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Finance transformation: think "a La Carte", not overhaul
Take small steps to achieve finance’s vision
The word ‘transformation’ brings with it grandiose connotations that shout ‘high cost’ and ‘slow payback’ to CFOs. However, finance transformation is not a one size fits all solution and it doesn’t always mean a massive overhaul of the finance function. Successful transformation can be achieved by taking a more ‘a la carte’ approach – providing shorter term initiatives that remain true to the longer term vision of Finance and the organisation as a whole.
Tackle the challenges of transforming finance
Through our work with global organisations, Deloitte has identified 10 key challenges that should be considered by CFOs when defining their transformation agendas. We believe that understanding these challenges and adopting proven strategies to address them can help finance fulfil the expanded role and responsibilities it has at the executive table.
It is important to highlight that these do not have to be considered all at once and CFOs can choose from the following ‘a la carte’ menu dependant on what makes sense for their organisation:
- Define the future target operating model for finance
- Develop talent to address capability gaps
- Deliver greater value through business partnering
- Use analytics to improve business decisions
- Release value through shared services and outsourcing
- Build a strong foundation for planning, budgeting and forecasting
- Implement a value-based approach to capital investment
- Translate tax into cash savings for the business
- Adapt for regulatory and reporting changes
- Turn risk management to your advantage
Prioritising finance transformation investments
Finance has multiple investment priorities, from redefining the finance operating model to investing in new finance systems and finance processes and enhancing finance talent management. All of these require varying commitment levels, timing and resources.
Realistically, finance can’t do all this at once, but leading companies leverage finance maturity models to assess gaps between performance and objectives. They develop a finance strategy that supports the business’s overall strategy and operating model, and then develop a long-term, holistic finance road map that addresses finance strategy, processes, organisation, and systems requirements.