If only Finance Transformation was as simple in practice as it should be in theory:
- Mobilise the basics; a common set of best practice processes, streamlined to get you to best in class.
- Enhance the differentiators: the magic of designing the Finance function of the future with all the ‘bells and whistles’ to unlock the valued added potential of the Finance team.
Practically, the first challenge is getting started – and even after you’ve taken the first step, two real challenges lie ahead of you…
- The processes tend to be standard and are regulated by accounting practice.
- The team is too busy to even think about change because the processes are cyclical by nature (month, quarter, and year end).
So, how do you recognise the stage you are at, and more importantly what do you need to do as a leader to move to the next stage of maturity?
Stage 0 – Ignorance
I’m not sure this is a genuine phase so I hedged my bets slightly and called it phase 0. Very few of my clients are here, but if you don’t even recognise stage 1, perhaps at least you know that the current ways of working are simply unsustainable. Systems are poor, staff are working long hours to reconcile data, reporting is non-existent, all you know is that income hopefully exceeds expenditure.
Stage 1 – Awareness
You know there are a number of projects you want to do, and you have a rough idea of what they would involve but nothing defined. There’s a sense a systems upgrade is needed but little awareness of the broader human side of change. Other potential solutions are identified and you have talked to suppliers. You might have a project manager, if not you think you need one. Perhaps you’re unaware of the difference between projects and programmes. Basically, you’re unsure how to move forward.
Stage 2 – Inertia
The title says it all – nothing is happening. It’s unclear who should lead the work. You ask people to do things, but they are all too busy with the month end accounts. There’s a sense you need more resources but to do what? There are no key milestones to hold people to. You’ve stalled – this is the hardest stage to get out of. If you could just get past the next month end / quarter end / holiday season…
Stage 3 Momentum
You have multiple projects already on the go but little sense of how they join up. It’s all slightly chaotic – lots of PowerPoint packs, visions, updates etc. Hours spent in meetings – some frustration is starting to show. The Leadership team has different views on how to fix it. People are busy and there’s a lack of clarity, cohesion, and direction. In fact, there is little or no tangible progress – the wheels are spinning.
Stage 4 Focus and direction
This stage is underpinned by a clear sense of where you are going – the future Operating Model. You have clarity on what needs to be done to get there, resources aligned to that – pushing in the same direction with a regular cadence of meetings and updates. The Leadership team see a constant stream of good news, and everyone is inspired.
Stage 5 Transformation Excellence
This stage is defined by the outcomes you achieve. Performance is demonstrably in the top quartile of FTSE 100, benchmarked for evidence. There is a pipeline of future projects to keep you in that quartile. Resources are mobilised, business cases are complete, and benefits are pouring in.
Our work at 3 Dimensional projects looks at three dimensions of Transformation Excellence:
- The Future Operating Model or vision
- The mobilisation of the team
- Ongoing advice and support and advice to help your Finance Transformation team to excel
Can we help you to diagnose where you are on the journey to Finance Transformation Excellence?
Message me here and let’s have a conversation.
