Role of CFO in business transformation

In today’s challenging environment,  financial leadership is more important than ever. Here, financial executives especially Chief Financial Officer (CFO) has greater role in accelerating strategic growth across the enterprise. In the current scenario CFO’s must be a catalyst agent and are increasingly required to partner with CEOs in leading the transformation across an organization. In order to play the major role in driving transformation CFOs need to be well equipped and go beyond the numbers to diagnose and navigate change efforts more efficiently to improve future performance of the company. So, what steps or strategies a CFO need to adopt to effectively support and influence change in their organization?

cfo in business transformation

Rapid technological change, market trends, more empowered consumers and employees, and ever changing government rules, have all combined to disrupt traditional business models. In this diverse situation the main challenge before the CFO is to not only manage disruption, but to also identify and invest in the business models, products, and services that will lead to sustainable, profitable growth.

As a first step, to become the leader in business transformation, CFOs must change their roles  from technical expert  to a highly accomplished commercial leader. As the business today are more socially exposed CFO can no longer contribute to decisions solely from a financial perspective, whereas they must be aware of customer and consumer behavior and cognizant of the public perceptions of all key decisions.

Getting transformations off the ground, CFOs should always closely monitor market opportunities and make investments that help the organizations leap forward as per the increasing demands. Excellent financial development can be developed by investing continually in people, process and technology.

Evolving technologies need to be adopted to provide greater scope for a transformation. Here IT department plays a major role and CFO needs to understand the power this department can wield. CFO has to develop a strong relationship with the CIO and try to understand some of the key areas and implement the trending technologies in a way that will achieve vital business objective.

Collaborate with other departments like HR and Marketing to ensure that technology investments enable the right business outcome.

Over the years, CFOs major responsibility include profitability and cash flow and cost management. But in this changing global economy financial leaders should maintain a clear balance between the cost management and increased focus on growth.

CFOs should be effective change agents. Whenever a change is initiated in an organization, there is invariably a resistance. Financial head should have the ability to overcome organizational resistance. They should show strong leadership skills, commercial and strategic insight.

Adopt a forward-looking approach to strategic insight and decision support, along with a strong grasp of information through more robust use of analytics, to stay one step ahead of business model innovation.

CFO should be an effective business partner who drive for continuous improvement of the organization by providing fiscal oversight, predictive analytics, robust planning and forecasting.  With  these, CFOs can effectively change their role from a financial steward to a transformation agent.

Stylus Systems, the technology company help you to achieve the business transformation in its best possible way. With a clear understanding, we work across process, people and technology to make change a reality. Talk to us for  tips on how to restore shine on your business.

Business Transformation-major risks and benefits

business transformation

Today enterprises concentrate more on diverse ways to adapt to ever changing business conditions and invest their capitals in revenue generating prospects. What are the major benefits and risks enterprises will face during major business transformation.

Unfortunately several organizations are missing out on major business benefits, including increased profitability, reduction in operating and administrative costs through untuned application portfolios. In order to either gain or retain competitiveness, business have to change the way they operate.

Business world now faces several competitions from all sectors along with unprecedented challenges and changes. So now companies have to take the plunge into business transformation by aligning people, process and technology more closely with its business strategy. In one of our earlier blog post we have discussed about business transformation and the basic steps to be followed in a successful business process management.

Business transformation itself has transformed over the years. For any enterprise, a successful business transformation campaign can yield substantial benefits and at the same time implementing it is very challenging too. Here let’s check out the major benefits and risks of business transformation.

BENEFITS OF BUSINESS TRANSFORMATION

  • Streamlined processes, improved efficiency and greater agility
  • Clear understanding and ownership of predicted benefits
  • Productivity improvements along with stronger financial and process control
  • Development of a re-energized leadership
  • Achievement of medium term financial strategy
  • Improvements in on-time delivery, reduction of operating and administrative costs, reduction in inventory and faster cycle time
  • Improved customer service and increased profitability
  • Business transformation offers a clear understanding of the industry competition and provides the ability to adopt leading industry practices

Along with its many benefits, Business transformation has several risks too, as it transform the whole business.

BUSINESS TRANSFORMATION CHALLENGES

  • Market environment is very unpredictable and it will be very difficult for enterprises to identify and decide the right solution. Business requirement, budget, life expectancy, project timeline and solution provider need to decide to embark on a journey of business transformation
  • Evolving technologies need to be adopted to provide greater scope for a transformation
  • Business transformation need continuous innovation and for this a constant change of business model is essential
  • Identifying the key players and responsibilities is also a major challenge as any minor mistake may lead to the project delay
  • Another challenging factor is to decide on who should drive the transformation initiative, either the business users or the IT team as both are equally important and a minor fault in any one may lead to process failure.

NO COMPANY SHOULD TAKE A BUSINESS TRANSFORMATION INITIATIVE VERY LIGHTLY. THROUGH THE RIGHT ALIGNMENT OF PEOPLE, PROCESS AND TECHNOLOGY WITH ITS BUSINESS STRATEGY WILL DEFINITELY GAIN UNDENIABLE GAINS FROM BUSINESS TRANSFORMATION.

We, Stylus Systems, the technology company have helped several enterprises in achieving the business transformation results they desired. Talk to us to learn more about Stylus business transformation consulting services.

Steps to successful business transformation

Business Transformation

Today’s business world faces several competitions from all sectors along with unprecedented challenges and changes. Development in technology has helped enterprises with operational excellence and transform the way they work. But to wither in today’s business environment, organizations need to respond with flexible solutions they can adapt to the next development.

In order to cope up with the shift in market environment and for a successful business transformation, enterprises have to align, people, process and technology more closely with its business strategy. Check out the below steps for a successful business transformation.

• Getting the right strategic vision is the first step in a successful business transformation. Before embarking on a transformation, clearly ensure the current state of your organization, optimal for the type of the transformation you are choosing. Clearly define the depth and scope of the changes and the redesign of internal processes and structures.
• Understand the transformation’s impact on the organization. There will be a big gap between how an organization currently operates and how it will be after transformation. Evaluate the gap and set up a future vision.
• Next step is the execution, which is obviously the hardest part of the transformation. Ensure an effective adoption of change by aligning people, process and technology more closely with its business strategy to meet long term objectives. Specify the overall transformation goals for each management, discipline and organizational member.
• Gain executive sponsorship before embarking on a project. It is the cornerstone of any business transformation. To be effective, the sponsor must be a true key stakeholder, with the power and influence to impact success. The sponsor must be in a position to authorize resources and provide the guidelines to shape decision-making at all levels, empowering people and rewarding achievements.
• Motivate team for effective implementation. A successful transformation relies completely on the people component of an organization. Leaders must also empower their best and brightest employees to become experts at understanding, improving and simplifying the organization’s core processes.
• Business transformation should basically target on customer satisfaction. Customer needs solution and the transformation need to anticipate them.

Organizations are looking for ways to adapt to ever changing business conditions and invest capital in revenue-generating opportunities. By effectively following these steps enterprises can achieve operational excellence and cost leadership. Go beyond these steps as a one-time checklist, and make the continual pursuit for the perfection of your goal.

Stylus Systems, the technology company help you to achieve the business transformation in its best possible way. With a clear understanding, we work across process, people and technology to make change a reality. Talk to us for  tips on how to restore shine on your business.