Digitization risks being left behind when CEOs’ priorities shift during a recession

The digitization of Swedish finance departments has made progress in recent years. One Development that risks stalling now when chief executives are forced to prioritize economic challenges. A survey conducted by Azets among 180 business leaders showed significant differences in what CFOs and CEOs see as areas of focus right now.

Azets has been providing services in the fields of accounting, human resources and payroll for 20 years and meets CFOs and CEOs every day in their daily lives. At the moment, Swedish companies are facing significant challenges – which was confirmed by a survey conducted by Azets with the assistance of the Origo Group among 75 CEOs and 105 CFOs in Sweden.

CEOs see the biggest challenges associated with stagnation and upskilling

The turbulent global situation has made an impression on Swedish CEOs, who view inflation and recession as major challenges they are facing at the moment. But despite the economic downturn, hiring and retaining employees is second on the list. Only 10 percent of CEOs find digitization, IT and automation the most challenging.

Some might think it’s a little surprising that CEOs continue to see a huge challenge in retaining and hiring talent at a time when we’re in a recession. However, we know that many companies have had significant problems when it comes to supplying skills, so even if unemployment is expected to increase in the future, there are many industries where skills shortages will continue to be significant, says June. Mejlgaard Jensen, CEO of Azets in Sweden.

Digitalization and time constraints are among the biggest challenges CFOs face

Swedish CFOs and CEOs have different views on the challenges they face. At the same time that the CEO is focused on the economic situation and supply of skills, CFOs see other areas as more challenging. CFOs are on a journey of change as they change from the traditional way to the modern way of working and digitization of lists, information technology and automation as their absolute biggest challenges right now. This is followed by inefficiency and lack of time, which are closely related to the challenges of technology.

Finance departments have come a long way in digitization in recent years

When the Azets conducted similar surveys in 2017 and 2018, CFOs stated that their department had reached the halfway point in their digitization journey. Almost one in five CFOs answered that company priorities prevented them from achieving more. However, this year’s survey shows that development has progressed strongly over the past four years. CFOs now believe they have come a long way in digitization, with the average being 4.8 on a 6-point scale.

– When CEOs have to focus on the challenges associated with the economy, there is a risk that digitization will once again stall and lag – not least in finance departments. CFOs already have a lot on their desks and are running short of time. As the environment gets tougher, they may have to de-prioritize digital work in favor of areas that are more cost-effective and results-related.

– The entire company is weakened by the slowdown of the finance department in the digitization journey. John Migelgaard Jensen says that if the financial department has the technology and conditions to act quickly, the company’s ability to adapt will increase and thus the competitiveness required in a recession.