Stories

It’s fair to say that CFOs and treasurers are preparing for a more uncertain near-term environment, being cautious and managing the short-term downside. They’re very focused on efficiency and productivity, which drives cash flow and, in turn, liquidity.

At the same time, they’re staying committed to their growth strategies, and I think that’s important. Our clients understand that volatility can create some of the best opportunities when it leads to strong, disciplined decision-making without sacrificing growth.

Leaders are holding steady so they’re ready to move when opportunities emerge – a strong, positive position for companies.

As a former CFO, what are some steps you took – or what are steps you’d recommend CFOs take – to navigate environments like we’re seeing now?

I think a CFO’s role during uncertain times like this is to create clarity and be ready for opportunities.

As I think back, I’m reminded of how we used to say you can’t control volatility, but you can control how prepared you are to respond to it. We would build a small set of what we thought were credible scenarios, and we would tie specific actions to each one. That way, if conditions shifted one way or another, we’d be executing a plan, not starting one.

First and foremost, the plans we made for different scenarios were disciplined about protecting liquidity because it was a driver of everything. I always thought it was important during uncertain times to have a narrow focus on specific indicators so we weren’t reacting to noise. We were looking at select factors, with liquidity being first.

It must be satisfying when you’ve done that preparation and then the opportunity arises to show it was worth doing.

Yes, and even if none of the scenarios happen, you feel very confident having them ready. It gives the team the opportunity to think about what can happen and prepare.

Another survey finding is that many participants say it’s challenging to calculate the return on investment (ROI) in AI. What are your thoughts on how companies can find the best approach to using it?

The goal is not to invest in AI for its own sake but to figure out where it meaningfully improves the business. You need to think about what you’re trying to achieve, consider how AI will help and identify the use cases that create a clear outcome.

It’s hard to run an ROI against AI. It’s better to run it against use cases with clear outcomes. The CFO role becomes key here in turning the AI investment into a disciplined one.

I know sometimes there’s pushback because a focus on discipline might seem like it’s slowing innovation, but it’s really not. That discipline helps make the investment more targeted, measurable and aligned with the company’s strategy, so it pays off.

You can treat it like a portfolio. Start with a pilot, prove the ROI and then scale it if it works.

Many survey participants said they have a greater appetite for M&A (mergers and acquisitions) in the current environment. Why do you think that is?

We’re seeing finance leaders recognize that you can’t wait for perfect clarity, or you risk missing important opportunities.

At the same time, we’re seeing an environment where a lot of companies built significant liquidity over the past few years, so now they’re in a position to act from a balance-sheet standpoint.

We also have buyers and sellers that have aligned a little bit more on price after we’ve gone through a period where that was more disconnected. We have strong, resilient financial markets that can allow companies to act.

I think this combination really positions companies to be proactive rather than defensive in making disciplined decisions that lead to meaningful opportunities.