As businesses gear up for 2024-2025, strategic priorities are at the forefront of discussions among CFOs and CEOs. A recent Gartner report highlights key areas of focus that are shaping the future for these executives.

My take from the Gartner survey below:

For CFOs, Growth Leads the Way

Growth remains the top priority for CFOs, with 65% marking it as their main focus, a 5% increase from 2023. This emphasis indicates a strong commitment to expanding business operations and seizing new market opportunities. Technology (37%) and workforce (33%) follow, underscoring the importance of digital transformation and talent acquisition in driving growth.

Interestingly, financial priorities have seen a modest increase to 25%, while corporate strategies have decreased significantly, reflecting a shift towards more dynamic and flexible business models. Cost management has also risen as a priority, highlighting the need for efficient resource allocation in an ever-competitive environment.

CEOs Focus on Sustainable Growth

For CEOs, growth is also the top priority, with 62% citing it as essential—an impressive 38% increase from the previous year. This aligns with a broader industry trend of aggressive expansion strategies. Workforce considerations are crucial too, though slightly less emphasized than in the past, suggesting a shift towards optimizing existing talent.

Financial and corporate priorities have both increased, indicating a balanced approach between expansion and stability. CEOs are also placing more emphasis on customer engagement and cost management, signaling a customer-centric approach to sustaining growth.

Shifts in Environmental and Product Strategies

Both CFOs and CEOs show a reduced focus on environmental sustainability and product/service innovation. This could suggest a temporary deprioritization as companies tackle immediate growth and financial challenges. However, with global pressures on sustainability, it's likely these will regain prominence in the coming years.

Conclusion

The strategic priorities for CFOs and CEOs reflect a dynamic business landscape. With growth as the shared top priority, supported by a focus on technology and workforce, companies are poised to navigate the challenges and opportunities of 2024-2025. Balancing these priorities with financial and customer-centric strategies will be key to achieving long-term success.

Ps: A related piece that was released this morning below as well:

The nation’s never-ending election cycle finally came to an end last month, and now business leaders have high hopes for the year to come. Chief Executive’s latest CEO Confidence Index read of 135 CEOs, polled December 3-5, finds the majority expecting that business-friendly policies coming from the White House and rate cuts from the Fed will put new spring in the step of the economy. 

That's driven their forecasts of business conditions 12 months from now above 7 (on a 10-point scale where 1 is Poor and 10 is Excellent) for just the second time in the past three years. CEOs’ outlook this month matches the 2024 high set back in March after Fed chair Jay Powell praised the economy.   

CEO sentiment about the current state of business conditions also experienced a boost in December, going from 6 to 6.4, an increase of 6.2 percent, as more business leaders navigate with greater certainty. Elsewhere in the numbers: 

• Overall. 58 percent of CEOs expect business conditions to improve by this time next year, the second highest proportion of CEOs to forecast improving business conditions since early 2021 when a Covid-19 vaccine was released.   

• Revenue. A whopping 82 percent of CEOs expect boosted revenue a year from now, up 11 percent since last month and the highest proportion since January of 2022.   

• Profits. The proportion of CEOs who forecast an increase in profits 12 months down the line is now at 73 percent—up 6 percent this month on the back of a 14 percent increase last month. This is now at the highest level it’s been since 2021, when in-person commerce had a comeback.   

• Capex. 51 percent of CEOs project increases in capital expenditures over the course of the next year. This is after the proportion of CEOs planning to increase capex jumped from 37 percent to 55 percent in November.    

• Hiring. The proportion of CEOs planning increases to their headcount fell from 59 percent last month to 52 percent in December, also on the back of a major bump the month prior.  

• Layoffs. Meanwhile, the proportion of CEOs planning decreases to headcount fell from 13 to 8 percent, the lowest proportion since February of 2022.   

Still, not everyone is banking on a boom just yet. One in five CEOs we polled expect economic conditions to worsen over the coming months. Their big concern? Tariffs reviving inflation and stalling the economy. “The last three years have shown us that uncertainty is the new normal,” said Vladislav Podolyako, CEO/Founder at Belkins, a lead generation agency. “Clinging to rigid plans can be more hindering than helpful.” Read the full December report >