What is in this article?:
- How to Help Finance Govern toward its Target Operating Model
- Governance’s Toolkit: Strategy, Frameworks and Metrics
- Communicate, Communicate, Communicate
Strategic alignment of finance with corporate strategy and governance to measure progress provides direction to an effective operating model.
Communicate, Communicate, Communicate
Finally, finance leadership must develop clear communications and articulate the rationale for the strategy, and the plan to get there. Communication of the strategy is often the neglected pillar. The strategy’s vision and pace must be conveyed to all relevant members of the organization through finance newsletters, town hall meetings, intranet postings and other communications channels. Finance must measure and then “sell” its progress—an act that comes natural to former captive service providers, for example, but not to a normal finance group.
As business changes faster than ever before, finance will need to rethink its organizational strategy. Changing operating models calls for close attention to governance, in order to maximize gains while keeping management effort contained, and minimize resistance. With a clearly articulated strategy and the troops aligned to accomplish it thanks to a solid governance plan and organization, leadership can focus on the other dimensions of the target operating model to create fast and sustainable success.
Kalyan Raman is the vice president of finance transformation and business process as a service (BPaaS) at Genpact. He has over 15 years of progressive management consulting and industry experience, and has led several finance transformation programs for large companies, principally in the high technology and consumer packaged goods industries.