Finance leaders struggle to balance increasing demands for finance function support with decreasing finance function budgets. More a significant overhaul than a complete reinvention, finance is building on its traditional roots to combine governance-oriented responsibilities like accounting, budgeting, and auditing, with tasks devoted to strategic thinking and planning. When asked about the state of their finance … However, a balanced approach that places adequate attention on value creation rather than a strict emphasis on costs can help create sustainable growth that doesn’t sacrifice long-term stability for short-term profits. Following are insights from leaders of FT initiatives who have weathered the transformation storm. Finance Transformation Resume Examples & Samples Implements initiatives that support the Finance Systems Road Map – working in close coordination with key stakeholders throughout the organization … Harrop, Tindal and Comino agree there is no point initiating a finance transformation unless there is a clear objective. And for good reason. The role of the CFO is changing quickly and drastically as technology transforms the landscape, and it’s the early adopters that stand the most to gain, a title that Embark is abundantly qualified to help enterprises attain. * Play defense before you have an opponent—One team created a toolkit to help members counter pushback from the business, complete with documents and role-playing scenarios to prepare them for dealing with naysayers. Transformation can open the door to unanticipated projects that can multiply complexity fast. Each of the three CFOs have their own unique methods for developing and defining programme goals, but they’re all in agreement that having targets is an important part of a finance trans… Many of the challenges and obstacles faced by FT leads can be negotiated much more easily with the right game plan—one built on the insights of those who have already been there. And for good reason. 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. News Corp is a network of leading companies in the worlds of diversified media, news, education, and information services. These are people who are often exhilarated by the increased responsibility that came with the project and are at risk of leaving when the ride eventually ends. Transformation initiatives are voyages fraught with uncertainty but also full of excitement for the opportunities and discoveries that lie ahead. Finance Transformation at a Glance. For others, it could be working in a business partnering role that builds on the skills they learned. Deloitte’s Insights for CFOs provides financial executives a customized resource to help them address the strategic, operational and regulatory issues they face in managing their finance organizations and careers, with top-line digests, research, perspectives and technical analyses. As the old saying goes, there are only so many hours in a day and, as we’re sure most CFOs will attest, the responsibilities weighing on your plate only seem to get heavier by the minute. A streaming app then plays the day’s financial report while they’re in the shower, meaning they’re fully apprised on both the markets and that day’s schedule before they’re even dressed. Identify the most obvious sources of inefficiency in your organization, put together a strategy to address it, and then place your plan into action. Yes, Embark’s elite squad of financial consultants can certainly guide your organization on the technological front, but a focus on the most common hurdles while transforming the finance function will help ensure a solid footing that will serve your enterprise well into the future. * Build communications central—With a resource dedicated to project communications, one FT team made sure everyone was in the know. The marketplace itself is driving this transformation, now requiring a sense of agility and adaptability to meet the needs of an exceedingly complex and ever-changing environment. Loosely defined, the term “finance transformation” is used to describe strategic initiatives aimed at improving Finance within a company. You lead a team … Finance’s rapid evolution is making it a central figure in an organization’s strategic initiatives within an enterprise, leveraging an enhanced and expanded finance function to meet those goals and vision. In today’s data-driven, technology-pushing world, organizations that best harness the pure power of information provide themselves with an inherent competitive advantage and, best of all, finance’s evolution is just getting started. This changes the way finance … As a result, 85% of finance teams are currently undergoing or planning a … Karen Parkhill, CFO of Medtronic, discusses the important ways finance leaders can help guide their organizations as a crisis unfolds, while keeping a focus on, and preparing for, longer-term strategy and recovery. hbspt.cta._relativeUrls=true;hbspt.cta.load(2102630, 'e0d6d8a5-c524-4774-9808-f251108e5f06', {}); While technology plays a significant part in finance’s continuing transformation, it’s still just a single piece of the bigger transformational puzzle. Probably not. To an outsider, all of that technology would seem complex and cumbersome, perhaps even to that typical CFO as well, as they introduced each new innovation into their life. Let’s say part of your transformation is centralizing accounts payable in a … Employees previously tasked with those responsibilities are now freed to innovate and collaborate, creating a more fulfilling work experience that ultimately means they’re happier, more productive, and less likely to leave the firm. Yet no hired gun will know the ins and outs of your organization. Part 2, What’s on Your Transformation Risk Checklist? An error has occurred, please try again later. As we said, we’ll be taking a far deeper dive into the different aspects of finance’s evolving role just shortly down the road. This role will manage finance transformation & consolidation initiatives.. You will also develop integrated revenue and expense analyses, projections, reports, and presentations. * Play the board game—Can you get a regular slot in board meetings? hbspt.cta._relativeUrls=true;hbspt.cta.load(2102630, 'efa3ace1-519b-48d9-9879-27c608f85f98', {}); We understand that high-level advice only goes so far in illuminating the importance of a transformed finance function in today’s enterprises. Even minor accomplishments could be of interest to certain internal audiences. She also shares her views on finance’s critical support of innovation at the medical device and equipment producer. The context of this insight is founded on the many clients we have worked with on transformation initiatives including, Finance strategy, operating model design, process redesign, Finance … For some, that could mean taking on a leadership role in shared services. As the finance … During the workday, they might order lunch through another app, book a hotel for an upcoming vacation, and remotely adjust the temperature of their house before leaving the office and heading home. * Staged for success—Add an extra layer to your project strategy: the promotion plan. We’re not going to be fashionably contrarian and say that costs aren’t important because, of course, they’re critical to every enterprise. Realizing the full benefit of a transformation effort is rare. Business leaders and decision-makers need a good understanding of what their employees are actually doing, not what they’re supposed to be doing. Not every team needs a dedicated resource for communications, but they do need a communications plan. “As more companies tackle transformation, finance organizations, as scorekeepers, need to make sure they stay ahead of the change curve. Budget and forecast cycles become slimmer and more accurate, attrition and overhead fall, and that critical agility increases. For relevant content at your fingertips, download the CFO Lens™ app. Which is most important to you? In other words, Finance helps drive a wide range of decision making, providing a sense of direction for an organization’s growth. For instance, let’s take a look at the typical day of a CFO, only from a more personal perspective. At the center of most projects stands a single person who is responsible for making it all happen. Likewise, an enterprise must also look for ways to streamline their processes, always in search of areas for improvement that those new innovations can address. Major projects can challenge even the most experienced leaders, especially when the work is global or when there are other closely related initiatives … Transformation initiatives include driving greater awareness and understanding of the role Finance can play, benchmarking, developing shared services models, outsourcing, new technology, … That’s where activity analysis comes into play, a way for leadership to track how long it takes employees to accomplish tasks. Keep those goals reasonable and actionable, but not so simple that they don’t stretch your team to excel. FT leads can take a mix of approaches. Naturally, this new perspective isn’t random or without a specific purpose or origin. At Embark, we understand what it’s like to be in a CFO’s shoes, to be pulled in countless different directions at once. Whatever your … It’s a more involved role for finance, one that uses advanced analytics, demand planning, pricing, customer and employee satisfaction, and other dynamic facets of operations to provide leadership with more precise and far-reaching insights. In other words, get some wins under your belt and grow from them, letting those smaller wins evolve into an enterprise-wide process that, with time, consistency, and relentlessness, will redefine your organization, internal processes, and how you compete in a crowded marketplace. Because when the program environment changes—and it will—you’ll need a wide range of capabilities within close reach. As always, business cost management is a critical element of finance strategy, key to driving efficiency in routine transactional processes that allows a shift in focus to building the enterprise value of the finance … Whether through an in-house capacity or an experienced partner, however, it’s in every enterprise’s best interest to maintain a current understanding of advancements in the marketplace and how those innovations might apply to create new efficiencies. Your goal is the future state you have in mind, what your enterprise strives to become. Such improvements in both employee and customer satisfaction are much more difficult, perhaps even impossible, to accomplish without an expanded finance function that streamlines your operations and draws out the very best from your team. Company veterans may come up short in understanding the process. We are nearing year's end and in our latest post we look back at the progress of the UW Finance Transformation … Would you start a road trip without a destination in mind? More a significant overhaul than a complete reinvention, finance is building on its traditional roots to combine governance-oriented responsibilities like accounting, … For now, however, take this primer on a transformed finance function and use it to examine your enterprise from a bigger perspective. Get the Wall Street Journal $12 for 12 weeks. However, that endless list of responsibilities and tasks are precisely where a transformed finance function shines brightest, getting the most from a team while adding value through greater productivity and efficiency. While it’s always been an indispensable component of a financially sound enterprise, leadership now looks to finance for its unique perspective and skill set for strategy and development as well. This is especially important for your customer-facing staff, where a sense of empathy goes a long way in maintaining brand loyalty and spreading a positive word-of-mouth around your enterprise. While we absolutely love it when enterprises come to us with big visions and even bigger dreams, it’s often best to start evolving your organization’s finance function with the low-hanging fruit. That’s a big blind spot as FT projects usually engage a team of top talent. It’s a simple, easy way to keep everyone on the same page. Best-practice research behind a winning finance transformation strategy Finance teams are constantly asked to do more with less. * Use motivational tools—Many project teams used motivational posters and signs to help keep things on track. We promise you won’t be sorry. The value of a technology-led transformation within finance was explored in a recent survey of 157 senior finance executives, conducted by CFO Research in collaboration with software provider Longview.. hbspt.cta._relativeUrls=true;hbspt.cta.load(2102630, '9f3ff52a-f552-4f8e-a62d-b7a318f9ff9a', {}); Although these transformative qualities sitting untapped within an organization’s finance department are just now coming to light, word spreads fast and, as you know, today’s news is tomorrow’s history. As you might’ve guessed, Embark is well-acquainted with this evolutionary process across the corporate finance function and can honestly say that, without hesitation, we think it’s a much-needed breath of fresh operational air for enterprises. 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. As a result, 85% of finance teams are currently undergoing or planning a … Finance transformation initiatives are often introduced to improve service delivery and information quality all while keeping costs in line. * Building the team—Look for variety, not clones of the same skill set. In many cases, digital initiatives are self-funding. * The case for the business case—Go as deep as you must, but no deeper. Our Finance Transformation services address critical issues facing finance across major industry sectors, including vision and strategy, organization and talent, business processes, and technology. Transformation Insights: Welcome to Transformation Insights: the UW Finance Transformation blog. They often carry risk, cost and unpredictability, and, if not … And remember, it’s not just about major milestones. It can involve a variety of tasks, from shortening a … Take time to find the right matches—for now and for three years from now. Too often, the close process is run by gut, instinct, and collective knowledge, versus a defined, centralized, and orchestrated workflow and process. Finance isn’t what it used to be, and that’s a good thing. Collaboration remains stubbornly stuck in email and conference calls, with limited visibility into the process. Major projects can challenge even the most experienced leaders, especially when the work is global or when there are other closely related initiatives underway at the same time. finance transformation, Finance Transformation 101: A Guide To The Modern Finance Department, increase profitability & leadership agility. Creating “shadow” costs. From the rapid flow of business ventures moving in and out of the market, to the accompanying M&A activity that continually changes the landscape -- both internally and externally -- finance is growing up right before our very eyes. However, once they understood the premise and utility of those different tools, each one quickly became second nature, the learning curve suddenly seeming a heck of a lot less daunting. Finance Transformation: Are you enabling enterprise performance and value? Certain services may not be available to attest clients under the rules and regulations of public accounting. The FT team should be a collection of star players. Make a list of the full range of skills your team will need before starting the first interview. Savings can be reinvested in additional capabilities with long-term strategic value. 2020 AICPA Meeting: SEC and PCAOB Developments. The end result is a transformed life that is now efficient, streamlined, and well-attuned to their individual habits and demands through specific, well-placed technology. Finance transformation: A Lean approach to increase value 5 Lean’s impact on Finance organizations Beyond merely improving workflows, Lean provides an operating methodology to sustain process excellence and continuously improve results. Each … Although we’ll take a more granular look at transformation specifics in the very near future, a handful of best practices will help your organization’s finance department get up and running on the transformation front, giving you a solid foundation to build from in the future. Too many FT Leads often are reinventing the wheel—especially considering all the helpful tools and techniques that have been developed by others. As companies reopen their offices and other facilities, CFOs have an opportunity to collect and analyze data that can guide them in reshaping their real estate assets for the future, including decisions on employee safety, costs, and technology needs. Please note: The Wall Street Journal News Department was not involved in the creation of the content below. Those highly efficient processes that can now automate and streamline internal tasks give your employees the opportunity to better focus on the customer experience. As we said, your finance department is growing up, so maybe it’s a good time to see what they’re capable of accomplishing for your operations, employee base, customers, and stakeholders. W… Finance transformation can be utilized to identify new roles, develop robust training programs that align skills with the needs of the business, and realign career path opportunities to maintain and promote … Long story short, we take the scary out of finance’s transformation, leaving you to reap the rewards. The same premise holds true for a CFO and the finance function they oversee within an organization. One FT lead said that when he took the job, he thought he would be able to find a ready-made game plan from others who had taken on finance transformation elsewhere. 30 Driving meaningful The goal of governance is to drive outcomes by aligning strategy, reporting and operations. Once back at their house, a streaming service’s algorithms choose a new show to binge watch based on their viewing preferences and, as their head hits the pillow that night, their virtual assistant turns off the lights through smart electrical outlets. Remember, profitability doesn’t exclusively stem from cut costs, but from revenue growth as well, a notion propelled by added value within your organization. 4 Your guide to finance transformation in an age of unprecedented disruption. When he couldn’t find any examples to crib from, he had to build everything from scratch. That makes it even more important to plan for what will happen to them when they finish their FT tour of duty. Finance leaders face numerous pandemic-related accounting and reporting challenges in the current quarter, with three areas rising to the top for many companies: forecasting amid uncertainty, communicating business-related COVID-19 responses to stakeholders, and a heightened level of concern related to internal control. DTTL and each of its member firms are legally separate and independent entities. As part of that transformation, CFOs are quickly becoming consiglieres of sorts to the CEO, advising on all strategic matters thanks to their unique and specific perch within an enterprise. Realign your resources. 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. Whenever possible, look to put people in close proximity. Finance Transformation: Lessons from Leaders Dbriefs Webcast, Don’t Quote Me on This: Finance Transformation Leaders–On the Line and Off the Record, Follow us on Twitter Stay Informed . And yes, venturing into dad joke territory, Excel is an especially convenient way to track those goals -- go figure. Explore other reports and guides in our Finance in a Digital World TM “Crunch time” series, and read case studies about digital transformation in the finance function. Part 1, European CFOs Confront an Uneven Recovery, Global Economic Brief: President-Elect Biden’s Agenda, Banking: Expand Plans to Integrate Climate Change, New Law May Drive Privacy Strategy Refresh, Now Is the Time to Reboot Risk Management, Global Economic Brief: Vaccines Point To Growth, CN Rail Rides Balance Sheet Strength to Recovery, 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. Focus on performance indicators your team can use to stay on track. * Sponsorship—When it comes to sponsorship, FT leads should expect the best. * Set boundaries—Leaders of FT initiatives should clearly lay out personal boundaries before a project gets underway. With so many people involved and mounds of spreadsheets constantly accumulating, roughly defined processes are often different, from geography to subsidiary. From an enterprise’s perspective, it can be difficult to continuously stay aware of what advancements are in the marketplace, making it imperative for every organization to designate personnel within their ranks to stay abreast of technology advancements. finance Please see. Webinars, newsletters—whatever it takes to stay on the radar. Whether through software, surveys, or daily tracking polls, management gauges that time and compares it to a benchmark or performance standards. From that position, CFOs can concentrate on creating new value, utilizing innovation in thought and practice to develop cost efficiencies and streamline operations. An evolving finance function shifts that focus from one specifically targeting costs and cutting overhead to improvement and growth which, over time, will naturally lower costs. Are you getting the most from your talent? * What it takes to lead—Err on the side of experience, especially if the sponsor is relatively new to transformation. 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