What is one question that should be asked before starting a transformation journey?
Sort By:
Oldest
Fractional CFO/FP&A Consultant7 months ago
Before embarking on a transformation journey, it is crucial to engage with each business unit leader. Ask them about their specific pain points when it comes to finance. Is it viewed as just an exercise? Are they constantly providing information without understanding why? Identifying these pain points allows for open and honest communication, which is essential for addressing issues and designing the transformation. For instance, in one company I worked at, some business leaders expressed interest in gaining more understanding about finance. This information was helpful in shaping the transformation, making it easier for them to understand. A significant part of this process is educating about finance and ensuring clarity so that people can make informed decisions.CFO7 months ago
I would add that understanding the business and its revenue streams is also vital. Any transformation should not disrupt these aspects. After all, the business needs to keep going, the lights need to stay on, and the bills need to be paid. Whatever changes are made, they should not negatively impact the core business or the bottom line.
CFO7 months ago
At the CEO level, it's important to understand the vision for the transformation. For instance, if you're the new CFO in a company, there's probably a reason why a transformation is needed. Understanding what the CEO's vision is for this transformation is essential. For example, I've seen situations where the accounting team serves only as a control function. However, I believe it should be an enabling function and a partner to the business. Depending on the desired outcome, different questions may need to be asked. If the goal is to transition from a control function to a partnering function, then it's crucial to work on giving people information and visibility for decision-making and changing outcomes.
Finance Manager7 months ago
One question that could be useful at the C-suite level or with business users is, "What would a successful finance department look like in this organization?" This question can help draw out what people are expecting from the finance department. Some organizations understand the potential of a finance organization and what it could evolve into in terms of adding more value, while others view it more traditionally. You could propose where the finance organization could go and then get feedback from the C-suite level to see if that aligns with their vision. If possible, it would be beneficial to bring the potential of the finance organization to light in terms of where it could get to if it were more of a value-adding organization as opposed to just preparing the numbers.