There is a constant struggle to balance short-term goals with long-term strategic goals. Many companies come close only to be thrown off balance by short-term financial setbacks, macroeconomic events, or even executive changes.
In an interview with Katie-Kuehner Hebert, Jorge Stevenson, CFO of Yuvo Health and adjunct professor at New York University, talks about how to help organizations hit short-term numbers while focusing on long-term goals. , explained how finance directors can help.
How can CFOs achieve short-term financial goals and long-term value creation for sustainable growth without sacrificing either?
Long-term value creation depends on short-term decisions. As such, CFOs need a strategic mindset focused on driving growth while overseeing the operational elements that can impact the business today.
CFOs need to align with short-term goals such as revenue and expense targets, cash flow management, and expense management. Many of these goals are important to a company's survival, especially for early-stage startups. However, while focusing on the short term, you need to consider risks to deliver long-term value. This requires planning for scenarios such as market changes, economic fluctuations, and industry disruption.
Long-term value is built on understanding and supporting the strategic vision, which is the only way to drive sustainable growth. This requires technology investment, market expansion, new products and channels, and skills development. However, investment opportunities must be rigorously evaluated to ensure capital is allocated efficiently and aligned with strategy. In some cases, you may need to prioritize growth initiatives while optimizing costs.
What steps are you taking to address talent shortages and ensure your finance team has the necessary skills and expertise?
I conducted a comprehensive skills gap analysis to identify strengths and weaknesses – areas where additional skills and expertise are needed. This includes assessing the alignment of existing skill sets with the organization's strategic objectives.
Based on our skills gap analysis, we created a talent development plan that outlined specific training, skill development, and recruitment initiatives. We also implemented a targeted recruitment and recruitment strategy to attract candidates with the desired skills, expertise and culture. (If you don't have the budget to hire a full-time employee, consider part-time vendors or consultants.)
I strive to have space and budget for professional development opportunities such as training programs, certifications, and workshops for our existing team. We also promote a culture of diversity and inclusion to retain our employees and attract a wide range of talent and perspectives.
Are there any approaches or efforts you have tried to close the capability gap in finance?
CFOs can facilitate knowledge-sharing sessions and collaborative projects to leverage the expertise of team members and foster continuous learning. Cross-functional projects help finance professionals develop leadership, communication, and problem-solving skills.
High potential employees need to be identified and provided with leadership training and mentoring opportunities. It is also important to expose them to strategic initiatives. All of this will give you a better understanding of your organization's operations, challenges, and opportunities.
