As internal and external forces continue to challenge business leaders, finance has been looking to find ways to stay ahead of change. In the Winter 2024 Fortune/Deloitte CEO survey, respondents surveyed identified disruptors such as geopolitical instability, regulation, inflation, financial/market instability, and talent shortages.¹

To stand up to headwinds, many chief executive officers (CEOs) are looking to shore up longer-term organizational growth.² According to the same survey, 45% of CEOs are looking for ways to optimize operating costs to reinvest in that growth. Finance can help meet that need by addressing cost management, which was one of the top three business priorities cited by chief financial officers (CFOs) in the 4Q 2023 CFO Signals report.³

To accomplish this, finance leaders might look to optimizing workforce performance and efficiency. Developing a culture that responds rapidly to changing market dynamics is a long-term strategy—and one that can strengthen the ways an organization operates.

Consider a structured approach
Finance leaders can consider six broad principles that can unlock new heights in workforce performance and efficiency:⁴

1. Practice essentialism: Eliminate redundancies and streamline work to focus on what matters most.

2. Liquify: Fluidly port internal and external talent across an agile organization.

3. Reshape: Rethink the composition and footprint of the workforce and workplace.

4. Personalize: Prioritize the needs and wants of workforce segments to deliver what matters most.

5. Digitalize: Leverage the power of digital to optimize for cost and growth.

6. Amplify: Use smart tax strategies to make the most of the workforce dollars you spend globally.

These principles can help leaders rethink their existing structures and respond to emerging trends in how individuals work. By applying these optimization principles, organizations can unlock possibilities to become more efficient in workforce-related areas, while improving employee engagement and opening new pathways to unlock longer-term agility.

Leverage current-state data
Change starts with an organizational assessment. Data can be invaluable in helping leaders identify opportunities and high-impact strategies, while paying close attention to operating models, real estate footprints, digital tools, rewards and benefits, and partnerships and alliances. As milestones are reached, data can be used to continually evaluate the organization’s course and trajectory.

Set achievable goals
With any change effort, it is important to define the time frame and degree of change desired by the organization. Leaders can develop action-oriented initiatives with associated target savings and implementation roadmaps, allowing them to gain buy-in and alignment and to organize resources efficiently.

Focusing on workforce efficiency can equip an organization to respond to a shifting economy and prepare it for future growth. To learn more, check out "Reimagine workforce efficiency: 6 strategies that can benefit workers and employers."

This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser.

Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

Authors: Jonathan Pearce, Sue Cantrell

Endnotes:
¹ Benjamin Finzi, Brett Weinberg, and Elizabeth Molacek, Winter 2024 Fortune/Deloitte CEO Survey, Deloitte, 2024.
² Ibid.
³ Deloitte, CFO Signals™: What North America’s top finance executives are thinking—and doing: 4th quarter 2023 results with a focus on 2024 expectations and plans, 2024.
⁴ Jonathan Pearce and Sue Cantrell, “Reimagine workforce efficiency: 6 strategies that can benefit workers and employers,” Deloitte’s CFO Journal for the Wall Street Journal, September 22, 2023.