If you are a company in the throes of change, you will need a finance capabilities model to anchor your finance transformation. A well-thought-out list of finance business capabilities, an integral part of an overall business architecture, is a critical deliverable valuable in many use cases.
Seven reasons your business needs a Finance Capabilities Model:
- Regulations, competition, and expectations from the finance function are higher than ever before. So, to excel in this era of mega shifts, a finance capabilities model will help in getting your arms around what finance does.
- A finance capabilities model can help in translating the accounting and finance strategy into action.
- Based on capability prioritization and importance, budgets can be allocated to where finance can move the needle for the enterprise.
- We are in the era of a real-time business. To foster a real-time enterprise, finance function needs to perform the record to report service expeditiously and support strategic decisions. Knowing what capabilities to be real time or near real time will allow adequate technology enablement and process improvements.
- Business and technology do not speak the same language. A finance business capability model can be the common lingua franca.
- Finance transformation projects without a capability model as a foundation tend to veer toward a bunch of projects with a disparate set of requirements. A capability-based transformation roadmap helps provide the guard rails and guideposts for the implementation.
- A finance capability list helps in conducting a capability-based vendor evaluation for the finance and accounting functions.
Do you have a finance business capability map? How else have you used it in your finance transformation and optimization?
If you need a pre-built, customizable finance capabilities model, please consider CIOPages.com accounting and finance business capability model. If you need help customizing the capability map, please contact CIOPages.com consulting services.