Organizations continue to face problems in this new context of constant change and disruption. What is certain is that an organisation is more likely to succeed no matter what challenges it faces if it has a foundation built on resilience, agility, and automated, simple operations.
Since both internal and external changes are expected to continue at a rapid rate and it is impossible to predict the future, we need dynamism in all aspects of the business including finance. Being dynamic means enabling the Finance function to support the company’s ability to compete, endure, and prosper in the face of change.
A Deloitte report reveals that Dynamic Finance is a new way of operating and defines a set of principles to help Finance leaders better understand how to transform Finance from a business function to a dynamic capability—while still performing its usual duties.
The principles of dynamic finance include a transformational mindset, workforce of now, lights-out processes, Information on demand, Data for storytelling, No-regrets tech, and Sense & learn. As per the report, 82% of finance leaders are using data and analytics to identify and respond to changes in the business environment.
Organisations are increasingly contemplating unique methods to enhance their businesses’ efficiency, responsiveness, and capacity for rapid change implementation. Simultaneously, finance functions are undergoing a transformation to better drive business results.
This shift is largely attributed to the growing demand for agility, spurred by external influences. It necessitates the adoption of streamlined and consistent processes, a foundation of advanced and supportive technology, and a workforce equipped with the requisite technical skills.
Transformation of the finance function by leaders:
Leaders are redefining the role of finance within the business landscape, pushing for a cohesive integration where finance teams break out of siloed functions and engage proactively with different departments.
This strategic shift emphasizes the contribution of financial expertise not just in fiscal management but in overarching business goals, ensuring that strategic planning and operational effectiveness are informed by robust financial insights.
By fostering this collaborative and anticipatory ethos, leaders are empowering the finance function to become a cornerstone of sustainable profitability and a driver of informed, strategic decision-making that fuels the entire business’s advancement.
Business Partnering – Beyond Operations:
The finance profession is undergoing a transformative shift in its operating model, moving beyond its conventional roles to prioritize activities that drive value directly.
Finance professionals are emerging as pivotal figures in the broader business context, leveraging their expertise to influence decision-making and strategy formulation. Their role has evolved to focus on driving value creation and resource optimization, positioning finance as a dynamic force that shapes and steers the company towards achieving a competitive edge and realizing its strategic objectives with enhanced efficiency and foresight.
About the Author: Rajani Kesari, CFO at Nayara Energy
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