Tag Archive: challenges

1. Challenges CEOs face in Finance and Accounting

   September 29, 2025 4:03 pm Leave a Comment

   Challenges CEOs face in Finance and Accounting

   

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   CEOs of all industries and company sizes face challenges in finance and accounting. After decades of experience as a senior leaders in several organizations, and as a consultant offering change management and process improvement to C-level executives, I’ve outlined some of my observations below. One thing to remember is that each CEO is different (there are several types), and all leaders have varying strengths and weaknesses. You may see the items below not as challenges, but opportunities for growth.

   Challenge 1: The organization does not have good operational and financial data upon which to make strategic decisions.

   Leaders with long tenures may default to gut feelings and past experiences. The gap becomes obvious when a new CEO arrives expecting more robust data and metrics.

   Root causes include:

   Old Enterprise Resource Management (ERP) or Management Resource Planning (MRP) systems built and implemented based on past business models that are ‘too hard’ or ‘too expensive’ to modernize. Changing financial regulations can trigger restatements and revisions of historical data, which is often a daunting task. At the same time, disconnected systems, such as ERP, MRP, CRM, and inventory platforms create problems when they fail to communicate with each other. On top of that, conflicting “sources of truth” emerge as different groups insist their data is the most accurate.

   Remedies include:

   1. A thorough review of the current state of ERP and MRP solutions in the market today that could possibly support the business. Typically, an objective third party involvement to help navigate business needs and push back on the organizational friction related to new implementations is beneficial.
   2. Deep dives into data sources and business processes that can highlight fix areas, providing a good return on investment.
   3. Determining and declaring the ‘source of truth’ that will be used to drive strategic decision making.

   Challenge 2: Organizational friction and cultural norms do not align with creating/improving company value.

   Root causes include:

   An aged work force that has grown up in the company and only knows one or a few ways of doing things. It could also be a lack of employee understanding on how their work contributes to the overall success of the business in terms of finances. Alternatively, it can simply be the natural human tendency to not want to upset the status quo methods by which they do their jobs.

   Remedies include:

   1. Using a trusted third party to perform a quick and non-obtrusive diagnostic of the organization to identify areas of friction, offer solid recommendations for improvements, and then assist with implementing the recommendations. In some cases, just sharing leading practices from other similarly situated companies can help educate those that are ‘in the trenches.’
   2. Aligning people to the appropriate roles and responsibilities can go a long way to achieving change.
   3. Documenting and sharing success stories that highlight improvements made by various departments and people.

   Challenge 3: Leadership does not have a solid grasp on financial mechanics (profit and loss, balance sheet, cash flows).

   Root causes include:

   Leaders educated and raised in the operational or sales side of the business. Anyone can develop financial muscles of course, but this is another level of education just like an Engineering or Sales/Marketing degree. Another more likely root cause is weak financial leadership that does not understand the business and the key information needed by executives to make effective and timely decisions.

   Remedies include:

   1. Hiring the appropriate type of business-minded Chief Financial Officer who recognizes the CEO’s strengths and weaknesses and can complement them while being sensitive to the optics.
   2. Understanding the end customer value chains and how the company supports this.
   3. Developing key metrics that the leadership team agrees on and uses to hold itself accountable periodically.

   Conclusion

   These examples represent just a few of the common challenges our clients encounter. We have highlighted those that arise most frequently in our work and conversations. The underlying causes and solutions are often unique to each organization. Importantly, every challenge can be overcome with the right focus and prioritization, even amid the many other demands businesses face.

   In our experience, CEOs value a partner who can provide thoughtful, constructive feedback and is genuinely invested in the success of their business. We refer to this as a “push-back partner.” Clients appreciate collaborative support that strengthens their teams throughout our engagements, contrasting with larger consulting firms that often rely on standardized approaches delivered by professionals with limited practical experience. This information is also based on a recent client survey we conducted with a 95% confidence level.

   If you need some ‘pushback’ and straight talk, give us a call. We guarantee results.

   –Jim Wadella, Founder

2. Navigating the Challenges Faced by CEOs in Managing Technology

   June 5, 2025 12:30 pm Leave a Comment

   

   In today’s rapidly evolving digital landscape, CEOs are encountering a myriad of challenges related to technology. As organizations increasingly rely on technological solutions to streamline operations, enhance productivity, and drive innovation, the role of CEO has become more complex. Leaders must not only understand these technological tools and solutions, but also implement strategies that align them with business goals while addressing risks and uncertainties that come with such advancements.

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   Keeping Up with Innovation

   In 2023, the technology industry accounted for 40% of all global patent applications. This indicates the sector’s role in contributing to global innovation. With such a significant share, technology remains a primary focus for companies worldwide. Furthermore, 30% of all technology patent applications focused on software ranging from applications and platforms to cybersecurity solutions.  The large number of technology-related patent applications highlights ongoing advancements and change within the field.

   One of the foremost challenges for CEOs is the relentless pace at which technology evolves. From artificial intelligence (AI) to blockchain, cloud computing, and Internet of Things (IoT), the technological landscape changes so rapidly that staying informed about emerging trends can feel overwhelming. CEOs must prioritize staying ahead of the curve, dedicating time and resources to understanding these advancements while ensuring their organizations adapt efficiently.

   Many organizations face the dilemma of integrating modern technology into legacy systems. CEOs often grapple with deciding whether to overhaul aging infrastructure or invest in solutions that enhance existing systems. This decision is not merely technical but deeply strategic, as it has significant implications for cost, time, and operational disruption.

   Gartner’s Hype Cycle is a graphical representation that illustrates how new technologies evolve over time, from initial hype to mainstream adoption. This representation can aid in setting expectations not only from the CEO but the entire leadership team within an organization.

   Risk of Harnessing Data

   The exponential growth of data presents both opportunities and challenges.  CEOs are expected to leverage big data to make informed decisions. However, managing data effectively requires a robust infrastructure, skilled personnel, and ethical considerations. Striking the balance between data utilization and privacy concerns is a delicate task that often falls squarely on the shoulders of leadership.

   With the dependence on digital tools comes the heightened risk of cyber threats. CEOs must ensure that their organizations prioritize cybersecurity while navigating an increasingly sophisticated threat landscape. From ransomware to phishing attacks, the potential for disruption is ever-present, requiring CEOs to invest in preventative measures and foster a culture of vigilance.

   Talent Acquisition

   As technology becomes a cornerstone of business operations, the demand for professionals with expertise in these areas grows. CEOs face challenges in attracting and retaining talent who possess the necessary technical skills to leverage these tools effectively. Moreover, fostering a culture of continuous learning within the organization is crucial to ensuring that employees stay adept at using evolving technological solutions.

   In addition, CEOs must address the generational shifts within the workforce. Younger employees may be more adept at navigating modern technologies, while older employees may require additional training to adapt. Bridging this gap and ensuring cohesive collaboration across generations is a leadership challenge that requires careful planning and engagement.

   Ethical & Social Responsibility

   As technology plays an increasingly important role in business operations, CEOs must address its ethical implications. Issues such as AI bias, data privacy, and job displacement due to automation require thoughtful leadership. CEOs are tasked with fostering transparency and ensuring that their organizations use technology responsibility and ethically.

   While many of these responsibilities have always existed (protecting privacy, prohibiting harmful actions, protecting intellectual property, etc.) they can become more complex and challenging to manage given the rate at which technology changes and the adoption of these new technologies within the organization. Careful and deliberate consideration must be given not only to those technologies which are new to the organization but also those that already exist.

   Financial

   Over the course of 2025, global technology spend is projected to reach $4.5 – $5.6 trillion constituting a growth rate between 5.6% – 9.8%. This growth is fueled by cybersecurity, cloud computing, generative AI (genAI), modernization of the legacy systems, and the need for IT related services. The challenge is balancing the financial and operational impacts technology will have on their organization.

   Adopting new technological solutions often requires substantial financial investment. CEOs are challenged with balancing the cost of implementation with the expected return on investment. Prioritizing investments while maintaining fiscal discipline is a critical aspect of navigating the management of technology.

   CEOs must evaluate the impact of technology on their organizations. Not all solutions deliver immediate or tangible results. And the pressure to demonstrate value can create tension in decision-making processes. Clear metrics and a strategic approach are essential in assessing technology’s worth to the business.

   Is It Time for a CIO/CTO?

   The integration of technology into organizational operations is both a necessity and a challenge. CEOs are tasked with understanding and addressing the complexities of technological innovation while balancing financial, ethical, and operational considerations. Success in navigating these challenges requires adaptability, strategic foresight, and a commitment to fostering a culture of learning and responsibility.

   Having a skilled technology navigator can greatly increase a CEOs chance for success in navigating these challenges. This may come in the form of a Chief Information Officer (CIO) and/or a Chief Technology Officer (CTO). A CIO will typically focus on internal IT operations, aligning technology with business goals while a CTO will focus on external technology, product development and innovation.

   Below are a few indicators that point to the time being right in considering a technology leader.

   CIO	vs.	CTO
   Strategic Technology Driver When technology is no longer a support but a key driver of business strategy.		Technical Expertise Gap Leadership lacks the technical expertise needed to navigate innovative and complex technologies.
   Lack of IT Vision If the organization is struggling to define a clear IT roadmap.		Strategic Technology Leadership The organization needs the ability to evaluate and implement new technologies.
   Rapid Growth As an organization grows, its IT infrastructure and needs become more complex.		Scaling Challenges Rapid scaling or significant growth necessitating the need to manage infrastructure and large-scale deployments.
   Increased Users/Departments When the number of users and departments relying on IT services grows.		Product Development & Launch Support in guiding technology decisions, ensuring alignment with goals by overseeing technical execution.
   Complex Technology Dependencies If the business relies heavily on technology for critical operations.		Digital Transformation If an organization is undergoing significant digital transformation or investing heavily in technology.
   Cybersecurity Concerns Need in developing and implementing a robust cybersecurity strategy to protect data and systems from threats		Growing Engineering Team Support is needed in developing and mentoring an engineering team to ensure they have the skills and knowledge to succeed.
   Industry Disruptions If the industry is experiencing rapid disruption from technology.		Competitive Disadvantage An organization is falling behind competitors because of a lack of technical expertise.
   IT Optimization Organization needs help to optimize IT operations, reduce costs, and improve efficiency.		Strategic Technology Planning Help in developing a long-term technology strategy that aligns with business goals and achieving objectives.

   In an era where technology is no longer a luxury but a cornerstone of a competitive advantage, CEOs who rise to meet these challenges will propel their organizations toward sustained growth and innovation. The journey is fraught with obstacles, but the rewards are transformative, laying the foundation for a resilient and future-ready business landscape.

   Matt Craig, Director

3. A Pragmatic, Phased Approach to System Modernization

   May 31, 2024 12:29 pm Leave a Comment

   Find Out How We Reduce Technology Debt For Our Clients:

   

    

   Core Catalysts consults for a wide range of clients in several critical industries, including financial services, healthcare, insurance, telecommunications, and more. In today’s technology-forward business world, we find that many clients cite system modernization as one of the major business challenges they need our help to solve.

   However, they may not express their challenges in these terms. Our clients’ requests more frequently sound like this:

   “We have aging applications that our vendors no longer support. Our IT and BU teams are coming near retirement ages, and they are the only ones that can make changes and understand our systems.”

   “We can’t roll out new products or services very easily because of the time it takes our IT teams to react, and this is affecting our ability to grow our business.”

   “We just acquired a new company with aging systems, and we want to move to new platforms for the good of both businesses.”

   In each of these cases, and many more, what companies identify as a challenge can be summarized as “technology debt,” the result of aging systems.

   What Is Technology Debt?

   Technology debt refers to the costs that businesses incur as a result of outdated technology. It stems from the cumulative cost of cutting corners in system design, implementation, and maintenance over time.

   • Forbes presented striking statistics in a recent article on the subject: companies that had the least technology debt posted annual revenue growth of at least 20% more than companies that had the highest technology debt.
   • Studies from CodeScene, CIO, Gartner, and Stripe all cite that the organizations waste 23 to 42% of their annual development time and expenses on technology debt.

   No business should let technology debt increase over time so that it severely impacts an organization’s agility, efficiency, and financial health.

   A Solution Is System Modernization

   System modernization can comprehensively solve technology debt through a phased, prioritized, and pragmatic approach:

   1. Clarifying challenges
   2. Assessment, prioritization, and planning
   3. Implementation

   This approach can positively impact the reduction of technology debt without excessive investment. It also provides a way to emphasize quick wins and incremental improvements, which contributes to essential organizational buy-in.

   Clarifying Challenges for System Modernization

   Most technology-debt-related challenges share certain characteristics with each other. Although our services and solutions are highly customized based on a business’s individual needs, identifying common threads inspires confidence and leverages our experience solving modernization issues across many industries.

   These are some of the most common challenges our clients face:

   • The issues they are facing are complex and interdependent. There isn’t a single out-of-the-box solution that will meet all of our clients’ needs.
   • The client’s current efforts to modernize are time-consuming and involve many parts of the organization, thereby detracting from current business priorities.
   • The decision makers for these efforts cross the entire organization, and each person has a different risk tolerance.
   • A major driver has recently appeared to give steam to making the changes now.

   Core Catalysts recommends starting the system modernization process by clarifying these common challenges as they relate to a specific business. This helps our team fully understand what resources, personnel, and approach we should implement.

   Assessment and Prioritization

   The next step is a straightforward evaluation to determine whether system modernization is a viable solution and what approaches to take to ensure success. The following evaluative questions prove useful to our clients at the beginning of their modernization journey.

   • Is there an obvious business case for making the changes?
   • How many resources will be required to help with the modernization?
   • How much will it cost?
   • What are the risks associated with modernization?
   • Who will make the major decisions on modernization efforts (governance structure)?
   • Will we need external assistance from consultants?
   • Do we search for off-the-shelf solutions versus custom development?
   • Do we have the right team to make major modernization decisions?
   • Do we have the right teams to implement changes?

   Strategic Planning for System Modernization

   After a client has concluded that they are ready for modernization, our management consulting firm recommends following these specific, practical paths to get started:

   • Document the current state of business processes, IT support systems, back-office systems, like billing and collections, and more.
   • Document the future state needs of the organization (business units representing end clients and all supporting organizations) and tying these to the overall corporate strategy.
   • Identify the priorities for modernization and high-level timing (i.e., the wish list).
   • Determine what solutions will be needed (third party software, new platforms, and more).
   • Develop overall budget needs and clear with executive leadership and the board if needed.
   • Research third-party solution providers.
   • Develop procurement processes for soliciting and deciding on third party providers and solutions.
   • Plan for organizational readiness and change management.
   • Structure the overall implementation resources required.
   • Form a strong governance and program management structure.

   Proven IT Implementation Approaches for System Modernization

   This phase requires a heavy dose of patience, many “reality checks,” and disciplined execution to achieve sustained success. From an approach standpoint, we’ve had success with the four approaches listed below, each of which offer their own unique benefits:

   1. Microservices architecture: A modern, modular approach to software development and deployment, microservices architecture allows clients to lower costs and reduce technology debt in a manner that “layers” into the organization with minimal disruption.
   2. Cloud migration: This approach reduces reliance on an unreliable vendor, lowers licensing costs, and taps the skills of current staff. Phasing the migration strategy removes on-premises, insecure environments and replaces them with a cloud-based solution.
   3. Core consolidation: Core Catalysts has used this method to consolidate all portfolio companies on an enterprise accounting platform to prepare for sale. This delivered best-in-class reporting, and the data uncovered new revenue streams.
   4. Open-source solutions: Although open source was traditionally considered a threat to corporate security, every name-brand technology leader uses this approach at the sponsor, creator, consumer, or community level. Not without risk, open-source solutions may provide a significant benefit for businesses looking to modernize.

   Connect With Core Catalysts to Learn More About System Modernization

   We’ve learned many lessons about how to effectively and efficiently serve our clients as they move into the implementation phase of their modernization project. We look forward to an opportunity to share them with you.

   Contact Core Catalysts today to learn more about every phase of system modernization and how to partner with our team to resolve technology debt.

   About Core Catalysts:

   Based in Kansas City, Core Catalysts is a leading business consulting firm, helping clients nationwide resolve challenges related to process improvement, IT implementation, product and service commercialization, revenue enhancement, financial modeling, program and project management, and much more. Well-known as a high-quality solutions-delivery firm, we are on time and on budget every time, offering results that meet, and often exceed, your expectations.

   References:

   Kupper, Jeffrey and Richards, Doug. “System Modernization & Managing Your Technology Debt.” Presentation, 11th Annual FEI Kansas City Professional Development Day, Embassy Suites Olathe, Olathe, KS, November 13, 2023.