Finance must go through vital changes to transform itself from a transactional organization, into a center of excellence that is not only efficient but also an effective driver of VALUE.
While accounting will certainly not go away, finance organizations must adopt a transformation agenda that aims to reduce transaction complexities and enhance valuable insights.
The start of your transformation agenda should be focused on knowing where you are and where you’re going.
Based on the capability models below, map your current state and define your desired model. This way, you can identify gaps and respond to them accordingly.
Our success depends on individual efforts and heroics. We do whatever it takes, in any way, to get things done.
We focus on cost-cutting and expense management. We are very disciplined from a cost perspective.
Reports are generated as needed.
We learn from our early successes; which, are tracked to ensure we replicate them.
We regularly report financial performance and highlight performance pitfalls to ensure they are addressed timely.
Our reports enable the organization to look into historical data. Our tool of choice is the user-friendly spreadsheet.
We follow a set of standard procedures to execute tasks and deliver services. Our performance is measured based on outputs.
We advise on setting financial performance targets but business units take ownership of execution. Finance works with business units to explain the reasons behind the numbers.
We use analytics tools, enabled by data warehouses. Reports are generated easily using these tools.
We understand cost, productivity and service quality, and have set performance improvement targets.
We drive the organization’s focus to become investment-oriented, encouraging growth (i.e. invest in new locations, new products, new services, etc).
Financial data is integrated and supported by historical trends and other operating data (i.e. customers, competition, etc), enabling Finance to predict and forecast the future.
We consistently measure cost, productivity, quality and achieve targets. We have deﬁned end-to-end process ownership and governance. We fully understand our processes and pilot innovations/useful changes for continuous improvement.
We push for an enterprise-wide agenda that is focused on both profit and growth optimization. Finance drives performance improvement across functions.
We deploy analytics capability across all functions. We shape and influence decisions based on strategic analytics.
Now, don’t feel pressured into jumping from the beginning to the last maturity step. It’s a great idea to set small milestones and gain confidence in the early stages so you can be assured continued success in your finance transformation journey.
How we can help? Developing and implementing a solid finance transformation agenda is the hallmark of our ACCOUNTING SERVICES model — we build, operate, and transform fundamental capabilities in people, processes, and technology. Contact us to know more about these services.