Ready or Not – Finance of the Future is Here

This article was adapted from research published by CFGI.

Finance Transformation is not a new concept—Finance leaders often hear about new digital technologies, the concept of automation, efforts to standardize manual processes and the need to re-tool the workforce. In many cases, Finance executives consider these opportunities, but ultimately decide against pursuing them because it is either not the right time or it is unclear where they should begin.

The truth is, Finance leaders need to embrace Finance Transformation — and the people, process and technology driving it — right now. Finance Transformation is here whether you are ready or not.

By taking the reins, Finance Leaders can directly influence their organizations’ vision for the future and establish themselves as the strategic partner the business needs.  

Why is Finance Transformation urgent right now?

Finance teams are facing an entirely new world in 2020, with expectations to not only help steer their teams through a global crisis, but also to become more efficient and productive in the process. In light of the increasing demands placed on Finance leaders, Finance Transformation has shifted from a suggestion to a must-have. Those who transform will thrive, and those who do not will struggle to survive.

Continuous business disruption and uncertainty stemming from ever-changing economic conditions and evolving business needs are forcing nearly all Finance organizations to adapt to best support the needs of the enterprise. The office of the CFO is under extreme pressure to act as a launching point for sustainable transformation within their organizations.

Finance leaders today are expected to drive toward becoming cheaper, better and faster and those demands will only increase in the coming years. Gartner predicts that by 2024, businesses will have reduced their operating costs by 30% by replacing or redesigning existing processes and extensively leveraging more advanced automation technologies.

The time to act is now

Finance leaders are envisioning the immediate need for transformation and are acting fast to respond. The competition is already moving with Finance Transformation, and companies that do not act will fall behind.

A 2019 NetSuite Brainyard survey of 166 CFOs revealed that:

  • 74% believe AI and machine learning will improve the Finance department.

  • 55% see better, faster reporting as a key priority in the next two years.

  • 54% have already transitioned the majority of their technology tools to the cloud.

  • 39% listed implementing new financial technology as a key priority over the next three years.

According to 62% of survey respondents, there are a number of obstacles to overcome in beginning the journey. Specifically, organizational culture and lack of transformation expertise were mentioned as two key limiting factors. 

The new normal

Digital technology is already changing Finance, and more developments are on the way. With this new future comes a dual mandate for the CFO:

  • Cost efficiency: Finance should perform transactional work cheaper, better and faster.

  • Business partnering: Finance must evolve in order to create strategic and value-add services to the business.

To prepare for what is next and to stay competitive, Finance leaders need to take control of their future by defining a comprehensive roadmap that incorporates the entire transformation strategy and sets a path forward.

The path to achieving Finance Transformation and embracing “Finance of the Future” starts with five key questions:

  • What is the work?

  • Who does the work?

  • Where is the work done?

  • How is the work done?

  • Why change the way you work? 

To stay competitive, Finance leaders need to take control of their transformation strategy with a holistic approach that prioritizes people, process and technology.

This includes:

  • Your potential for automation.

  • Your future workforce skills.

  • Designing a digital workplace.

  • The right technology and systems.

  • Redefining processes for the future.

  • Becoming a true business partner through financial planning and analysis (FP&A).

No two journeys are alike. The best transformation plans are customized to the unique needs of the organization.  This will help inform your strategy as you begin your transformation journey. 

Darcy Dobis