The 5 Silent Killers of Finance Transformation and How to Beat Them

You've decided it's time to transform your finance function. You're eager to implement new technologies, processes, and capabilities that will push finance to the next level. This is an exciting time!

?However, finance transformations are notoriously tricky. In fact, McKinsey estimates that only 30% of transformation initiatives succeed. Yikes!

?To beat the odds, you need to avoid five silent killers that can sabotage your efforts:

?Lack of Executive Sponsorship

Without an actively engaged executive sponsor, your finance transformation is doomed from the start. When priorities compete for resources and attention, your initiative will stall without C-suite air cover.

Secure not just any executive sponsor, but one who is aligned with your transformation's goals and can clear roadblocks. Meet with them regularly for progress updates. Arm them with talking points so they can advocate for your program across the leadership team.

?Unclear Goals and Objectives

Transformation efforts flounder when the "why" behind them gets fuzzy. Leaders fail to properly define what success looks like. Teams work towards different endpoints.

?Specify exactly what you want to achieve from a transformed finance function. Do you aim to improve forecast accuracy? Enable faster month-end close? Achieve certain cost savings? Identify 3-5 concrete objectives and revisit them frequently to maintain alignment.

?Limited Change Management

A shiny new system or process is only half the equation. You must also get your people onboard. Finance staff will revert to old ways of working unless adequately prepared and supported.

Develop a tailored change management plan, including training, communication plans, and adoption tracking. Emphasize that this is about progress, not perfection. Patience and understanding will be key, especially with long-tenured team members.

?No Plan for Sustainability

Going live is not the end. Focus on building a platform for continuous improvement. Identify how you will measure benefits and track ROI. Setup mechanisms to keep innovating, whether through an Office of Finance Transformation or regular ideation workshops.

Also, recognise that some changes may need to be walked back or adjusted post-implementation if not working as intended. Leave room for flexibility.

?Too Much Change at Once

Trying to overhaul people, process, and technology all together is a recipe for chaos. Prioritise foundational initiatives first, on which you can build momentum. Move in phases so your team isn't drinking from the firehose.

Finance leaders who dodge these killers and stick the transformation landing reap huge rewards, from improved data insights to strategic partnerships with the business. With diligent planning and disciplined execution, you too can transform finance from a back-office function to a strategic powerhouse.

Excited for the journey ahead? Let's connect.

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Copyright ? Clair Green