CFOs must embrace change management for tech innovations.

TLDR:

Key Points:

• CFOs are turning to digital platforms to automate and streamline processes due to a shortage of finance and accounting talent.
• Change management is essential for successful tech implementation, with projects involving good change management being more likely to meet objectives.

In a rapidly evolving tech landscape, Chief Financial Officers (CFOs) are facing challenges with adopting new technology solutions, especially in the face of a talent shortage in finance and accounting. With retiring baby boomers, attractive fintech salaries, and high academic requirements, CFOs are looking to digital platforms to automate processes and save high-value talent for strategic work. However, the pressure to incorporate AI solutions from the C-suite and boardroom requires CFOs to approach tech adoption carefully.

Change management plays a crucial role in ensuring the successful implementation of new technology. Projects with effective change management are significantly more likely to meet or exceed objectives. Change management begins with aligning leadership around a future-state vision and purpose, preparing for employee questions and concerns, gaining buy-in throughout the organization, and implementing strategies to transition employees to new ways of working. Celebrating wins, communication, and training are key components of a robust change management program.

While AI and automation hold the promise of addressing talent shortages and streamlining processes, acquiring these tools without proper change management can lead to implementation failures. It is important for CFOs to have a strong vision and strategy for change, align leadership, engage stakeholders, communicate effectively, and focus on continuous improvement to ensure that new technology brings about the desired outcomes.

Change management is not a panacea for fixing faulty systems or leadership challenges, but it is a critical framework for aligning people, processes, and technology to achieve organizational goals. CFOs must carefully consider the context in which new technology is deployed, the potential impact on employees, and the strategies needed to support successful tech implementation.

The allure of emerging technology tools in finance and accounting is compelling, but CFOs must ensure they have a solid change management plan in place to navigate the challenges and maximize the benefits of new technology.