Research

Digital Transformation is the Top Priority For Corporate Finance in 2022, But Obstacles, Including Inflation, Growing Productivity and Efficiency Gaps, May Limit Finance’s Ability to Succeed - Seite 2

Budgets and Staffing Continue to Tighten – Finance organizations face continued emphasis on greater cost efficiency in 2022, with workload expected to increase by nearly 5% while budgets and head counts are declining by 0.7% and 0.6%, respectively, the study found. Finance is counting on technology and service delivery model improvements, including centers of excellence and global business services, to bridge the productivity and efficiency gaps. Overall, cost reduction moved down the priority list by four spots to sixth place in 2022, as companies have navigated the pandemic and extracted savings. But it remains a major priority, and may rebound in importance if inflation continues to accelerate in 2022.

Three Critical Areas for Development – In three of the top 10 priority areas, there are significant gaps between their importance and finance’s ability to meet expectations. The three priorities with the largest gaps are: accelerating finance digital transformation; up skilling and retaining finance talent in the face of the “Great Resignation”; and enabling finance agility by fostering a nimble mindset.

Talent/Upskilling on the Rise – In the face of the “Great Resignation,” finance organizations are thinking critically about building the next-generation workforce. If finance is to achieve its goal of becoming a more effective strategic advisor to the business, it must acquire or develop new skills in areas, such as teamwork and collaboration, and evolve business and industry acumen. The goal of aligning skills and talent with evolving business needs moved up several spots in the 2022 Finance Key Issues Study. Nearly half of all companies have plans to acquire new skills and talent – significantly more than other planned workforce initiatives. Given the challenges that companies are experiencing in finding candidates with the right skills and at the right cost, there will also be a premium on retaining existing employees. Pandemic-triggered disruption and accelerated digital transformation are also sparking a reevaluation of the finance operating model, with 30% of the finance workforce expected to work from home by the end of 2022, and another 52% relying on a hybrid arrangement.