# How Finance Leaders Can Equip Their Team to Tackle Change
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2020-12-16
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: How Modern Finance Teams Can Embrace Agile Planning
Meta Description: Learn how finance teams can navigate economic turmoil by embracing agile cloud platforms with machine learning technology for more accurate forecasts and
URL: https://financedigest.com/how-finance-leaders-can-equip-their-team-to-tackle-changehtml

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_By **Robert Douglas,** Europe planning director at Workday Adaptive Planning_

In the face of economic turmoil, agility has taken on a new meaning for organisations. For modern enterprises, agility has become a defining characteristic of businesses that can better anticipate what is coming, act quickly when faced with change, and more decisively respond to the demands of customers, market shifts, and competitive threats. [Today’s finance teams are challenged](https://www.financedigest.com/from-fragmented-systems-to-unified-cpm-unicredit-prepares-for-todays-finance-challenges.html "FROM FRAGMENTED SYSTEMS TO UNIFIED CPM – UNICREDIT PREPARES FOR TODAY’S FINANCE CHALLENGES") to provide more guidance than ever before, with more accurate forecasts and reports in the face of unpredictable events. Traditional spreadsheets are no longer manageable at the pace business is moving, and, instead, [finance teams](https://www.financedigest.com/finance-teams-using-ai-outperform-peers-as-demand-for-skills-grows.html "Finance Teams Using AI Outperform Peers as Demand for Skills Grows") are moving to cloud platforms powered by machine learning to help accelerate the planning process.

[Since the COVID-19 pandemic](https://www.financedigest.com/uk-sees-biggest-rise-in-foreign-workers-since-covid-19-pandemic.html "UK sees biggest rise in foreign workers since COVID-19 pandemic") emerged on a global scale in the first months of 2020, finance teams across the world have been put to a once-in-a-generation test. While many have been able to provide critical [decision-making support leveraging new technologies and processes](https://www.financedigest.com/gary-mcgaghey-explains-how-cfos-can-strengthen-decision-making-processes-and-reimagine-the-finance-model.html "Gary McGaghey Explains How CFOs Can Strengthen Decision-Making Processes and Reimagine the Finance Model"), many organisations were caught off guard. As a result, it has acted as a wake-up call for [finance departments](https://www.financedigest.com/untapped-cost-savings-why-smart-building-management-systems-are-a-finance-department-priority.html "Untapped Cost Savings: Why Smart Building Management Systems are a Finance Department Priority") that, for various reasons, have delayed digital initiatives. [According to a survey of CFOs](https://www.adaptiveplanning.com/cfo-indicator/2020-finance-digital-transformation-report) conducted at the height of the pandemic, one-in-three CFOs (34%) report that they plan to prioritise digital finance transformation next year, compared to just 5% as the pandemic hit.

### **Getting people onboard**

The reality is that even prior to the pandemic [companies were struggling to put their data](https://www.financedigest.com/the-logo-of-french-cloud-computing-company-ovhcloud-is-seen-on-a-data-center-building-in-strasbourg-france-october-13-2021-reuters-christian-hartmann.html "The logo of French cloud computing company OVHcloud is seen on a data-center building in Strasbourg, France, October 13, 2021.  REUTERS/Christian Hartmann") to work.

Finding ways of drawing complex [insights about current and future performance](https://www.financedigest.com/sports-and-athletic-insole-market-players-eye-custom-and-3-d-printed-products-for-performance-optimization-says-future-market-insights.html "Sports and Athletic Insole Market Players Eye Custom and 3-D Printed Products for Performance Optimization, Says Future Market Insights") with the help of machine learning (ML) and artificial intelligence (AI) has been on the radar for many finance teams. Yet, many have been slow to act. In the survey, only 18 percent [report that they routinely use AI technologies](https://www.financedigest.com/talent-acquisition-staffing-technology-and-services-market-to-reach-usd-196-1-bn-by-2028-comprehensive-research-report-by-fmi.html "Talent Acquisition & Staffing Technology and Services Market to reach USD 196.1 Bn by 2028 – Comprehensive Research Report by FMI") to deliver prescriptive, personalised, and prioritised insights. As concerning, 30 percent say critical [data is never available to them in real time](https://www.financedigest.com/how-real-time-data-innovation-is-driving-up-customer-experience-in-fintech.html "How real-time data innovation is driving up customer experience in fintech"), exposing the technology and process challenges for nearly one-in-three organisations.  So, why haven’t organisations embraced new [digital technologies](https://www.financedigest.com/how-banks-can-use-digital-technology-to-become-more-sustainable.html "How banks can use digital technology to become more sustainable")?

Surprisingly, [lack of budget was cited by only one-in-10 CFOs as an issue](https://www.financedigest.com/the-lack-of-female-leaders-and-how-to-tackle-this-issue.html "The lack of female leaders and how to tackle this issue"). The two standout [reasons offered by CFOs for not updating their digital](https://www.financedigest.com/three-reasons-why-digital-money-can-empower-women-worldwide.html "Three Reasons Why Digital Money Can Empower Women Worldwide") tools was lack of skills to use technology once implemented (34%) and internal resistance to change (32%). Both of these are completely within the CFOs’ control through hiring or upskilling and [addressing the culture challenges](https://www.financedigest.com/rising-to-the-challenge-addressing-the-difficulties-of-pillar-2-reporting.html "Rising to the challenge: Addressing the difficulties of pillar 2 reporting") within their organisation.

### **Advancing skillsets**

In terms of the [skills currently desired by CFOs](https://www.adaptiveplanning.com/cfo-indicator/2020-finance-digital-transformation-report), the ability to carry out predictive modelling and scenario planning comes out on top, followed by the ability to identify, anticipate, and manage risk.  Given this survey was conducted as the pandemic was spreading globally, the focus on scenario planning and risk [management skills](https://www.financedigest.com/fine-tuning-your-money-management-skills-today.html "Fine-tuning your money management skills today") is no surprise. FP&A teams were frantically trying to keep up with forecasting, as conditions changed daily, with some teams reporting a [30x increase](https://blog.adaptiveplanning.com/perspective/in-uncertain-times-agility-is-the-safest-harbor-of-all/) in forecasts and build-out scenarios than in a typical week.

CFOs [across industries](https://www.financedigest.com/flooded-battery-to-remain-top-choice-across-industries-accounting-for-49-0-of-lead-acid-battery-sales-in-2021-future-market-insights.html "Flooded Battery to Remain Top Choice across Industries, Accounting for 49.0% of Lead Acid Battery Sales in 2021: Future Market Insights") are currently taking steps to address any shortages of these skills in their departments. This requires a two-tiered approach, where new talent is recruited as part of [digital transformation](https://www.financedigest.com/whose-role-is-it-anyway-why-finance-underpins-data-led-digital-transformation.html "Whose role is it anyway? Why finance underpins data-led digital transformation") projects while current team members are trained or upskilled. Importantly, CFOs are also reconsidering their own roles and what will be needed of them in the future, whether that is undertaking a more [strategic approach to how finance contributed to business](https://www.financedigest.com/why-businesses-need-to-shift-their-e-invoicing-approach-from-local-and-tactical-to-scalable-and-strategic.html "Why businesses need to shift their e-invoicing approach – from local and tactical to scalable and strategic") transformation or working on becoming more transformational leaders. The latter is prioritised especially by those active in businesses whose focus in recent years will be to move from defence (budget management) to offense (top-line growth for the business) in the aftermath of the pandemic.

### **Building up confidence**

The end goal of pursuing [digital transformation in finance](https://www.financedigest.com/future-of-finance-2023-digital-transformation.html "Future of Finance 2023: Digital Transformation"), and why it is so important for CFOs to work constructively with their teams as part of that process, is enabling greater agility for the organisation. As important, it boosts confidence in the business’ ability to weather crises and uncertainty and allows finance to meet the [growing expectations](https://www.financedigest.com/jewelry-organizer-market-is-expected-to-grow-at-a-cagr-of-approximately-over-2022-2030.html "Jewelry Organizer Market is expected to grow at a CAGR of Approximately Over 2022-2030") of executives. Throughout this year, businesses whose finance teams had been transformed digitally—called “digital leaders” in the study—have also been able to perform better, with 73 percent of CFOs leading such teams expressing confidence about their two-year profit and loss forecasts, compared to just 43 percent of those who have not, according to [the research](https://www.adaptiveplanning.com/cfo-indicator/2020-finance-digital-transformation-report).

As we head into 2021 and what is looking to be a lengthy recovery from the pandemic, [finance leaders](https://www.financedigest.com/now-is-the-time-for-finance-leaders-to-take-on-a-more-strategic-and-valuable-role.html "Now is the time for finance leaders to take on a more strategic and valuable role") need to take inspiration from the confidence expressed by the “digital leaders” and consider how they can get their organisations to adopt more unified and intelligent planning technologies and processes. The tools are there, and, with the right approach to introducing them to organisations, finance leaders can take the lead when it comes to [managing risk](https://www.financedigest.com/treasury-and-risk-management-application-market-to-bring-in-revenue-of-us-7-1-bn-by-2028-comprehensive-research-report-by-fmi.html "Treasury and Risk Management Application Market to bring in revenue of US$ 7.1 Bn by 2028 – Comprehensive Research Report by FMI"), responding to future crises, and enabling the level of agility that today’s companies demand.


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