Harnessing Automation: Insights from the 'Navigating the Future of Finance' Series

The session, part of the 'Navigating the Future of Finance' series, is the third installment for the year and the last before the festive break. It is hosted by Prativiti and Robert Half, both recognized as a global business consulting and talent solutions firm, particularly strong in the finance function, serving a core client base of CFOs and financial directors.

The series began in September with a focus on building a resilient finance function, led by Michael Melrose. The second session addressed the importance of developing and retaining capability within finance, setting the stage for today's discussion on technology in finance, led by Harrison Jardine, who heads the automation practice at Prativiti UK.

Harrison Jardine reflects on the challenges faced by finance functions, highlighting key risks identified by participants, including business growth and scaling, technology disruption, and talent attraction and retention. Organizations are increasingly leveraging automation and advanced technologies like machine learning and AI to facilitate growth while managing operational costs.

The discussion shifts to the evolving expectations of finance professionals, particularly among new graduates who seek to combine technical finance skills with technology capabilities, especially in analytics and automation. Scott emphasizes that companies offering such opportunities are more likely to retain top talent, while those that do not may struggle to attract skilled professionals.

The discussion begins by emphasizing the accessibility of technology tailored for end users in finance functions, highlighting the importance of establishing centers of excellence. The focus is on maximizing data and automation to enable transformation and growth within finance. A Menti poll is introduced to gauge participants' current positions on their automation journeys, categorized into four buckets: Exploration, Adoption, Expansion, and No Current Projects.

As the Menti poll results come in, it is noted that there is a wide range of experiences among participants regarding their automation journeys, with a noticeable spike in the 'Adoption' category. This indicates that many organizations are beginning to utilize automation capabilities, which are not new to the marketplace. The conversation will shift to how organizations can advance their automation efforts.

The speaker outlines three distinct areas crucial for driving end-to-end process automation in finance: data automation, workflow automation, and process automation. Emphasizing the importance of having the right data at the right time, the speaker notes that data automation is often overlooked in discussions about finance transformation. It is essential to integrate data automation into the broader automation strategy and center of excellence to enhance workflows and processes.

The discussion highlights the critical importance of having the right data at the right time, particularly in finance transformation programs. Scott reassures that the community has long recognized the pain point of data quality and availability, which is often seen as the elephant in the room. He emphasizes that the focus should be on selecting the necessary data and ensuring its integrity, rather than attempting to solve the entire data challenge, which can seem daunting.

An example is provided where a client faced challenges with their goods receipt not invoiced (GRNI) area. The initial task was to identify which goods had been receipted but not invoiced, a seemingly simple task that proved complex. The team utilized a tool to automate the extraction and transformation of data, which was a tactical step that ultimately led to a larger transformation, demonstrating that automating specific areas can yield broader benefits.

The conversation transitions to workflow automation, distinguishing it from process automation. The use of Robotic Process Automation (RPA) tools like UiPath and Microsoft Power Platform is discussed, which automate specific tasks within processes such as procure to pay. The importance of orchestrating these tasks into a cohesive workflow is emphasized, as understanding the status of a case within a broader process is essential for achieving end-to-end automation.

A significant challenge identified is the adoption of technology by finance professionals, rather than the technology teams. To mitigate the fear associated with automation, it is suggested to humanize the automation process by involving finance professionals and naming bots with human names. This approach helps to alleviate fears and fosters a more collaborative environment, ultimately driving end-to-end automation.

The discussion concludes with a focus on the value of automation, clarifying that it is not about reducing full-time equivalent (FTE) headcount but rather about enabling finance professionals to do more with less. Over the past five years, no clients have discussed FTE reduction; instead, the emphasis is on empowering professionals with the right tools to engage in more value-added tasks, such as forward-looking analysis and horizon scanning.

The discussion highlights the need to transition finance roles away from traditional 'swivel chair accounting,' which involves manually moving data between systems. This shift is often welcomed, but it requires addressing fears and misconceptions about new technologies, particularly in the context of AI adoption. The importance of the human element in this transformation is emphasized.

An example is provided regarding the GRNI (Goods Received Not Invoiced) use case, where a trusted data source was established to track received goods without invoices. The finance team faced challenges in communicating with the business about invoice statuses, feeling they were pestering their colleagues. This low emotional touchpoint created tension, which was alleviated by implementing a chatbot via the Microsoft Power Platform. The bot proactively reached out to employees on Teams, offering options to resolve invoice issues, thus improving the employee experience and reducing tension between finance and business functions.

The conversation shifts to the importance of having a solid data foundation before adopting machine learning and AI technologies. While it is possible to deploy AI without this foundation, sustainability is questioned. A strong understanding of data, workflows, and processes is deemed essential for successful AI integration. An example is given of a technology called communications mining, which turns unstructured communication data, such as emails and phone calls, into actionable insights. This technology can analyze sentiment and categorize conversations, enabling organizations to manage large volumes of information effectively.

The discussion highlights the potential of automation in finance, emphasizing that accurate data can streamline processes and workflows. This allows finance professionals to focus on high-value tasks and engage meaningfully with internal clients, rather than getting bogged down by minor queries that automation can handle.

The speaker stresses the importance of understanding the configuration and learning curve associated with new technologies. They caution against the misconception that products will solve all problems immediately, urging finance professionals to invest time and effort to achieve desired outcomes.

Organizations often overlook the automation tools they already possess. The speaker suggests that many challenges in finance can be addressed through existing data, process, and workflow automation capabilities. A thorough assessment of current technology can save time and resources, particularly in planning for automation strategies in 2024.

The speaker encourages CFOs and finance leaders to engage with their IT departments regarding automation capabilities within the Microsoft environment, which is commonly included in enterprise licensing. They recommend asking simple questions to identify opportunities for finance to leverage existing tools for automation.

As organizations move through different phases of automation adoption, the speaker identifies a significant challenge: the difficulty in realizing benefits and ROI. They emphasize the need to redefine how benefits are measured, focusing on aligning automation strategies with broader business objectives to ensure successful outcomes.

The lack of resources is a common hurdle for organizations adopting automation. The speaker notes that many companies prefer to manage their technology independently, but they also highlight the value of partnering with external experts to enhance their automation efforts and maintain their technology effectively.

The speaker emphasizes the importance of partnerships with clients, highlighting their ability to assess challenges and opportunities, deliver solutions, and transition operations into clients' business-as-usual (BAU) processes. This approach not only ensures sustainability but also involves upskilling and training personnel within the client organizations.

A common theme among finance leaders is the need to 'do more with less,' particularly concerning people and time. The speaker notes that while automation can free up resources for more value-added activities, initial investments in automation are necessary to achieve these benefits. Partnering with firms like Opertivity can help organizations quickly realize the value of automation.

The speaker advises organizations to start small with automation initiatives, suggesting a focus on specific sub-processes like Goods Received Not Invoiced (GRNI) to demonstrate value. This approach allows organizations to quickly realize some benefits of automation, even if not all can be quantified through traditional metrics.

As the discussion nears its conclusion, the speaker encourages attendees to reflect on their automation strategies for the year. They should assess whether their strategies encompass data, processes, and workflows, and identify pain points within their functions. Understanding existing technologies and how to leverage them effectively is crucial for moving forward into 2024.

The session wraps up with gratitude expressed to participants and speakers, including Michael Melrose and Clive Davis, for their contributions to the Navigating the Future of Finance series. The speaker invites feedback on the series and suggests exploring the topic of AI in finance for future discussions, reflecting its growing relevance in the industry.