Gartner Says CFOs Must Evolve from Guardians to Catalysts to Thrive Amidst Unprecedented Uncertainty and Technological Advancement

CFOs need to reinvent their persona to address myriad new challenges faced by finance professionals, including tariffs, lost funding, and industry regulations, all while navigating large-scale transformations towards autonomous finance, according to Gartner, Inc.

Speaking in the opening keynote at the Gartner CFO & Finance Executive Conference in National Harbor today, Mallory Bulman, Senior Director Analyst in the Gartner Finance practice, and Clement Christensen , Senior Director Analyst in the Gartner Finance practice, explained the importance of evolving beyond the traditional “Guardian CFO” identity, which focuses on risk mitigation and safeguarding margins, towards becoming “Catalyst CFOs” who drive competitive advantage and strategic clarity.

“In difficult times, CFOs tend to default to the guardian role of looking for a risk or area of uncertainty, and protecting their organizations from the downside,” said Bulman. “They are asking themselves, ‘What do I cut? Where should I pull back to reduce risk?’”

Guardian CFOs

This playbook for protecting the status quo –being a guardian– is a riskier identity than it seems because there are clear unintended consequences, such as creating a short-term mindset and a dangerous-to-fail culture, often starving key growth bets of resources.

“Ninety-three percent of finance teams report one of these unintended consequences when adopting the guardian identity,” said Bulman. “The guardian persona may not be protecting their organization as much as they hope, particularly if stuck in this mindset for too long.”

Catalyst CFOs

In previous periods of economic uncertainty, the CFOs who were able to shift their identity, and that of their team, towards a catalyst mindset – ensuring that they weren’t protecting the organization in a way that harmed its ability to grow – were able to lead their organizations through disruption more effectively.

“Taking the COVID pandemic as an example, the early guardian response was to protect the health and safety of their workforce: organizations sent everyone home, clamped down spending and preserved cash flow. A totally reasonable first response,” said Christensen. “But the CFOs who pulled ahead quickly figured out where they could accelerate their digitization efforts, so their organizations weren’t hampered by remote work.”

Catalyst CFOs figured out which goods and services were critical in the new environment and adapted their offerings. They built strategic partnerships to reach and understand new markets. They diversified suppliers and improved logistics.

Four Key Habits of Catalyst CFOs

“For CFOs to change their identity, they need to change their habits,” said Christensen. “If CFOs act in a way that aligns with their new identity and are validated for it, then they come to own that identity, and that identity reinforces commitment to good habits, and so on.”

Finance teams achieving the evolution from guardian to catalyst display four key habits:

Talk Differently About Themselves: Finance leaders should use language reflecting innovation, agility, and problem-solving capabilities. By consistently employing language that aligns with a catalyst identity, leaders can reinforce their roles as strategic drivers rather than mere custodians of financial control. Articulating a clear and aspirational vision can inspire teams to align with the new identity.
Embrace Complexity: Finance teams should pivot towards complex and novel challenges that require human insight and creativity, especially as AI handles routine tasks. Organizations should shift their reward systems to value complexity and innovation over routine efficiency, thereby motivating teams to tackle ambiguous problems and focus on strategic, high-value work that drives growth.
Deploy Business Tools, Not People: Instead of expanding human resources, finance leaders should focus on developing and deploying technological tools that empower business units to make informed decisions independently. Building scalable tools allows finance teams to address the growing complexity and volume of business decisions without proportionally increasing headcount.
Focus on Products, Not Processes: Transitioning from a process-centric to a product-centric approach enables finance teams to better meet the dynamic needs of business leaders. Finance leaders should adopt a customer-centric approach, focusing on delivering tools and models that provide on-demand insights and solutions. Viewing finance functions as providers of strategic products rather than executors of processes helps break down silos and fosters innovation and collaboration across departments.

“Now is the moment for CFOs and their teams to embrace the identity of catalysts and lead their organizations on a long-term positive path,” said Bulman.