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.. Here are my top six mega-trend predictions for 2021 in finance and accounting. Finance Transformation Specialist McKinsey & Company Chicago, IL, US 23 hours ago Be among the first 25 applicants. Collaboration remains stubbornly stuck in email and conference calls, with limited visibility into the process. He will also work with the investor-relations group to prepare a press release that will allow ATC to tell its own story about emerging changes in the marketplace. That transformation played out in the following way: The most important lesson as you plot a COVID-Exit is not to fixate on choosing between a portfolio-first or performance-first approach. Just by optimizing processes and standardizing technology, you may be able to reduce operating costs by more than 30%. If you would like information about this content we will be happy to work with you. Never miss an insight. Combating COVID-19 with resilience . We'll email you when new articles are published on this topic. › Finance transformation In a rapidly changing marketplace, the finance function has a key role to play in delivering efficiency, insight and value to the business. Like so much relating to COVID-19, “heading for the exit” is not straightforward. We use cookies essential for this site to function well. Unleash their potential. "What that finance transformation does is enable finance to transform from being a scorekeeper in the back office to becoming a partner and really driving revenue and customer experience," he said. Explore other reports and guides in our Finance in a Digital World TM “Crunch time” series, and read case studies about digital transformation in the finance function. We strive to provide individuals with disabilities equal access to our website. Why the limited progress? Sally knows investors expect an answer, but before ATC’s executive team can lay out a plan, they need to understand the implications of various counteractions. In both cases, the organizations conducted full-potential assessments, set high aspirations, and were deliberate about sequencing the portfolio and performance moves to get there. Hubert Joly shares lessons from leading Best Buy’s transformation and how the coronavirus pandemic is changing the key measures of performance. Kate, based in London, helps consumer-facing companies transform their businesses through strategy, marketing, operational, and organizational initiatives. The finance value leader schedules and facilitates a cross-functional problem-solving session with the head of ATC’s industrial-equipment commercial team, together with marketing and sales leaders and representatives from supply chain and manufacturing. 2 commentaires sur “Éric Hazan, McKinsey : “La transformation numérique change les business models, les processus, les façons de travailler”” Camilo José Gutiérrez dit : 05/11/2014 à 9 h 13 min But the persistence of organizational silos and a lack of digital skill sets within the finance organization are also commonly cited as major impediments. Keep finance transformation projects on schedule, on budget and sustainable; Read how we helped the City of Sydney steer large-scale finance transformation and drive continuous improvement. 30 SECOND SUMMARY Driven by the accelerating digitalization, the finance function faces the risk of being reduced to an efficiency-first support role. It includes driving efficiency in Finance and operational processes, and ensuring they’re aligned. McKinsey Quarterly The numbers behind successful transformations Crunching the numbers on transformations suggests good news for companies that go broad, move fast and renew often, prioritize health, and keep stretching their aspirations. Steven Eklund is an associate partner in McKinsey’s Stamford office, where Ed Woodcock is a senior expert; Michele Tam is an expert in the Chicago office. Coverage for those business units may be guaranteed, but finance staff deployed in this way rarely have time to step away from their unit-specific tasks and help shape financial strategy for the business overall. Those that do may reach the next level of sophistication in charting a path to maximum financial value in the organizations they serve. It’s essential to your transformation that you follow through on the hard questions, particularly: As you mind the balance between portfolio and performance moves, you’ll also need to mind the sequencing. Please use UP and DOWN arrow keys to review autocomplete results. Has the organizational health of the company changed? But we have to get … 2. According to a new McKinsey Global Survey of executives, 1 their companies have accelerated the digitization of their customer and supply-chain interactions and of their internal operations by three to four years. In both cases, the organizations conducted full-potential assessments, set high aspirations, and were deliberate about sequencing the portfolio and performance moves to get there. McKinsey’s 2018 CFO Survey asked 212 global CFOs and 236 business leaders a series of questions on the role of the CFO, the CFO’s role in enterprise-wide transformations, the finance function’s digital and talent strategy, and the evolution of the finance function. As counterintuitive as this may seem, incrementalism is especially risky, particularly for organizations trying to break out of what feels like a COVID-19 perpetual crisis. Unleash their potential. We'll email you when new articles are published on this topic. (See sidebar, “A day in the life of a finance organization, 2022,” for a look at how finance groups could work more efficiently and generate more value for the business in future.). Many companies still follow a traditional operating model in which dedicated finance professionals support specific areas of the business, with a focus on management reporting, budgeting and planning, and ad hoc analysis. COE specialists would develop distinctive sets of analytical and technical skills for leading insightful analyses in specific domains, such as top-line growth, tax management, or operating-expense control. Digital. Which businesses are the company no longer the natural owner of? But in a recent McKinsey survey (whose results are slated for publication later this year), only 13 percent of the CFOs and other senior business executives polled said their finance organizations are using automation technologies like robotic process automation and artificial intelligence. Each COE would focus on a particular aspect of financial performance—for instance, customer and revenue analytics, liquidity, tax planning, or working-capital management. Companies have embraced digital and automation technologies, but they are still figuring out how to capture value from them—and may be doing so for the next few years. Financial Services technology is currently in the midst of a profound transformation, as … Finally, structural actions, such as defining promote-from-within quotas and linking promotion criteria to skills attainment, can signal the importance of training opportunities. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. See who McKinsey & Company has hired for this role . Use minimal essential Learn more about cookies, Opens in new Implement rolling forecaststo periodically update budget assumptions 5. Whatever your interest, one thing is clear: From cloud computing and robotics to analytics, cognitive technologies, and blockchain, a new class of digital disruptors is transforming how the work of finance gets done. Recent research reconfirms earlier findings that only 30 percent of transformations deliver their intended benefits and meet the targets committed to during the program-planning stage.. Finance Transformation Expert McKinsey & Company San Francisco, CA, US 5 months ago 65 applicants No longer accepting applications. Please click "Accept" to help us improve its usefulness with additional cookies. Two problem solvers—generalists with broad experience in revenue reporting and analytics work—have been pulled from lower-priority initiatives to provide analytical horsepower and get answers quickly. There are many internal factors and external trends that make a Finance Transformation a strategic imperative. Select topics and stay current with our latest insights, This way out: How leading companies chart a full-potential COVID-Exit. Most transformations fail. After examining the data and possible responses, they align on three scenarios: taking no specific action, cutting prices immediately in three product lines, and holding prices steady while speeding investment so that a new product hits the market three months earlier than originally planned. "So unless digital transformation enables finance to move from the back office to [being] an architect of value, I wouldn't really call it transformation." Finance Transformation (FT) is a set of offerings that assist Finance executives with assessing their finance strategy and vision, and helps design and implement change to their finance organization, process and systems to improve the overall value of finance. While broad lessons apply (put everything on the table and go big, especially in a crisis), how and when you implement the elements of your transformation must be guided by the unique circumstances and potential of your company at any given time. Such a transformation is heavily dependent on better use of technology. At one technology company, for instance, overall financial-forecasting accuracy was less than 60 percent, in part because of unreliable customer-attrition data. Eventually, the finance group also introduced time-tracking mechanisms and customer-feedback metrics, which aided in refining coaching efforts and workflow processes. The answer depends on the company and context. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. In addition to enhancing core finance function capabilities, it can deliver immediate, tangible results that build shareholder value. As counterintuitive as this may seem, incrementalism is especially risky, particularly for organizations trying to break out of what feels like a COVID-19 perpetual crisis. Traditional quantitative competencies will always matter, of course, but we believe finance professionals will also need to raise their game in the following qualitative areas as well: These aren’t new skills, but in our experience, finance organizations struggle to cultivate them because of executives’ competing priorities. That’s where Deloitte’s finance transformation services can help. our use of cookies, and The authors wish to thank Kevin Dolan for his contributions to this article. Flip the odds. See who McKinsey & Company has hired for this role . 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… Apply on company website. As McKinsey & Company points out in a recent article, ... Every accountant, auditor, controller, and CFO knows that the key to finance transformation lies in process automation. Finance Transformation (FT) is a set of offerings that assist Finance executives with assessing their finance strategy and vision, and helps design and implement change to their finance organization, process and systems to improve the overall value of finance. Two recent all-in transformation examples shed more light on the nuances of sequenced transformation and its importance, as well as dependence on facts, on unlocking value. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. However, McKinsey points out, the problem with organizational transformation is that each business unit … “It’s too hard to really transform, so we’re just going to buy stuff,” is how McKinsey senior partner Peter Dahlstrom characterizes the mindset that gives rise to this most basic of the archetypes. This article was edited by David Schwartz, an executive editor in the Tel Aviv office. Effective Finance Transformation & Operations A driving factor for many finance transformation efforts is to drive productivity and cut costs. The challenge for our own time is clear. 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.. It’s a must to consider both portfolio moves and performance improvements. Press enter to select and open the results on a new page. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Achieving the right trajectory calls for making tough choices, including whether to transition from survival mode to normalcy—or, ideally, to something even better: an “optimized state” for the post-COVID-19 world. In our forthcoming 2018 survey, fewer than half of the CFOs polled reported having the time and focus to develop new finance capabilities. Our flagship business publication has been defining and informing the senior-management agenda since 1964. At one company, it seemed obvious that portfolio moves looked like the right answer given the company’s starting point: multiple business lines with massively underperforming business, which seemed ripe for divestiture. Once they make these shifts, finance organizations can better use the time freed up by automation and other digital technologies to generate meaningful insights that can boost the business’s financial performance. Faced with advances in technology and growing responsibilities, many CFOs are bracing themselves for more change ahead—and understand that they must adapt to be effective. Regardless, we still believe finance professionals must begin to think about how these technologies will affect the way their work is structured and completed, as well as the type of talent required to realize the promise of digital tools. Keeping hundreds or thousands of initiatives on track is a monumental task, one that too few organizations around the world do well. What elements of organizational health and capability building will be required to maximize the impact of the COVID-Exit. CFOs and their teams are increasingly expected to counsel business units on innovative approaches for creating value. As McKinsey & Company points out in a recent article, “Today’s CEOs and boards say they want CFOs and the finance function to provide real-time, data-enabled decision support. With an earnings call happening in less than a week, Sally Rogers, the CFO of American Technology Company (ATC), needs to prepare a response to a competitive threat to the company’s industrial-equipment business. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. However, omitting one or two of these building blocks may result in some type of failure during a … In just a few months’ time, the COVID-19 crisis has brought about years of change in the way companies in all sectors and regions do business. But which of these do you execute first? tab. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. Ages ago, Heraclitus observed that “No one ever steps in the same river twice, for it is not the same river and they are not the same person.” Left unspoken was the notion that no one wants to stand in the river for very long; you’ve got to get going. Finance transformation is a structured evolution Finance transformation is a complex journey with comprehensive improvement potential. The authors wish to thank Kevin Blasko for his contributions to this article. Second, within the finance function, they need to build new leadership and talent-management capabilities. Die Broschüre „Die Chance für den digitalen Durchbruch – Was Schulen und Politik aus der COVID-19-Krise lernen können“ gibt Handlungsempfehlungen, wie Digitalisierung an den Schulen gelingen kann und was konkret zu tun ist. 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, in a planned sequence. Our Finance Transformation services address critical issues facing finance across major industry sectors, including vision and strategy, organization and talent, business processes, and technology. After some debate, ATC’s leadership decides on an accelerated product launch. As the agile operating model takes hold, these matrices must be regularly revisited to incorporate updated expectations and skills requirements. 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