{"id":40352,"date":"2020-06-16T00:00:00","date_gmt":"2020-06-16T00:00:00","guid":{"rendered":"https:\/\/newrcblog.wpengine.com\/5-priorities-for-finance-leaders-in-the-post-covid-19-recovery\/"},"modified":"2024-11-04T10:26:53","modified_gmt":"2024-11-04T18:26:53","slug":"5-priorities-for-finance-leaders-in-the-post-covid-19-recovery","status":"publish","type":"post","link":"\/us\/en\/blog\/5-priorities-for-finance-leaders-in-the-post-covid-19-recovery\/","title":{"rendered":"5 Priorities for Finance Leaders in the Post-COVID-19 Recovery"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Very few organizations entered 2020 fully prepared for a COVID-19 kind of disaster. In January, the coronavirus wasn\u2019t much more than a blip in the national eye\u2014out of sight, out of mind. We gleefully ignored the warning signs thinking that things would be under control before they reached our offices. Fast forward two months, however, and most of us were working from the confines of our kitchen tables.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The unprecedented speed of COVID-19 simply caught organizations off guard. By the time the virus hit metropolitan areas, leaders had to pivot their entire organizations to remote work at breakneck speeds. This posed some serious challenges for decision-makers\u2014not only were they forced to hastily adopt new technologies that don\u2019t meet long-term IT goals, but they also had to make sweeping changes to their 2020 growth plans.<\/span><\/p>\n<h2><b>Recovering from the disruption<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Saying that the COVID-19 pandemic struck hard would be an understatement. Over <\/span><a href=\"https:\/\/www.pwc.com\/gx\/en\/issues\/crisis-solutions\/covid-19\/global-cfo-pulse.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">70% of CFOs are expecting revenue decreases<\/span><\/a><span style=\"font-weight: 400;\"> this year, with over 20% expecting 50% decreases or more. That\u2019s an enormous loss finance leaders never planned for going into 2020.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As restrictions loosen and offices reopen, finance leaders have monumental recovery tasks ahead of them. First and foremost, their immediate goal is to restore \u201cbusiness as usual.\u201d According to a recent PwC <\/span><a href=\"https:\/\/www.pwc.com\/us\/en\/library\/covid-19\/pwc-covid-19-cfo-pulse-survey.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">study<\/span><\/a><span style=\"font-weight: 400;\"> on 330 US finance leaders, one-third believed a full recovery would take at least six months to achieve, while 48% believed recovery would last well into 2021.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Second, finance leaders have to account for the quickly evolving needs of the post-COVID-19 workplace when evaluating long-term business continuity strategies. These include outlooks beyond the recovery phase, extending into 2021 and beyond.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To emerge stronger, many finance leaders have already mapped their recovery priorities for the near future. Here are the top five (in no particular order):<\/span><\/p>\n<h2><b>1. Cost containment<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">One of the most efficient ways for organizations to recover is to cut expenditures wherever possible. According to PwC, a whopping <\/span><a href=\"https:\/\/www.pwc.com\/gx\/en\/issues\/crisis-solutions\/covid-19\/global-cfo-pulse.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">86% of finance leaders are considering cost-containment measures<\/span><\/a><span style=\"font-weight: 400;\"> in the wake of COVID-19. In fact, many have already executed on these measures, including reductions in CapEx investments, operations, and staff.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the next few months, finance leaders may implement more cost-containment efforts as part of their short-term recovery strategy. We can expect to see reductions in nonessential areas such as facilities, philanthropy, and new hires as organizations stabilize. Areas that won\u2019t see significant cost containment include R&amp;D, employee experience, and digital transformation.<\/span><\/p>\n<h2><b>2. Workplace safety<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Employees, teams, and organizations that simply can\u2019t work remotely have to return to the office, but without the right safety standards, leaders risk the health of their employees. Workplace safety can include measures like reconfiguring office layouts, contact tracing plans, flexible work arrangements, and chain-of-command protocols in case an employee gets sick.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finance leaders will play a crucial role in implementing workplace safety measures. For example, <\/span><a href=\"https:\/\/www.pwc.com\/gx\/en\/issues\/crisis-solutions\/covid-19\/global-cfo-pulse.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">58% of CFOs<\/span><\/a><span style=\"font-weight: 400;\"> are planning for a second wave of infections to disrupt business operations and are accelerating digital transformation and remote work plans to prepare. Similarly, finance leaders have to account for the rehiring of staff as offices reopen\u2014all on significantly reduced budgets.<\/span><\/p>\n<h2><b>3. Flexible work<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Remote work allowed many organizations to weather the pandemic, which helped shed much of the stigma around it. Leaders who were reluctant to embrace remote and flexible work prior to COVID-19 are much more likely to welcome it now. In fact, A recent Gartner <\/span><a href=\"https:\/\/www.gartner.com\/en\/newsroom\/press-releases\/2020-04-03-gartner-cfo-surey-reveals-74-percent-of-organizations-to-shift-some-employees-to-remote-work-permanently2\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">survey<\/span><\/a><span style=\"font-weight: 400;\"> on 317 CFOs revealed that 74% of companies plan to permanently shift to more remote work post-COVID-19. Nearly a quarter of those plan to move 20% of their on-site employees to permanent remote positions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Flexible work isn\u2019t just a nice-to-have in the post-pandemic workplace\u2014it\u2019s a business necessity. Finance leaders are prioritizing employee safety and allowing employees to continue working from home (either in permanent remote positions or flexible\/rotating schedules) is critical to keeping them safe from the virus. At the same time, flexible work allows employees to achieve a better work-life balance, which in turn <\/span><a href=\"https:\/\/www.gallup.com\/workplace\/236927\/employee-engagement-drives-growth.aspx\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">drives productivity, retention, and profit<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><\/p>\n<h2><b>4. Digital transformation<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">COVID-19 caught most organizations off guard, and they don\u2019t want that to happen again. That\u2019s why business resilience and agility will be key areas of focus for finance leaders in the future of work.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Part of developing stronger business resilience is in digital transformation, which has accelerated during the pandemic. Finance leaders understand that going digital can significantly improve long-term business success, with <\/span><a href=\"https:\/\/www.pwc.com\/us\/en\/library\/covid-19\/pwc-covid-19-cfo-pulse-survey.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">44% planning to support automation<\/span><\/a><span style=\"font-weight: 400;\"> and newer ways of working.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Remote and flexible work will see the most immediate impact of digital transformation. As more organizations embrace flexible work post-COVID-19, their remote employees will need the right tools to communicate and collaborate. Finance leaders might consider consolidating their current workplace communications technology, adopting <\/span><a href=\"https:\/\/www.ringcentral.com\/desktop-app.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">unified communications as a service<\/span><\/a><span style=\"font-weight: 400;\"> (UCaaS) solutions to simplify collaboration across increasingly distributed teams. Because many employees might continue working from home despite offices reopening, unified communications is poised to instantly contribute to short-term recovery plans.<\/span><\/p>\n<h2><b>5. Revenue streams<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">One of the biggest challenges for recovering organizations is finding new sources of revenue. Organizations have several barriers to overcome, including lower budgets, distributed teams, and a global economic recession. How can companies perform in this new normal?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the coming months, finance leaders will divert funds into R&amp;D, better products and services, and ensuring employees have the right tools to succeed in flexible and remote environments. There will be a growing need for employees to avoid burnout and continue innovating as employees either work from home or rotate shifts in the office. Leaders might consider implementing employee experience initiatives such as work-life balance programs or rewards for hitting targets. All of these efforts support the ultimate goal of driving more sales, bringing in new revenue to the company as it slowly recovers.<\/span><\/p>\n<h2><b>Keys to an agile recovery<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Recovering from the changing needs of the post-COVID-19 workplace will require a multipronged approach\u2014all with unprecedented haste. Companies are already starting to execute on recovery and continuity strategies, and those who embrace change early will have a competitive edge in the future of work.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While the economic landscape is beginning to look optimistic, finance leaders understand that returning to the old normal is a recipe for disaster. Organizations can\u2019t simply revert to pre-COVID-19 workflows, procedures, technologies, and business models and ignore the dramatic changes brought on by the pandemic.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, more employees are working from home today than ever, and the demand for flexible work options will continue to rise. By prioritizing digital transformation and migrating workflows to the cloud, finance leaders can position their organizations to not only prosper down the line, but also build the resilience to withstand future disruptions to operations.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Very few organizations entered 2020 fully prepared for a COVID-19 kind of disaster. In January, the coronavirus wasn\u2019t much more than a blip in the national eye\u2014out of sight, out of mind. We gleefully ignored the warning signs thinking that things would be under control before they reached our offices. Fast forward two months, however, &#8230;<\/p>\n","protected":false},"author":29,"featured_media":40353,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17901],"tags":[17834,17835,17836,17837,17838,17839,17840,15187],"class_list":["post-40352","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-leadership","tag-business-continuity-covid","tag-cfo-post-covid-priorities","tag-cost-containment-post-covid","tag-digital-transformation-after-covid","tag-finance-leaders-post-covid","tag-flexible-work-post-covid","tag-reducing-costs-after-covid","tag-ringcentral-cfo"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.3 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>5 Priorities for Finance Leaders in the Post-COVID-19 Recovery | RingCentral Blog<\/title>\n<meta name=\"description\" content=\"Very few organizations entered 2020 fully prepared for a COVID-19 kind of disaster. 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