Transformation is as much a people challenge as a technology one

Finance transformation is not just a systems project. Growth-ready finance functions need the right structure, leadership depth, team behaviours and succession beneath the CFO or FD to succeed.

In the first article in this series, we looked at how finance is moving from reporting function to strategic growth engine. This requires transformation.

However, 69% percent of finance transformation programmes are progressing slower than projected, and 30% fail to deliver on expected benefits. This is because organisations focus on systems before capability.

Growth-ready finance functions are built through people, structure and leadership as much as technology systems. This requires clearly redefined roles, strong decision rights, effective business partnering, commercial judgement, succession beneath the CFO or FD, and people who can turn data into better decisions. [Source: CIPD Workforce Planning]

Put simply, transformation requires different people doing different work in different ways. This is a people challenge. As the people function, HR must have a crucial role to play.

Exposing the capability gaps

Finance transformation is an organisational capability challenge, not just a technical project.

Many businesses do not realise they have a finance capability issue until growth starts to accelerate.

Processes that worked at £10m turnover often become stretched at £25m, £50m or beyond. A finance team built around statutory reporting may struggle when the board needs stronger forecasting, cash visibility, margin analysis, pricing insight, M&A support or investor-grade reporting.

The warning signs are usually visible before they become critical — an over reliance on spreadsheets, slow reporting, weak forecasting accuracy, limited commercial insight, unclear ownership, and over dependence on the CFO or FD, with no obvious successor beneath them.

Strength and depth

One of the biggest commercial risks, especially in mid-market and PE-backed businesses, is the lack of strength beneath the CFO or FD. Without the right Financial Controller, Head of FP&A, Commercial Finance Lead, Finance Business Partner or systems capability, too much strategic and operational weight sits with one person. 

Whether it's delayed acquisitions, weakening investor confidence or slower strategic decision-making, thin teams open organisations up to risk. As businesses grow, the finance function must respond at increasing scale and pace.

Finance bench strength improves resilience, speed and decision quality. A strong bench reduces dependency on one senior leader and provides the capacity to improve reporting, challenge assumptions, support operational teams and keep transformation moving.

This is not a soft people issue. It directly affects cash visibility, board confidence, investor readiness and growth execution.

It is our experience that a stronger finance bench also improves retention. Ambitious finance professionals are more likely to stay when they can see a credible route forward, receive meaningful development, and work in roles designed around value rather than firefighting.

Capability, not job titles

Often, finance hiring and development decisions still begin with a job title. But titles do not always define the real business need. The better starting point is capability. What must the finance function be able to deliver over the next three years? Do you need stronger control? Better cash forecasting? Pricing and margin insight? Systems improvement? AI-readiness? Acquisition integration? Succession beneath the CFO?

Answering those questions helps leadership teams build a future-state finance capability model, to give a clear view of where a new hire is required, where development investment should be focused, and where organisational structures must be redesigned or strengthened.

Too many businesses replace the person who has left rather than hiring the person the business will need next.

Building for an AI-enabled future

AI is now firmly on the finance agenda. The challenge is not simply commissioning the right tools (although this remains a genuine challenge for many). Businesses need the right people — people who understand data quality, systems, controls, governance, process redesign and commercial context. They will need leaders who can help teams adopt new ways of working, use AI responsibly, interpret outputs, challenge assumptions and maintain confidence in the numbers. [Source: ACCA Technology in Finance]

This requires more than basic AI training. It requires learning agility, clear use cases, strong team structure, and leadership that can connect technology change to business outcomes. 

As a recent headline in The CFO states: AI without training is just expensive software.

AI will automate more routine work. But it will also increase the premium on human judgement, accountability and communication. From forecasting, cash flow, month-end close, pricing or scenario modelling, finance professionals will need to ask better questions and explain complexity simply to influence operational and strategic decision-making.

The businesses that benefit most from AI will not simply automate old processes; they will redesign work, develop their people and build the operating discipline needed to turn technology into better decisions.

Leadership development

Competition for digitally literate, commercially savvy finance leaders remains fierce. The best come at significant cost. As such, for many, a compelling option is to develop talent from within.

Today’s finance leaders are often overstretched. They are being asked to lead transformation of the function often alongside their ‘day job’. For many, this involves a massive learning curve. They need support or they will burn out.

Coaching and mentoring can help. To learn how, download the factsheet.

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It is not simply about getting their heads around the technology. Developing communication skills, problem solving, teambuilding, and leading innovation and creativity are all crucial when ushering in change.

Strong leadership is the linchpin that holds a business together during times of change. From visionary guidance and effective communication to building trust, empowering teams, and inspiring resilience, as agents of change, strong leaders are the driving force.

Setting new hires up for success

Senior finance appointments should be high-impact hires. In our experience, too often, companies assume senior hires should simply hit the ground running. Even excellent leaders can lose momentum if expectations, decision rights, stakeholder relationships or team capability are unclear.

This is where assessment, profiling and structured onboarding create practical value. Whether it is ensuring the right appointment, identifying potential for leadership succession, or assessing individual and team performance, it gives senior leaders the insight they need to make informed decisions at every stage of the employee lifecycle.

To understand more about the benefits of Assessment and Profiling, download the factsheet.

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A stronger landing plan should include clear 30/60/90-day outcomes, stakeholder mapping, clarity on decision rights, early assessment of team capability, and coaching around influence and leadership impact.

The objective is not just to make the right appointment. It is to make sure the appointment succeeds.

Redesign and restructuring

The transformation goal is to do more with less. This requires function redesign and restructuring. It may lead to some people losing their jobs.

Because they involve people, and change, restructures are never as simple as the plan on paper. No doubt about it, whether it is a change in job role, responsibilities, even location, restructures are unsettling. This is why there needs to be an open, honest communication and engagement process from the outset.

Whether it is ensuring due diligence and legal compliance or maintaining productivity and performance during the period of transition, as the people function, HR will be pivotal throughout.

It is your people who will be impacted most. For change to be successfully implemented, it means engaging meaningfully with them all, including those who will be losing their jobs. It is vital your people are treated respectfully and consulted appropriately throughout. In our transparent, connected, Glass door world, how people leave a business is as important as how you onboard them, for your employer brand.

The importance of maintaining morale and productivity during times of transition cannot be underestimated. When colleagues see peers being treated well, it helps maintain engagement among retained staff, reduces sickness absence, and helps prevent productivity dips that can create hidden costs or require agency cover.

To delve deeper, read our article on Strategies for successful organisational restructures

The leadership takeaway

Finance capability is now a growth issue. The businesses that build competitive advantage over the next five years will be those that align finance capability, leadership development, organisational design, and technology around a clear growth strategy.

For senior leaders, that means asking sharper questions. Is the finance structure still fit for the size and complexity of the business? Is the CFO carrying too much personally? Is there enough succession beneath senior finance leaders? Do finance roles reflect future value or historic tasks? Can the team support AI, automation and better decision-making? Are high-impact finance people being developed and retained?

Building the finance function for sustainable growth is not just about hiring better finance people. It is about creating the conditions in which finance can perform as a true commercial partner. That requires the right people strategy, the right structure and the right leadership support.

Where those elements come together, finance becomes more than a reporting function. It becomes a source of control, insight, pace and confidence, giving the business a stronger platform from which to scale.

In essence, senior leaders must ensure their finance function is designed for the business they are becoming rather than the business they currently have.

• Senior Finance
• Strategic HR
• Business growth