Reining in costs remains a primary concern for finance leaders: In a 2022 PwC survey, almost one-third (30%) of CFOs ranked reducing cost as a percentage of total revenue as a top priority.
When looking at organizations that are successful at optimizing spend and driving predictable cash flow, one of the biggest opportunities to manage discretionary spend lies with their suppliers and procurement practices.
The Workday Enterprise Management Cloud supports the entire source-to-pay process, providing an intuitive buying experience for employees, automated invoices for the payables team, and a single payment engine. Its robust cash forecasting and modeling, along with its cash management function, provides complete visibility, allowing users to easily manage liquidity and optimize working capital.
As they grow revenue while containing costs, CFOs also must ensure that capital investments maximize ROI.
“A CFO is the guardian of the capital that he or she has been entrusted with,” Wampler said. “Planning in Workday can help organizations get the most return from their capital investments with improved forecasting of capital expenses, effective and efficient capital project planning, and, of course, fast and accurate reporting and analysis for the complete lifecycle of your capital assets. You can also plan and model capital asset acquisitions, automate depreciation methods, and gain complete visibility into the impact of capital on your financial statements.”
Meeting ESG Goals
Organizations and their CFOs face increasing pressure to deliver not only financial impact but environmental, social, and governance (ESG) impact as well. For 58% of corporations, there was a positive relationship between ESG and financial performance, according to a 2021 meta study by the NYU Stern Center for Sustainable Business and Rockefeller Asset Management.
Companies that have made ESG factors a priority can benefit from the ability to track sustainability data—not just within the organization but extending to third parties, as well. “Data you could track include things like a carbon footprint, climate change, even risk to the supply chain … all through a configurable dashboard,” Wampler said.
On the employee side, organizations capturing demographic data about their people can help achieve goals around diversity and equal pay. Wampler noted that Workday captures demographic information such as ethnicity, veteran status, disability, and marital status, as well as the intersections between them. “Workday’s live index methodology reveals patterns and insights for different employee groups, which may mean the difference between glossing over a problem and identifying areas of risk,” he said. “For example, if women executives feel they’re underpaid, it will highlight this trend and allow you to act on it. The benefit? You’re addressing the concern and moving toward a solution before it becomes a serious problem.”