The ongoing fear and uncertainty of potential recessions and international trade disruptions have CFOs increasing pressure to reduce costs and manage risks while promoting strategic value across the organization.
Amidst this confusion, Krishnan Ragnathan, head of finance and accounting services at BPO company WNS, believes that applying AI tools will help you achieve better results faster, better results at a lower cost, and release critical bandwidth to financial leaders. Difficult strategic decisions, such as suspending major projects or changing land on desks for a company's commercial or product mix, may require that time in the coming months.
Of course, these decisions require the buy-in of peers and colleagues. In the following interview, Raghunathan explains why personal connections with colleagues and teams are driving the role as CFOs try to advocate for change. Additionally, he shares his thoughts on how CFOs can avoid obsolescence by maintaining their passion for learning, and why young financial executives often switch companies for the wrong reasons.
In a volatile economy, CFOs are tempted to cut their investments. How do you approach the balance between short-term financial goals and long-term strategic initiatives?
The best way to balance the two is to find a way to integrate them! I always identify opportunities to meet short-term financial goals and fund the investments needed for long-term strategic growth. For example, over a decade ago I started investing in AI-based financial analytics tools and teams. That early start allowed me to build these functions on my own.
In the short term, they helped me to meet contractual commitments and promote efficiency while continuing to lay the foundation for long-term strategic growth. When market needs became more common, I didn't have to worry about dramatic one-off investments.
That being said, not all can self-fund. For example, a new opening [service] Centres from other countries require advance investments. That's why we actively plan such investments and needs within our budget, including dental issues.
Still, when there is a real conflict between short-term benefits and strategic long-term goals, I always prioritize the latter. We believe that if we are able to move faster in the long term, we will be transparent with our stakeholders about the short-term impact. In most cases, minor temporary adjustments can minimize the impact, such as applying great prudence to discretionary spending.
What is one career lesson you learned the hard way? And how did it shape your leadership style?
Most people believe that effective communication is the foundation of networking, and that's true. But I have learned that, especially as a leader – the opposite is equally essential: Networking [fosters] Effective communication.
I always take pride in defending change and promoting change. But despite my hard work, I was often annoyed when my peers and teams didn't adopt those changes. Over time I realized that this issue is not an idea, not a trust. I wasn't connected enough to them.
When humans know each other better, they trust them more. I was not the type to “make a phone” or engage in casual hallway conversations. But once I started it – as I tried to get more personal involvement, I gained insight into what my colleagues were honestly expecting from me. And they became more open to the changes I advocated. In short, when I networked, we listened to each other.
That's when real communication begins.
As roles continue to evolve, what advice would you give to young professionals entering the financial field?
You can't afford to be an AI-Illliterate, and you can't be an expert on at least one domain. Think of data science and technology enablers as important tools such as language. You will not learn that English will become a better financial expert, but you still need to know it.
Similarly, many generalist roles are susceptible to automation, but experts continue to lead. So it's one mile deep and one mile wide in other areas.
Evolution is not waiting for you. Whether you're ready or not, the world continues to evolve. As I always say, change is not only inevitable, but it is also accelerating. If you don't grow fast enough, you risk becoming obsolete. So you're passionate about learning, interested in new technology, and never overconfident. That is the key to survival. And yes, I said I wouldn't survive and thrive.
Finally, hindsight is 20/20, and everyone makes a mistake. The biggest thing is that we cannot learn from mistakes. When things don't walk your path, it's easy to blame external factors, but introspection reveals what you can change. Keep doing that.
How are your CFO career progressions? How should they think about the employment opportunities that arise and personal goals along the way?
View your career in three phases: First, identify the core strength. Secondly, go deeper and become a true subject expert. Third, we focus on leaving legacy.
You will notice that this has nothing to do with money or title. There are so many young professionals making career choices based on the wrong reasons that they will only regret later. If you need to do basic shifts, do it early. However, once you've committed, pursue proficiency and build your brand as a small business.
And yes, I might sound like my name, but I care about the reward. If you follow the right path, the reward will naturally follow.
