They often carry risk, cost and unpredictability, and, if not … Upcoming Dbriefs Webcasts - January 6-12, 2012, Financial Reporting Trends: Forecasting, Communication, Internal Controls, Medtronic CFO: The Role of Finance in Crisis Response, As Offices Reopen, CFOs Rebuild Real Estate Plans. finance transformation, Finance Transformation 101: A Guide To The Modern Finance Department, increase profitability & leadership agility. This was a recurring theme in conversations with FT Leads. Rethinking Supply Chains: What Could Change? Too many FT Leads often are reinventing the wheel—especially considering all the helpful tools and techniques that have been developed by others. Whether through software, surveys, or daily tracking polls, management gauges that time and compares it to a benchmark or performance standards. Whatever your … Remember, profitability doesn’t exclusively stem from cut costs, but from revenue growth as well, a notion propelled by added value within your organization. Your goal is the future state you have in mind, what your enterprise strives to become. Focus on performance indicators your team can use to stay on track. As a result, 85% of finance teams are currently undergoing or planning a … 2020 AICPA Meeting: SEC and PCAOB Developments. Realign your resources. You can say the same for most, if not all, aspects of your operations. With so many people involved and mounds of spreadsheets constantly accumulating, roughly defined processes are often different, from geography to subsidiary. For others, it could be working in a business partnering role that builds on the skills they learned. Each … Real-time KPIs automatically populate on a tablet’s dashboard, push notifications from a cloud-based cash management platform appear on a smart watch, algorithms create a spectrum of forecasts based on different variables culled from big data and daily operations -- all as part of a transformed finance function that redefines the term for the digital age. * Build communications central—With a resource dedicated to project communications, one FT team made sure everyone was in the know. Would you start a road trip without a destination in mind? 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. * Sponsorship—When it comes to sponsorship, FT leads should expect the best. DTTL (also referred to as "Deloitte Global") does not provide services to clients. At the center of most projects stands a single person who is responsible for making it all happen. This might include new technology, partnerships, staff training & development, a change of processes, or a combination of things to help you reach your vision. Finance Transformation at a Glance. 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. 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 … 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. And for good reason. 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. Are we saying this to pour salt in the wound? Make a list of the full range of skills your team will need before starting the first interview. * Use motivational tools—Many project teams used motivational posters and signs to help keep things on track. Are you getting the most from your talent? More a significant overhaul than a complete reinvention, finance is building on its traditional roots to combine governance-oriented responsibilities like accounting, … To maintain momentum, companies in the top quartile restocked their number of initiatives by 70 percent after the first year, often backfilling initiatives … Reforecast at major milestones. * What it takes to lead—Err on the side of experience, especially if the sponsor is relatively new to transformation. An error has occurred, please try again later. Finance transformation initiatives are often introduced to improve service delivery and information quality all while keeping costs in line. Our Finance transformation model is focused on making finance pay for itself. Get the Wall Street Journal $12 for 12 weeks. When asked about the state of their finance … At Embark, we understand what it’s like to be in a CFO’s shoes, to be pulled in countless different directions at once. 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. 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. Business leaders and decision-makers need a good understanding of what their employees are actually doing, not what they’re supposed to be doing. Please note: The Wall Street Journal News Department was not involved in the creation of the content below. From that position, CFOs can concentrate on creating new value, utilizing innovation in thought and practice to develop cost efficiencies and streamline operations. 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. As a result, 85% of finance teams are currently undergoing or planning a … But we found a few innovative approaches that were tailor-made for finance transformation. * Building the team—Look for variety, not clones of the same skill set. Whenever possible, look to put people in close proximity. 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. 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. Happy employees lead to happy customers, pure and simple. 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. 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. Keep those goals reasonable and actionable, but not so simple that they don’t stretch your team to excel. 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. 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. For now, however, take this primer on a transformed finance function and use it to examine your enterprise from a bigger perspective. Where possible, tie these metrics to the company’s overall digital objectives. As the finance … 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. Don’t risk losing the knowledge and dedication of people who have fought on the front lines of finance transformation. * Play the board game—Can you get a regular slot in board meetings? Loosely defined, the term “finance transformation” is used to describe strategic initiatives aimed at improving Finance within a company. Finance Transformation Resume Examples & Samples Implements initiatives that support the Finance Systems Road Map – working in close coordination with key stakeholders throughout the organization … 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. Good … We’re not going to be fashionably contrarian and say that costs aren’t important because, of course, they’re critical to every enterprise. The initiative, stewarded by the Department of Finance (Finance), is an APS-wide program for the provision of common services through the Provider (hubs) and the transition of agencies into these … Granted, not every company has the means to devote themselves to such efforts, which makes relationships with partners like Embark all that much more important. In this way, transformation becomes a virtuous cycle. Our Finance Transformation services address critical issues facing finance across major industry sectors, including vision and strategy, organization and talent, business processes, and technology. The FT team should be a collection of star players. It’s a simple, easy way to keep everyone on the same page. An Accounting and Finance Transformation Roadmap is a compass to get your enterprise from the point of departure to the point of arrival, by taking a set of actions, activities and achieving some outcomes, … Such a transformation is heavily dependent on better use of technology. 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. Best-practice research behind a winning finance transformation strategy Finance teams are constantly asked to do more with less. 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. Another impediment to the expansion and evolution of the finance function is the fast and unrelenting nature of innovation itself. That’s where activity analysis comes into play, a way for leadership to track how long it takes employees to accomplish tasks. Are your employees and customers satisfied with your organization, or are there obvious areas for improvement? 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 … Discussions are led by the finance value leader for the industrial-equipment business, a new finance role responsible for driving ATC’s financial performance in the category. 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. Stay Informed . Not at all. 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. Those highly efficient processes that can now automate and streamline internal tasks give your employees the opportunity to better focus on the customer experience. Following are insights from leaders of FT initiatives who have weathered the transformation storm. 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. And yes, venturing into dad joke territory, Excel is an especially convenient way to track those goals -- go figure. * Co-locate team members—When team members are able to bump into one another frequently, good things can happen. 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. PwC Case Study 1 Finance function review and benchmarking for an engineering projects company ... • Created high level business case for implementation of global initiatives … @deloittecfo. 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 For relevant content at your fingertips, download the CFO Lens™ app. Long story short, we take the scary out of finance’s transformation, leaving you to reap the rewards. W… For instance, let’s take a look at the typical day of a CFO, only from a more personal perspective. * Staged for success—Add an extra layer to your project strategy: the promotion plan. Best of all, the technology a CFO needs to create those efficiencies, both for their own job performance as well as the enterprise itself, are already available, just waiting for Mr. or Ms. CFO to integrate them into their operations. FT leaders, or leads as some call themselves, have learned to make light of a serious reality: finance transformation is hard work. One useful approach is to continue putting top performers in challenging positions. And plan for the worst. The same notion holds true for customer satisfaction as well. 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. 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. We promise you won’t be sorry. Planning is critical, however. “As more companies tackle transformation, finance organizations, as scorekeepers, need to make sure they stay ahead of the change curve. Take time to find the right matches—for now and for three years from now. Naturally, this new perspective isn’t random or without a specific purpose or origin. Finance leaders struggle to balance increasing demands for finance function support with decreasing finance function budgets. The gap between the two represents a potential area of inefficiency and a critical driver for transformation. 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. When he couldn’t find any examples to crib from, he had to build everything from scratch. Once in place, compare your current state with that desired future state, and begin to assemble a strategy to get you from point A to point B. Collaboration remains stubbornly stuck in email and conference calls, with limited visibility into the process. Let’s say part of your transformation is centralizing accounts payable in a … 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. Many of the tools FT leads put in place are identical to those that would be used for any big project. 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. 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. Which is most important to you? 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. You lead a team … 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. 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. Because when the program environment changes—and it will—you’ll need a wide range of capabilities within close reach. 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. Too often, the close process is run by gut, instinct, and collective knowledge, versus a defined, centralized, and orchestrated workflow and process. Transformation initiatives are voyages fraught with uncertainty but also full of excitement for the opportunities and discoveries that lie ahead. finance For some, that could mean taking on a leadership role in shared services. 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. From there, they either use a ride sharing service or an AI-driven traffic app to negotiate their way to the office. It can involve a variety of tasks, from shortening a … Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. And for good reason. Transformation Insights: Welcome to Transformation Insights: the UW Finance Transformation blog. Harrop, Tindal and Comino agree there is no point initiating a finance transformation unless there is a clear objective. 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. Yet no hired gun will know the ins and outs of your organization. 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. 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… That’s a big blind spot as FT projects usually engage a team of top talent. ... connect innovative services and technology with consulting expertise to optimize key processes and business performance initiatives… Finance Transformation: Are you enabling enterprise performance and value? Finance isn’t what it used to be, and that’s a good thing. 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. Part 2, What’s on Your Transformation Risk Checklist? Identify the most obvious sources of inefficiency in your organization, put together a strategy to address it, and then place your plan into action. We are nearing year's end and in our latest post we look back at the progress of the UW Finance Transformation … 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. One FT lead says you should try as the sponsorship payoff can be huge. 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.. Not every finance transformation (FT) initiative feels like a hurricane coming ashore, but plenty of them do. Webinars, newsletters—whatever it takes to stay on the radar. Transformation initiatives include driving greater awareness and understanding of the role Finance can play, benchmarking, developing shared services models, outsourcing, new technology, … DTTL and each of its member firms are legally separate and independent entities. A smartphone alarm wakes them up in the morning, also allowing them to check their emails and schedule before they even get out of bed. The same premise holds true for a CFO and the finance function they oversee within an organization. She also shares her views on finance’s critical support of innovation at the medical device and equipment producer. Transforming finance to meet the challenges of processing more information efficiently and turning that information into deeper insights is an organizational imperative. And while it’s easy to get caught up in sometimes confusing semantics behind such thoughts, this one included, the premise is as straightforward as the innovations already commonplace in everyday life that, collectively, make people as efficient and productive as possible. Not every finance transformation (FT) initiative feels like a hurricane coming ashore, but plenty of them do. * Spring for boxed lunches—One large team rented a nearby auditorium so they could eat boxed lunches together. In many cases, digital initiatives are self-funding. 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. That makes it even more important to plan for what will happen to them when they finish their FT tour of duty. Creating “shadow” costs. Probably not. 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. 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. 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 … One FT lead indicated that although it was clear at what point it made sense to put people back into other activities, there may not have been a specific plan for what opportunities they would return to. * The case for the business case—Go as deep as you must, but no deeper. 30 Driving meaningful The goal of governance is to drive outcomes by aligning strategy, reporting and operations. Certain services may not be available to attest clients under the rules and regulations of public accounting. Two problem solvers—generalists with broad experience in revenue reporting and analytics work—have been pulled from lower-priority initiatives … 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. FT leads can take a mix of approaches. 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. Budget and forecast cycles become slimmer and more accurate, attrition and overhead fall, and that critical agility increases. A critical driver for transformation do need a communications plan happy employees lead to customers. 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