Finance transformation actually refers to the fundamental change in the way it operates the finance function to attain a significant improvement in performance. This transformation is done aiming to develop a finance function such that it influences the business leaders in making better business decisions. It also assists in clarifying the finance role in driving the imperative of strategic business. Thus, the focus is in the finance function in delivering at the right time to right business leaders the right information.
How does finance transformation help?
Many finance functions are unable to produce real information relating to their business and delay in taking the right decisions. However, taking the help of finance transformation means the finance function is more effective in driving the value of business and is really efficient in the way it operates within the organization.
The finance transformation is field tested and is proven repeatedly on critical restructuring of finance and also in redesigning projects. This transformation of finance is an approach providing a framework for building, designing and sustaining the finance in an organization.
Finance transformation key features
Having a goal or destination
Initiating a finance transformation means there should be a clear objective. There should be methods for defining and developing the programming goals so that it is in agreement with the target and is a part of the program of financial transformation.
Broad in scope
The transformation scope should be broad to include each function. The financial transformation program is made with many individual projects such that it enables the benefits progressively. It helps in business supporting the transformation program, thereby including the funding, creating project team momentum. It offers flexibility to the program change, in case direction is required.
Apart from these features, the finance transformation also helps any program manager in driving to a complete change.
Reasons to start a finance transformation
A very basic reason to start a finance transformation is that itsupports businesses. Anyone will notice an apparent change in implementing this transformation. This may refer to the goal providing better service and involve altering the focus right from delivering data to offering insight.
The finance transformation program offers an opportunity to see at finance through a new set of eyes. This also is a decision that ensures cost savings as it contributes to better returns and more value for shareholders and customers. The finance function is successful as the processes are defined clearly and it reduces rework.