In recent years technology has transformed the way transactions are processed with much now outsourced, often overseas. There has been a demand for the increased involvement of finance people bringing them closer to the frontline of the business, converting data into information as a decision support resource to management in other areas of the business. Will this be the business model for the future and, if so, what challenges will it continue to present to a finance function?

Reflecting these changes in organisational structure and business models, finance directors have had to restructure the finance function to ensure that it is appropriately staffed and balanced to meet the needs and expectations of the organisation.

Working with finite resources, finance functions in some countries are often a delicate balance of specialist people with detailed knowledge of areas including IFRS, tax, treasury and regulation, as well as those business-orientated individuals working with the operations of the organisation in decision support. Will this also be the model for the future?

Boards are responsible for establishing the strategy of the organisation and managing its future. This is a vital area of corporate activity which, at a more detailed level, often involves the traditional areas of budgeting as well as more recently developed activities related to risk management. Finance functions have taken the lead in budgeting matters. Will this be the same in other areas such as risk management?

Information used internally by boards and, in part, for external publication, has traditionally been based on financial information. Increasingly non-financial information is being used for both internal and external reporting purposes. What involvement will a finance function have in the production or review of non-financial information?

FinanceDirection initiative

As a result of these and other important developments the ICAEW, through its Finance and Management Faculty, is planning to undertake a new thought leadership initiative FinanceDirection. We have identified three initial areas of work:

• the finance function
• managing the future
• non-financial measures

We will be aligning our thinking to related pressures on boards and looking at matters from a broad perspective in an international context.

• Outline of the initial issues to be covered in our work programme and that will be developed over the next few years