The need for transformation of finance function is due to the following drivers like necessity to do more with few or same resources and respond better to rapidly changing business and economic market environment. In addition, the exploding volume of information from internal and external sources as well as need for healthier operational and finance alignment.
Finance transformation needs getting right personnel involved in project like finance, IT, and stakeholders. In addition, it includes handling the financial & operational processes efficiently and applying flexible technology to fuel the enhanced business processes.
Features of economic transformation
Have a goal
Initiating an economic transformation program is useless, unless there is no clear goal.
Broad in scope
Transformation scope has to be broad as it covers each and every function.
The transformation program can run for more than a year.
Transformation program comprises of multiple projects, whose benefits get comprehended progressively. It helps in garnering business support [funding] and creates momentum. The program achieves flexibility to change its direction, if needed.
Why begin economic transformation?
One simple reason is to support business and drive its performance. Go deeper and you will find a goal to offer better service – for example, changing focus from providing data to offering insight.
On the other hand, a decision to search for cost savings can cause transformation as it promotes value to consumers and better profits for investors. Or it may be just about enhancing the working of finances – for example, have more detailed processes and maximize decreasing re-works. The program may even address finance department and introduce ways to make it a better working place.
Trigger for initiating economic transformation program may be just seeing finance through a new set of eyes. Change of roles can make one realize the necessity of significant modifications.
How to succeed?
Vision & clear goal
Be persuasive about strong vision because it gives a gripping ‘anchor point’ to ponder on daily as the participants progress towards the set goal.
Support and alignment
The program needs to align with overall business strategy and executive team’s support for success.
Strong change management
The transformation program can impact finance and business but with emphasis and focus on strong change management will help to move towards successful modification.
Take operational assessment
Being clear about operating model in future and assessing how each pieces will smoothly blend together is crucial for transformation success. Understanding business processes enables to make modifications, while managing business risks and reputation.
Break program into several phases and first set a solid foundation. You will need to look at people, process, technology, and determine what needs to be taken care of first.