To do so, CFOs should listen to feedback, understand sources of concerns and address issues in an emotionally supportive and constructive way. The EY/Oxford research suggests that providing emotional support improved the average likelihood of transformation success by nearly 20%. The study also found that the potential for a successful transformation increased by a factor of 2.6 when the workforce understood the leader’s strategy and vision, so clear two-way communication is key.
“By embracing this new role, CFOs can position their departments as critical contributors to the company’s strategic direction,” says Herbert. “Finance is poised for a transformative leap forward, where harnessing the right talent can shape the future of business.”
Data and automation are yesterday’s news, today’s imperative
One key area where CFOs are moving forward is in the implementation of emerging technologies. In the EY/Oxford collaborative research of respondents in successful transformations indicated that their organization had invested in the right technologies to meet their vision.
Artificial intelligence (AI) and machine learning are becoming essential tools for finance leaders. These technologies can not only manage data and automate routine tasks, but can also provide deeper and faster insights, allowing finance teams to respond more swiftly to market changes.
AI-powered capabilities are crucial, as CFOs need a clear understanding of how best to use data – not just financial data, but also broader business metrics and external data sources. The intersection of financial and nonfinancial information serves as a source for new and compelling insights and creates a robust framework for critical decision-making, precise budgeting, accurate forecasting and strategic resource allocation.
“If you think about the business structure, there’s an HR group for talent management. There’s a procurement group that makes purchasing decisions. There’s a manufacturing group that builds your products. There’s a marketing group that drives sales to customers,” says Herbert. “Finance uniquely integrates all these functional domains, holding a privileged position to drive value.”
A culture of creative courage
Agile innovation has become the fuel for most transformations. New data sources and technology will remain on the shelf and unused without disruptive thinkers who are empowered and rewarded for driving changes in ways of working. For decades, finance organizations have been encouraged to maintain process discipline, performing work by the metronome and without error. Culture and mindsets will need to change to free innovation.
“Advances in automation bring an almost unprecedented opportunity for finance professionals to drive business impact in new ways,” says Deirdre Ryan, EY Global Finance Transformation Leader. “It is possible to find the balance between the day-to-day and the ideas, insights and capabilities that will move organizations forward.”
The CFOs of tomorrow will benefit from fostering a culture of creative courage to realize opportunities that a “don’t fail” mindset might miss. But visionary leadership, strategic communication and firm direction remain paramount to success.
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