Let's create the Agile Finance Function, shall we?
www.freepik.com

Let's create the Agile Finance Function, shall we?

This is the channel "Trends in Finance and Accounting" with 140,000+ subscribers! Click "Subscribe" to receive a notification and an e-mail when I publish new articles on this channel every Thursday and the occasional Saturday.

PREMIERING NEXT MONDAY!!! Tune in to my new live show "The Softer Side of Finance" on Monday 9 January at 15:30 CET. We're building on the success of "The Finance Master Show" but this time zooming in on FP&A and business partnering. In this first show, we discuss the "Ten Commandments" of planning and forecasting. You can sign up for and attend the event here.

Catch episode 5 of Season 2 of the #FinanceMaster Podcast. It's a chance to learn more about trends in finance and accounting while hearing perspectives from a global audience. Search "FinanceMaster" on your favorite podcast channel to find the latest episode or catch it on Spotify here.

Join my original LinkedIn Audio show "The #FinanceMaster Show" today at 15:00 CET. We will be discussing today's article and taking questions from the readers/listeners. You can sign up for and attend the event here.

To follow my entrepreneurial journey you can over to my Instagram account.

If you want shorter snippets of the future of finance and accounting then check out my Twitter account.

Do you want to get notified whenever I post on LinkedIn? Then go to my profile and click the small bell icon below the front page banner on the right-hand side.

Want to know what the modern Finance Function looks like - and, in fact, how it's already organized in businesses around the world?

"Machine-learning and robotic systems will ruthlessly automate many routine businesses, freeing up your finance team to spend 75% of its time on decision support and predictive analysis, guided by artificial intelligence and input from statisticians, data scientists, behavioural economists, and even anthropologists."

That's the view of leading analyst David Axson, as reported in the AICPA and Oracle's landmark report Agile Finance Revealed.

Depending on the current state of your organization and its predisposition to change, this view of the Finance Function might sound like science fiction - or, more likely, it might sound increasingly familiar. The new operating model for Finance is being birthed right in front of us, although its progress is not yet evenly distributed.

Reorganize or die

Change is imperative, as opposed to an option. The benefits of the modern Finance Function are well-documented, and the downsides associated with sticking to the old model are many and serious.

This series is looking at the practical work that needs to be done to get to Finance Function 4.0. One of the most important such steps is a complete rethinking of the way the function is organized.

Agility is the name of the game. The Finance Function itself must be agile, but it must also be structured in a way that supports the agility of the organization as a whole. Mirroring the explosion of SaaS, cloud-based technologies, and practices of decentralization, the new operating model for Finance makes use of distributed and shared services as opposed to relying on proprietary or 'vertically-integrated' systems.

In practice this means:

  • Centralized specialists and subject matter experts (SMEs) working in an integrated manner across multiple disciplines.
  • Highly efficient centres of excellence that provide the muscle required to run seamlessly automated repetitive processes - or what we might call the 'grunt work' of Finance.
  • The 'front line' of business partners whose role is to influence and drive change across the organisation.

Every link connected

This three-pronged approach can be summed up in what we might call the creed of the business partner: led by humans, augmented by technology.

By adopting this principle we can create and solidify a new, fully-integrated Finance value chain dedicated solely to the creation of value for our stakeholders.

Reorganizing a Finance Function (or indeed an entire business) is a significant program of work. Start by taking an audit: how close is your current way of organizing to the three-pronged approach presented here? Then check back for the next articles in this series, in which we'll be exploring the practical steps you need to take to future-proof your Finance Function.

This was the third article in my new series "The Finance Function of the Future". You can read the previous articles below.

Building a finance function fit for the future

The cultural revolution in the finance function

While you await future articles you can read my latest series about the "Data to impact journey" below.

From data to impact - the Holy Grail of Finance

The power of harnessing data for Finance

What cleaners and finance professionals have in common

The limits of data visualization for the Finance Function

Have you been dead by analysis?

Analytics is a marathon - and you're falling a the final hurdle

Continue reading below for more articles about trends in finance and accounting.

Let's end the war between Finance and Data & Analytics

ESG is the only game in town

Like PB&J - why Finance and coding are made for each other

Why The Digital Revolution Hasn’t Caught Onto Finance Yet

Tech vs. People. Where Should Finance Invest?

A Digital Reality Check Of The Finance Function

How To Make Robots A Part Of The Finance Family?

Why You Should Only Robotize Standard Processes 

Robots and Humans. A Marriage Made In Heaven Or Hell?

A Tale Of Robots: From Assembly Lines To Knowledge Workers

Robots Must Solve Business Pains To Be Successful

What AI Competencies Do Your Finance Team Really Need?

Here's How To Test If Your AI Solution Will Be A Success

You're The User Of AI. Yes You, So Take Charge!

Blip. Blop. Accounting Robot. Are You Ready?

Are You Ready For Robotics Process Automation?

Have You Met Your Robot Accountant Yet?

Robots Are The Future Of Analytics

Your Robot Accountant Has A Name, It's Dixie

Anders Liu-Lindberg is the co-founder and a partner at the Business Partnering Institute and the owner of the largest group dedicated to Finance Business Partnering on LinkedIn with more than 11,000 members. I have ten years of experience as a business partner at the global transport and logistics company Maersk. I am the co-author of the book “Create Value as a Finance Business Partner” and a long-time Finance Blogger on LinkedIn with 120,000+ followers and 200,000+ subscribers to my blog. I am also an advisory board member at Born Capital where I help identify and grow the next big thing in #CFOTech. Finally, I'm a member of the board of directors at PACE - Profitability Analytics Center of Excellence where I support the development of new analytics frameworks that can improve profitability in companies around the world.

Jason Hershman

Startup CFO | Founder of Point | Using finance to start, grow and scale companies from day 1 to exit

1y

As someone who has worked with CFO's of more mature $1B+ businesses as well as many younger (5 years or less) companies, I can tell you for fact that the speed in which both move are vastly different. It would greatly benefit the more mature companies to take a page out of the younger company playbook. Problem is most later-stage CFO's are very risk adverse.

Leonard Brown

Helping Finance Managers of ‘busy’ SMEs improve profits | Turnaround 'busy' loss-makers | Improve profits of the already profitable | A proven step-by-step process | 90-day projects | Training & Coaching throughout |

1y

It's important that any new initiatives to increase the 'value' which a 'Finance' function delivers within their organisation, doesn't go as some others have: i.e. "When all was said and done - more was said than done" 🤔

Iain Main

I Help FP&A Teams Supercharge The Way They Forecast

1y

'Agility is the name of the game' - 100% agree with this Anders! I like the inclusion of Subject Matter Experts as a specific role - of course every business is different, but are there any ones you see heavier focus on sooner rather than later?

Scott Stern

Global SaaS Marketing Leader | Product Storyteller | AI for Finance

1y

Great stuff Anders Liu-Lindberg thanks for sharing. Is ruthless automation a good thing lol? No doubt the unification of AI/ML to enable Finance teams is a question of when not if and a massive opportunity for organizations to embrace.

Dr JULIEN KOVHELE BEAVOGUI

Pharmacist, CEO, Founder & management director @ medicine Guinea sarl/ Pharma representation, regulatory, marketing, sales & consultancies/

1y

Nice to be here for learning

To view or add a comment, sign in

Insights from the community

Others also viewed

Explore topics