CEO Wavelength
Finance Architects: Designing Your Finance Function – Right.
The challenges of a business can often point to a poorly designed finance function. So, what should a well-designed finance function look like?
Efficient Design
More often than not, businesses have people and processes that just don’t make sense and, slow a business down. Maybe the set up of their finance function made sense, pre-Y2K era (remember that non-event, event?). Or, the finance function was designed while fires were being put out without the benefit of integrating all proper design considerations. Or, people who are not finance people who excel in process design and leveraging appropriate technologies put together a poorly designed and operating finance function, where it’s a mosaic of activities to get stuff done but, not the right stuff done. Or, it’s all of these things.
An efficiently designed finance function will consider: the flow of decision-making within the finance function and, across the company, roles and responsibilities will be clearly defined, a good tech stack that fits the nature of the business will be leveraged, and resulting from these things, solid business insights will flow from finance across the Company, bundled according to the right audience. The cost of the function will be much leaner than having a function that is not efficient.
Operational Know-How
To design a finance function well means knowing the “ins and outs” of a Company’s operation. Investing in finance experts who know both - how to operate a finance function and design an optimal finance function is essential. Finding finance experts who are both finance architects and operators is hard but, worth finding.
The Signs: There’s Opportunity to Properly Design Your Finance Function
Usually, there are many signs. The big ones are: slow and/or, inaccurate and/or incomplete business insights. The people, the processes, the tech – these are all opportunity areas to enhance your finance function. When the signs are present, seize the opportunity for properly designing your finance function and then having in place expert operators - it’s nothing short of transformational for your business when you do. Make sure you engage with the right finance experts –look for the qualities of an Operational CFO whose equally identifies as a Finance Architect.
