Kronos

Why static finance transformation may not yield the right results Copy

Summary

The current global landscape can be described in many ways. From the global crises that abound to the innovations that are changing the tides of how a business operates and succeeds, companies and industries have many priorities to consider and expectations to meet.

Transformation has become a critical goal for survival in both the short and long term. Leveraging transformation is also the only way for any company to gain a competitive edge and ensure sustainable growth. The achievement of these goals, however, depends on dynamic transformation. 

The dangers of static transformation: Innovations are being introduced to the market at a breakneck pace. This means that even after you implement certain systems, they could be outdated in a matter of months. Transformative frameworks must be resilient, committed to continuous improvement, and able to create sustainable value as time goes on. 

Transformation beyond technology: Making sure your transformation evolves to keep up with the market, includes looking beyond digitalisation. Putting dynamic training opportunities in place and setting integrated goals that account for functional as well as overall business objectives are crucial to ensuring that your transformation is sustained and complete. 

These priorities are especially vital for finance operations as the success of your entire framework will depend on the triumph of your financial processes.

There are many words that are used when it comes to describing the modern business environment.

Innovative, transformative, volatile, technological, unstable, digital, fast-paced, highly competitive, and the list goes on. 

No matter how you choose to describe it, however, the business landscape is all these things and more at all times. There is no way to separate the transformative from the digital or the volatile from the fast-paced. 

Businesses that operate within this landscape cannot just respond to one facet of the modern landscape, they must address and conform to them all. This is a tall order that is complicated by the many paths to success a business can take and the vast number of tools, information, and systems out there that can be leveraged with the promise of achieving all these targets and balancing these priorities. 

That is why all businesses aim for consistent transformation.

Transformation takes many forms, but the one shortcoming of these forms is that a final stage of transformation can never really be achieved. As the global landscape changes, businesses must follow suit, and transformation—whatever this may mean at the time—must do the same.

A common way to achieve transformation in a sustainable and more targeted way is to implement it on an individual, functional level. Finance transformation refers to the transformation of one of any company’s most critical functions. 

The dangers of static finance transformation

As soon as any new technology or innovation is released to the market, it feels as though a dozen similar, and more advanced, technologies are released simultaneously. 

Digital companies are vying for the top spot and businesses too must choose the best way to leverage these systems and the opportunities they bring or risk falling behind. 

A business that values transformation already realises the unique potential it brings. Transformation through technology, and Industry 4.0 as a whole, is also a necessity to stay afloat and on top of the current demands that saturate the market. 

In this landscape, dynamic business models are necessary.

Finding the right framework to support your operations and leveraging the right technology to run your processes are necessary, but your transformation does not end once this system has been implemented. 

Technology is always changing and the expectations of your internal and external stakeholders are changing with it. This means that even once you have the most cutting-edge system in place, complacency will lead to your system becoming redundant and losing its competitive edge. 

The only way to ensure that your finance transformation is sustained over time is to maintain an approach of continuous improvement. 

This means consistently looking for ways to sharpen your systems and create lasting value through a dynamic and resilient framework that is able to improve your responsiveness and accelerate the timeline to your goals. Even as time goes on. 

Transformation beyond technology 

Transformation may be synonymous with technology, but even in a highly developed area like finance, transformation goes beyond digitalisation. 

In order for your finance transformation to be implemented from the ground up and yield all its possibilities and advantages, it must be a complete effort. It must consolidate every part of your operations, from finance to project management, in order to re-envision your company and align it more wholly with your corporate objectives. 

To achieve this goal, your business requires steps beyond digitalisation. This includes dynamic training opportunities for your finance team in order to keep them up to date with the industry and the changes that are defining it. 

It also means taking a more integrated approach to transformation by ensuring that every transformative step you take is aligned with your finance and overall business objectives. 

Take the next steps in business transformation strategically 

Transformation has no real end. Especially in a business landscape that is always embracing innovation. That is why prioritising transformation is a step that every business across every industry should take sooner rather than later. 

Ensuring that this transformation remains dynamic must be the next challenge they take on. 

Dynamic transformation is not as easy or as organic as it may seem. It often requires you to take an objective view of your operations and analyse the relationships between your processes closely to identify how these can be optimised and strengthened in the short and long term. 

The short-term effect of transformation will lead to short-term success for your business, helping you achieve your objectives and showcasing the results you anticipated. If your transformation stays static, however, these results will soon shift and not just stifle your growth but lead to long-term inefficiencies.  
Whether you choose to implement a system of constant and sustainable transformation through regular finance advisory or through an internal team dedicated to constant growth, succeeding in the global market is dependent on transformation that evolves.

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