The confidence gap: Why finance leaders doubt their own decisions

Every day, finance leaders are expected to make fast, high-stakes decisions. They have what it takes to do so – but having access to more data, tools and insights than ever doesn’t always translate into certainty.

In fact, Pleo’s recent report, The power of better business decisions, reveals just how widespread this challenge is: finance professionals aren’t fully confident about 41% of the high-level business decisions they make. And when the pressure ramps up, like during an economic downturn, only 33% feel very confident in their ability to make smart financial calls.

The gap between knowing the numbers and trusting your decisions is what we call the confidence gap. It’s a tension that leaves even experienced CFOs second-guessing themselves, slowing decision-making and sometimes missing opportunities.

We’ll explore why the confidence gap exists, the hidden cost it imposes on finance teams and practical ways leaders can rebuild trust in their decisions – and in their teams – through clarity, collaboration and culture.

Key takeaways:

• Finance leaders often hesitate despite having more data than ever. The confidence gap has real costs – hesitation slows decision-making, stalls innovation and drains time, energy and focus across finance teams.
• Confidence is built, not assumed. Trust in data, simplified insights, cross-functional collaboration and psychological safety are essential to bridging the gap.
• Confident leadership drives clarity and momentum. Even in uncertain times, leaders who model grounded decision-making empower their teams to act decisively and strategically.

Understanding the confidence gap

Today’s finance leaders have more dashboards, datasets and forecasting tools at their fingertips than ever. Yet when it’s time to make the call, many still find themselves hesitating. That tension – the disconnect between knowing the numbers and feeling confident in the decision – is what we call the confidence gap.

Part of the problem is the environment finance teams are operating in. Uncertainty, volatility, geopolitical shifts and rapid business cycles make even routine financial decisions feel riskier. When the ground keeps moving beneath you, confidence naturally takes a hit.

Then there’s the pace of change. New technologies, evolving market expectations and an ever-growing list of regulatory pressures keep CFOs in a near-permanent state of cautious pause. Even with the right data, it can feel like the ‘full picture’ is always just out of reach.

And finally, there’s the culture of finance itself. Accuracy is non-negotiable – and that’s a good thing. But perfectionism can easily turn into paralysis. When teams feel every decision needs to be bulletproof, progress slows, opportunities pass and confidence erodes further.

The confidence gap isn’t about a lack of capability. It’s about a mismatch between the complexity of today’s landscape and the expectations we place on financial decision-making. Understanding that tension is the first step towards closing it.

Why do finance leaders doubt themselves?

So, if the confidence gap is the space between data and decisiveness, what’s actually driving it? Several underlying pressures are chipping away at finance leaders’ trust in their own judgement:

Data distrust

CFOs rely on data – but they don’t always trust it. Disconnected systems, inconsistent inputs and manual workarounds create questions about accuracy. And when leaders aren’t fully confident in the numbers, every decision feels like a gamble.

Information overload

More data isn’t always better. Finance teams are drowning in dashboards, reports and metrics, which can make it harder – not easier – to see what truly matters. The result? Slower decisions and a lingering sense that something important might be hiding in the noise.

Tool sprawl

Modern finance stacks promise efficiency, but too many tools often mean fragmented workflows and duplicated effort. In fact, 70% of finance professionals working with more than 16 tools on the daily experience decision-freeze. When insights live in so many different platforms, confidence takes a hit simply because teams spend more time reconciling than analysing.

Cultural pressures

Finance has always been the ‘safe pair of hands,’ which means the pressure to avoid mistakes can be immense. This expectation of flawless execution leads to second-guessing and an instinct to play it safe – even when bolder decisions would move the business forwards.

Lack of alignment

When leadership teams aren’t aligned on goals, priorities or the story behind the numbers, finance ends up carrying the uncertainty. Misalignment creates hesitation: it’s hard to be confident in your decision when you’re not sure everyone is rowing in the same direction.

These forces don’t just slow things down. They quietly chip away at the very thing finance leaders rely on most: their ability to make smart, timely and trusted decisions.

The cost of the confidence gap

48% of financial decision-makers second-guess decisions after making them. That lack of confidence doesn’t just affect individual leaders – it shapes how the entire finance function operates.

The price of that hesitation adds up quickly:

• Slower momentum and stalled innovation: When leaders doubt their decisions, progress slows. Teams spend longer validating numbers, re-checking assumptions and revisiting conversations that should’ve been closed. Over time, that hesitation creates friction across the business, making it harder to move quickly, test new ideas or respond to changing conditions.
• Hesitation becomes contagious: Confidence flows downward. When finance leaders second-guess themselves, teams pick up on it. Analysts become more cautious, managers become less decisive, and ‘waiting for more information’ becomes the default response. That ripple effect can quietly undermine a culture of ownership and initiative.
• The ‘confidence tax’: Every moment spent second-guessing is a moment taken away from strategic work. This hidden cost – time lost to rework, the mental load of constant doubt, the extra meetings to revalidate assumptions – acts like a tax on productivity. It drains energy, slows decision cycles and reduces the bandwidth leaders need for long-term planning.

The top 3 consequences of decision-freeze speak for themselves:

Source: The power of better business decisions

In the end, the confidence gap doesn’t just affect how decisions are made: it affects how effectively finance can lead. Closing that gap is essential for any team that wants to move faster, think bigger and operate with clarity.

Rebuilding confidence: What finance leaders can do

Closing the confidence gap isn’t about having more tools or more reports – it’s about creating the right foundations for clarity, alignment and trust. Here’s how finance leaders can start rebuilding confidence in their decisions and across their teams.

Establish trust in data

Confidence starts with clean, reliable and consistent data. Standardising inputs, reducing manual work and creating clear data ownership help eliminate the doubt that creeps in when numbers don’t align. When finance teams trust the data, they can focus on interpreting it – not interrogating it.

Simplify insights

More information doesn’t always equal better decisions. Turning complexity into clear, actionable insight is where real confidence is built. That means prioritising the metrics that matter, creating narrative-driven reporting and helping teams understand not just what the numbers say, but why they matter.

Encourage psychological safety

Finance is a high-stakes environment, but it doesn’t have to be a fearful one. Leaders who create space for questions, learning and healthy debate help reduce the pressure to be ‘always right.’ When teams feel safe to speak up, challenge assumptions and share ideas, decisions become stronger – and confidence grows.

Collaborate across functions

Confidence also comes from alignment. Bringing product, sales, operations and finance together around shared goals helps eliminate the uncertainty created by siloed decision-making. Collaboration clarifies context, strengthens assumptions and ensures that finance isn’t making decisions in isolation.

Balance tech and judgement

New tools can surface insights faster, but technology doesn’t replace financial intuition. Confident leaders know when to lean on automation – and when to trust their experience. Blending data-driven processes with human judgement creates a more grounded, resilient basis for decision-making.

Leading with confidence in an uncertain world

Confidence in finance doesn’t come from having perfect data or flawless forecasts. The most effective finance leaders are the ones who can create clarity in the grey areas, guiding their teams with a steady hand rather than waiting for absolute certainty.

In today’s environment, that matters more than ever. Markets shift, assumptions evolve and plans need to adapt in real time.

Confident leaders don’t pretend to have all the answers. Instead, they set clear expectations, explain their reasoning and make sure their teams understand the ‘why’ behind their decisions. That shared context builds trust – in both the process and in the people leading it.

Ultimately, confidence isn’t about being right every time. It’s about trusting the journey: the systems you’ve built, the data you rely on, the conversations you’ve had and the collective judgement of your team.

When leaders model that kind of grounded confidence, it empowers everyone around them to move forward with clarity, pace and purpose – even when the world around them feels anything but certain.

Closing the gap: Turning uncertainty into opportunity

The confidence gap shows that even the most capable finance leaders are navigating a landscape that’s more complex, fast-moving, and uncertain than ever before. And whilst hesitation can slow progress, it also highlights the areas where clarity, trust and alignment can make the biggest difference.

By building confidence through clean data, simplified insights, psychological safety, cross-functional collaboration and balanced judgement, finance leaders can transform doubt into decisiveness. They can move from second-guessing to steering, from paralysis to progress, and from reactive to proactive.

In the end, confident finance leaders don’t eliminate uncertainty: they manage it. They create a culture where teams trust the process, decisions are grounded in clarity and momentum isn’t held hostage by fear.

And that’s where opportunity truly begins.

Get the report today: The Power of Better Businesses Decisions