While many finance directors and CFOs of emerging mid-market businesses have taken to adopting digitisation naturally, either due to individual skill-set or culturally, others have struggled to gain clarity.
McKinsey’s Framework – The secrets of measuring success in digital
A framework to explore what good looks like in a digitisation process is crucial to ensure that the work is done in the right areas and progressively, keeping the eye on the outcomes.
McKinsey’s Paper “How do you measure success in digital” 1 explores the measurement criteria for digital success across five dimensions.
Mapping out the easy wins
Establish if there are individuals in the existing team who can identify and facilitate the desired change that is optimal. If so work with them to define what the digitisation is and how it will affect revenue, profitability, market share, efficiency and competition1.
Or, consider hiring a consultant, and remembering that the outcome will only be as good as the brief.
Either way decide which processes are to be digitised first and grow from there.
What gets measured gets done
A clear plan for each area of the business must be produced with the order, relevance and interdependence. The plan must define for each process and then each business unit.
A new breed of CFOs – equipped to lead on digitisation
The CFO is the team member best equipped in an emerging mid-market business to collate the plan and communicate the desired outcomes with a keen eye on cost, effect on existing processes and ultimate contribution to the future bottom line and valuation. Consider amending incentives for staff to recommend and adopt digital initiatives.
An Acuity Associate CFO should be able to re-incentivise team members by changing the method of calculation for incentives and tying them into optimised digital outcomes.
Key questions to be answered
“Do we understand how and where we will be better post each stage of the digitisation?”
“Which team members are likely understand what the better outcomes could be?”
“Do we have a complete oversight of the budget for this initiative, timescales and how is it being financed?”
‘The 5D FD’ White Paper underpins the importance of ensuring the FD or CFO has the right range of skills to undertake these crucial tasks. To learn more about ‘The 5D FD’ and how Acuity Associates uses The Acuity Method™ to ensure the right skills are present in the CFO email firstname.lastname@example.org and request a call back.
The Acuity Method™ can also be used to ascertain skillsets in different finance roles within an organisation. Please contact email@example.com to learn how Acuity Associates can report on capability at all levels in the finance team.