Every company is filled with transformation projects in all areas as they continue to adapt to competition, changing demands and a rapidly developing world. However, more than in any department, you will find transformation projects in Finance. There is a constant flow of transformation going on, yet, few are successful as documented in a study by CEB which shows that 70% of the transformation efforts will be unsuccessful. We will introduce a framework you can use to analyze the current state of your finance department which will help you once you start the next finance transformation project. We have seen all the elements used at various companies during finance transformation projects over the past 6-7 years although not clearly stated in a framework.
The framework we call the Finance Transformation Nine Box, but unlike other nine box frameworks such as the Talent Nine Box this is less about moving between the different parts and more about getting a much-needed structure on your transformation efforts. The Finance Transformation Nine Box looks like this.
With this framework in hand, you can easily start to categorize your finance department and identify where you need to improve. The overall idea is that you should minimize resources used in the bottom and maximize in the top. This is because your business partnering function should be a value creator and have a positive effect on your bottom-line. The transactional accounting functions, on the other hand, are merely a cost magnet. You should not necessarily use more resources on analytics, but you need to do less manual analytics in Excel and start using more advanced data analytics systems.