Financial tracking throughout a business transformation answers a key question: ‘What about the money?’
Business change is inevitable, but sometimes something larger than change is needed. A change is when a company decides to alter or modify the way it does business. This is typically triggered by a perceived discontent about the way things are.
A business transformation is different than making a simple change or modification. A transformation is a comprehensive or dramatic change and should be a drastic, powerful, organized, and thoroughly executed destiny-shaping effort.
A variety of factors, such as a shifting competitive landscape, economic conditions, and expansion or contraction, can trigger a business transformation. While the triggers can vary from business to business, all transformations share a common thread of needing to improve an organization’s financial health.
A well-structured business transformation should be funded with a portion of the benefits that the transformation program is expected to generate.
For CFOs especially, knowing those benefits requires effective financial tracking. Disciplined financial tracking constantly reinforces the purpose of a transformation program and significantly increases its probability of success. Financial tracking also answers the question, “What about the money?”
Read the full article published by CFO.com
For more on financial tracking, read Myrtle Consulting’s newly released guide Setting Expectations, Steering the Course: How and Why to Measure the Financial Benefits of Business Transformation.