Financial transformation programs need not be activated in haste, it can hurt the morale of the employees and ultimately production. The upper management and lower-level staff need to be informed and be prepared for constructive financial transformation.
Reasons financial transformation fail
- Strategic misalignment – Remember, your business strategy supports the finance stratagem, which in turn supports the financial transformation initiative.
- Talent struggle – Evolvement of business means evolving employee skills and capabilities. The right people and appropriate environment are crucial for transition to appropriate roles, which needs to be done via hiring extra resources or hiring right skills.
- Unable to leverage technology appropriately – Modern technology is being bombarded on the organizations, which roots challenges. Flowing with trend is good but you need to have the right knowledge to navigate smoothly, similarly you need to choose technology that suits your business. How will it affect your business, vendors, and customers? Will this new technology address your data management issue?
- Pursuing wrong factors – Finance department need to look farther than costs like beyond cross cutting in the organization. They need to concentrate on value creation through determining business development strategies and strengthening decision making insights.
- No innovation – In this constant innovative environment financial gurus need to look beyond the numbers to remain ahead of competition. Problem solving needs to be iterative, so finance organizations need to link with operational and technical department to try and bring innovative solutions consistently to the table that helps to drive business value.
For successful finance transformation program there is a need to obtain employee support.
How to gain employee support for successful financial transformation?
- Never assume others will instantly agree to change because you decided that the existing finance plan is outdated.
- Many employees will need help to understand process improvement benefits. Therefore, financial transformation needs to be sold and not made compulsory.
- Start consolidating among bold staffs, who are unafraid and believe there needs to be change.
- Never waste energy on worrywarts.
Identify your supports
Tailor your message uniquely for every audience to obtain viral impact.
- Inform senior management about change benefits and costs.
- Assist middle managers to concentrate on results displaying benefits of better processes towards cost savings, production and development.
- Dampen the concern about job security, while heighten performance expectations.
- Discuss frequently at every change program stage.
- Seek employees input at every phase to strengthen their involvement strength and this helps to recognize resistance level.
- Changes need to consider employee’s improvement suggestion
Changes are hard for everyone in the organization but being open and walking through with everyone’s support helps to progress towards the main goal.