Focusing on leading transformation and culture change can enhance corporate reporting and strengthen the sustainability narrative, according to Ernst & Young.
CFOs and finance leaders may not realise their aims — be it digitalisation or new ways of working — without changes in organisational behaviours and norms. A culture that promotes collaborative rather than siloed working should be provided, along with an appetite for continuous learning and experimentation.
By focusing on two key areas, CFOs and finance leaders can boost corporate reporting and strengthen the sustainability narrative for investors.
- Leading transformational change
There are a range of success factors when it comes to driving transformation, but it arguably starts with one area: a vision that inspires finance people and explains why the transformation program is important.Â
For finance leaders, this means changing the way they think about transformation, as well as seeing transformation in terms of program milestones and organizational goals.
CFOs should also think about people’s individual journeys and personal milestones, which is about creating a narrative that inspires people, addressing anxieties around impending change, and motivates them to see the required changes through to the end.
- Driving culture change
A successful culture shift in finance is likely to require change along a range of dimensions, from taking a fresh look at finance’s vision and purpose, to building a more inclusive and diverse workforce.
However, one key focus area for finance leaders should be to create a culture that supports experimentation and innovation.
Traditionally, finance functions undertake highly technical work as part of carefully controlled processes--while this can be an important part of the finance team’s role, it can also potentially affect people’s willingness to experiment and innovate.
According to EY, CFOs should find a balance: encouraging experimentation (innovation), but also setting clear boundaries around the scope of that experimentation (discipline).
As a starting point, CFOs can take a fresh look at roles, responsibilities and decision-making rights, setting out where teams further down the organisation can make decisions and where they should seek leadership input. This will be an important step to making finance people feel empowered and able to embrace innovation.
