It feels hypocritical at best, and inhumane at worst.
Money getting tight and need to save a buck? Fire someone.
CFOs who are also tasked with overseeing the HR function can have a lot of inner turmoil due to the conflicts of their financial role in the company and their obligation to the human resources in the organization.
The natural tendencies of cost-cutting can take precedence over the people of the company. But there is a way that these seemingly opposed objectives can work together for the greater good.
The New CFO Mindset
CFOs are often stereotyped as the cost-cutter and cold-blooded decision maker of layoffs to “improve” a company.
But to only look for ways to reduce expenses and cut costs would not be to the true benefit of the company’s growth.
In fact, it’s the opposite mindset that will build a sustainably high-performing organization.
When a CFO can make the shift to a Growth Mindset, one of abundance, then the spending can be used as investments in people, rather than expenses with no return.
Leverage Cumulative Data For The Executives
Did you know that 57 percent of company leaders agreed that data on positions and talent was required to meet business objective?
That’s according to an HBR survey in 2015. And imagine all the data that has become trackable and manageable since then.
Quality information leads to quality decisions. That’s why it’s so important for executives to be able to quickly and easily get actionable and insightful data when making choices on how to move the company forward.
And when those metrics across different departments can be completely aligned with the business objectives, that’s when your company will really start to prosper.
Make sure that you’re operating with the best information. That means accurate, real-time data.
You know how hard it is to find something on the other side of a dark room in the middle of the night?
That’s what you’re asking people to do when you aren’t planning and communicating objectives clearly and collaboratively.
One of the keys to a successful collaboration between a CFO and the HR function is to ensure that finance and HR are involved in upstream strategic decision-making together.
This puts everyone on the same page. With the same vision. And the same big picture understanding.
With everyone pulling in the same direction, your company will see an exponential impact on performance.
Not to mention this approach also helps get the employees to buy in and be more engaged.
Dive Deeper With Your Free CFO Guide To HCM
Want to take a more strategic approach to managing your workforce? This guide will give you what you need to for better collaboration with HR, attracting and retaining talent, and identifying soft costs, and of course several other key topics for CFOs.