Share
Facebook Facebook icon Twitter Twitter icon LinkedIn LinkedIn icon Email

Brain Circuits

Three ways in which CFOs can drive digital transformation

Published April 15, 2026 in Brain Circuits • 4 min read

Sabine Abfalter, CFO of Austria’s Raiffeisen Bank International, explores how finance leaders can support digital transformation to help make organizations more resilient and forward-looking.

1. Know where to focus and when to walk away

When it comes to digital, recognizing where not to invest is just as critical as identifying the right target areas to invest in. Alongside this, organizations should identify partners in the value chain that can move faster or deliver more effectively.

CFOs should:

  • Recognize when an investment isn’t going to pay off as hoped and be ruthless about pulling the plug.
  • Test what works early, rather than killing off initiatives after they fail.
  • Use relevant data to assess whether an investment is working before attempting to scale.

2. Bridge strategy and execution

CFOs have traditionally been seen as financial gatekeepers, scrutinizing investments and rejecting those that do not meet strict ROI criteria. Today, they must retain financial discipline while ensuring it does not constrain innovation. A key challenge is to ensure that the strategic vision translates into effective execution.

CFOs should:

  • Ensure alignment between strategic vision and operational execution.
  • Gather comprehensive context-relevant information.
  • Establish a clear hierarchy of priorities.

3. Shift from fixed budgets to agile financial planning

In today’s rapidly evolving digital landscape, rigid annual budgets may no longer be the best approach. Instead, businesses should develop more dynamic, flexible planning models that support more responsive decision-making.

CFOs should:

  • Adopt an empowering approach to enable faster, more effective decision-making.
  • Develop sharper responses to new opportunities and risks.
  • Structure incentives to drive desired behaviors rather than restrict or contradict them.
Leadership in digital strategy is not just about financial stewardship – it requires orchestrating alignment.

Checklist

Ask yourself the following questions to check that you are on the right path in your digital transformation:

  • Are we staging short cycles of experimentation?
  • Do we have a high volume of high-quality experiments?
  • Are we sharing learning and insights?
  • Are the people who are driving innovation closest to our customers?
  • Are we empowering teams to invest independently and make decisions at the lowest appropriate level?

Key takeaway

Leadership in digital strategy is not just about financial stewardship – it requires orchestrating alignment across different parts and levels of the business, inspiring teams, and keeping the most worthwhile innovation efforts on course while resisting distractions.

Expert

Sabine Abfalter  

CFO, Raiffeisen Bank International

Sabine Abfalter is the CFO of Raiffeisen Bank International. She focuses on strategic financial management to navigate a complex regulatory landscape and optimize resource allocation. Before joining RBI, Abfalter worked at PwC for 16 years.  

Related

Learn Brain Circuits

Join us for daily exercises focusing on issues from team building to developing an actionable sustainability plan to personal development. Go on - they only take five minutes.
 
Read more 

Explore Leadership

What makes a great leader? Do you need charisma? How do you inspire your team? Our experts offer actionable insights through first-person narratives, behind-the-scenes interviews and The Help Desk.
 
Read more

Join Membership

Log in here to join in the conversation with the I by IMD community. Your subscription grants you access to the quarterly magazine plus daily articles, videos, podcasts and learning exercises.
 
Sign up

Further reading: 

Thinking Fast and Slow by Daniel Kahneman 

Authors

I by IMD

Related

Learn Brain Circuits

Join us for daily exercises focusing on issues from team building to developing an actionable sustainability plan to personal development. Go on - they only take five minutes.
 
Read more 

Explore Leadership

What makes a great leader? Do you need charisma? How do you inspire your team? Our experts offer actionable insights through first-person narratives, behind-the-scenes interviews and The Help Desk.
 
Read more

Join Membership

Log in here to join in the conversation with the I by IMD community. Your subscription grants you access to the quarterly magazine plus daily articles, videos, podcasts and learning exercises.
 
Sign up
X

Log in or register to enjoy the full experience

Explore first person business intelligence from top minds curated for a global executive audience