WORLD ACADEMY OF INFORMATICS AND MANAGEMENT SCIENCES
ISSN : 2278-1315
finance has already arrived in some leading organizations.
Deploying solutions: partnering for value
The journey to the finance function of the future
Through partnering with others across the organization, the
finance function is able to cascade the value creation focus
The following diagram (Figure 4) demonstrates the refocused
to local-level planning, decision-making and the ongoing
emphasis that finance functions will need to exhibit in order to
performance management in business units. They also help
fully embrace the changing mandate and remit of the broad
to deploy major initiatives and solutions by engaging in
roles. It represents a shift in emphasis from pure accounting to
change management, strategy implementation and project
management. This will require more fusion between tasks and
management, in addition to ongoing risk management,
activities carried out within the finance function, and far
process management and performance management.
greater interaction with the business.
In the expanded role, CFOs promote value creation by
serving as strategic advisors to business leaders, overseeing
performance across the organization and communicating a
persuasive equity story to investors.
3. THE VALUE MATRIX
It is the fusion of the four broad roles that will allow finance
functions to step up and become the custodians of
organizational value. The Global Management Accounting
Principles define management accounting as ‘the sourcing,
analysis, communication and use of decision-relevant
financial and non-financial information to generate and
preserve value for organizations’, and this links directly to
the changing role of the finance function. Finance now has
the mandate to define, enable, shape and tell the stories of
how an organization creates and preserves value.
Figure 4: Skills underpinning the broad finance roles
The journey also requires the following shifts:
a.
b.
c.
d.
Figure 3: The finance function value matrix
We have labeled this focus the ‘value matrix’ (Figure 3),
where:
a. Finance, as a trusted source of the management
information, provides data integrity,
b. Finance, as a commercial analysis, provides the
insights into the drivers of organizational value,
c. Finance, as the subject matter expert and steward,
contributes to strategic decision-making, including
defining objectives with regards to developing the
business model,
d. Finance, through partnering, uses insights to
address performance issues and enables solutions
to create value.
Finance is well-positioned to take on the wider mandate.
Indeed, we know from our research that this future for
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No longer requiring technical accounting skills alone,
but more general commercial and social skills as
well. Accountants won’t just work alongside other
finance personnel but will work with colleagues from
diverse disciplines across the business, and with
external stakeholders.
Transitioning from an environment where accounting
terms are considered the language of business to a
world where business people regard them as jargon.
Moving away from the accountant’s domain or
comfort zone of expertise to the sharp end, where
problems are solved and business is completed.
Developments in technology provide the potential to
automate routine processes, but relationships and
interactions are still needed between peers.
Of course, our research also reveals the concerns of some
interviewees about the obstacles they currently face in the
journey of transforming their finance function. These
obstacles sit under three interconnected headings:
Capacity: accountants are too busy with workarounds and
legacy systems, or simply don’t have the capacity to engage
with and support the business in broader roles.
Competence: accountants may need to develop one or more
of the skills needed for a more business-focused role, whether
that’s business understanding, data analytics, interpersonal
skills or a commercial, ever-learning mindset.
Credibility: even if they have the required capacity and skills,
accountants can be highly regarded for their professionalism
ENDEAVOR 2019 | WAIMS ACADMIC PRESS
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