In today’s commercial world, there’s a shift happening. This has seen the role of finance teams change from dealing only with accounts and spreadsheets to being involved in business strategy and decision-making too.
The term “finance transformation” is a buzzword—one you’ll soon be hearing more of. But what is it, and how can you implement it in your ever-growing company?
What is Finance Transformation?
Finance transformation is the evolution of finance teams from reactionary departments to proactive and strategic teams. To implement this kind of change, finance teams use various tools and metrics to track progress and contribute to decision-making.
The backward-looking approach characterized by providing historical reports and statistics isn’t enough for businesses in today’s market. To thrive, they need to be forward-thinking and pre-emptive. Financial transformation can help.
For financial transformation to be successful, it must encompass not only new technologies but a cultural shift. Employees need to be supported and trained to use this innovative tech and ensure processes are streamlined to optimize efficiency and reach strategic business goals.
If you want to see a shift in how your team operates to help you achieve your aims, and you have the ability to invest in the right tools to get there, it’s time to think about finance transformation.
The Benefits of Finance Transformation
There are many reasons to implement finance transformation, including its impact on wider business goals such as:
- Saving on costs. When finance teams use automated tools, they can limit the amount of time spent by employees on day-to-day tasks. Improving efficiency and reducing human error saves money, and your HR payroll costs may also be reduced. Not only this but your finance team is freed up so they can focus on strategic tasks that help you work toward your wider business goals.
- Using data to make informed decisions. Having the tools to gather and analyze data is a game changer for businesses. Your team can collect information on performance, customer trends, sales, and so on, and use the reports this generates to inform their decision-making. The ability to use data to understand your business performance or customer behaviors in real time is a huge advantage.
Additionally, by utilizing data analysis tools to monitor your blog’s performance, you can make informed decisions about content creation, marketing strategies, and audience engagement, ultimately optimizing your blog for maximum impact.
- Seeing the bigger picture. Implementing financial transformation can help with your overall strategic decision-making too. You may decide to increase your marketing budget, adopt a new customer service solution, or cut costs in another department. With accurate financial information, it’s easier to know where you should invest and where you can save money to run your business more efficiently.
How to Implement Financial Transformation
To successfully implement financial transformation in your growing company, there are a few key things to consider.
Define your goal
You need to have a clear vision before you usher in financial transformation. Have a purpose and objective in mind and communicate these with stakeholders and employees.
As with any major business decision, know why you’re making it and what the desired outcome is. Perhaps you want to streamline processes and become more efficient, or maybe you want to grow your company in a new market. Whatever it is you’re aiming for, be clear on what you want and how financial transformation will get you there.
Involve stakeholders and employees
To make changes in your business, you need buy-in from stakeholders, so ensure you share your goals and vision with them and that everyone is working toward these.
Your employees will likely be the ones using any new technologies you introduce. Get them on board by sharing your ideas with them and taking their views into account. They can often provide fresh insights into the day-to-day running of your business and how to improve it. Consider involving employees in your transformation by offering incentives like employee stock options or shares.
Financial modeling can be an effective tool for finance transformation, enabling teams to create detailed financial projections and analyze different scenarios to inform decision-making. By using financial modeling, businesses can make more informed decisions about investments, budgeting, and strategic planning. Consider incorporating financial modeling into your finance transformation plan to maximize the benefits.
Employees may surprise you and offer solutions you haven’t thought of. Some may be keen to expand on their skills and suggest they learn data engineering or similar. Having workers who are skilled and able to use high-quality data to inform strategic decisions will vastly improve the outcome of your transformation and have a hugely positive impact on your business moving forward.
Take your time
You mustn’t rush this transformation. Any shift in the way your business runs will be a lengthy process. You need to make sure you research the right solutions for your company and implement any changes carefully. If you plan on making a lot of these, do so step-by-step and evaluate the effectiveness of each change as you implement it.
A lot can be said for taking your time as a business owner. Yes, you need to make sure you’re moving forward and making things happen, but you must also ensure that you carefully plan your decisions. A lot of time and money can be wasted by diving in too quickly.
Solutions such as call center as a service can hugely enhance the customer experience; in the same way, automation tools and software solutions can be valuable assets to finance teams.
Help your team to understand the benefits new technology can bring to not only them but the company as a whole. Using appropriate tech will ensure finance staff can become more involved in strategic decision-making and help you achieve your overall business goals.
However, it’s important to recognize that new technology alone isn’t enough for transformation. As mentioned previously, employees and stakeholders need to work toward a shared goal for this to be effective, and employees need appropriate training on using new technologies.
Measure your progress
As with any strategic shift, you must measure your progress. Gather data at every stage in the change cycle to track your success. You’ll need to gather qualitative and quantitative data to inform your next steps and consult employees for their input.
Measuring the effectiveness of change will help you track KPIs, set benchmarks, and ensure your organization is meeting its aims. You may even want to use a service such as the 8×8 predictive dialer to contact key customers and gather their views on your business. This can be hugely insightful and ensures you’re always looking at the bigger picture.
When implementing financial transformation within your growing company, ensure you set clear goals, communicate effectively, and evaluate your progress regularly. Get your whole team on board, embrace new technologies, and you will reap the rewards.