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CFO Horizons
Pearson: The CFO as driver of digital innovationÂ
Sally Johnson, CFO at global learning company Pearson, discusses how finance leaders can harness AI and other digital innovations to fuel growth and boost results.
At Pearson, sales and revenue growth are the core metrics of performance, and the company’s digital strategy is completely aligned with the pursuit of commercial success. With many opportunities in the education market, Pearson focuses on harnessing technology to unlock value.
“Pearson has a long history of embracing new technologies,” says Johnson. “Today, we are predominantly a digital business, even if physical books remain relevant in some international markets. Across the organization, the expectation, starting with the executive team, is that we are all technologists. It’s not just the responsibility of the IT team. As a technology-driven company, we must all operate with that mindset.”
Pearson has been using AI across its offerings for many years, and in 2023, Pearson introduced generative AI (GenAI) tools into its higher education courseware. Pearson has since extended their use, transforming the educational experience for students and teachers. One example is the AI-driven study tools that provide a guided learning experience, breaking down problems or tricky course material into manageable steps.
This digital innovation has received positive feedback from learners and educators. As well as benefiting learners, the tools are also having a commercial impact. “One of the things we’ve shared recently is that, for the products using those AI study tools, we’ve seen double-digit revenue growth,” says Johnson. “So, it’s making a difference from a commercial point of view, as well.”
When it comes to new technologies, the CFO can’t afford to be a bystander
For Johnson, it’s imperative that CFOs and their senior colleagues engage with new technologies. “It’s very important for a CFO and, in fact, the entire executive team to understand and immerse themselves in these new technologies.”
“You can’t just leave it to your product and technology teams. You need to grasp the capabilities: assessing the impact from a product perspective, explaining it to investors, and applying it across your day-to-day activities.”
Pearson’s leadership sees upskilling in digital literacy as a significant commercial opportunity to future-proof the workforce. Johnson thinks it’s important that the CFO is integrally involved in commercial discussions, drawing on her own experiences to demonstrate the value of these solutions.
“We see significant growth potential in our enterprise offerings,” she explains. “This includes providing them with tools to assess the skill sets within their organizations, anticipate future needs, and create learning pathways to upskill and reskill employees.”
“As a CFO, I’m deeply invested in the skills of my finance team and the broader organization. People are the most valuable resource in any business. I can show clients how we’ve successfully used our tools internally, using the experience of upskilling my team as an example. Speaking directly, CFO to CFO, I can illustrate how other companies could adopt similar strategies to achieve their goals.”
Building digital leadership
Digital transformation also requires CFOs to hone particular skill sets and behaviors. For Johnson, three areas stand out:
Seek learning opportunities wherever you can find them. Staying informed about emerging technologies is vital. “Every person a CFO interacts with can be a source of learning,” she says.
“For instance, you can learn a great deal from investors, who are incredibly bright individuals who interact with a wide range of companies. By listening as well as talking, you can gather valuable insights. I also learn from my team, especially those who have grown up with these technologies. I even learn from my kids. The key is to be curious and open, engaging with people who have different perspectives to understand what’s happening in the wider world.”
Collaborate across functions. Collaboration is one of Pearson’s core values, and finance plays a central role in cross-functional initiatives.
“Whether you’re a CFO or in another finance role, it’s critical to be part of a team driving change and creating value. This involves working with technology partners and collaborating with colleagues across the organization. You also need to focus on your people, being an inspiring leader who works alongside HR, legal, sales, and product teams. Staying aware of what’s happening across the business and supporting those efforts is key to the company’s success.”
Hone your technology transformation experience. For finance leaders, skillful management of technology-driven transformation is now a baseline requirement. “The core capability of driving transformation has been important for a long time,” says Johnson. “I can’t think of a finance role where technology transformation isn’t relevant.”
Pearson CFO Sally Johnson also underscores the importance of embedding innovation into the culture of the finance function.
Fostering a culture of innovation within the finance function
Johnson also underscores the importance of embedding innovation into the culture of the finance function. “One of my core beliefs is that innovation isn’t just the domain of product or technology teams,” she confirms.
“Many of the tools and approaches used by technology and product teams are just as applicable to finance. We run mini hackathons, for example, and regularly discuss the innovations we’re implementing.”
“I have a team dedicated to process improvement, transformation, and innovation, and they lead these efforts across the entire finance function, not in a silo. It’s about fostering a culture where the finance team sees itself as equally as innovative as any other part of the business. This means encouraging people to spend time upskilling and understanding the tools and products of the future, integrating them into their day-to-day work, and leading by example by using these tools ourselves.”
The CFO as a catalyst for change
As Johnson’s experience demonstrates, the CFO’s role in a digital-first business should focus on driving the strategic growth agenda. By championing innovation, fostering collaboration, and harnessing technology, finance leaders can play a transformative role. This shift requires a willingness to engage deeply with new technologies, learn from diverse sources, and lead by example.
For Pearson, the results are clear: AI has not only enhanced the company’s product portfolio but also delivered commercial benefits. As businesses across industries grapple with the challenges of digital transformation, Pearson’s – and Johnson’s – journey offers valuable insights into how CFOs can drive both innovation and growth, positioning their organizations for long-term success.
Expert
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