The need to transform the Finance function has never been more urgent today. When considering the shifts occurring in how organisations operate and the expectations from the Finance function towards a more strategic partner role, organisations must recalibrate their Finance functions to meet these demands.
Transformation also involves modernising the Finance function in response to the complexities and changes brought about by technology, with the aim of designing a new operating model for the Finance function.
For example, the pervasive impact of technology across society implies that organisations have had to incorporate digital channels across various platforms to facilitate e-commerce transactions.
Therefore, organisations are increasingly generating data across different channels at an unprecedented scale, which makes operational tasks such as reconciliations, transaction matching, and ledger balance verification complex, time-consuming, and prone to fraud.
The rapid speed at which organisations make decisions today to favourably compete requires access to real-time information and analysis.
The Finance function's ability to transform into a strategic partner of the broader organisations enables organisations to access the correct information and analysis through live dashboards that provide decision-useful information to management.
In addition, re-engineering the processes and policies within Finance using digital tools helps recalibrate the role of Financial control, ensuring that governance and compliance requirements across the organisation are functioning effectively. Another important reason to transform is the demand for integrated skills and competencies across the Finance function.
From data scientists to digital talent, the Finance function will have to be prepared to embrace artificial intelligence and predictive analytics tools to solve problems and serve the broader organisation.
Therefore, the future operating model must incorporate a talent and reskilling plan to ensure the Finance function can meet the organisation's demands.
Finance transformation is a journey, and organisations should define performance metrics at each milestone to provide momentum for subsequent phases. Organisations must start where they are, develop a tailored roadmap and align internal stakeholders on their journey.
Organisations can realise productivity gains from workforce optimisation, positioning Finance as a strategic partner that drives overall business performance.
Akinyemi Awodumila is a Partner at PwC Kenya. He is an author who writes and speaks widely on corporate reporting topics.
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