Future-Proofing the Finance Function: An Empirical Approach

What is it about?

This paper investigates the question: How should a finance function deal with megatrends and disruptors in such a way that it can secure its sustainable performance? The existing literature contains little information on how to make the finance function ‘future-ready’ so that it can deal with its changing environment. Such changes consist mainly of threats (and some opportunities) caused by worldwide megatrends and disruptors. This gap in the current literature inhibits the ability of a finance function to prepare itself for the future. Based on a previous study of megatrends and disruptors, and using a framework for creating high-performing finance functions, this study determines the impact of megatrends and disruptors on organizations’ finance functions. The resulting impact matrix and its robustness were evaluated by two groups of finance experts. The research resulted in the development of an impact matrix and a process -- called the Futurize! Diagnosis -- that the finance function can apply in order to make itself future-ready.

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