Traditionally, the Chief Financial Officer (CFO) and their finance team were responsible for managing the financial aspects of an organization such as accounting, expenses, and financial planning. Their duties were primarily focused on ensuring compliance and maintaining the long-term financial health of the organization. However, in recent years, the role of finance teams has changed significantly, and they are now expected to drive innovation. During the pandemic, the guidance provided by CFOs was vital in keeping organizations operational by closely monitoring revenue and expenses and making difficult decisions when necessary. Now, finance teams are being called upon to expand their responsibilities further and take on the role of futurists, leading the organization’s transformation. Microsoft conducted a survey of finance leaders in the United States to gain their perspective on this shift in the finance industry.
Microsoft’s recently published “Economic Guardians of the Future” report analyzes the current working methods and challenges faced by financial teams and leaders, as well as the role of technology in their daily operations. The report highlights that CFOs and their teams are now faced with a pressing need to balance strategic innovation with protecting the long-term financial health of their organizations, particularly in the midst of an uncertain economic environment.
Microsoft’s research has revealed that finance leaders are grappling with the challenge of balancing conflicting objectives. On one hand, they are expected to drive innovation and maintain brand trust while mitigating risks. On the other hand, they are tasked with reducing costs and increasing growth to deliver both short-term profits and long-term vision that aligns with the corporate purpose. Despite the perception that finance teams are not supportive of innovation and are risk-averse, 79% of finance leaders recognize the importance of playing an active role in driving business innovation and facilitating transformation across the organization in order to meet future needs. Consequently, CFOs and their teams are now more focused than ever on driving transformation and shaping the future.
The transformation in the role of finance teams can already be seen in the close partnerships between Microsoft and its customers. For example, Anna Manz, CFO of the London Stock Exchange Group (LSEG), has moved beyond her traditional role of performance management and driving efficiency to also make big strategic decisions. This was exemplified in LSEG’s recent collaboration with Microsoft to empower financial markets with advanced data, analytics, and workspace solutions. The partnership is encouraging LSEG to think about new ways to work with customers and develop products, and it is essential for a cross-functional team, including finance, to understand the scale of the opportunity and its capability to execute. By combining LSEG’s extensive financial data and analytics capabilities and deep knowledge of financial services with Microsoft’s cutting-edge technology and embedded Microsoft Office workflow, there is a significant opportunity to bring about critical transformation in the financial services industry.
Despite the increasing demands placed on finance teams, there has not been a corresponding increase in staffing resources. Therefore, finding a balance between automation and the most crucial asset of an organization – its people – is essential for the future of finance. Rather than overburdening an already taxed workforce, doing more with fewer means leveraging automation to augment human capabilities, enabling employees to drive the business forward. According to Microsoft’s research, 82% of finance leaders recognize the value of AI and automation in helping their teams evolve to support the organization’s strategic goals. By implementing these technologies, finance teams can free up valuable time to focus on high-impact work that drives business strategy and modernization.
Finance team or professionals are constantly looking for ways to work more efficiently. Low-code automation tools are proving to be particularly helpful in this regard, as they remove IT barriers and allow for easier implementation of automation and AI. As a result, employees are more connected and collaborative and can focus on taking on more strategic work.
Finance team or professionals are constantly looking for ways to work more efficiently. Low-code automation tools are proving to be particularly helpful in this regard, as they remove IT barriers and allow for easier implementation of automation and AI. As a result, employees are more connected and collaborative and can focus on taking on more strategic work.
According to Microsoft’s Economic Guardians of the Future report, a large percentage of financial leaders (88%) feel overwhelmed by their organization’s data. In response to this need, Microsoft is introducing the first of many new capabilities in Dynamics 365 Finance: Business performance analytics. This capability is designed to empower finance professionals by providing them with faster reporting and analytics. By centralizing data from multiple business workstreams into an easy-to-use interface, this new feature streamlines financial reporting. Powered by Dataverse, it allows users to create and share personalized reports and provides secure, near-real-time access to important financial information. By improving visibility, finance teams can make informed decisions and provide timely financial insights to business leaders.
The partnership with our customers was vital in bringing about this product advancement. A prime example is Robert Walters, a global recruitment and talent management company, that showcased how innovative technology and agility can help CFOs establish robust cross-functional partnerships and achieve digital transformation. Despite the challenges posed by the pandemic, Robert Walters collaborated with Microsoft to replace their entire finance platform, resulting in an on-time and in-budget success. This move streamlined the delivery of information to teams, enabled real-time data visibility, and led to annual cost savings of 150,000 pounds in one specific instance. By leveraging innovative technologies and fostering a strategic partnership between the CFO and chief information officer, the company was able to effectively unify data and information, resulting in faster, data-driven decision-making. This hyper-connected business approach empowered their recruiters with the information they needed to drive better outcomes for recruits and clients.
It is unsurprising that workers prefer to minimize their time spent on repetitive and routine tasks and increase their collaborative efforts to enhance the quality of business decision-making.
Microsoft has been engaged in a journey to transform its finance operations for several years by utilizing its cloud-based products such as Azure, Excel, Power Platform, Dynamics 365, and Teams, known as Modern Finance. However, this transformation is not just about technology; it requires a shift in culture to re-evaluate processes, reduce pain points, encourage a culture of learning and innovation, and empower people to perform their best work. One notable achievement is the emergence of citizen developers on the finance team who are utilizing low-code technology to streamline business processes. These efforts have resulted in over 977 hours of manual labor saved annually, increased productivity, and savings of over $25 million.
True magic happens when they bring together people, processes, and tools. Building a team and culture that supports learning, sets the pace for industry-wide transformations, and fosters innovation is important, and should not be overlooked.
We are currently experiencing an unprecedented time of economic, societal, and technological change. Despite the uncertainties that persist in the world, one thing is evident: Business leaders are increasingly relying on finance and innovative technology to optimize their operations, weather the unexpected, and emerge even stronger. It’s important to recognize that financial transformation is a continuous journey, rather than a fixed endpoint.
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