Finance will become the enterprise hub of analytics by the end of the decade, if not sooner.
Finance must earn this role quickly or be simply relegated to an automated accounting function. Success will depend on a finance workforce with very different skills than today. Automation, robotics processes, and intelligent systems are becoming part of the finance team – i.e., humans and machines will join forces to boosts Finance organization’s influence and value in the business. Humans will turn to the judgment work that machines cannot do.
Now, between the full shift and today, Finance must strive to promote its value in the business by publishing performance scorecards of its key deliverables and service level objectives. The scorecards must contain metrics of productivity and efficiency of finance in the overall and in core functional areas.
- Headcount: ratio to stores or total company
- Finance G&A cost: ratio to revenues
- Accounts payable: no. of days to process, volumes per day per person, errors
- Financial closing: no. of days to complete and release reports to management
- Tax compliance: no. of days before deadline, incidences of penalties
Gone are the days when finance (and any functional department) can operate and function without published key performance indicators. Without the performance metrics, no one will understand and appreciate a functional department’s value in the company. Besides, an organization without measures will just be seen in motion without any direction.
Much sooner than later, challenges in developing performance metrics will become greater as the shift to analytics, and robotics and intelligent systems become more real than just a concept.
Imagine the metrics of performance when finance is fully transformed into the analytics arena.
Finance must keep scoring and expanding the business value it delivers to stay relevant.
Are your people ready to migrate from spreadsheets to analytics? They better be!
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.