Enabling Finance Transformation Success

Finance transformation is the top priority for CFOs in 2024, according to a recent survey by Evanta, a Gartner company. With the introduction of generative AI and a rapidly evolving business landscape, CFOs aim to capitalize on digital transformation efforts that improve processes and efficiencies. 

However, many CFOs are disappointed in their progress, as their finance transformations are not meeting their intended impact. In fact, Gartner reports that 70% of finance transformations are moving slower than expected. How can CFOs move the needle and enable success?

CFOs in Evanta’s Washington, DC CFO Community were eager to discuss this topic, and they recently gathered for a virtual town hall to engage in an open dialog about their finance transformation goals and challenges. The conversation touched on the status of their transformations, how to identify priorities and investment areas, upskilling opportunities and roadblocks to adoption.

This interactive program was moderated by Charles Tapp, CFO Executive Partner for Gartner. Ilana Esterrich, Chief Financial Officer for Planned Parenthood, was the Governing Body Host for the session.
 

Key Takeaways from the Discussion

1. Urgency to Modernize the Finance Function

Nearly every CFO is under pressure to transform the finance function quickly. With limited resources, automation will be critical to improve efficiencies and help them make data-informed decisions faster. One CFO who is steadfast on replacing manual processes said, “We cannot use Excel. We need to transform as quickly as possible because the pace of business has accelerated. We are dealing with so much information, and we need to be able to focus on high value work.”

1. CIOs as Strategic Partners

Many CFOs are collaborating with cross-functional partners, particularly the CIO, to ensure seamless integration and alignment of systems and processes. One CFO highlighted their CIO partnership, saying, “The integration part is very difficult and challenging. One of the best decisions I made was to bring in the CIO so I can focus on the analytics and the business partners, and IT can manage the actual integration.”

1. Prioritizing Quick Wins

CFOs are starting with quick wins to demonstrate the impact to key stakeholders. One CFO advised, “Find one business partner you can make a lift for as soon as possible, and end the pain points they have with your department. For me, it helped change the minds of other resistors.” For help with prioritization, another CFO said, “A fail safe is to talk to your people. They will tell you the fastest way to be successful. Easily knock out the low hanging fruit and low value work; it will help you build momentum.”

1. Upskilling the Finance Function

During the conversation, there was a strong emphasis on upskilling finance teams, particularly in data management, technology, and project management. One CFO recounted how they use weekly lunch-and-learns to improve their team’s technical skills and cross-functional familiarity. They added, “We’re deliberately going about upskilling in our finance team, and we expect managers to allow time for their teams to upskill.

Regarding new talent, CFOs are seeking digital natives and bringing in skills they will need “a few years down the line.” One CFO described their hiring process, stating, “Finance is now a data, technology and people department. Resources are hard to find. I'm not looking for people coming from finance or business schools. I am looking for people with technology and data skills and teaching them finance and people skills.”

1. Change Management and Organizational Health

CFOs are navigating “change fatigue,” and they addressed change management strategies they can adopt to ensure the success of their transformation initiatives. One CFO shared that they schedule breaks in their transformation roadmap to allow time for teams to digest changes, building trust and ensuring psychological safety within the department. CFOs recognize that they cannot overlook the importance of culture on their transformation journey, as it contributes to the overall health of the organization.

CFOs can continue the discussion on finance transformation at an upcoming Evanta community gathering. Evanta community members can sign in to MyEvanta to find events and register with one click. If you are not an Evanta member, apply to join your local CFO community to stay up-to-date on key topics for finance leaders.
 

by CFOs, for CFOs

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