Why CFOs Neglect Building Systems and Focus on Relationships: A Critical Review

It is often observed that CFOs emphasize strengthening relationships and fostering positive team atmospheres rather than prioritizing the immediate development or investment in robust finance systems and technological processes. Common explanations point to the irreplaceable role of people in finance work, the challenges of integrating legacy systems, and the necessity of culture as a foundation for system adoption. While these reasons have merit, a more critical examination reveals potential blind spots and risks in this approach.

The Conventional Wisdom Explained

Proponents argue CFOs focus on relationships because finance is ultimately about people — collaboration, trust, and alignment underpin effective execution. Legacy systems are often complex and costly to overhaul quickly, so building partnerships, especially with IT leaders, is seen as a pragmatic way to incrementally improve digital capabilities. Additionally, prioritizing culture and talent development purportedly prepares the team to embrace technological change more effectively.

Critical Perspectives on These Views

1. Overemphasis on People at the Expense of Process

   While finance teams are undeniably people-driven, an overreliance on interpersonal relationships over process controls can foster vulnerabilities. Systems and automated workflows are designed not only to improve efficiency but also to reduce human error, enforce compliance, and increase transparency. CFOs who defer systems investment in favor of "soft" relationship-building risk creating organizational fragility—where key knowledge and control reside with individuals rather than embedded in repeatable processes. This can lead to inconsistent financial reporting and operational risk, especially as organizations scale.

   
   

2. Underestimating the Cost of Legacy Systems Paralysis

   The argument that legacy systems are too complex to fix and thus justify relationship-first strategies often borders on complacency. CFOs have a fiduciary duty to modernize finance infrastructures proactively rather than reactively. Persistent delays or deferrals in digital transformation can cause an organization to fall behind competitors who leverage real-time data and automation. Below-the-radar “system neglect” may foster a culture resistant to innovation and blind to technological disruption—not a strength, but a liability.

   
   

3. Culture vs. Capability: False Dichotomy

   The emphasis on culture as a foundation for system adoption can sometimes act as a convenient excuse to postpone substantial operational investment. While culture is critical, it is not a substitute for capability. Waiting for the “right culture” before driving change confuses cause and effect: often, capability upgrades drive culture shifts by empowering teams with better tools and workflows. CFOs who wait to “develop people first” may inadvertently delay transformation needed for people themselves to grow and succeed.

   
   

4. Short-Term Focus Over Long-Term Resilience

   Focusing on relationship-building yields important short-term gains in morale and collaboration but risks overlooking long-term syndromes such as knowledge silos, inconsistent data governance, and inefficiencies. Relationships are mutable; people change roles or leave the company, whereas systems and process standardization offer durability. CEOs and boards expect CFOs to build enduring organizational assets—not just cohesive teams. Neglect of systematic development compromises scalability and auditability, imperiling stakeholder confidence.

   
   

5. Leadership Gap in Driving Technology Transformation

   Finally, the narrative implicitly assumes that CFOs are mostly facilitators of change rather than proactive leaders. Yet successful finance leaders show that owning the digital agenda decisively is a cornerstone of effective stewardship in today’s environment. CFOs who limit themselves to indirect relationship leverage without demanding concrete system upgrade plans risk weakening the finance function’s strategic impact.

Conclusion

While relationships and culture are undeniably important in finance leadership, the prevailing justification for CFOs neglecting systems investment deserves scrutiny. Overprioritizing "people first" at the expense of systematic process and technology modernization risks organizational inefficiency, exposure to compliance failures, and missed opportunities for competitive advantage. A more balanced and courageous CFO mindset is required—one that marries strong team dynamics with relentless pursuit of modernized, scalable financial systems to future-proof the organization.

If you’d like, I can also help draft recommendations for CFOs on balancing people development and systems transformation effectively.