TagFinance Transformation

Driving Profitability Through Enhanced Expense Management Policies

I don’t know of any private or publicly listed organization that is in business only to break-even. Among others, the main goal for these entities is to deliver a profitable return to the owners of the business. This desire to make profit with the least resources inherently makes cost management across the business a strategic imperative.

As strategic business partners, finance teams are suitably positioned to help their organizations manage costs and focus spending only on those activities and/or initiatives that enable business performance.

In my experience of working with diverse organizations and business leaders, I have come to the realization that quite a number of them lack a precise understanding of what “cost management” really involves. There is a common perception that managing costs is all about cutting costs or merely a matter of buying fewer goods and services. This is seldom true.

Cost management is not simply a euphemism for “cost cutting”. The discipline is about understanding the true cost drivers of the business and ensuring that a company acquires only goods and services that it needs to execute its strategic priorities at a known and managed cost. One of the areas I see organizations often struggle with is identifying those activities, processes and investments responsible for rising cost levels.

Because of this misunderstanding of the real cost drivers, many companies end up taking the obvious route of cost control: they reduce payroll-related expenses, cut direct costs and capital expenditures. Rarely do companies focus their attention on improving indirect expense management to drive savings and boost profitability with the same resources.

Inadequate Spending Information Acting as a Barrier Against Savings Delivery

In today’s digital-enabled business environment the ability of an organization to consolidate and analyze its indirect spending patterns is key to acquiring crucial insights essential to pursue better deals with vendors. Simply having information is not enough. What golden nuggets are you harvesting from this sea of information and you are able to use them as sources of leverage when dealing directly with suppliers?

Unfortunately, in my dealings with diverse finance teams, many of them are not analyzing their organization’s spending data and are therefore losing out on achieving substantial cost savings. One of the reasons often given by these teams on why they are not able to do so is lack of time and resources needed to analyze spending data and recognize the benefits. A significant amount of their time is spent on balancing the books and justifying the numbers.

I was surprised with the manner in which procurement reports are generated and delivered in one of the companies I recently worked with. Their procurement processes are still highly manual, all invoices are stored in lever arch files and there is no spend visibility across the organization. Each business function records its own spending and there is no overall aggregation of this spending information.

As a result of these highly manual processes, it is seemingly impossible for the finance manager to obtain a clearer picture of how much is being spent on each vendor and on what, say per month, quarter, half-yearly or yearly. Technology and e-procurement systems have evolved and because of these advancements CFOs and their organizations can gather this procurement information in an accessible, easy-to-use format and in real-time.

Lack of financial resources should therefore not be given as an excuse, there are now cheaper tools that an organization can invest in and achieve its spend analytics ambitions and these SaaS and/or cloud-based solutions do not require huge initial capital outlays.

When you have ready access to information and are able to analyze your company’s’ major spending categories, you will be able prioritize the use of your scarce time and resources, consolidate spending with selected vendors, negotiate better terms and realize substantial benefits.

Close Scrutiny of Discretionary Spending

Many at times I have heard people say in order to make money you have to spend money. As much as we would like to accept this statement in its entirety and pay attention to the advice, I think we should heed the advice with a pinch of salt. Not all spending is necessary. In addition to direct expenditures which are linked directly to the goods and services a company is producing or providing there will always be discretionary expenditures not tied to business performance.

However, uncontrolled spending simply for the sake of spending often leads to depleted margins and cash woes. Am I therefore advocating against discretionary spending? No. Responding to business opportunities often calls for flexibility and judgement. There are times where the organization has to leverage its cash position, take advantage of emerging opportunities to enhance its competitive position and improve productivity.

Close scrutiny of discretionary spending on things that are perhaps nice to have, but not enabling business performance is therefore critical. Finance business partners can help instill spending discipline and good judgement across the enterprise by educating employees on the How, What and Where of spending carefully as well as setting up spending policies to encourage productivity and enhanced performance.

Spending policies play a significant role in directing employee behaviour and generating useful information on what goods and services are purchased, how and where. For example, they help an organization drive savings through documenting and substantiating purchases, discouraging excessive acquisitions and prescribing exactly where and how employees may procure items.

Any off-policy spending patterns are quickly identified and addressed. However, in implementing these spending policies care must be taken that a right balance between control and latitude is struck. You want your employees to have a sense of empowerment and responsibility.

In other words, the company’s spending policies should not be viewed as punitive measures, but rather, allow employees the appropriate degree of flexibility, and nothing extra. This fosters compliance.

The Effectiveness of Any Spending Policy Rests on Its Widespread Adoption

Implementing the right spending policies is only part of the equation. In order for policies to be effective, employees must comply with them. In most cases you will realize that an organization has well-defined policies on spending, the finance executive is leading the pack garnering support for its enterprise-wide adoption and yet despite all his efforts the positive message falls on deaf ears.

Compliance often falls short and as a result the organization fails to achieve the intended benefits. As with almost every other aspect of everyday running of the business, senior management support is central to the success of any organizations’ spending policies. Senior management determines company culture and sets the tone for employee behaviour.

No matter how hard the finance executive tries to convert the positive message of disciplined spending, if the other senior leaders are failing to set a good example then we shouldn’t be surprised to see significant low levels of employee compliance.

Many organizations often suffer from a lack of consistent approach when implementing and upholding spending policies. For instance, you will find out that there is a clear prescription of the exact steps to follow when dealing with employee expense reimbursements. By default, the approach should be the same across the enterprise but then you start noticing some employees getting reimbursed for expenses that other employees are not.

Moreover, the senior manager approves the reimbursement of an expense without seeing the backing documentation even though the policy clearly specifies that a physical receipt or invoice must support the expense claim. This inconsistency sets a bad precedence resulting in finger-pointing as well as favoritism gestures. Rather, management should take the lead by enforcing policies uniformly throughout the employee hierarchy, and by demonstrating good compliance behaviour.

Furthermore, in order to ensure effective compliance, senior management should also communicate policies effectively as well as the business rationale and the more tangible benefits that the new spending policy would provide. Employees need to know what policies they will be held accountable for and why they are being held accountable.

I don’t believe there is an employee acting in their normal capacity who would join an organization just to do wrong. Employees, generally want to do the right thing and what a better way to support this ambition other than explaining to them all the nitty-gritty of the company’s spending policies.

Ideally, once the policies are enforced it is a good idea to regularly provide employees with feedback on their performance, the benefits that are being realized as a result of the policy changes and offer rewards where necessary. Following this approach bolsters the rationale for making the decisions and gives employees an interest in the company’s performance as well as a greater incentive to do well.

As finance executives step up to an expanded, more strategic role and seek to drive profitability across their organizations, it’s critical that they establish efficient and effective means to provide employees with the right tools, processes and structures they need to successfully perform their jobs without opening the door to spendthrift behaviour, poor controls, and irregular expenditures.

Finance Must Embrace Digital or Risk Being Left Behind

The face of the finance function is changing every day but do we really understand what this means in reality? I love to mentor young professionals and offer them advice that can help them propel their careers forward. One of the many questions I often get asked is “With all the technological advancements taking place, what does this mean for current and future finance professionals, as well the finance function as a whole?”

A lot has been written about the current digital revolution taking over specific jobs performed by humans and making them redundant. One of the jobs being accounting and finance. No wonder finance professionals are worried whether they will still be in employment in the next five years, ten years or not too distant future.

Think of robotics, artificial intelligence and machine learning. These new technologies are taught to replicate human decision making and perform rules-based, repetitive activities.

Traditionally, finance professionals have joined the finance organization via the accounting route. An individual would go to university, earn a Bachelors in Commerce, upon graduating register with a professional accounting body such as ACCA, CIMA, CPA and CMA. Undergo a three-year training program and bingo, your finance career is birthed.

Fast-forward to the current digital age. The finance landscape has significantly changed. Rapid environmental changes, shifting customer behaviours and technological breakthroughs are all turning business models upside-down and upending conventional wisdom. This new operating model demands finance professionals to have a different skill set.

Having technical competences alone is no longer a hundred percent determinant for success.

We now live and conduct business in a hugely connected and better informed world. Thanks to social media and IoT. Social media is allowing us to stay in touch with colleagues hundreds of miles away from us. Through IoT, buildings and other items are now technologically connected allowing data to be gathered, exchanged and analysed to generate key decision-making insights.

Cloud is Driving Finance Transformation

Cloud-based applications are enabling CFOs to do more with less, at the same time modernizing and transforming finance. These solutions have the capability to integrate external data and optimize decision-making. They allow finance executives to have full data visibility, identify correlations and trends, as well as key drivers of operational performance and financial outcomes.

One example of cloud-based solution that is making waves is Syft, a cloud analytics platform that directly links into your existing accounting cloud software and instantly generates easy to interpret graphs and reports for your business.

The challenge for many CFOs today is unlocking critical business insights from their data. The insights they are looking for lay buried in disconnected, legacy ERP systems that are struggling to keep pace with today’s information needs of the business. Most of these legacy systems operate in silos and do not communicate with each other.

In the ongoing digital revolution, integration is the new information paradigm. Where silos were the norm, organizations today must seek to share critical data among business operations to manage costs and coalesce company strategy.

Not only does cloud integrate external data, it also simplifies the cost structure of the business, help forecast with greater precision and potentially close books faster. In addition to having analytics embedded within the applications, these cloud-based financial systems are designed from the ground with the end-users’ real-time information requirements in mind.

This is different from the traditional ERP systems that lack customer specifications and customization, and are build for standard adoption. In today’s information age, organizations have different information needs, specific to their strategic direction and are not keen on adopting the herd mentality.

Investing in cloud computing and SaaS often results in reduced finance and IT costs mainly because of reduced up-front capital expenditures. With cloud-based applications, the focus shifts from capital expenditures to operational expenditures (subscription-based) as there is no need to have the financial system set up on business premises.

Unlike traditional, on premise financial systems which require the software providers’ IT support team to visit your offices to service or upgrade the system, cloud-based platforms are easily updated remotely allowing you to always work with the latest version, with current features and functionality.

This way, you avoid getting billed for call-out fees and other unnecessary servicing costs.

Reinventing the Finance Function’s Wheel

Technology alone is not the silver bullet, it is an enabler and empowers finance professionals. Rather than look at the ills of this new digital age, why not look at the opportunities presented? Higher demands are being placed on finance to transition from a back office reporter of the past to a trusted business advisor.

In most companies, finance is spending considerable time and effort gathering data and getting to the right numbers instead of analyzing what the numbers mean. In these organizations, a lot of emphasis is placed on transactional processing and reconciliations as opposed to insightful analysis.

Thanks to the digital revolution, finance has an opportunity to move up the value chain. But what does this digital transformation really mean? Does this mean entirely changing what finance does within the business? No. Finance is a decision support function to the business and will always remain so.

What digital transformation means for finance is that the function should take stock of its current deliverables, evaluate priority areas and establish where value should be delivered most, and how, arguably by leveraging new technologies.

This also involves building upon the existing talent and skills. Individuals with a strong technical background still have their place within the function. But what we are saying is that the organization’s talent base must be fit for purpose in this digital age, and aligned to areas of value creation.

Having a finance workforce that is tech savvy, diverse, connected, curious about how the business works, asks the right operational and commercial questions, and understands the application of disruptive digital technologies to drive automation and insight will differentiate great finance functions from those that are simply good.

Build a Positive Business Case for Digital Investment

Companies that have fully grasped the opportunities presented by the current digital revolution are allocating significant resources to IT budgets. The future finance function will have robotics and automation at the core. It is therefore advisable that CFOs jump on the train before it passes through their station.

Just because your organization is not investing in digital does not mean that your competitors are also sleeping. Lessons can be learnt from the demises of Kodak, Blackberry, Borders and Nokia, only to mention a few. These companies failed to set pace in a rapidly changing technological environment and they all paid dearly for their slumber.

Thus, to avoid risking their organizations disappearing overnight, CFOs must build a robust strategic business case for investing in digital and the advantages of harnessing its power. This will help secure the much-needed buy in from senior management. This later group wants to understand why it is critical for the organization to transition to the current digital ecosystem.

If the CFO is able to articulate the complexities the business is currently facing and how they can be addressed by investing in digital, then getting the thumbs up from senior management will not be very onerous.

This is a make or break time for many organizations. The ball is in your court, to either maintain your old-fashioned systems or inadequate business processes or invest today in modern systems for future strategic success.

Savvy CFOs are Using Data Analytics to Mitigate Risks

Data analytics has shifted from being “just a fad” to a business necessity. Once considered the playground of marketing, data analytics has entered the mainstream stream business. Companies are no longer investing in data and analytics with the sole purpose of aiding marketers and drive revenues.

Rather, they are also exploring the opportunities of data analytics application in risk management.

The risk landscape is changing fast and this is driven mostly by increased volatility, heightened economic and political uncertainty, intense regulatory complexity, high-profile data breaches, rising employee fraud, shifting consumer habits and preferences, and increased competition.

As a result of these fundamental changes the strategic conversation around risk is changing too. Thus, business leaders should embrace risk as a tool used to create value and achieve higher performance. It is no longer something to only fear, minimize and avoid.

Applying data and analytics to an organization’s risk efforts plays an important role in strengthening internal controls. Implementing stronger controls is essential for avoiding and reducing substantial financial and reputational losses.

Companies that have previously placed little value or emphasis on strengthening internal controls have learned the hard way, and for many, the wake-up call came too late.

High-profile Data Breaches

The number of cyber attacks and ensuing data breaches is at alarming rate. Hackers are targeting companies across all industries and stealing treasure troves of data for criminal proceeds. Recently, a global cyber attack “WannaCry” halted service delivery and brought businesses and countries to their knees, locking people out of their data and demanding they pay a ransom or lose everything.

In the wake of these massive data attacks, companies are waking up to the realization that they need to strengthen their cyber resilience programs.

Investing in data analytics is one way of achieving this, and CFOs are uniquely positioned within the organization to drive the analytics efforts. Although data is the oil of the new digital economy, finance executives must look at data in two ways – as a source of risk and as a means to manage the risk.

Real-time Monitoring of Data

This is essential for reducing the potential of data breaches and better protect strategic data of the company. The CFO can help monitor the company’s data by performing real-time data-flow analysis and outlier analysis.

The former involves tracking the location of data at different times during a business process. Internet of Things (IoT) has brought about new ways of collecting and storing large quantities of data sets.

For instance, sensors are being installed in machines, clothing items, delivery vehicles, wearable devices, company products etc and these minute devices are capable of transmitting the data to an internal server for further analysis and insight generation.

Majority of the data hacking incidents happen at night when business have shut down for the day. It is this period that companies are more prone to cyber breaches.

By regularly conducting data-flow analysis, personnel responsible for data security will be able to detect any unusual data queries being made on the company’s database during a certain period, and compare that number with trends over the last month, quarter, year or longer.

If a trend is identified, this should act as a starting point for asking specific questions around data security and trigger responses.

Outlier analysis, mostly used by credit and debit card companies and other financial institutions, helps identify anomalies in the customer’s transaction history. Based on the historical transactions of the credit or debit card holder or customer over a period of time, the company is able to develop a profile for each and every customer.

Suppose one of your clients resides in Location A where he or she mostly transacts from, one day you notice that soon after recording a transaction in Location A another large sum transaction is recorded in Location B within a short period of time and the commuting distance between A and B is long making it impossible for your customer to be in one place at one time, this transaction must immediately be flagged up as an outlier and tell you that something is unusual.

Thus, as the purchasing history data of your customers increase, more focus should be placed on real-time outlier analysis. Thanks to technological innovation, today’s computers have massive computing power to store and perform this critical analysis on very large datasets.

Make Use of Both Structured and Unstructured Data

Structured data is easy to analyze because it is highly organized and predictable. Unstructured data is essentially the opposite, it takes more effort and time to compile.

However, much of the company’s data is unstructured, and this where CFOs can uncover perils and act almost immediately to avert hazards.

Thus, as social media networks continue to grow in use, finance executives need to find meaningful ways of combining data from multiple sources, regardless of location or format, for analysis.

It is through this combination and analysis of disparate datasets that finance is able to make informed analysis and provide improved decision support.

Many brands have suffered mishaps because of poor or misaligned social media strategies. For instance, a negative tweet was allowed to go viral before the company could hardly respond leading to damaged reputations.

Thus, having a coherent and well executed social media plan will help you detect any external threats to the company’s reputation. One negative tweet has the massive potential to make you lose your key customers and shut door.

In high performing companies, CFOs are taking advantage of new technologies and keeping an ear on the ground in order to hear what is being said about their companies on social media platforms.

This new software has the capabilities to gather and combine data from various social media platforms concerning the company’s products, services, competitors etc.

They have also deployed teams to provide round-the-clock monitoring of social media activities.

When this data is analyzed and insights gleaned, the company can reach out to the message source, tell its side of the story and resolve any differences. Better more, the company is also able to trigger a response ahead of any negative story.

Retail companies are making use of image-recognition software to detect product issues while they sit on market shelves and ensure these errors are corrected well in advance. Using their smartphones, sales reps can snap photos of the company’s products. The software then makes an instant visual analysis of the photos leading to corrective measures being taken.

Email Risk and Fraud Prevention

As employee fraud continue to skyrocket, email use, in its unstructured form, is getting special attention. If fraud perpetrators are not detected well in advance and their plans allowed to flourish, the organization stands to lose hundreds if not millions of dollars.

It is therefore imperative that companies invest more time and resources analyzing the email patterns of their employees. For example, real-time monitoring of patterns in the metadata of employees’ email communications can help you reveal risks before they take centre stage.

You need to look at clues such as – Who is the email being sent to? What is the subject and the nature of the content? Is the email high priority or low priority? Who is copied and blind copied? What time of the day is the email sent?

Investigating such information can help you monitor incoming and outgoing email traffic of specific groups or individuals, locate high risk areas that you need to look into and also establish if restricted company information is being released to the public either accidentally or on purpose.

The success and power of data analytics in achieving value-adding risk management depends heavily on the quality and preciseness of the questions asked, the organization’s ability to gather data that addresses these questions, the integrity of the data gathered and the ability of users to draw insights from the data in an objective manner.

Before investing in data analytics software, first identify the challenges your business is currently facing and ask the critical key performance questions that you want answers for.

Increasing Finance’s Relevance to the Business

To remain successful and relevant to the business in today’s VUCA environment, Finance must move beyond the control and compliance status quo, become a better business partner, and provide insights that enable decision makers to allocate resources effectively and grow the business.

Become a better business partner

Finance Business Partnering (FBP) reaches far beyond number crunching and closing the books. Instead, FBP involves Finance taking a holistic view of the business and helping managers understand not just the financial results, but also the underlying causes, trends and drivers of those results.

CFOs should be able to identify, assess and address current and future conditions with long-term impact on the organization. In other words, they should be objective, proactive, analytical, and thinking beyond Finance, to be able to see the bigger picture and challenge existing assumptions. How can Finance successfully support the business to execute strategy?

In addition to understanding the business and developing forward-looking capabilities (through the use of rolling forecasts, driver-based planning and scenario modelling techniques), in order to become better business partners, CFOs should also improve their communication skills. They must be able to communicate the numbers in easy to understand terms. At the same time, they also must develop effective change management, interpersonal and leadership skills.

The above soft skills are key to bringing the desired results.

Successful finance transformation is about improving business performance as a whole, and not only about increasing process efficiency within the Finance function.

Finance teams should therefore engage with all business leaders on a continuous basis and focus on value-adding analysis to support better business decisions.

Improve the current operating model

As the role of the CFO continues to evolve from a number cruncher to a more strategic advisory role, the Finance operating model must also evolve. Strategies that have previously worked to deliver efficiency and drive growth will not do it today.

For instance, in the past many companies outsourced and offshored certain finance processes in order to shrink costs and support decreasing margins. However, new technologies are reversing this trend. There is a decline in outsourcing and offshoring trends, and a rise in inshoring.

Companies are realizing that by investing in advanced management and analytics technologies, they can automate and streamline processes that were once preferred candidates for outsourcing, increase efficiency and reduce costs.

These companies have also built Centres of Excellence and Shared Services Centres in order to increase efficiency.

You therefore need to perform an assessment of all dimensions of the your organization’s existing operating model (Organization, Processes, Controls, Technology, Data, Resources etc.) and evaluate if they are still relevant.

What are the forces disrupting and reshaping your current Finance operating model?

You also need to note the potential inter-dependencies between the various finance processes and activities as well as how they shape the overall value creation.

This will help you identify weaknesses in any processes, evaluate the impact on performance, and select smart ways to strengthen these processes, for example, through implementing new systems or upskilling  and reskilling of current resources.

Thus, it is important to set out a clear vision and strategy for Finance and define key performance metrics that are aligned with business strategy.

Embrace new technologies

The gap between Finance and IT has significantly narrowed. Without IT, you cannot do Finance. New digital technologies are helping CFOs to shorten reporting cycles, improve forecast accuracy, better manage business risks, and speed up decision-making processes.

Innovation is no longer a nice to have, but an imperative. That’s why today’s CFOs are expected to be tech-savvy.

Digital technologies have the potential to transform Finance into a more agile, forward-looking and insight-driven function. Unfortunately, in many organizations, outdated legacy systems are limiting Finance’s ability to deliver value.

However, it is important to note that technology alone is not the answer. In order to achieve true digital transformation, you need to ensure that there are adequate support systems in place, from the right talent mix to the suitable operating model.

Although the number of digital tools out there is large, you need not invest in each tool on the market. Develop a clear digital strategy and choose the tool(s) that will help you positively change the way your business operates and deliver maximum results.

I welcome your thoughts and comments.

Finance Should No Longer Maintain the Status Quo

The world around us has significantly changed and the rate at which this change is happening is terrifying. Established business models are under attack and subject to rapid displacement.

Digitization, increased regulatory demands, advanced technologies, the emergence of new business models, rapidly changing risk landscape and new challenges from global competition are all disrupting businesses from left, right and center.

Instead of viewing disruption as a threat, executives must rather, view disruptive forces as catalyst for change and great opportunities. Unfortunately, many executives are slowly responding to disruption because of fear of failure. All they see are the negatives, and not an opportunity to exploit the unseen possibilities.

In this rapidly changing climate, maintaining the status quo is not a recommended option. If you snooze, you lose. The organization must constantly be attentive to what is happening, both within and outside its walls. Which forces are driving and hampering value creation? What are the risks of and to the strategy? What are the strong beliefs that are significantly held in your industry; can these be challenged and reframed?

Answering the above questions will help you identify new forms and mechanisms of value creation. Finance is uniquely placed within the organization to provide solutions to these questions.

Leveraging on its analytical capabilities, the function can help decision makers spot and monitor leading indicators, model alternative scenarios and implement modern planning techniques to ensure long term success.

Data is the new oil of the digital economy

Data and analytics technologies are altering business models and transforming the way finance creates and adds value to the business. Data is expanding in volumes and variety and the challenge for many organizations is to harness data power to drive business performance.

In the past, implementing cost cuts across the board was more than enough to improve the bottom line. Unfortunately, in today’s digital economy, this approach is no longer feasible. You can only lower costs to a certain point, after that point, the exercise becomes self-defeating.

Digital technologies have reduced the cost of doing business and barriers of entry.

Because of these changes, finance has to find alternative ways of driving value up the value chain. Executives can longer rely to base strategic decisions on financial statements information alone. Doing so is a sure recipe for failure. They need better information that support decision-making and propel the company forward.

Finance can successfully fulfill this role by embracing analytics and providing data-driven insights. Cloud and subscription-based technologies are making it inexpensive for companies to invest in analytics. These technologies have the advantage of helping companies analyse larger and complex data sets and extract accurate and trusted actionable insights.

Any company, big or small, is now a suitable candidate of becoming an analytics powerhouse. However, to get an edge from data, it is critical that the organization has the right data talent, data governance and management processes and systems in place.

By combining the right technology with the right analytics and expertise, businesses can use both structured and unstructured data better to identify trends, derive real-time insights, facilitate decisions, and define actions that improve performance and deliver a critical competitive advantage.

Finance transformation is more than automation

When it comes to finance transformation, there is a general perception that the whole process is about automation. It goes beyond process automation. Technology is just another piece of the complete puzzle.  Yes, it is true that technology enables you to standardize processes, eliminate redundancies, achieve operational agility and perform activities much faster and cheaper but it is not the only ingredient.

People and processes are also key ingredients. Traditional finance professionals are used to working in the back-office all day long. Gone are these days. Finance transformation calls for a different skill set. Front-line players. People with a brilliant understanding of business, great leadership, influential, collaborating and communication skills.

Fulfilling the catalyst and strategic advisory role requires a finance person with a great vision of the future, someone who has the ability to anticipate change, challenge widely held beliefs, innovate new business models and persuade peers to embrace change.

Now that you have automated your accounting and finance mundane processes, as a finance leader, has your contribution to the business increased? How more involved are you in the business now versus pre-automation? How much time do you spend on strategic issues and decision support versus financial reporting?

All three – people, processes and systems must be in sync in order to achieve the best outcomes.

Do not be afraid to take the first step

Done successfully, finance transformation is worth it and can yield positive results for the business. The opposite is true. Done badly, the business can end up incurring unnecessary costs and suffer badly.

The challenge for many companies is starting the transformation journey. Naturally, people are resistant to change and prefer the tried and tested methods of doing things. However, in today’s highly volatile environment, growth strategies that got you here will not get you to the next level. If your organization is to survive and grow, you need to adapt, develop and implement dynamic strategies.

Transitioning from the traditional finance status quo to finance business partnering is an ongoing process and not a once-off project with a defined start and end date. That won’t happen overnight. Finance transformation requires a joint effort, time and the adequate mix of talent and tools.

You therefore need to continuously re-evaluate transformation gains and flaws, and build lessons learned into the next stages of transformation. This is critical for large scale, long-term successes.

By making continuous improvement an everyday focus, you will certainly make great progress.

I welcome your thoughts and comments.

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