What causes a perfectly sensible, experienced, risk adverse CFO to come in to work Monday morning and go 'that is it we need to change and now!' The reasons that drive a planned Finance Transformation Program are pretty consistent but the spark that ignites the desire to start right now can be one of any number of reasons.
Viewed through the strategic lens with a strong Roadmap and a well resourced Team such a Program will commence because of one of three reasons:
- The ERP needs upgrading and 2025 is the Year of the Upgrade for many Businesses
- The CFO believes the Organisation and its Processes are either out of date or broken
- The CFO is new to the Role and following in the footsteps of a 25 year veteran
We can all sit down at Year End and Budget for the above three, it can be planned for and resourced without a rush or a fire sale but what is the spark and the arsonist that ignites a Finance Transformation with undue haste?
In my experience several 'sparks' come to mind:
- A Compliance failure - The Business has suffered an immediate and unforeseen loss due to a breach in Process or Organisation
- An IT failure - In this instance Its your car and it breaks down 'on the way' to its MOT. You cannot accept such failings and risk to service delivery any longer
- The Numbers were late - Admittedly this can be caused by (1) and (2) but inevitably its an Organisation failure. Team A can't work with team B and Team C is constantly expected to ride to the rescue. Anarchy at Period End has caused many a Finance Transformation Program
There are others I am sure you could name but what distinguishes the first 3 drivers from the second three? In a word, Emotion. Do you think that this is the best start to a Program that may cost you into 7 figures and cause widespread disruption to service delivery?
In hindsight when you look back 18 months later after you have dived headlong into a Finance Transformation Program because the top boss demanded 'action', you may thank maybe we should have paused slightly not sent for 'somebody. now!'
In my experience the investment of 12 weeks upfront will release the emotion behind the decisions and ground them in fact so that sensible decisions can be made.
Have you experienced one of the 3 Sparks and if so do you think this Spark should drive you, firing your emotive response or do you wish to tame the beast?
Then reach out and let me guide you through the critical opening stage of a Finance Transformation Program. No emotion just experience and common sense.
Best Regards,
Michael Ryan.
PS Check out the Book if you missed it:
