In today’s fast-paced business environment, the finance function is no longer just a back-office operation, but rather a strategic powerhouse capable of driving enterprise-wide value. Yet, despite significant investments in digital transformation, many finance transformations fall short of expectations. Why?
In a recent KPMG DX Coffee Chat, leaders from Element Fleet Management, SAP, and KPMG in Canada came together to explore this very question. Through a candid discussion grounded in real-world experience, they unpacked the critical success factors and common pitfalls of finance transformations, while also polling the audience to better understand where Canadian businesses stand today.
Read on for an overview of the key takeaways or watch the full webinar recording below.
Key considerations for finance transformation success
Transformation starts with a North Star
A successful finance transformation starts with an articulated vision that aligns with business strategy. Andrea Kiss of SAP underscored this point.
You need a super clear vision that everyone can rally around: a North Star. Whether it's improving visibility, reducing costs, or enabling innovation, that [North Star] gives everyone a rallying cry and aligns the entire organization.
The value of a “North Star” resonated with audiences, particularly the 22% who cited a lack of clear vision and strategy as the biggest transformation challenge, next to poor data quality and management.
What is the biggest challenge your organization is currently facing?
Source: KPMG in Canada's DX Coffee Chat - Unlocking the potential of your finance function: Strategies for transformation ROI
Clean, relevant data is the foundation
With poor data quality and management having been identified as one the main challenges, Chris Moore of KPMG in Canada emphasized the importance of defining a clean, consistent finance data model early in the process. He compared the transition of data into new systems to moving into a new house.
You don’t want to take all that junk data into the new house. Decide what you really need and then put controls and processes to make sure you maintain that master data and ensure it is governed on an ongoing basis.
Prioritize change management early and often
Another key barrier to transformation is change resistance. Kari Hess of Element Fleet shared how embedding business users into the project team, despite initial pushback, was a game-changer.
This resonated with the audience, where 19% cited resistance to change and 16% pointed to insufficient investment in change management as major hurdles.
Business leads, technology enables
While technology is a critical enabler, it should never be the driver. Chris Moore of KPMG in Canada noted that too many organizations focus on “lift and shift” ERP implementations without rethinking their operating models.
This point was reinforced by the audience: 63% said finance is leading their transformation, while 10% said IT was in charge. Meanwhile, another 10% weren’t clear on who was taking the lead at all.
Who’s leading the finance transformation in your organization?
Source: KPMG in Canada's DX Coffee Chat - Unlocking the potential of your finance function: Strategies for transformation ROI
A shift toward future-ready, adaptable operations
Businesses are primarily focused on modernizing legacy systems and boosting agility as the primary objectives of their finance transformations, signaling a shift toward future-ready, adaptable operations. Cost reduction and technical debt remain important, while experience and compliance are lower priorities, reflecting a strategic rather than reactive mindset.
What is currently the primary objective of your finance transformation?
Source: KPMG in Canada's DX Coffee Chat - Unlocking the potential of your finance function: Strategies for transformation ROI
Scope creep is common but can be managed
Transformation projects often face pressure to “do it all.” Hess described how her team adopted a “Next and Beyond” approach—focusing on a minimum viable product for go-live, while building a roadmap for future enhancements.
We focused on what was mandatory for us to go live so that we made sure we stayed on budget and went live on time, but we also created a backlog and a plan for a subsequent phase to address the things that really needed to be a fast follow.
Measure what matters (and keep measuring)
Transformation doesn’t end at go-live. Continuous improvement requires continuous measurement. Element Fleet used a detailed process taxonomy to track changes, efficiencies, and business impact.
Success is measured not just by being on time and on budget, but also by quality and outcomes, which can be tracked through a finance transformation scorecard monitoring KPIs like automation, cycle time reduction, and reporting accuracy.
Silos limit your view
Finance transformation is more than a one-team task. It takes organization-wide engagement and collaboration. Kari Hess emphasized the importance of cross-functional engagement, advising teams to avoid operating in silos by interviewing stakeholders across various business areas to understand their visions and expectations. This comprehensive approach ensures that no unexpected expectations or requirements are overlooked.
It's the journey that counts
Whether you’re just starting a financial transformation or in the middle of a journey, the message is clear: transformation is about more than systems – it’s about people, purpose, and seeing those objectives to the end and beyond.
As Kiss put it, “The most successful transformations are those that stay grounded in business value and never lose sight of the human element.”
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