This year, significant macroeconomic disruptions are on the horizon. Facing the pressing issues of rising costs, inflation, and risk – in areas such as geopolitics, supply chain, climate, public health and more – the increased adoption of automation and access to robust analytics and data are critical to mitigate these challenges.
Therefore, a flexible and resilient infrastructure that supports remote work and ensures data security is of utmost importance, particularly so for the finance department.
At the same time, everyone is trying to catch up or even hoping to leapfrog others through digital transformation. There is, of course, also an important question of how to upskill your team so they can focus on more value-added work.
CXOViews: Essentials to successful finance transformation
Many corporations recognise the potential gains that come with digital transformation, but executing on that potential is a different story.
Unfortunately, only 23% of companies in APAC consider their digital talent strategy to be ideal, so much remains to be done. The three biggest obstacles they identified are lack of articulation of a digital strategy (39%), lack of necessary talent (33%), and moving too slowly (33%).
Even as companies undergo digital transformation, people remain the heart of all organisations. Instead of merely focusing exclusively on technology, developing the workforce, and establishing a culture that accelerates progress is a key element in the formula for success.
Typically, companies find themselves lagging in the digital transformation process due to the lack of adoption among employees. To become a digital-first organisation, Chief Financial Officers (CFO) and broader company leaders must re-examine digital transformation from a human lens.
Establishing clear objectives
Firstly, leaders must establish clear objectives that outline the desired outcomes of the transformation, while also providing the necessary training to leverage the technology to its full potential.
This will better allow them to communicate their digital ambition and close the gap between employees’ existing skills and capabilities and organisational digital transformation goals.
The aim should not be limited to mere "adoption" – CFOs must envision the greater picture for the organisation so that employees understand the end game and are motivated to get there.
When leaders get employees on board the vision that technology holds the potential to bring value and that embracing digital transformation is the right path forward, digital transformation can be accelerated.
Cultivating skill sets to enhance dexterity
Next, CFOs must expand their skill sets to keep pace. According to an analysis by Heidrick & Struggles, finance leaders who have been promoted based on their technical expertise, problem-solving and ability to prioritise, tend to lag in the characteristics that have been identified as being important for “digital dexterity”, as compared to other leaders.
To overcome this, finance leaders should cultivate a curious and open-minded approach, embrace experimentation, and adopt innovative technologies to enhance efficiency and drive better results.
Building organisational muscle with talent gains
A Heidrick & Struggles survey found that talent is a crucial limiting factor when pursuing digital acceleration. 57% of APAC companies surveyed believed they required a new or different talent base.
Companies need to build organisational muscle by hiring individuals with pertinent digital expertise, which can create a cycle of positive change within the organisation and herald the advent of innovative ways of working.
The finance operating model of the future will rely heavily on digital capabilities and talent, with a balance of finance technical expertise, business partners, and data scientists who can support CFOs in building the right models for the future.
Nurturing digital transformation as a leader
The CFO’s leadership is key in ensuring successful digital transformation, and at Heidrick & Struggles, we characterise this through four key abilities: leading through influence, driving execution, creating possibilities from new thinking, and having an ownership mindset.
Being digitally savvy has become a necessity, and to spur digital transformation, leaders need to marry the adoption of technology with inspiring employees - nurturing trust, cooperation, and interdependence among leaders, teams, and business units, all while staying true to traditional business goals and objectives. It’s undeniable that a digitally savvy workforce is invaluable to organisations; and for companies to truly excel, the key will be in rethinking from a people perspective so the talent within can maximise the potential technological tools offer.
