The COVID-19 virus, its many variants, and the resultant pandemic reminds us to not take anything for granted. Disruptions have always been with us in our VUCA world. Do we panic at the time of a disruption? or as credible leaders do we chart newer and better ways to enter turbulent waters?
Digital innovation
Digital technologies have been altering and redefining many business models and processes for some years now. Some forward and future-focused organizations have recognized the importance of going digital. But many lag simply because change is not easily accepted with the masses. Disruptions can only be handled with change – both in the way we think and the actions we take.
For example…
Last week as I drove into my regular service station, I recognized that their facilities were curtailed and all the familiar faces who once served me had all gone. Did they no longer need their jobs? Would I be served just as I was served before? Situations like these severely dent customer confidence.
In the interim, and in conversations with my technology minded friends, we noticed that some innovative service stations had gone digital. They built online service platforms with improved customer service models. These were the ones who overcame their disruptions to carry their business forward.
Finance Organizations (within existing firms) are transforming
The old archaic finance and accounting functions are changing and doing things they could never do before. They are metamorphosing into the ‘finance organization’ to change the old ways of doing things. Digital technology is shifting from expense control and spreadsheet driven accounting and reporting to predictive analytics and creating many areas of business value. Accounting is no longer about living in the past.
The Finance Organization is about living in the real-time present to impact the creation of your desired future. The time is NOW for this once siloed section of your firm to become your new business value architects leading a valuable profit center. The two main drivers of this are…
1. Ease of access to data – the digital world allows for the capturing of all data relevant to enterprise size and business verticals. It also allows for end-to-end multi-dimensional data access that enables total visibility to both customer information and internal performance of various functions. These inputs are essential for growth.
2. Versatility of Cloud Applications – Integrating Cloud solutions is preferable over ERP and other legacy applications. Doing so reduces complexity while increasing productivity and provides for significant cost savings.
First up, an examination of the current situation…
Digital technology will impact the future of all businesses one way or the other. Forward-thinking small and medium enterprises will need to examine their current state regarding…
1. The existing finance and accounting operating model (are we already the FINANCE ORGANIZATION within our firm – a strategic profit center?)
2. The digitization and automation applied to processes and workflows (are we being empowered with real-time strategic information to chart our future courses of action?)
3. The people deployment and talent engagement efficiency (are we deploying the right mix of competencies that are needed to create the FINANCE ORGANIZATION?)
Let’s expand on this a bit…
1. Finance and Accounting Operating Model.
Because it is real-time data driven, finance and accounting functions are transforming into the insight engine for any business. To get to this place, the following functions and competencies need to be set up and nurtured.
a) Analytics Competency Center – Accounting cycle closure and the reports generated should enable a clear assessment of trends regarding products or services, customers, projects, and expenses. Employees across business functions are empowered to review the financial impact of operational events and decisions, instead of relying on finance and accounting to do it for them.
b) Cross Functional Services – The accounting and financial services must support and benefit all other functions within an organization. This can happen only with seamless data flows and information movement. Anyone responsible for P&L within their functions are therefore empowered to make decisions in real time.
@Insight…
The Insight Console Framework serves as a decision support function seeking to partner with business operations.
2. Digitalization and Automation applied to Processes and Workflows.
Having a clear view of the end-to-end processes that make up your business operations is an essential requirement for selecting and deploying the right technology. This gives you the foundation to organize each of your workflows into discrete components (digitalization). Not laying such a foundation is the reason why many small business and practice owners struggle with selecting and maintaining the tools that would raise the efficiency of their workflows and end up with very little in return for the effort they put in.
@Insight…
The Insight Automated Center of Excellence optimizes workflow automation either by applying robotic process automation (RPA) or by integrating appropriate cloud-based applications.
3. People Deployment and Talent engagement efficiency.
The Finance Organization today requires more than CPAs, MBAs, and accountants. In addition, statisticians, data scientists, finance engineers, behavioral scientists, economists, and even anthropologists need to be in the mix. Disruptions are the new norm. With transactional tasks getting automated or outsourced, humans are encouraged to move to more decision support, predictive analytics, and performance management tasks. For SME’s especially, working with a spectrum of talent to achieve this goal may seem daunting and cost prohibitive. However, the pandemic has caused many to discover the efficiencies of remote engagement as their employees can now work from home. Remote engagement opens doors to new opportunities of engaging talent globally, fully or fractionally to realize the combination of talent at impressive cost efficiencies.
@Insight…
We have built the Insight Co-Collaborative Business Partnering Model to help you enable your own co-created Finance Organization. No matter what disruptions you are facing now or will face in the future we believe we will always have your back. Our existing and growing customer list testifies to this. The traditional mindset of your people will change, and creative competencies will also become part of the new normal way of doing things in your organization.
Test us…
This is just a snippet of what can be done to what currently exists in organizations. And it makes a mention of the space for future accounting and finance possibilities. @Insight, we have moved into this future space. However, seeing is believing…
