Developed in collaboration with practitioners, Terry Shane, PPM Practice Director at Practicus, outlines real-world advice and lessons learnt on financial transformation.
A service oriented finance function helps a business achieve its strategic goals. Identifying how you want it to look is relatively simple but once you have chosen what to do, delivery can be challenging.
Current Themes in Financial Transformation
Traditionally, financial transformation focuses on addressing issues within the finance function. Problems may include inefficient manually intensive processes, poor and conflicting management information or disparate systems and data structures that are not integrated.
Improvement solutions have thus focused on:
- identifying performance gaps by benchmarking best practice
- eliminating non-value adding activities
- simplifying processes and technology
- leveraging performance management tools
- moving to shared service models to drive synergies, economies of scale and bring cost efficiencies
Yet the role of the finance function has evolved. It is redefining itself as a business focused service providing its customers with value-adding, cost-effective services.
The function is growing in strategic influence. It is shifting its capability towards one that drives wider financial results and the achievement of strategic imperatives and business visions.
In terms of a digital vision, for example, research from MIT indicates the presence of a ‘Digital Advantage’ that successfully transforms through technological innovation, leading to up to 26% higher profitability. But to achieve this, digital transformation has to be extended beyond customer facing operations and into the underlying operating model.
The finance function needs to support the front-end experience with robust back-office processes. It must be able to deliver the insight and challenge required to optimise decision making.
In parallel with recent finance drivers, all improvements must be achieved without increasing the cost of the function to the business.
Read the attached PDF to discover our take on the key themes and lessons in Financial Services.
Director of PPM Practice
A highly experienced Portfolio, Programme and Project Manager. Terry has had significant success in delivering major programmes of change in a diverse range of sectors including Financial Services.