What is Finance Transformation and why do it?
Finance transformation as opposed to Business Transformation is a critical process that can really pay dividends if you do it right. I have worked in senior financial roles for a long time (too many years to count!) and what I have learnt along the way is that if your Finance department is not kicking goals then the remainder of the business doesn’t have enough of what it needs. This has applied to all companies that I have worked for from SME’s, to large private companies, to multi-nationals and public entities. The one thing in common is what we all need from Finance and that is information that is accurate (free from error and only one source of truth), insightful (useful information that you can make decisions from) and timely (quick processing and flexible - well as flexible as you can be without breaching Accounting Standards). These are the most basic goals for any Finance department and each organisation will have their own additional goals or variations.
I wonder how many businesses out there don’t have any goals or objectives set for their Finance teams, but are dissatisfied with the service that they are getting from them. Don’t forget Finance provides a service to internal departments by providing information and processing all financial functions within the business, but also to external people like shareholders, banks and government authorities. These stakeholders must be satisfied with what Finance is producing.
It’s understandable to be dissatisfied with your service if you are getting reports at the end of the following month or if the data from one report says something different to the data from another, but what you need to be cognisant about is does Finance have a clear set of expectations, do they have goals, objectives and KPIs to measure how they are tracking?
On an personal level we may set our own goals to achieve something and plan how we are going to get there with objectives and measurements. Classic example is wanting to get healthy. My goal is “to become healthy” and I will set up objectives which are time bound to ensure that I reach my goal like “lower my body fat to 20% within 6 months” and I can measure this by jumping on the scales or using a 3D body scanner to ensure that I am heading in the right direction (my KPI). Organisational goals, objective setting, measurement and KPIs follow the same steps, but need to be created collaboratively with the right people who are affected by the outcome.
What Finance transformation can do is add real structure to the Finance department, setting up strong foundations for success and getting your Finance team kicking more goals. So, what else would Finance transformation with VB CFO Consulting include? Some of the following:
Deciding upfront what Finance’s ideal future state looks like (this is where we have a lot of experience in determining what great looks like and can help you decide best practice).
Identifying your biggest pain points (this is where you need to provide a lot of input).
Assessing your Finance functions including people, systems, processes, policies and output (we will make this assessment for you).
Creating a roadmap of initiatives that align to the main goal and objectives that we had already set. This will provide structure around what, when and who will be responsible for the fulfilment of the initiatives (together we will work through the prioritising and timing of achieving the roadmap).
Commence the rollout of the roadmap (this is your team working to improve what they do, but also having CFO Group Australia along the way to lean on in times of uncertainty and to also keep everyone accountable to the process. Never underestimate having an external person helping to keep accountability and your team on the right track).
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At CFO Group Australia, we specialize in both finance and business transformation, guiding businesses through a transformative journey to ensure long-term success and sustainability. Let us help you elevate your financial operations and achieve your business goals with our expert consultancy services. By leveraging our experience and knowledge, we can tailor solutions to meet your specific needs and drive your business towards continued growth and profitability. Do not put it off any longer and get in touch now.