How to Lead a Finance Transformation

More finance teams are making the exciting shift from scorekeeper to value partner to the business. They are doing so without a map to guide them, which puts them on the front edge of finance transformation. As we navigate this change, there’s a pressing need to understand how we can effectively lead these changes and ensure our teams and systems truly thrive in this new era.

Samuel Munzele Maimbo , vice president for budget, performance review and strategic planning at 世界银行 , is one of those finance professionals leading the charge. He recently shared a fresh perspective on finance transformation with me, delivering almost a mini-masterclass on leading transformation. Let’s explore 10 ways he is learning to surf even better in bigger and more frequent waves.

1. Evolving financial tools make you better. Financial tools are evolving significantly, becoming more data-driven, technologically advanced and strategically focused. These tools are revolutionizing our approach to finance, making us quicker, more predictive in our strategies and more effective in our roles.
2. The environment is shaping your role. The role of finance specialists in the future will continually be shaped by our environment. We can’t be static and must change our mindset on how skills are acquired, developed and renewed. It’s about learning and unlearning at a faster rate than in the past.
3. You have to look at data differently. Every organization is inundated with data, but the key is using this data purposefully. Modern financial tools now enable us to aggregate, analyze and apply data strategically, transforming numbers into actionable intelligence which is essential for making informed decisions and optimizing operations.
4. Let technology work for you. Technology is at the core of financial tool evolution. Those tools being used creatively in some companies include cloud-based financial systems and AI-driven analytics that facilitate real-time decision-making and scalability. It’s all about freeing up our hands for bigger strategic challenges.
5. Use better information to drive greater results. With advanced tools, the quality of information has significantly improved — think smarter visualizations and data dashboards that deliver crucial insights exactly when you need them. It’s important to present complex data in understandable ways, enhancing communication and informed decision-making.
6. Embrace advancements in analytics and AI. The strides in analytics and AI are transformative, especially how predictive analytics and AI are used to create models that simulate various financial scenarios, offering foresight that was once unimaginable. Exciting times are ahead when you can better organize your data.
7. Rethink your competency framework. Upskilling and reskilling are critical today. You have to broaden skill sets and equip team members for more complex and strategic roles within the organization. This includes training programs tailored for both new hires and seasoned professionals. For the newer folks on the team, the framework involves rotations across different departments, fostering a well-rounded understanding of the organization’s operations. Meanwhile, the veteran staff can dive into advanced training focused on leadership and specialized financial analysis. You want diverse skills and adaptability.
8. Get new perspectives. You need to keep refreshing and diversifying the talent pool to bring in new perspectives and diverse thinking styles. This diversity can help organizations of all sizes navigate the unexpected challenges being thrown at us.
9. Sustain the momentum. Manage the monumental task of transformation by focusing on three key areas: engaging stakeholders, facilitating real-time learning and prioritizing staff development. “Going back to basics,” as Sam puts it, is essential. It’s what keeps the staff excited and fully engaged in the transformation process.
10. Admit what you don’t know. As you engage with people in new ways, from leadership to staff, you have to be candid about what you know and what you don’t. There is a higher level of confidence that comes from admitting you don’t know something. You can then focus on learning and finding others who have done what you are trying to do to share advice.

It wasn’t easy for Sam to get started, but the acceleration once he did was great. He also credits his peers in the Future of Finance Leadership Advisory Group (FFLAG), who were willing to discuss and share experiences, with helping him leapfrog some steps along the way.?

The Need for Resilience and Adaptation

In a world of uncertainty, resilience is key. One of my favorite sayings that I quote regularly is:

“We can’t stop the waves, but we can learn how to surf.”

This powerful idea highlights the importance of adapting swiftly to both present demands and future challenges while keeping our long-term goals in sight.

Adapting to these waves means being proactive, staying ahead of industry trends and being agile in our decision-making. It involves embracing cutting-edge technologies like AI and advanced analytics that arm us with the insights to quickly pivot — reallocating resources or shifting investment focuses based on real-time data and market conditions.

Above all, we agreed that cultivating a resilient mindset transforms challenges into opportunities, turning setbacks into stepping stones. By adopting this kind of perspective, we can harness change to enhance our strategic impact, helping our organizations thrive no matter what the economic climate throws our way.

Is Your Team Ready for Transformation?

Leading a transformation is hard, but finance must change or risk becoming irrelevant. The good thing is that there is a great group of finance leaders in FFLAG who are in the midst of their own transformations and are working to help you with yours. FAME, the Finance Assessment Model for Effectiveness, is what they helped us at AICPA & CIMA come up with.

FAME defines the competencies, capabilities and technologies across five dimensions (technical, business, digital, people and leadership) that finance leaders need to address to move their functions from being scorekeepers and business partners to becoming value creators and ultimately finance futurists.

Learn more about the FAME Assessment and be sure to take the survey and download the whitepaper to get an idea of what areas you might need to address along your transformation path.