#13 How to Lead Finance Transformation with Hannah Munro

Hannah Munro is managing director of Itassolutions and host of CFO 4.0 Podcast. Hannah has over 10 years experience helping CFOs drive finance transformation and reshape finance functions. We look at what you need to do as a CFO to lead a successful finance transformation There are three elements to finance transformation: People, Process & Systems Hannah Munro has a background in analytics and process design and not in technology She believes that the key to a successful transformation is to make sure you don't concentrate solely on the technology. You can have the best technology in world, but if you don't have good processes and motivated people then your project won't get anywhere. Finance transformation is driven with a good change process If you want to deliver a successful finance transformation then you need to understand how to lead change. John P Kotter outlines an 8 step process in his book leading change. The 8-Step Process for Leading Change was cultivated from over four decades of Dr. Kotter’s observations of countless leaders and organizations as they were trying to transform or execute their strategies. He identified and extracted the success factors and combined them into a methodology, the award-winning 8-Step Process for Leading Change. Create a sense of urgencyBuild a guiding coalitionForm a strategic visionEnlist a volunteer armyEnable action by removing barriersGenerate short term winsSustain winsInstitute change If you want to find out more about Kotter here's a great article Create a sense of urgency for finance transformation A sense of urgency or a burning platform needs to underpin all change. If you don't have a burning platform for making your finance transformation then its unlikely to happen. Recently we've seen remote working mean on premise accounting solutions are no longer viable. This has given an urgency to adopt cloud based systems. If you want to transform then something needs to motivate change. Ask yourself whats driving the urgency? If you have no urgency you will have no motivation. Sometimes that lack of urgency means necessary change doesn't happen. In the podcast Kevin recalls his employer growing by acquisition but failing to consolidate the back office. Once the need to consolidate became urgent it was too late to do it. The business was already losing too much money and collapsing fast. Build a Guiding Coalition that extends beyond finance You might be transforming finance, but you need to look further. The problem often sits outside finance. Make sure there is representation from across the business, not just from the finance team. You will likely have to change processes that significantly impact on the way your finance team operates. Many of those processes won't be owned by finance and will be driven by the rest of the business. You can start by identifying capable, influential, and critical allies from across your business. These people are your change oversight team. Make sure finance transformation aligns with a strategic vision Build a picture of what the future looks like after the finance transformation is implemented. Your picture of what the organisation can become is both a future that looks appealing and sensible. If it isn’t, then it will be hard for the leaders to sustain commitment to the change effort. In this step, you must maintain a balance between setting organisational direction independently and collaborating with the guiding coalition. A strategic case for change is a key element of any business case. Poor finance solutions can hinder the wider business strategy. The system you choose for finance needs to enable wider business processes so you need to ensure the technology is a strategic fit with other business systems. Enlist a volunteer army Can you communicate your vision effectively? You must capture the hearts and minds of the employees and managers who are necessary to imple...