How CFOs Can Ensure Change Delivers Results
The Implementation Skills competency contains the following five skills:
Today's Newsletter will focus on Skill 5: Monitor Effectiveness of Change
It is crucial for CFOs to establish a measurement process for change management projects to ensure alignment with stakeholder objectives and effectively track progress. By defining key metrics from the outset, such as the impact on the company, individuals, and overall project quality, CFOs can gain buy-in and demonstrate the success of the initiative. This structured approach helps manage stakeholder expectations and provides tangible evidence of the project's effectiveness.
For most change management initiatives, CFOs should assess the impact across three key categories:
CFOs need to identify the most relevant metrics for each project based on its nature. After establishing these key metrics, a plan should be created to collect and review data throughout the project's lifecycle and beyond, to evaluate its long-term impact. This process may require collaboration with other teams across the organization, depending on the data sources and systems used. To streamline data collection, consider implementing automated dashboards to capture and track data efficiently and in real-time.
领英推荐
To ensure the success of a change project, CFOs must choose the right performance measurement system and be ready to take action if outcomes do not meet objectives. Here are four popular systems, each with its pros and cons:
There is no one-size-fits-all system. The best choice depends on the project and business goals. ROI is a good starting point, but NPV or IRR may be more suitable for certain situations, while the payback period is useful for simpler evaluations. CFOs need to be familiar with these systems and choose the one that aligns with the project's needs and desired outcomes.
Ready to lead transformative change in your finance function? Join us at the Future CFO Program Preview Event to gain the tools and insights needed to shape your career. Reserve your spot today by clicking here.
Financial Manager with 15+ years of expertise in financial magic and bean counting. ?? - Financial Manager
1 个月Insightful and well-structured! The emphasis on monitoring the effectiveness of change and aligning metrics with stakeholder objectives is critical for successful change management. From my experience as a financial manager, I’ve seen how critical it is to involve teams early in defining relevant metrics and establishing real-time dashboards to track progress. One suggestion I’d add is incorporating qualitative feedback from employees impacted by the change, as this often provides insights that metrics alone can’t capture. A balanced mix of quantitative and qualitative measures ensures a comprehensive evaluation of success.