Podcast | Panel discussion: The next generation finance team – accelerating digital transformation | The Access Group and ACCA 

Lindsay Degouve: Hello and welcome, everyone.  

I'm delighted to be joined by Rob, Adam and Clive. We're going to explore as a panel what we really think the key areas that we need to be focusing on as organisations are. 

Adam, I'll come to you first. In your experience, what are the biggest challenges finance departments need to overcome to transform?  

Adam Freeman: It's a great question. As soon as we finish this session, I'm going to see a finance team this afternoon to talk about change and digital transformation.  

And if I think about what that looks like, I'm looking for organisational readiness to change. I'm looking for: “are they set up in a way that they're going to embrace that change, but also optimise the benefits that will come with transformation”.  

1. Compliance

A lot of times people think it's about addressing the challenges and does software address the challenges that I need to. It's really the three main drivers for change. There's compliance, which we've seen a lot of recently, MTD, GDPR, Brexit.  

2. Clear ROI

They forced us to change whether we want to or not, we have to change and transform. The second one will be clear ROI. “Has your finance team got clear ROI and is looking to change to generate that return on investment?”  

3. Organisational agility

But the third one, which is pretty new, has become important and is something everyone should consider, is organisational agility.  

 “Is my business ready to pivot if another COVID happened, if another event happened, an exogenous shock that we can't control, how would I cope?“ 

And that's the question I think a lot of finance leaders, if they're not asking themselves, should be. And if they are asking themselves, they need to understand "is my organisation ready to change?" 

That's the main thing we look for in an organisation. That's one of the main barriers, that people maybe don't understand which of those three camps is a real driver for change and therefore taking their people on a journey.  

Lindsay Degouve: That's an excellent point, and we really did say with the pandemic that those organisations that already have the technological foundations in place were able to adapt much more quickly to many of the challenges. 

The steps to follow to adapt your organisation to change and embrace digital transformation 

As I move on from Adam to Rob - in preparing for the new normal, what steps have you undertaken as a finance leader to more readily adapt to change?  

Rob Binns: I think that point that Adam heaved out is really, really important. I mean, the COVID crisis forced us all to change and forced us all to adapt.  

We didn't really have a lot of choice in that situation. But it's carrying that mindset through, that readiness for change is what I think is really, really important. So we've talked before about how we reacted as a finance team to that situation, to the pandemic. There are things that we did differently, and I'm sure many people listening today experienced similar things.  

We moved cadences that were monthly and quarterly to weekly and daily, and we learned things as we went through that process.  

What's really important is that appetite to drive change that Adam talked about because when you learn something through the process, you don't just let it rip it up and throw it away. You then subsequently try and carry that forward and think about, “how do I build on that? How do I, you know, how do I change that?” 

And you ask the question around “what have we done differently in terms of readiness for change?” It's really that mindset around: “You've got to keep being open, being flexible, being adaptable. You've got to have that willingness to be able to question things.”  

Lindsay Degouve: We definitely got the point, I think, is that point about the mindset that you were picking up on there and that openness and flexibility and adaptability, which can be uncomfortable for people at times as well. It's really “how do we support them with that”. I think it's so important for us all to be focussed when supporting our teams and organisations. And I'm going to maybe build on that a little bit and come to you, Clive.  

The opportunities digital transformation brings to the finance function 

We've touched a little bit on some of the challenges for finance departments, but from the research that ACCA have done and that you've seen elsewhere, what do you see as the biggest opportunities for the finance functions now and into the future?  

Clive Webb: One survey that we took back in March 2021 highlighted that only about 34 percent of people felt that the changes that they need make in response to the pandemic were changes for the long term in finance.  

I think that's a real risk because that step forwards isn't going to happen if we continue to look back in finance terms about what we've done and try and revert back to how we were pre-pandemic rather than looking at the future.  

I think that that's the first real risk. The opportunity is to add value, is to be more forward-looking, to use data, as Rob has described, choose automation as well to actually build on how we generate insight and how we are at the heart of decision making. I think organisations have a lot of challenges coming up. Not only we’ve got recovering from the pandemic, we've got ESG agenda, net zero goals, etc. Organisations need to move themselves forwards in many ways and finance needs to understand how it plays its part in that and how its part is through data and reliability of data and one version of the truth. However, it also needs the skillset to do it and that skillset is about business partnering, communication, being the trusted advisor, storytelling. The finance professional needs to be around you. The finance team needs to be around it, but it needs to embrace that total journey. Otherwise, the sixty six percent will see finance more marginalised if they're not careful.  

Lindsay Degouve: Those are excellent points, and particularly, it's about the longevity of this change. And I often hear organisations or customers talking about when we go back to normal, and the reality is there will not be the same normal. It's a new normal and there are huge advantages and opportunities with that.  

Robotics, automation and RPA –  

Lindsay Degouve: Adam, in terms of robotics, automation and RPA being used more and more, how does it currently help your clients and where do you see it going?  

Demystifying RPA 

Adam Freeman: I think it will become normalised. I think over the next few years it's something that people are going to do. It's got the word robotic in it. “That's not for me. You know, I'm an SME, or maybe I'm too small. I don't have the skills in-house to deal with something that automate something. So how am I going to control something that I'm not doing?” And I think that acceptance as a new wave of finance leader comes through is going to change over the next five to 10 years. I think the pandemic will accelerate that for sure.  

We've seen, for example, supplier invoice processing, one of the most automated processes that we will typically implement during the pandemic because suddenly businesses have got disparate finance teams. “I'm not centralised, I'm not in the office. I can't go to a lever arch file and put hands on a paper invoice anymore because I can't get into the office. I can't be next to someone. I can't ask that question.”  

Around that also comes the associated authorisation risk, the fraud risk. Businesses and leaders prepare to adapt their processes more towards an automated level and now seek the benefits associated with this new way of working. And I think that's the shift that will get RPA accepted in the means that people become comfortable with systems like bank reconciling themselves. Why wouldn't you, that is a very repetitive task that's simple to do now.  

You're starting to look at skills shortages. Are we always going to have the labour available to be able to do these things? We're getting pushed towards RPA whether people like it or not. But what I do also stress to people is - don't be afraid of it, take a step forward towards it. Embrace some of these simple, relatively straightforward things that you might not think are RPA, like invoice automation, like document storage, like automated bank recs.  

That's how we're helping people right now achieve really good ROI. They don't understand that as RPA, they understand that as digital transformation. So don't be scared of the language, that is going to change I think when people look on LinkedIn. I think people have just got to get comfortable with the terminology, but really, it's already happening.  

Lindsay Degouve: It’s demystifying it, and it's making it really tangible to people about the value, but also exactly as you said, it's not something to be scared of. It's really actually something they can relate to and benefit from. The first time you have visions of the future it seems quite daunting but actually breaking it down into those really relatable functions is so helpful.  

Automation in its simplest form 

Rob Binns: Think of it as automation in its simplest form. Many of us, we all work for different organisations at different stages of their maturity journey. And for different organisations, there will be an automation solution, whether or not it's rolling out a new app that allows you to do mobile expenses because we're all not in the office anymore and able to get to that lever arch file, whether or not it's RPA tools, or whatever it might be, wherever you are in that journey.  

Here at access, we are looking at different things that we're doing and there are constantly new ways that you can use technology to help you drive that forward.  

The more that you can automate those things, the more you can focus on the value added pieces, the pieces that people are really looking for finance organisations to look for.  

So for me, I just think of it as steps on an automation journey. And the more that you are able to automate, the more you're able to drive that digital transformation, the more you can focus on the other things that people are looking for us to deliver.  

Adam Freeman: The other thing I talk to a lot of our customers and prospective customers about is actually the impact on the employees. Back when I was an accountant, it was ticking and bashing, right, that was my first job. And anyone from that background will resonate with that. It's the most soulfully horrible job, but you have to do it. It's like a rite of passage for anyone in accounts to tick and bash something. Well, nobody wants to do that. And actually, how accurate are we when we don't want to do a task? We want to do something more interesting. We want to get there faster. So I think the human thirst for change is different to what it was back when I was qualified. And therefore people don't want to sit and tick and bash anymore and do these things so we have to learn to automate. It's going to happen.  

Clive Webb: Also take time to invest in understanding what automation is, find the resources out there - we have ACCA courses online that are free, that will give you the basic ideas of what automation is capable of. And then look at, you know, Adam and Rob' solutions and think about what the opportunities are because if you're not on that path, the risk for finance teams is if a technology deficit builds and builds and builds. There’s a skill shortage and playing catch up will get more and more costly, both in human terms and in financial terms if you don't somewhere start on that path.  

Adam Freeman: We've seen people who want to embrace technology to retain top talent. There's an expectation now that top talent expects to work with good technology. And if you look at home, the technology in your home is typically better than technology in your office. That's what we hear people on the ground saying. A lot of businesses are waking up to the fact that we need to move with the times and embrace this technology because that's what's in the house.  

Lindsay Degouve: It's a really important point, and definitely when we think about it in terms of attracting the next generation into these careers and sectors and roles, it's really playing into - What are they looking for? What are they used to? How do they want to learn and work? And exactly technology is part of their every day and should, would it be expected to be part of their work experience as well?  

How technology can help the finance accounting function 

Lindsay Degouve: And the question I have for you, Rob, is about how the software can lift the burden off the accounting theme. You started to talk about all the different automation pieces and linking into being able to add real value. Was there anything else you wanted to bring out in terms of how technology can really help?  

Rob Binns: Well, I think that was in the context of, you want to try to automate those tasks that free people up. Adam talked about all the ticking and bashing. In my prepared remarks, we talked about inverting the pyramid and how you focus away from governance and on the value add, the data led insights that Clive was talking about.  

Increasingly, you know, people think about the technology in the automation to do that, and that is an obvious natural set of steps that frankly never ends.  

We're always looking for ways to keep doing that and improving that. But increasingly, how can you use the technology for that value added insight power as well?  

The analytics capabilities that you start getting in some of the tools these days, the ability to ingest data make that value add decision, data driven approach that Clive talked about. More and more nowadays, you have the ability to do that using tools, not just our own, but others, to help you inform those decisions.  

It's not just about how to automate those tasks. Maintain the governance and the discipline that we know we all have to do. And all the process work that we know is part of the job. But also then building on that technology for that data driven decision making support that is so vital. To me, that's how I think of it and it's up and down throughout the entire process.  

It never stops, looking for ways to automate and improve the efficiency at the bottom end of that to lift up the governance structure. But increasingly, the tools and capabilities at the top end, as you think about that data driven support are really becoming really valuable. And I think there's lots of ways that wherever you know anybody on this call, wherever they are in their maturity journey of technology, there are always tools and things that they can do that can help free up that capability and the resource. And to Adam's point, you know, give the individuals concerned a different look from a career perspective, a different set of challenges which we're all looking for, right? All of us want that every day.  

Lindsay Degouve: Absolutely, and I think that insight element just comes through so strongly in terms of the next phase, you've got the data, but it's the insight. What is that data telling us? How do we use it most effectively?  

The modern finance team – skillset of the future finance function  

Lindsay Degouve: Which does lead me quite nicely, I think, into a question for you, Clive. It would be great just to understand a bit more from you about how you think, individuals or organisations should be looking to build these capabilities into the future? What capabilities are going to be so critical, thinking about that future finance function and the technological changes coming?  

Clive Webb: The reality, I think, is if the finance function is about value added. There are two things that underpin that. First, it's the ability to turn the data into information, into decision making and to communicate it. So this is interpersonal element. It's a problem-solving element. It's the critical thinking element and those are absolutely fundamental.  

But it's also therefore the appreciation of the data that you start with and the business model that exists behind that data. Because if you don't understand the business model, and you don't understand the strategy, you can’t understand what the data is trying to tell you. And if you haven't aggregated and collected the data in as a robust and reliable manner as you can, you can't then tell the story to make the decisions. And I think that this to me is what really makes the future of accounting really exciting. Because it should be the finance function who is helping the organisation navigate these inevitable tricky paths.  

Sub header: Think about performance in a broader sense, not just financial performance 

Clive Webb: But we've also got to think about performance in a broader sense. That performance isn't now just about financial performance, it's actually about the ESG agenda performance. It's the six capitals of the Integrated Reporting Framework. Those are the domains of finance and we've got to look at those and work out how those interleave with everything else that we support in decision making.  

So actually, the skill set growth is about making sure individuals are appreciating that, understanding the technologies in that journey and sending the data and having the skill set. It's also about the organisation recognising that learning is something that is continuous now. And if it is not continuous and you're not on that path helping your staff understand the future, then we're into this deficit game again.  

So, we've also written reports that challenge learning development functions to actually think about how they support the organisation going forwards, not simply creating traditional content, curating the vast amounts available to them.  

Rob Binns: 100 percent agree with that. I think you're exactly right, and I think the skill set is not just the traditional technical skill sets that young people may normally think of, it's increasingly becoming either A technology led skills or B those softer skills that, as you think about communication, understanding, you know the strategies you talked about Clive. I think we have to look at it increasingly in a much more holistic view to pick up all of those other elements and not just the traditional sense of the technical skills, the technical knowledge that we know we all need and require in roles like this.  

It's how do you think about those softer skills as well and give people those tools to help them develop that and pick that up so that when they are able to be that business decision making support, they're well equipped to be able to be impactful in doing so.  

Lindsay Degouve: That's brilliant, love picking up on the words when you talk to Clive about the storytelling. It's not a word that we would think is synonymous with the finance function, but it's absolutely correct. That's what we're trying to do. We're trying to engage the wider organisation, our stakeholders and customers in this financial story that we're telling. And I think it's brilliant, brilliant word to use and encapsulate that need to tell the holistic story, the whole piece.  

Modern financial systems – what to look for 

Lindsay Degouve: Adam, thinking about the fact that with modern financial system becoming more comparable, how do organisations differentiate in the market and really stand out?  

Insight-led accounting 

Adam Freeman It's a good question. So you know we are very rarely going to see somebody now who's buying the first ever accounting system. But when I very first started, it was the case. We're probably onto our second transformation in the finance function. If you look at major revolutions, the first one was moving from paper based ledgers to some kind of accounting system. That was a seismic shift. Then in the middle of all this change that's going on now, we're into this other revolution which is about automation now and it's about that next step. And it's about Insight led accounting. It's a different context of accounting now. When I was qualifying, it was all about "Get your accounts, get your group consolidation done, get everything done, phew thanks god it's end of the month. I can start again in 30 days time."  

Technology partner versus software provider 

It's not about that anymore now. It's about daily, weekly, hourly, minute by minute. You know, we've never been more disparate physically yet more connected technologically. And I think that's what this is about. And I think when you differentiate, you need to look at "Am I now working with a software provider or am I working with a technology partner?" Because that's the difference. The technology partner is what's going to elevate your insight led approach. That's what's going to get you to where you want to get to. Because having data coming from my HR system and my finance system and understanding the context. "Why has revenue dipped? Well we've got an average tenure that's dropped because we've got the skills gap. Well, what's our learning adoption through our learning platform?" 

I can see all of that and understand it. I've got context. I've got storytelling ability. Now, if I've got a technology provider who is just giving me my ledgers and nothing more, are they helping me give context? That's what I would look for, go beyond the ability to put a journal on and a purchase ledger anymore, we're past that. That was 10, 15 years ago.We're into a different realm now of insight, data hungry, informed decision making, and it's got to be real time.  

Rob Binns:To build on that, a very simple expression that I was taught many years ago was: it's not the where, it's the why. Automation now means the reporting and our ability to get to things. The where is actually quite easy to get to these days.You can understand where that variance is, but understanding why that variance is happening, that's very different. And that's to the contextual piece that Adam is talking about, and that's where that data insight led approach is really going to kick in. I think the more that, as a finance team, we can get to the why and not the where, then I think we'll add more value to the business.  

Lindsay Degouve: I completely agree. We hear so often about organisations having a huge amount of data, but the examples you're giving there, it's about connecting that data to help facilitate that broader understanding and see the complete picture. It's really interesting seeing that, just your language about, “it's a technology partner as opposed to a technology provider”. And really, the connections just seem to be critical in what you're saying in terms of actually helping someone put those pieces together to be able to then really get the insights and tell that story.  

Talk to the other departments in your organization when embracing change 

Adam Freeman: I went to speak to someone in person last week and it was a finance led session. We were just going to -"show me a different way of doing what I do, but make it better". We walked away from there, speaking to six different departments, all who had the requirement to change. None of which were talking to each other about that change and the finance team didn't understand the fact that the HR system needed to change and what the impact was on the finance team of HR changing. 

The one thing I'd recommend to people is to talk within your organisation. Change - it starts and ends with finance but I also need to get stakeholders involved. Map your technology in your business. If you haven't got that, I would recommend doing that. Assign someone who's responsible for that and look for gaps, look where you've got spreadsheets. Look where you may be a little bit lagging behind in terms of transformation and understand where your maximum window opportunity is, because that will have a financial impact. Somewhere it will get more connected. Get more comfortable building bridges with all the departments. And I think out of that, a lot of positivity can come.  

Lindsay Degouve: I did have a number of additional questions, particularly one about that collaboration between teams and departments because absolutely it's so critical.  

Thank you to each and every one of you. It’s really important to embrace digital transformation and really being at the forefront of supporting businesses. This is a challenging but exciting time and there's really opportunities for finance to help their organisations and lead the way. And that's coming through in every piece of research that we're seeing from all the organisations and businesses, so thank you all very much.