CFOs and decision-making fatigue: A whirlwind of implications

After years of difficult decision-making, CFOs can be forgiven for feeling decision fatigue. Discover the disadvantages finance executives face when they get frozen by indecision — and what they can do to return to making bold moves in a timely fashion.

Michael A. Roberto

Data can actually make decisions harder

4 min read

10:46PMApril 02, 2025.

Updated 4:17PMApril 05, 2025

Finance leaders, charged with driving strategic decisions and unlocking enterprise growth, have confronted a series of major disruptions. The COVID-19 pandemic may have subsided, but CFOs continue to grapple with geopolitical risks, high inflation and borrowing costs, and supply chain disruptions.

Navigating these obstacles — while still keeping the business on course to meet its strategic goals — has expanded the CFO’s role. The emergence of new technology has also widened the breadth of their responsibilities, making their jobs even more complex and critical. Facing a fast-burning platform, speed matters. And the stakes can be high.

Michael Roberto, trustee professor at Bryant University and a frequent speaker at Deloitte LLP’s Next Generation CFO Academy, has seen what can happen in this scenario: indecision. He’s watched executives fail to respond quickly enough to what’s playing out in front of them. “I’m continually struck by how many managers tell me, ‘It took us too long to make some key decisions. And by the time we did, we’d lost ground or fallen significantly behind.’”

Roberto recently interviewed 35 senior executives and surveyed over 200 of them as part of his ongoing research into indecision. He explains how data can actually make decisions harder, why “pain avoidance” can lead to indecision, what CFOs can learn from college quarterbacks, and more. Here’s a sneak peek into his interview.

Q: With the availability of technologies (like AI and machine learning), shouldn’t effective decision-making be easier than ever?

Roberto: Yes, we have more data at our fingertips than ever before. But it can be overwhelming. Executives can end up wallowing in it, saying, ‘Why don’t we do a little more analysis?’ or ‘Can’t we look at this a different way?’ They can go deeper down that rabbit hole than ever before, trying to get more certainty about the decision they are going to make. I’m not against analytics or data, but executive teams can end up investing all this time in belabouring their decisions.

Q: So, are we at the point where there is simply too much data available to CFOs?

Roberto: Analysis paralysis is a big driver of indecision. One executive told me, ‘As an undergrad in economics and an MBA student, I succeeded by being super analytical. When I became a manager, I still thought there was a right answer.’ But now you can go forever looking for the perfect answer. And there’s not necessarily a right answer in strategy; there’s the best answer, given the information you have. I hear a lot about the fear of failure driving decisions. Management teams can get indecisive because they feel as though there’s no tolerance for an experiment or a pilot that does not work well.

Q: Does the main goal then become to make sure you know — and avoid — the wrong answer?

Roberto: In the moment, there’s a failure to appreciate that there are diminishing marginal returns to gathering more data or doing more analysis. The costs of the delay can accelerate, but that calculus is not top of mind a lot of times, even for some CFOs.

Q: How much does mindset play into a lack of decisiveness?

Roberto: Several executives will engage in what I label ‘pain avoidance’. They know exactly what to do, but they also know that the execution of that decision may lead to a challenging technology implementation or involve really tough personnel decisions. Knowing the execution of the decision would be difficult, executives will have meetings where they expressly make no decision — or delay it as long as they possibly can.

Q: Is this a reference to CFOs, whose tendency to be extra sceptical when it comes to capital-allocation decisions?

Roberto: What some finance leaders need to remember is that there’s a fine line between being a constructive devil’s advocate — trying to sharpen the group’s thinking and questioning assumptions — and becoming a roadblock. It would behove CFOs to not always be playing that role. The responsibility for offering the contrarian view should rotate; otherwise, finance leaders run the risk of becoming broken records. Others will get so tired of hearing them they may tune them out.

Q: But aren’t CFOs’ views based on what the data is telling them?

Roberto: Some of their decisions come from risk aversion. Some CFOs, by their nature, are in the mode of organisational protection. Or they may be acting out of the desire to look smart. They know they sound good when they say, ‘Here are the six flaws in your thinking.’ But it’s not really helpful. When you’re talking about big strategic ideas, there are always flaws. CFOs need to focus on how they can help the company achieve its aims. But they could sometimes be more helpful by asking how the business might reduce the risk without sacrificing its goal.

Michael A. Roberto is Trustee Professor of Management Bryant University, Smithfield, Rhode Island, USA.

Based on an article originally published in the Deloitte US Chief Financial Officer Insights Perspectives on 18 July 2024. View the PDF here.

Deloitte CFO Insights are developed by Josh Hyatt, Editor, CFO Insights, CFO Program; and John Goff, Senior Manager, CFO Program, both Deloitte LLP.

Disclaimer

This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor.

Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.