by Henner Schliebs, Vice President and Head of Global Finance Audience Marketing, SAP
Finance leaders within every small or midsize business have a to-do list that’s a mile long. They’ve got to control growth, communicate performance results, keep a critical eye on threats and opportunities, and much, much more.
And to maintain a growth-oriented mindset, they must be hands-on with -- and knee-deep in -- the details.
These responsibilities are enough to keep anyone busy, but most firms do not have the luxury of having one executive managing one particular area. Finance leaders often have the distinction of also heading HR, procurement, supply chain and a variety of other functions -- and they’re about to get busier.
Finance’s influence will continue to grow, especially when it comes to IT (see Fig. 1), according to a survey of more than 1,000 finance leaders in small and midsize organizations around the world. Finance leaders already wear multiple hats out of necessity -- and they are positioning themselves to be the voice of reason and value as they take on greater IT-related roles.
The interplay between business and IT can uncover deeper insight and value than either function could achieve alone. But first, finance leaders need a perspective that is broader than just their specific needs -- it must include the entire company.
Enter the hybrid responsibilities of today’s finance leaders. Because of their intimate involvement in day-to-day operations, activities and decision making across a variety of business areas, finance leaders are keenly aware of the opportunities digitalization presents, and how changes in each function impact every area.
In turn, they are more likely to inject a well-rounded view into the current and future state of the brand, a sensible road map and, above all, value for customers as well as the firm.
Infusing Digital Transformation with Sensibility, Insight and Value
Digital transformation marks the beginning of new business models, revenue streams and unprecedented expansion. Unfortunately, most companies are unprepared to realize these advantages.
For finance leaders, this is an opportune time to become the qualified champion for advancing digital transformation – not only in finance, but throughout the entire firm. Here are three ways finance leaders can get started right now:
- Build a case for the CEO.Acting as growth-focused strategists, finance leaders can provide CEOs with a perspective that proves how the entire company can better proactively manage and respond to disruption from technological, economic and competitive forces. More important, CEOs need to know that they can be personally impacted as well. For example, finance leaders can demonstrate how advanced analytics and data management can enhance decision-making capabilities -- from the office of the CEO to the plant manager on the shop floor.
- Engage executive peers in results-driven, relatable discussion.All too often, adopting the latest and most popular technology available can be very tempting -- even if the price tag outweighs its benefits. With their typically common-sense approach, finance leaders can help their executive peers rise above the lure of shiny, new “digital toys” that only serve a single department. Instead, they can jointly explore the opportunity of achieving tangible bottom-line improvements when focusing on a sophisticated enterprise management platform.
- Form a strategic alliance with IT.The need for a strategic partnership is all the same, whether the IT department comprises one administrator or dozens of techs led by a formal CIO. Exchanging ideas, experience, knowledge and skills from the technical side and business side can help ensure the right investments are made. Not only does this collaboration better equip the firm to deliver sustainable differentiation and drive innovation; it also provides a secure and cost-effective environment to support core processes.
Building the necessary relationships and business cases for digital transformation can be a daunting undertaking After all, this is a once-in-a-lifetime opportunity to set up a small or midsize business for a prosperous future.
Modern finance leaders already have the knowledge required to help their business emerge as a sustainable, end-to-end digital business. It is time for them to embrace their hybrid roles -- and lead across the enterprise.
This story originally appeared in The Digitalist.
