CFOs are experiencing mounting pressure to enhance productivity and drive forward transformation amidst a myriad of challenges. These challenges are instrumental in shaping how top CFOs will reinvent their roles to align with new organisational priorities and the ever-evolving landscape of autonomous finance.
Action 1: Revitalise your finance transformation
To ensure the success of digital finance transformation, it is imperative to set clear expectations for all leaders to enhance their team’s digital delivery skills and personal proficiency in leading technology initiatives.
Incorporate a thorough analysis of change fatigue into finance project plans and prioritise proactive measures to reduce employee fatigue.
When selecting the optimal transformation team, consider three key factors: the availability of internal expertise required for transformation, the urgency of the transformation, and the number of employees that can be dedicated to the transformation on a full-time basis.
Action 2: Transforming finance strategy, capacities, and roles
Start by meticulously documenting the finance capabilities of the organisation in alignment with the business strategy. Then, categorise each finance capability as core, differentiated, or innovative, and construct a comprehensive capability model that highlights the discrepancies between the current and future states of each capability.
Break down outdated functions that no longer serve operational objectives and establish or elevate new subfunctions, such as finance IT, that directly address strategic priorities and bolster finance’s envisioned level of automation.
Reimagine business partnership roles to specialise in specific operational decision types rather than being a generic business expert for a particular stakeholder.
Action 3: Step-change finance insights and storytelling
- Unlock better insights and stories by choosing FP&A technology vendors that are the best fit for your advanced analytic needs, models, data integration and scenario modelling.
- Develop data-driven stories that explain department performance by including descriptive, diagnostic and prescriptive storytelling elements.
- Invest in sourcing and developing the five digital competencies that allow teams to unlock speed and quality of insights from AI, machine learning (ML), robotic process automation (RPA) and natural language processing (NLP).
Action 4: Boost productivity and unlock profitable growth
Embrace the power of cost differentiation, capital activism, and digital cohesion as essential elements for effective decision-making.
Revamp finance capital allocation processes and policies to eliminate any obstacles to growth and unlock substantial profitable opportunities that enhance overall enterprise value.
Implement three key cost management strategies during periods of slowing growth: (1) shift funds from low- to high-potential investments, (2) utilise a cost savings winbacks approach to fund growth initiatives, and (3) leverage unallocated funds to support necessary growth investments.
Action 5: Embrace the AI revolution
Develop a comprehensive AI strategy for finance that involves recruiting AI-specific talent, utilising AI-embedded software, exploring a wide range of possibilities, and appointing analytical leaders to drive successful AI implementation.
Establish a strong data science competency within the finance department. Take a balanced approach by providing basic data science training to current staff and hiring professional data scientists with formal education.
Dive into the world of AI-driven capabilities offered by business automation platforms and intelligent applications. Make AI a focal point in all vendor discussions regarding existing and upcoming technologies.
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