Why process optimization is a must for the CFO

People, tools and processes are essential in finance. EY's new CFO Barometer analyzes why it is so important for CFOs to map out processes and to know which methods to use.

The CFO Barometer shows that finance is not an isolated department in a company. 54% of respondents indicated that, in addition to finance processes, they also map out other business processes. Properly mapping out and optimizing processes requires a good interaction between finance and business. When finance is involved with other business processes, it creates a transparent framework that can serve as a useful tool to critically examine and properly assess the financial impact of these processes. 

The benefits of process mapping

In any case, it remains crucial to regularly review processes. This lets them evolve in line with daily reality. In large companies, this role is reserved for the internal audit function. A clear view of processes is not only a question of efficiency, but also of risk management and compliance. The results of the CFO Barometer support this idea, as respondents cite efficiency gains (73%), transparency (53%), end-to-end clarity (46%), risk management (46%), compliance (40%), no bottlenecks or delays (20%) and higher productivity (20%) as the biggest advantages gained from process mapping.

Process mining: unknown = unloved?

In the CFO Barometer, 60% of the respondents confirmed that they were not familiar or only somewhat familiar with the technique of process mining. Only 7% of the interviewed CFOs are already using this technique to map business processes. Which is a shame, because this technique shows a lot of potential for both multinationals and SMEs.

Process mining does not lie: the data that is analyzed is derived directly from the systems. Unfortunately, the high cost is off-putting to potential users. That is why EY developed its own modular tool, which customers can use on a project basis. This clears the way for further automation of internal finance processes, which can be profitable.

Improving process optimization

When questioned, the respondents unanimously agreed on one thing: processes must be continuously optimized. How? By making processes more efficient (60%), automating or robotizing processes (60%), mapping processes (46%), standardizing them (40%) and appointing process owners (33%). Possible obstacles to such optimization include a lack of time, insufficient employee buy-in, laborious interaction with IT, and insufficient tools and technology. However, companies should do everything they can to overcome these obstacles. After all, employees who deal with a process on a daily basis can often suggest interesting improvement initiatives.