Nine Steps to Finance Transformation

Every CFO will have Finance Transformation somewhere on their agenda these days. After all, Finance Transformation is just about ensuring the function is modernised and capable of taking on whatever organisational challenges are ahead. It is done by deciding on the focus and goals and structurally getting after them using smart levers. That is how to be confident you are getting the most from your finance function.

Loughridge Transformations have put together a nine-step guide based on their method, which you can follow. We developed this method after many years of experience in one of the world’s most sizeable finance transformation programmes in a top-five FTSE100 environment. As a result, it works in small- to large-scale organisations.

Sometimes, though, going it alone is easier said than done. Especially if you are busy getting things done and ensuring your team completes each month- and quarter-end. If that is the situation, it makes sense to work with some external expertise like Loughridge Transformations, given that the return on investment for a well-designed and executed Finance Transformation is compelling.

However, if you choose to go it alone, each of the nine steps in the Finance Transformation method will have a dedicated post over the coming weeks. To ensure you get notifications when each post is published, why not follow Loughridge Transformations on LinkedIn to get notifications in your feed?

One Size Fits All?

Before getting into the nine steps, it is worth emphasising that the Loughridge Transformations method is both scalable and modular. It depends on the scope of the transformation that your organisation wants to undertake. Sometimes the scope will only require the lightest touches on specific steps – scale up and down as makes sense.

Similarly, the scope may focus on a particular element, depending on the trigger and aspirations for pursuing Finance Transformation. For example, it could be that, following an external auditor’s report, your organisation needs to zoom in on some problematic controls. Alternatively, your organisation may be considering outsourcing or offshoring parts of processes. Or, you might be looking at improving the business-partnering skills of the finance teams. The list could go on and on.

The point is that the method can tackle a small scope or the most complete of scopes. It is also not necessary to tackle everything at once. Loughridge Transformations are available to support you on any or all steps.

Last but not least, Loughridge Transformations specialises in understanding the client and delivering a bespoke product that genuinely fits the client’s needs. However few or many elements of Finance Transformation are sought after, and whether the client is looking for part-time, full-time or an entire team of resources, we work with the client to ensure they get what they need in the way they need it. From individual introductory workshops or guidance and execution throughout the whole transformation, Loughridge Transformations is on hand. 

Once you have roughly sized the scope – or, at a minimum, decided upon the triggers and aspirations for the Finance Transformation you want to undertake, it is time to look at the nine steps.

Finance Transformation: “The Nine Steps”

Loughridge Transformations offer a facilitated standalone workshop introducing and explaining the Nine Steps.
Alternatively, you can walk through yourself:

1. Strategy: Understand The Business

The importance of strategy; what makes strategy an essential step; what an organisation needs for Finance Transformation

2. Determine the Finance Functional Fit

Using the strategic positioning and applying the Loughridge Transformations’ five-part model to determine the strategic fit of the function

3. Define the Baseline – Assess the Finance Function

Using the Loughridge Transformations’ four-component sequence to understand the core of Finance Transformation and assess the current status of the function

4. Define the Future – Target Setting & Benchmarking

Setting realistic targets and understanding “what good looks like.”

5. Choose the Lever

Applying Loughridge Transformations‘ five levers to define how you will deliver and make the best solution selection

6. Understand the Context

The importance of understanding the environment and two lenses to help identify impacts on the transformation

7. Prepare for Delivery

Project and Change Management pertinent to Finance Transformation

8. Deploy and Transform

The phases of deployment, including preparation

9. Sustain the Change

Ensuring objectives are met and delivery is sustainable

Interested in More Finance Transformation?

Our next post will focus on the first step – strategy: understanding the business. There, we will look at the different options, from a light-touch to a full-blown strategy evaluation, and why you should not overlook this step in Finance Transformation.

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