Digital transformation brings many opportunities for businesses, but it also presents new risks and creates a critical need for good decision-making. 

Tim Orme, Change Consultant and Programme Director at the London Business School, believes accountants have a pivotal role to play in helping businesses make the right strategic choices. 

How accountants can make smart decisions using big data

While big data offers huge opportunities, business leaders are at risk of becoming overwhelmed with the volume of data available and postponing decisions.

In his webinar as part of ICAEW’s 2018 virtual conference on digital disruption, Orme explained: “The danger is that we delay making critical business decisions because we are forever analysing more and more data.”

He added: “What will differentiate successful companies in the future is their ability to analyse big data, but also to recognise when to stop seeking more analysis and to make smart intuitive decisions. This requires combining decisive action with emotional conviction.”

According to a Deloitte survey of 75 senior finance executives, only 8% of companies view the finance function as its primary source of insight for decision making. More than half viewed the function solely as a source of financial information, and not of insight that can be used to inform business decisions.

Orme said: “There is a big challenge for finance when it comes to influencing and aligning expectations and perceptions. Business leaders are not always the best judge of what the finance function can offer and do not always appreciate how it can add valuable insights to help the business resolve performance issues.” Discover below the seven steps accountants can take towards becoming a strategic partner to business leaders.

The seven steps towards strategic partnering:

1. Invest time in learning about the business by spending time with managers to discuss the issues they are facing.
2. Continue to develop analytical skills, including the use of tools to translate data into insights.
3. Challenge the expectations of key stakeholders – business leaders have not traditionally perceived accountants as strategic partners.
4. Develop the persuasive skills to nudge the business towards the best strategic decision.
5. Be very clear about the direction you want to move in and the actions needed.
6. Understand what motivates stakeholders.
7. Change the environment to shape the behaviour of business leaders. For example, design a process to make it easier to implement recommendations and make it harder to do what has been done in the past.

More support on business partnering

• ICAEW's guide to finance business partnering
• Articles examining finance business partnering
• Finance business partnering case studies
• Webcast: Effective business partnering: past, present and future