If financial leaders focused on reducing operating costs last year to ensure their companies survive the economic crisis caused by the global pandemic, today they must prioritize revenue growth through new technologies and new business models.
Play a critical role in achieving business goals
Indeed, companies are going through a period of accelerated digital transformation and are trying after this crisis, which forces financial leaders to address new questions with very important implications for the entire finance function, and for all departments of the company.
Leaders face the urgency to grow their business again by accelerating digital transformation and implementing new, truly transformative business models. They expect their finance managers to play a critical role in achieving these goals. The Resurgent Finance Leader study, conducted by Board International in 2021 among 600 financial leaders worldwide, explores the theme of the transformation of the finance department. It provides an overview and concrete examples of how finance leaders view the evolution of their function and the resources needed to achieve the company’s strategic objectives.
The results of this survey show that finance leaders know they have senior management support to achieve this and business leaders view the finance team as a key player in supporting business objectives.
Switch from controller to performance driver
The vast majority (94%) of financial decision makers Respondents believe that leaders in their organizations are ready to completely rethink traditional financial roles and responsibilities. They are also reassured by the fact that the same share (94%) believe their leaders are ready to support the finance department, become more strategic and accelerate the company’s digital transformation by turning this function into the core business asset: data.
These financial decision makers are aware that the finance department could potentially become automated and disappear, unless it moves from a secondary support function to a strategic vital data center. Unsurprisingly, most finance leaders agree that it is time to accelerate the transition from a controller role to a performance driver role, and that finance should be the natural home of all data.
Transforming the finance office and leading the digital finance function of tomorrow
The report also reveals that not all finance leaders are confident their departments are ready to drive business decisions, profitability and performance.
Only 47% of CFOs surveyed are confident in their department’s ability to gather insights for business decisions and profitability. The report identifies 62% of financial leaders who do not believe current financial reporting allows them to project performance with complete accuracy and adjust forecasts in real time to changing market conditions. Even more worryingly, the report highlights that most finance leaders (81%) believe that the way their finance department uses technology to influence decision-making and business strategy needs a complete overhaul or many improvements.
Financial leaders now have the opportunity to close these gaps to deliver a truly transformational experience to finance teams, using innovative technologies, as well as human skills and a culture of change, to transform office finance today and the digital finance function of tomorrow to lead.