Transformation in finance is all about assisting the business. It is basic change that shows how the finance function works to achieve a major improvement in present performance by offering services that efficiently fulfills the requirements of the business. Financial transformation is a program that aligns the overall strategy of a business with the expectations of key stakeholders.
Major features of financial transformation
To have a goal
Initiation a finance transformation should happen only when an organization has a clearly defined objective. Having targets is critical in successful implementation of a finance transformation program.
Broad scope
When forming a financial transformation program, it is needed that the scope of this transformation has to be broad and includes each and every function that is covered under the CFO’s sphere of activity.
Take time
It is possible that a transformation of finance program runs for several years before getting finished.
Multiple projects
A financial transformation program is made of individual projects. This allows benefits to be realize progressively. This approach also assists with gathering business assistance in terms of funding. It creates momentum for the entire project tea and provides it the flexibility to modify direction whenever needed.
A dedicated resource
There has to be a committed resource to support the features of financial transformation. It includes a full-time program manager to assist in driving the change.
Why should an organization plan for a finance transformation?
The basic reason for a financial transportation is to aid the business and to drive performance. By implementing a financial transformation an organization provides improved level of service to the business. This involves modifying the attention from delivering data to offering insight.
Transformation of finance when done to seek cost savings, contributes to providing better returns to shareholders and more value for customers. Financial transformation also addresses methods by which it can make finance department a better workplace. To begin the transformation program, it is needed to look at finance via a fresh pair of eyes.
Ways to be successful at implementing financial transformation
- Have a clear vision and aspiration
- Proper program alignment and support
- Have a strong focus on change management
- Get an operational view
- Have the right set of people in your team
- Set up the right foundation and get everything in the correct order
- Keep measuring progress of the program
Conclusion
For a successful financial transformation, it is important to get people in agreement about the project. Whether you are at the starting phase of a financial transformation journey, or in between the track, it is worthwhile review the reasons for initiating the program, and the objectives that you are looking to fulfill. This will ensure that you keep your program on a successful course.
