industry these days, technology utilization in nonprofit organizations is on the rise. Nonprofits are using technology to shape everything from how they communicate to how they fulfill their missions with greater efficiency and effectiveness than ever before.

In a Harvard Business Review article on the smart tech transformation occurring in nonprofits, Allison Fine and Beth Kanter summarize,

“The use of smart tech by social service agencies and other nonprofits exploded during the pandemic. For example, food banks deployed robots to pack meals; homeless services agencies used chatbots to give legal and mental health advice; and fundraising departments turned to AI-powered software to identify potential donors. At many nonprofits, smart tech is becoming integrated into internal workflows, fundraising, communications, finance operations, and service delivery efforts, freeing up staff to focus on deeper societal changes that need to be made — such as addressing the root causes of homelessness in addition to serving homeless people. While smart tech helped scores of nonprofits to pivot to suddenly remote and digital delivery of programs and services at the start of the pandemic, it may also enable them to turn the page on an era of frantic busyness and scarcity mindsets to one in which nonprofit organizations have the time to think and plan — and even dream.”

Topics: Non Profit Organizations Trends Technology

A CFO’s View on Insurance and Risk Management

Have you ever had a conversation that went something like this?

CEO: “So, do you have an update on our insurance?”

CFO: “Well, I have good news and bad news.”

CEO: “Bad news first, please. Always.”

CFO: “I took a look at The Company’s coverages and talked with our broker. The bad news is that our insurance bill is going up, way up.”

CEO (interrupting): “By how much? We’re kind of tight right now.”

CFO: “The premium increase will be almost 40% over last year. We might want to shop it. But the good news is…”

CEO (interrupting again):Let me guess - another invitation from the insurance broker to a charity golf event in the month of November?”

CFO: “Actually the good news is that this year we have identified some significant gaps in our coverage. We have the opportunity to close those gaps now to better protect The Company in the future from significant financial risk.”

CEO (looking unconvinced): “Oh?”

CFO: “With our new advisory board of directors, we will need D&O insurance. Also, the broker has been recommending cyber insurance for the last several years, but The Company continues to put off purchasing any kind of coverage in this area. I strongly recommend that we should cover ourselves in this area.”

Topics: Risk Management

Calculating Nonprofit ROI

It is not difficult to understand that a nonprofit organization needs money to accomplish its mission. And yet, in looking at nonprofits it is clear that they are so much more than the money they have to invest in programs and initiatives around a particular mission or cause. Nonprofits are made up of passionate people that care about making a difference and serving others with whatever resources they have available. But how much they need and how much donors are willing to give them hinges on understanding how they can use what they have to do what they do, which is called their Return on Investment (ROI).

Without knowing what kind of a return a nonprofit can achieve it cannot secure grants or attract donors effectively. So, how do you calculate nonprofit ROI?

Topics: Finance Non Profit Organizations Analysis

How Will a Recession affect Nonprofits?

While some economists and business analysts claim we are already in a recession, many more believe we will be in one by the end of the year. The general consensus is that whether we are already there, or it is coming soon, for-profit and non-profit organizations alike will be affected. The question is how will they be affected and what will those effects look like? Essentially, what should they expect and to what degree should they expect to be affected?

Obviously, nonprofit organizations will feel the effects of a recession differently than the private sector, but the types of issues they are dealing with right now are the same: changing consumer behavior (purchasing and donating), increased costs, labor market changes, and increased reputational risk. How will nonprofits be affected?

Topics: Non Profit Organizations Economic Trends Philanthropy Planning