Global Economic Brief: Latest Surge Risks US Recovery, How Blockchain Impacts Financial Reporting Controls, Vaccines Boost CFO Outlooks for Year Ahead, C-Suite Insights: Digital Growth Fuels CEO Optimism, Future of Controllership: Data-Driven Strategy Partner, Global Economic Brief: Explaining Equity Price Surges, How One CFO Used the Pandemic to Enhance Communications and Processes, Transform While Transacting M&A Deals, Global Economic Brief: US Recovery Outpaces Europe, What’s on Your Transformation Risk Checklist? Are we saying this to pour salt in the wound? Give Embark a holler and let us show you what a transformed finance function looks like. 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. 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. 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. * The case for the business case—Go as deep as you must, but no deeper. 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. Webinars, newsletters—whatever it takes to stay on the radar. As the finance … That makes it even more important to plan for what will happen to them when they finish their FT tour of duty. An error has occurred, please try again later. @deloittecfo. Collaboration remains stubbornly stuck in email and conference calls, with limited visibility into the process. * Use motivational tools—Many project teams used motivational posters and signs to help keep things on track. A streaming app then plays the day’s financial report while they’re in the shower, meaning they’re fully apprised on both the markets and that day’s schedule before they’re even dressed. * What it takes to lead—Err on the side of experience, especially if the sponsor is relatively new to transformation. 30 Driving meaningful The goal of governance is to drive outcomes by aligning strategy, reporting and operations. 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.. But we found a few innovative approaches that were tailor-made for finance transformation. These transformation initiatives … 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. And for good reason. In many cases, digital initiatives are self-funding. In today’s data-driven, technology-pushing world, organizations that best harness the pure power of information provide themselves with an inherent competitive advantage and, best of all, finance’s evolution is just getting started. For now, however, take this primer on a transformed finance function and use it to examine your enterprise from a bigger perspective. Such improvements in both employee and customer satisfaction are much more difficult, perhaps even impossible, to accomplish without an expanded finance function that streamlines your operations and draws out the very best from your team. Such a transformation is heavily dependent on better use of technology. Focus on performance indicators your team can use to stay on track. We’re not going to be fashionably contrarian and say that costs aren’t important because, of course, they’re critical to every enterprise. * Play defense before you have an opponent—One team created a toolkit to help members counter pushback from the business, complete with documents and role-playing scenarios to prepare them for dealing with naysayers. FT leaders, or leads as some call themselves, have learned to make light of a serious reality: finance transformation is hard work. She also shares her views on finance’s critical support of innovation at the medical device and equipment producer. Following are insights from leaders of FT initiatives who have weathered the transformation storm. 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. Make a list of the full range of skills your team will need before starting the first interview. 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. Loosely defined, the term “finance transformation” is used to describe strategic initiatives aimed at improving Finance within a company. Would you start a road trip without a destination in mind? 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, … 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. W… 4 Your guide to finance transformation in an age of unprecedented disruption. This might include new technology, partnerships, staff training & development, a change of processes, or a combination of things to help you reach your vision. 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. With so many people involved and mounds of spreadsheets constantly accumulating, roughly defined processes are often different, from geography to subsidiary. Finance leaders struggle to balance increasing demands for finance function support with decreasing finance function budgets. 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. Realizing the full benefit of a transformation effort is rare. At Embark, we understand what it’s like to be in a CFO’s shoes, to be pulled in countless different directions at once. Transformation initiatives are voyages fraught with uncertainty but also full of excitement for the opportunities and discoveries that lie ahead. Let’s say part of your transformation is centralizing accounts payable in a … * Build communications central—With a resource dedicated to project communications, one FT team made sure everyone was in the know. * Set boundaries—Leaders of FT initiatives should clearly lay out personal boundaries before a project gets underway. 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. Are your employees and customers satisfied with your organization, or are there obvious areas for improvement? 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. Please see. Budget and forecast cycles become slimmer and more accurate, attrition and overhead fall, and that critical agility increases. 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. Major projects can challenge even the most experienced leaders, especially when the work is global or when there are other closely related initiatives … 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. Not every team needs a dedicated resource for communications, but they do need a communications plan. “As more companies tackle transformation, finance organizations, as scorekeepers, need to make sure they stay ahead of the change curve. 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. 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. DTTL (also referred to as "Deloitte Global") does not provide services to clients. Long story short, we take the scary out of finance’s transformation, leaving you to reap the rewards. Don’t risk losing the knowledge and dedication of people who have fought on the front lines of finance transformation. 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. From there, they either use a ride sharing service or an AI-driven traffic app to negotiate their way to the office. 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. Realign your resources. Finance Transformation: Are you enabling enterprise performance and value? Business leaders and decision-makers need a good understanding of what their employees are actually doing, not what they’re supposed to be doing. From that position, CFOs can concentrate on creating new value, utilizing innovation in thought and practice to develop cost efficiencies and streamline operations. Savings can be reinvested in additional capabilities with long-term strategic value. Rethinking Supply Chains: What Could Change? Our Finance transformation model is focused on making finance pay for itself. This changes the way finance … It’s a simple, easy way to keep everyone on the same page. When asked about the state of their finance … finance And yes, venturing into dad joke territory, Excel is an especially convenient way to track those goals -- go figure. For relevant content at your fingertips, download the CFO Lens™ app. Even minor accomplishments could be of interest to certain internal audiences. These are people who are often exhilarated by the increased responsibility that came with the project and are at risk of leaving when the ride eventually ends. 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… Please note: The Wall Street Journal News Department was not involved in the creation of the content below. 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. And remember, it’s not just about major milestones. 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. Probably not. Harrop, Tindal and Comino agree there is no point initiating a finance transformation unless there is a clear objective. Many of the tools FT leads put in place are identical to those that would be used for any big project. Where possible, tie these metrics to the company’s overall digital objectives. 2020 AICPA Meeting: SEC and PCAOB Developments. 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. ... connect innovative services and technology with consulting expertise to optimize key processes and business performance initiatives… 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. Each week, a different project team presented what they were doing. Creating “shadow” costs. 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 … Get the Wall Street Journal $12 for 12 weeks. Those highly efficient processes that can now automate and streamline internal tasks give your employees the opportunity to better focus on the customer experience. 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. 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. That’s a big blind spot as FT projects usually engage a team of top talent. The same premise holds true for a CFO and the finance function they oversee within an organization. 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. 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. Yet no hired gun will know the ins and outs of your organization. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. They often carry risk, cost and unpredictability, and, if not … Finance transformation initiatives are often introduced to improve service delivery and information quality all while keeping costs in line. Best-practice research behind a winning finance transformation strategy Finance teams are constantly asked to do more with less. Good … PwC Case Study 1 Finance function review and benchmarking for an engineering projects company ... • Created high level business case for implementation of global initiatives … We promise you won’t be sorry. Whatever your … 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. Remember, profitability doesn’t exclusively stem from cut costs, but from revenue growth as well, a notion propelled by added value within your organization. The same notion holds true for customer satisfaction as well. That’s where activity analysis comes into play, a way for leadership to track how long it takes employees to accomplish tasks. Transformation can open the door to unanticipated projects that can multiply complexity fast. Reforecast at major milestones. * Play the board game—Can you get a regular slot in board meetings? Another impediment to the expansion and evolution of the finance function is the fast and unrelenting nature of innovation itself. Which is most important to you? One FT lead says you should try as the sponsorship payoff can be huge. You lead a team … 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. 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. * Co-locate team members—When team members are able to bump into one another frequently, good things can happen. Certain services may not be available to attest clients under the rules and regulations of public accounting. Take time to find the right matches—for now and for three years from now. This role will manage finance transformation & consolidation initiatives.. You will also develop integrated revenue and expense analyses, projections, reports, and presentations. Not at all. Too many FT Leads often are reinventing the wheel—especially considering all the helpful tools and techniques that have been developed by others. The end result is a transformed life that is now efficient, streamlined, and well-attuned to their individual habits and demands through specific, well-placed technology. Finance isn’t what it used to be, and that’s a good thing. 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. Finance Transformation at a Glance. The FT team should be a collection of star players. 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 … finance transformation, Finance Transformation 101: A Guide To The Modern Finance Department, increase profitability & leadership agility. 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. Naturally, this new perspective isn’t random or without a specific purpose or origin. More a significant overhaul than a complete reinvention, finance is building on its traditional roots to combine governance-oriented responsibilities like accounting, … 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. 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 Deloitte’s Insights for CFOs provides financial executives a customized resource to help them address the strategic, operational and regulatory issues they face in managing their finance organizations and careers, with top-line digests, research, perspectives and technical analyses. 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. 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. News Corp is a network of leading companies in the worlds of diversified media, news, education, and information services. Our Finance Transformation services address critical issues facing finance across major industry sectors, including vision and strategy, organization and talent, business processes, and technology. 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. It can involve a variety of tasks, from shortening a … 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. * Sponsorship—When it comes to sponsorship, FT leads should expect the best. As a result, 85% of finance teams are currently undergoing or planning a … We are nearing year's end and in our latest post we look back at the progress of the UW Finance Transformation … 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’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. 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