DECEMBER 30, 2024
In the past three years, most organizations experienced five significant company-wide changes, with indications suggesting this trend will only intensify. As a result, change management surged as a prominent topic among Evanta’s C-level community members. For CFOs in particular, finance transformation and leading through organizational change emerged as top priorities, as highlighted in our annual Leadership Perspective Survey this year.
Our findings are consistent with Gartner research, where Marko Horvat, Vice President of Research in the Gartner Finance practice, noted that "leading change, improving the strategy design and function of the finance team, and leading transformation are three of their top five critical priorities [in 2024]." Given the importance of this topic for CFOs, driving transformation, productivity, and change headline the theme of the 2025 Gartner CFO & Finance Executive Conference.
To gain deeper insights into how executives are managing change within their organizations, we conducted a survey of 800 C-level executives across Evanta communities. Here, we outline three key themes from the responses of CFOs.
1. Digital Transformation as the Primary Driver of Change
An analysis of the responses reveals 80% of all C-level executives are currently engaged in change management initiatives. Meanwhile, 8% plan to embark on such initiatives in the future, and only 12% are not actively pursuing change management.
When asked about the factors driving their change management efforts, there is strong emphasis on leveraging technology to streamline operations. CFOs reported focusing on digital transformation and process improvements to enhance efficiency and support new business needs.
Many respondents shared that their organizations are implementing or replacing ERP systems, automating data gathering and analysis, and undergoing broader digital transformations. Additionally, the focus broadens to encompass business transformation and restructuring to achieve cost savings.
Some CFOs mentioned advancements in artificial intelligence (AI) and generative AI with a degree of caution. One CFO noted, “We’re focused on GenAI, but it requires a different mindset. How do we structure to ensure we’re taking advantage of every opportunity? It comes down to capital allocation. We have to be careful where we place our investment.”
2. Resistance to Change as a Significant Barrier
Resistance to change and company culture are frequently cited obstacles for CFOs. Some examples include descriptions of a "very change-resistant culture," a "culture that resists any type of change perceived as bureaucratic," and an "ingrained legacy culture that is hard to change."
Securing buy-in from across the business while ensuring employee engagement and understanding of change initiatives is another significant challenge. One CFO explained their approach to overcoming this, saying, “Transformations only work when people want to change and do something different. We have to get the leader of the team bought into what the future can look like. When there are flashes of work being done right, show how that drives differential outcomes. More specifically, you have to make sure the team gets experience and exposure to the skills they need.”
Other common challenges include conflicting priorities, maintaining consistent messaging and business alignment, timely execution, and resource constraints. One CFO acknowledged a lack of change management as a core skill set within their organization, noting that this gap in expertise is hindering their progress.
3. How CFOs are Addressing Change Fatigue
With frequent and significant changes occurring across enterprises, change fatigue has become prevalent among employees. According to Gartner, "Acceleration in finance transformation, coupled with an increasingly complex operating environment, is leading to increased levels of change fatigue in finance teams and causing a stark drop in employees’ willingness to support change efforts," thereby putting these initiatives at risk.
During a recent Town Hall for the New York CFO Community, CFOs emphasized the importance of addressing change fatigue as part of their finance transformation journeys. They highlighted how focusing on culture can enhance success rates and contribute to the overall “health of the organization.”
Recognizing this as a common issue for executives, we asked CFOs to share how they address change fatigue within their organizations. The responses underscore the necessity of clear communication and strategic pacing to effectively manage and mitigate change fatigue. Here are some of their insights:
We have to show perspective to people. They need to feel change is for the better. Technology is a huge enabler in that setting.”
Continuously communicate how the changes are necessary for the organization's strategic objectives, as well as prioritize quick early wins that can positively impact end users to drive engagement.”
You have to be thoughtful about how much change the organization can absorb and at what pace.”
Explaining and repeating context, recognition, engaging those who are concerned by the change, prioritizing.”
As organizations continue to navigate rapid transformation, CFOs play a pivotal role in steering their companies through the complexities of change management. By leveraging technology, fostering a supportive culture, and maintaining clear communication, CFOs can effectively lead their teams through change.
For the complete results of our Community Pulse Survey on Change Management, view the infographic.
If you are a finance leader navigating change management, join a local Evanta community to engage with your peers on this topic. Or, if you are already a community member, check out MyEvanta to view upcoming opportunities to discuss change management in person or virtually with your peers.
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