How to Lead SAP Finance Transformation

Most S/4HANA projects treat finance as a downstream activity. That's backwards. After 15 years in SAP Finance, I've seen what happens when finance isn't driving the transformation from day one. You get technical go-lives that work on paper but fail in practice. Excel workarounds multiply. Finance teams get blamed for design flaws they never controlled. Here's what actually works: **Establish Finance as Design Authority from Phase -1** Before blueprinting starts, map your finance capabilities and pain points. Your S/4HANA solution architecture should reflect finance strategy, not just replicate ECC processes. If finance isn't challenging the design, you're building the wrong system. **Embed Finance integration in every workstream** Procurement, logistics, sales every process generates financial data. If you design these without finance governance, you'll retrofit later at 3x the cost. Finance needs a seat in every design decision, not just FI/CO workshops. **Leverage Universal Journal as your transformation catalyst** Real-time consolidation, embedded analytics, automated reconciliation these aren't add-ons. They're core S/4HANA capabilities that change how finance operates. But only if you design for them in blueprint, not discover them post-go-live. **Lock in quick wins during hypercare** Accelerate month-end close by 30%. Automate intercompany matching. Retire legacy Excel reporting. These prove transformation ROI when the business is watching closest right after go-live. Finance can't be an afterthought in S/4HANA. If you're planning or in the middle of a finance transformation, what's your biggest challenge right now? #S4HANA #SAPFinance #Digitaltransformation

𝗧𝗛𝗘 𝗙𝗨𝗧𝗨𝗥𝗘 𝗢𝗙 𝗙𝗜𝗡𝗔𝗡𝗖𝗘 𝗜𝗦 𝗛𝗘𝗥𝗘—𝗔𝗡𝗗 𝗜𝗧’𝗦 𝗔𝗚𝗜𝗟𝗘! Finance isn’t just reacting to change anymore; it’s driving it. If you’re gearing up to transform your finance function, here’s the blueprint from Agile Finance Revealed that sets apart high-performing teams: 1. Operating Model: The Three Layers of Modern Finance • 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗦𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘀𝘁 𝗙𝘂𝗻𝗰𝘁𝗶𝗼𝗻𝘀 – Tax, Treasury, FP&A, and external accounting provide strategic backbone. • 𝗖𝗲𝗻𝘁𝗲𝗿𝘀 𝗼𝗳 𝗘𝘅𝗰𝗲𝗹𝗹𝗲𝗻𝗰𝗲 (𝗖𝗼𝗘𝘀) – Powerhouses for finance operations and analytics, leveraging automation and AI. • 𝗙𝗿𝗼𝗻𝘁𝗹𝗶𝗻𝗲 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝗶𝗻𝗴 – Trusted advisors guiding leaders with real-time insights. The secret? These layers don’t operate in silos. They thrive on seamless integration to create value together. 2. Processes: The Value Chain Mindset Finance can’t be a passive observer—it must be actively embedded in decision-making. That means: • CoEs don’t just serve other teams; they collaborate to elevate the entire function. • Finance priorities must be directly linked to business goals. • All finance activities must be seen as part of one continuous value chain. 3. Technology: From Automation to AI Finance leaders aren’t just adopting technology; they’re scaling it strategically: • Automate everything possible in finance operations.    • CoEs should deploy machine learning & AI for predictive and prescriptive analytics.    • Self-service reporting should be the norm—freeing up finance to focus on high-value tasks. 4. People: New Roles, New Skills Tomorrow’s finance function needs a talent evolution: • 𝗗𝗮𝘁𝗮 𝗦𝗰𝗶𝗲𝗻𝘁𝗶𝘀𝘁 – Unlocking AI-powered insights. • 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝗧𝗲𝗰𝗵 𝗦𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘀𝘁 – Monitoring finance robots. • 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗣𝗮𝗿𝘁𝗻𝗲𝗿 (𝗼𝗿 𝗖𝗵𝗼𝗶𝗰𝗲 𝗙𝗮𝗰𝗶𝗹𝗶𝘁𝗮𝘁𝗼𝗿!) – Empowering leaders with the best decisions. The takeaway? Finance transformation is a skills transformation. Invest in upskilling or risk falling behind. 5. Mindset: From Cost Center to Profit Driver Finance must shift from being the back-office bookkeeper to a forward-thinking, profit-generating function. That requires: • Training – Equip teams with the right skills. • Role modeling – Leaders must embody the transformation. • Clear communication – The why and how must make sense to everyone. • Redesigning processes, structures, and technology to enable change. Agile finance leaders aren’t just keeping up but outpacing the competition. Check out AICPA and Oracle’s “Agile Finance Revealed” report for more inspiration. What’s your biggest challenge in transforming finance? ---------- 🧑💼 I'm a partner at Business Partnering Institute 📘 Order our new book now: https://bit.ly/4h2P9AA 📻 #FinanceMaster podcast: https://bit.ly/3NLSt73 📺 Follow us on YouTube: https://bit.ly/4bSBut6 📢 Join our WhatsApp channel: https://bit.ly/3WWGOrc

70% of finance transformations fail. Why? A few reasons stand out: 1. Lack of executive sponsorship. Any major change requires commitment from the top. Without it, transformation efforts lose momentum. 2. Poor change management. People need help adapting to new processes and technologies. Ignoring this human aspect of change leads to low adoption and wasted investments. 3. Disconnected systems. Point solutions often don't integrate well across the technology stack. This results in fragmented data and inefficient financial operations. 4. Unclear business objectives. Transformation efforts should directly support strategic goals. Otherwise, it's just technology for the sake of technology. -- The good news is that by addressing these challenges head-on, your transformation can drive real outcomes: 1. Secure executive buy-in from the start and communicate the "why" consistently. Help them see how finance can better support corporate strategy with new capabilities. 2. Involve your team early and get their input. Listen to their needs and concerns. With an inclusive approach, they'll be allies, not resistors. 3. Take an ecosystem view when evaluating new solutions. Seek platforms that consolidate data and unify financial processes on a single system. 4. Maintain a continuous improvement mindset. Finance transformation is an ongoing journey, not a one-time event. Build in feedback loops to course correct as needed. See, technology is just one piece of the puzzle. It all comes down to leadership, communication, and culture change. And when done right, your team will be ready and willing to embrace the future. How has your organization approached this challenge? What lessons have you learned along the way? Source: AICPA & CIMA P.S. I'm Julio Martínez, founder of Abacum. Follow me for daily FP&A, SaaS and business growth insights + personal lessons.