The Challenges

The concept of finance transformation is not new.

Traditional finance transformation projects have generally been assessed based on cost/benefit of transforming upstream ERP data/transactions/processes in a way that standardises and consolidates finance reporting, function and process.

Often this involves changes in roles and responsibilities and/or moving to an in-house captive or outsource (BPO) Shared Service Centre (SSC).

Upstream transformation may not always consider the range or extent of downstream dependencies associated with the people, process or technology of regulatory reporting and compliance.

For example, has the transformation taken account of embedded shadow resources or the retention of personnel with specialty skills and knowledge?

Downstream regulatory reporting and compliance also rely on legal entity, unstructured and even out of system data that may not be directly available within the consolidated/management ERP structure.

The Implications

Not taking these matters into account can result in implications to various stakeholders within the organisation including:

CFO/Public Officers

  • Statutory Reporting/Compliance deadline & accuracy failures,
  • Incomplete BOD/Stakeholder reporting,
  • Internal controls consequences,
  • Penalties/fines,
  • Increased backfill resourcing, and
  • Additional unanticipated cost.

Board of Directors/Audit Committee

  • Risk management,
  • Governance,
  • Directors Statements, and
  • Reputation.

The Solutions

Project Mitigation

By taking account of the downstream needs in relation to people, process & technology as part of the broader finance transformation planning.  If this is not possible as part of the initial transformation project planning, then otherwise as part of a post implementation review and/or as an ancillary downstream project.

Future Operating Model

Consider a reimagined FOM that retains key value add activities such as strategy, business partnering, review and sign off but outsources other non-core aspects of the downstream function.

Shared Resourcing

Adopting Centre of Excellence teams that share personnel and resources across the organisation.

Improved Technology

Such as Robotic Process Automation (RPA) and AI to assist in dealing with access to data and improved more efficient processes.