Shifting to growth time to think finance transformation: transforming the finance organization is a daunting task, particularly as organizations shift from retrenchment to growth. Here are strategies for overcoming the challenges of thinking "transformationally.".

• Author: Silvers, Sam
• Position: FINANCE FUNCTION

Ask a gathering of chief financial officers what "finance transformation" means, and you're likely to get as many definitions as there are finance chiefs in the room. One executive may want to redefine the finance operating model. Another may want to close the books in a timelier manner. Still another may want to revamp the entire finance operation.

Regardless of the scope of the definition and the priorities attached to it, finance transformation can become overwhelming to even the most seasoned CFO. It needn't be.

Discrete, targeted initiatives can, individually, be transformative. Any one of them can increase the value the finance organization provides, so long as it's focused on supporting the business in achieving growth, improving efficiency and managing risk and compliance.

There are 10 key challenges facing today's CFOs and finance organizations as businesses shift from retrenchment to growth. Understanding these challenges and adopting proven strategies to address them can help finance fulfill its ever-expanding role in supporting business strategy and operations, as well as do a better job of handling traditional transaction-oriented responsibilities.

Creating a Global Finance Operating Model

Finance organizations grow as the businesses they serve grow. It's common for this evolution to produce different finance operating models for various regions and lines of business, especially when growth comes through M&A activities. The resulting inconsistency increases costs and fosters duplication of activities.

Finance organizations of leading companies are developing a common and consistent global finance operating model that standardizes both transactional and business support services across geographies and business units. These organizations conduct the appropriate activities and deliver the right mix of services based on cost, location, in-house staffing and outsourcing resources.

A global approach may include expanding the use of shared services and centers of excellence to drive efficiency without sacrificing quality or control. Common financial planning and analysis resources can be established to support business decisions, accompanied by consistent application of processes region to region.

Leading organizations also leverage a global talent pool, going offshore as appropriate both for commodity services and to fill leadership and management roles. An organization's business operating model should define the degree to which finance centralizes its processes. Standards then spell out responsibilities and establish service levels to provide consistency.

Managing Finance Talent

Talent management isn't a switch that can be flipped on or off depending on the hiring and retention environment. It's essential for the finance organization to determine whether it has appropriate strength in the competencies needed to align finance with the business and to support...