The Year Ahead for Finance: Managing Business Priorities to Fuel Long Term Business Growth

How can finance leaders and CEOs juggle current pressures such as inflation, the cost of living and supply chain management, whilst remaining focused on business strategies for long term growth? The answer lies in managing business priorities such as:

• Cutting costs with automation
• Understanding and managing the supply chain
• Optimising growth and investments
• Focusing on employee purpose
• Developing ESG strategies based on data

In this blog we’ll explore these priorities and share some insights from Craig Skelton, Private Business Leader at Price Waterhouse Coopers (PwC).

In a candid conversation with SAP Concur’s Managing Director Ryan Demaray on our recent The Year Ahead for Finance: Priorities Under Pressure” webinar, Craig outlined how businesses can navigate their top business priorities in 2023 and digitally transform their business with the help of technology.

The webinar explored findings from PwC’s 26^th Annual CEO Survey, including how the interventions and investments in technology that finance leaders make today will help counteract the negative impact of economic crisis in the future.

 

The Year Ahead For Finance: Priorities Under Pressure

Discover the top priorities for finance leaders in 2023 and learn how to strategically position yourself for growth during difficult times in the webinar below:

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What Are the Top Business Priorities in 2023?

Rising inflation, the cost-of-living crisis and geopolitical conflict has created new market pressures for businesses. For many, this is a make-or-break time. With 22% of UK CEOs believing that their business will not be economically viable within the decade on its current course and 10% believing they have less than three years, the stakes are high.

According to the PwC research, CEOs are reacting to these pressures by doubling down on investments in both talent and technology to transform their businesses, particularly in the area of finance.

What is the Role of the Finance Leader?

The pandemic was instrumental in demonstrating the importance of the finance function in times of crisis. Whether it was urgently tracking cash flow or analysing the supply chain, getting finance leaders involved in business decisions became crucial to survival.  

As PwC’s Craig told Ryan, “You need to bring finance into any major decision, whether that be costs, sales, production or strategy, because ultimately they can help you make the right decision using the right information.”

Only by talking to every corner of the business and gaining an organisation-wide understanding of all spend, can business leaders develop strategies to lower prices, control costs and explore growth opportunities during these tricky times.

What Are the Business Strategies for Long Term Growth?

Let’s look at some of the measures business leaders are taking to tackle their business priorities and how finance automation can help. 

1. Cutting Costs with Automation

The PwC research shows that 60% of CEOs have responded to current pressures with price increases. Price increases, however, must be handled with caution, which is why many businesses are choosing to cut costs by automating business processes. 86% of CEOs are investing in automating processes and systems and 77% are investing in advanced technologies such as cloud and AI. 

According to Craig, most businesses aren’t looking to reduce costs by cutting headcount. Rather than being a case of people vs technology, they're asking “How do we bring in the technology that helps drive efficiency?” There’s more of a focus on “human-led tech”, such as Concur Expense and Concur Travel, which free up employees to undertake more productive, efficient and effective work. 

This sentiment is echoed in the research, which shows that 74% of CEOs are upskilling their workforce in key areas, with 56% upskilling their workforce in technology. 

2. Understanding and Managing the Supply Chain

The pandemic put supply chain management in the spotlight, as many businesses were caught out by over reliance on certain suppliers. Again, this is reflected in the research that shows that 42% of businesses have found alternative suppliers. Now is the time to refocus efforts on optimising supplier relationships and gaining discounts where possible.

As Craig says, “You need the data on your third-party suppliers but you also then need humans to be able to interpret it – and you need to relate the two.” Businesses are looking to finance automation to help with that, with solutions such as Concur Invoice helping control when and how suppliers are paid and strengthening those relationships to fuel business growth. 

3. Optimising Growth and Investments

In times of crisis, it might be tempting to hold back on investments and growth plans, as evidenced by the 21% of CEOs who reported a slowing down of investments. The trick is to work out carefully where investments – or divestments – should be made, for example focusing on available talent or the cost-implications of certain locations, Craig advises.

“You need to look at locations and ask ‘What does that mean from a tax and duties perspective? From a systems perspective? From a spending perspective?  From an employee perspective?” he says. SAP Concur’s tax solutions can help answer these questions and support decision-making. 

4. Focusing on Employee Purpose

Employee anxiety about the cost-of-living crisis creates an opportunity to ensure your business is maximising its resources and harnessing talent to focus on more strategic, rewarding work.

Craig recommends giving employees a sense of purpose by empowering them to focus on higher-level business tasks, which 40% of executives stated as the main way they expect automation and digital technologies to support their organisation’s financial goals. 

5. Developing ESG Strategies Based on Data

Part of creating a sense of purpose, says Craig, is to address employee concerns about Environmental, social and governance (ESG) strategies. 55% of CEOs are responding by investing in the technology skills and understanding of their ESG teams and 43% are investing in technologies and solutions to support their efforts. 

To get this right, you need reporting tools such as Business Intelligence that share the spend data to back up your strategy and ensure you’re signing up to the right goals.

How Can We Manage Business Priorities Using Automation?

Whether its controlling costs, raising prices, managing suppliers, analysing investment opportunities or improving the employee experience, SAP Concur solutions help businesses address evolving market pressures whilst managing business priorities as they emerge.

To gain deeper insight into what PwC’s Craig Skelton sees as the major business priorities in 2023 and the role of finance automation in achieving them, watch the entire webinar.