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Dec 2022

Disconnect between finance and operations teams exposes new risks

Source: Middle East Insurance Review | Sep 2022

A lack of alignment between finance and operations teams is damaging growth and competitive advantage at organisations worldwide, according to a new document released by KPMG.
 
The 25-page research survey, Value of Connection, included feedback from 1,300 finance and operations leaders globally. The document reveals that just 38% of senior executives within the two functions are “very satisfied” with the alignment of objectives and key performance indicators across the two teams.
 
The survey found that less than half of the respondents said major business processes are fully connected across their functions and only 41% were very satisfied with the ability of the IT systems to interact. In addition, just 42% of the finance and operations leaders surveyed were very satisfied with their ability to make informed decisions based on data.
 
The survey said, “A lack of clarity of ownership of important processes, as well as a lack of collaboration, data sharing and technology integration appear to be the most significant issues holding back progress.”
 
The findings also indicate that six in 10 leaders are unclear on their specific roles and responsibilities today in relation to environmental, social and governance risks and initiatives, despite 85% saying it will be an area of focus for their businesses moving ahead.
 
Furthermore, the survey found that the majority of finance and operations leaders currently lack confidence in their ability to leverage new technology, draw insights from data, and obtain the skills they will need for the future.
 
KPMG said that embracing new ways of working and adopting a coordinated approach to upgrading skillsets, data and technology, in addition to integrating business planning, could help to define and improve their operating models.
 
The survey, however,  said, “It is not all bad news - some leading businesses recognise the yawning divide and are actively addressing it. The experiences of these businesses offer a way forward for those that currently struggle. The survey exposes that finance and operations teams are disjointed in multiple areas. But it also shows that there are significant benefits of closer connection.” M 
 
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