Bridge the gap
The finance department of a company has objectives that go beyond compliance and being ready with all the company's transactions. They also work to help the company achieve its long-term vision. This may involve forecasting future trends, providing financial advice and guidance, and helping to raise capital. In order to be successful, finance departments need to have a good understanding of the business they are in and the objectives of the company.
Can the finance department help a company in its growth?
A business goal sets the stage for what a company wants to achieve in the future. The finance department can help a company in its growth by determining how to best allocate the company's resources to achieve these goals. This might involve raising capital, investing in new equipment or technologies, or expanding into new markets. The finance department can also help to identify and maximize opportunities for growth, such as tax breaks or access to low-cost financing. In short, the finance department is an important partner in any company's efforts to grow and succeed.
What’s keeping the finance in the back-end?
Lack of vision
The finance department's job involves more than just crunching numbers and keeping records of transactions. It also requires setting and achieving business targets. Without clear targets, the finance team will always be playing catch up instead of being proactive. Therefore, it is essential that businesses set clear financial goals and hold their finance team accountable for achieving them.
Lack of collaboration
In many companies, the finance department works independently from the other departments, which can put the future of the business in danger. Without collaboration, it is difficult for a company to make informed decisions about where to allocate its resources.
Less or no involvement while creating the business strategy
If a business does not carefully consider its financial needs when planning its strategy, it risks putting itself at a disadvantage. This can put the business at risk of failing to achieve its objectives and ultimately being forced to close its doors.
Bridging the gap
With OKRs, the finance team:
Gets a front seat
Finance gets a front seat with OKRs and is involved in ensuring that the business strategy doesn’t affect the company’s financial position and everyone else involved can work within the set limits.
Enhances performance measurement
With OKRs in place, the finance team can work with the sales and marketing teams to identify the rock stars who contributed significantly to the revenue within an OKR cycle.
With a transparent OKR framework, the finance team can stay prepared for any financial strains and warn the stakeholders of any future hassles.
With OKRs in place, the finance team cannot shy away from being held accountable for certain targets that may or may not be aligned with other departments. A sense of accountability pushes them to work more collaboratively and proactively.
Do you face similar challenges?
Let’s discuss how to address them with OKRs.
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