CFOs Need to Change the Way They Plan
10/11/2024 15:30:00 +0800
In my book CFO of the Future, I dive deep into the evolution of what it means to lead the finance function today. In my experience coaching CFOs, the best and most productive plans are built when flexibility, adaptability, and an understanding of the human element that drives performance is built into the process.
We are not robots, and if we're still planning as though we can function at peak levels every hour of every day, we're setting ourselves and our teams up for burnout and failure.
In this post, I'll share how CFOs can optimise their planning processes by aligning with natural energy cycles, creating buffer zones for surprises, and implementing positive feedback loops that maintain team moment
1. Align Peak Performance with Natural Energy Patterns
CFOs are accustomed to managing cash flow and resource allocation. But an often-overlooked aspect of planning is aligning high-focus tasks with personal energy levels. In my book CFO of the Future, I emphasise the importance of CFOs aligning their work schedules with the natural highs and lows of their energy throughout the day. High-focus tasks, like strategic financial planning or analysing complex data, should be scheduled during peak mental energy periods. For some, this is early morning; for others, it's mid-afternoon. The key is identifying when they're at their sharpest.
I've seen CFOs transform their effectiveness by making this shift. One leader I worked with restructured her day to handle budget analysis in the morning when her brain was freshest and tackled lower-priority meetings in the afternoon. The result was less stress, fewer errors, and a noticeable improvement in decision-making quality.
The lesson here? CFOs need to stop planning as if they're always operating at 100%. They should take stock of their own energy rhythms and plan their day around them.
One of my favourite books, "When" has a simple yet very effective tool to help you
gain clarity over your natural energy flows.
gain clarity over your natural energy flows.
2. Build in "Expected Surprises" to Handle Real Shocks
Planning during times of volatility requires flexibility. Traditional static planning no longer serves CFOs - especially not now when it feels as if a new crisis could pop up at any moment. Instead, I encourage CFOs to build expected surprises into their schedules. This doesn't mean predicting every problem but rather creating buffer times in their week that account for the inevitable.
One CFO I coached began scheduling 10% of her time as "emergency hours." These hours were intentionally left unscheduled to handle last-minute issues without disrupting her key responsibilities. When the unexpected hit, she had the bandwidth to manage it without sacrificing the strategic work that drives real progress.
By planning for the unexpected, CFOs can stay ahead of the curve and avoid the trap of reactive management, keeping control over their priorities.
3. Create Positive Feedback Loops to Maintain Momentum
One of the most effective ways for CFOs to keep their teams engaged and motivated is by creating positive feedback loops. We often focus too much on the big milestones, neglecting the small, incremental wins that keep our teams moving forward.
By building short-term feedback points - whether it's weekly financial reviews or monthly progress check-ins - CFOs can create a rhythm of success. Instead of focussing purely on long-term goals; CFOs can acknowledge the progress and give their teams the hit of motivation that comes from celebrating the wins along the way. One finance team I worked with implemented quick, end-of-week stand-up updates to track performance and celebrate small wins. The immediate feedback kept everyone engaged, motivated, and committed to the broader objectives.
Positive feedback loops create momentum, which is critical for keeping the finance team focused and energised, especially during long-term projects.
Planning isn't a static process. It must be dynamic.
What Would This Planning Strategy Unlock for You?
What Would Implementing This Planning Strategy Unlock for Your Business?
When CFOs start aligning their planning with their natural energy cycles, preparing for surprises, and building in positive feedback, they'll see results quickly. The clarity and flexibility that come with these strategies will elevate performance across the entire finance team and bring a sense of ease to their leadership.
When CFOs start aligning their planning with their natural energy cycles, preparing for surprises, and building in positive feedback, they'll see results quickly. The clarity and flexibility that come with these strategies will elevate performance across the entire finance team and bring a sense of ease to their leadership.
How might planning for expected surprises give CFOs greater control over unexpected crises?
What small wins could be celebrated to keep teams on track toward achieving the company's strategic objectives?
I'd love to hear your thoughts...
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Author: Alena Bennett
Alena works with leaders and their teams to connect technical and leadership skills so they can deliver to deadline without killing their people.
She is a mentor, trainer, facilitator and coach. Contact her today on [email protected].
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