The 7 Principles of Dynamic Finance
Deloitte has released a report focused on the 7 pillars of Dynamic Finance. They describe this movement as a transformation moving finance away from a function and into a dynamic capability. Traditional finance as a function had a focus on the internal operations of the company. A budget for example will outline the controls for expenditure and expected revenues in a future period such as the following calendar year.
The challenge with traditional finance is that it is not built to adapt to external factors such as the pandemic, a war, unexpected hyperinflation, and many other events taking place externally. These events are now happening at a more frequent pace and outpacing the ability of traditional finance to be as impactful to the enterprise strategy. The purpose of Dynamic Finance is to create a set of capabilities that are best suited to navigating the enterprise forward through these constantly changing external events.
Deloitte lists the 7 pillars of Dynamic Finance as the following:
- Transformation mindset: Not an event, but a continual evolution.
- Workforce of now: Tech-savvy talent and enduring human capabilities.
- Lights-out processes: Machines first, then people.
- Information on demand: All the time.
- Data for storytelling: Rigid governance for flexible data.
- No-regrets tech: Digital and flexible core.
- Sense and learn: Detect risks, and prepare the organization for what's next.
Deloitte further expands on the concept of Dynamic Finance by attaching it to a strategy to manage rapid change and ultimately win:
As organizations work to become “exponential Enterprises” — they’re coming to understand that the capacity to change enables an organization’s ability to compete and win. This agility becomes their competitive and strategic advantage. It requires simplified and standardized processes, a foundation of innovative and enabling technologies, and a highly skilled and technically fluent workforce. A Dynamic Finance capability evolves to win, is always ready, and looks at every disruption as an opportunity.
If you’re dependent on spreadsheets to manage your FP&A processes, then your finance effort is very much static and limited to the traditional finance function. An initial step to accelerate the value finance can provide in support of enterprise strategy and growth is to move from disconnected spreadsheets to a modern platform like FinLogic.io.
FinLogic.io can help you achieve your dynamic finance goals.
Access the full report below to learn more about each of these 7 pillars.