How to Drive Successful Finance Transformation at Your Organization

Sumit Johar, Chief Information Officer at BlackLine, brings over 25 years of experience working with technology companies, helping to reinvent their operations. His expertise in delivering large-scale digital transformation has enabled him to spearhead technology vision and strategy to accelerate growth for various organizations.

Here at BlackLine, we talk a lot about how companies can achieve successful digital finance transformation and realize future-ready operations. We know this can sound daunting to many F&A organizations.

I’ve got real-world experience, having been a CIO three times and leading dozens of digital transformation initiatives across Finance, HR, Sales, and Marketing, and I’d like to share my perspectives to ease some of that anxiety.

One thing that has always intrigued me is trying to figure out what truly drives impactful transformation. I’ve experienced complex and expensive initiatives that didn’t meet expectations; conversely, I’ve had projects that started with a simple idea and minimal investment, and they unexpectedly turned into highly productive and transformative journeys.

These experiences have led to ongoing debates within my teams and among fellow CIOs: What exactly drives success? Is it the choice of technology, the consulting partners, or the level of business sponsorship? Is it simply the drive within the team leading the initiative? Is there some other factor?

Let’s explore what moves the needle in digital transformation.

There are a number of discouraging stats out there when it comes to digital finance transformation projects, including:

• McKinsey reports that 70% of digital transformations do not deliver the expected results.

• Taylor & Francis Group reports that $2.3 trillion was wasted globally in failed digital transformation programs.

Why do so many of these initiatives fail? Some common pitfalls I’ve learned through my experiences include:

1) Lack of Vision and Alignment

One of the top reasons digital transformation initiatives fail is the lack of a clear vision and strategy at the executive level. Often, technology is purchased because someone is convinced that a new tool will be a silver bullet. In reality, every business process involves multiple groups, and if there isn’t clear alignment, the impact will remain limited to one department unless you make it a win-win for everyone involved.

Here’s a real-world example: a company I worked for decided to launch a new billing platform designed to simplify our subscription-based pricing. The technology seemed perfect, and we were excited about it. But, we underestimated how much this would impact teams like Accounting, FP&A, and Revenue Operations, and unfortunately, we didn’t engage them early on, assuming the change wouldn’t affect them significantly.

Big mistake.

We had to push back the project’s timeline multiple times as we scrambled to address issues that could have been caught earlier if we had involved all relevant stakeholders from the start.

2) Cultural Barriers

Humans are change-resistant: it’s well-documented that people often prefer the comfort of familiar routines, even when those routines are inefficient or outdated.

Interestingly, the same individuals who are vocal about their dissatisfaction with current processes are often the ones most resistant to change. These individuals might express frustration with how things are done, yet when presented with an opportunity to adopt a new, more effective solution, they hesitate, resist, or outright reject it.

I've seen this dynamic play out firsthand—a solution that works brilliantly in one company can struggle to gain traction in another, not because the solution itself is flawed but because of the resistance to change. Even when the current process is widely acknowledged as needing improvement, the prospect of something new can be intimidating.

Every organization has a unique culture and appetite for change, shaped by its history, leadership, and experiences. Some companies are naturally more agile and open to experimentation, while others are more conservative and risk-averse. Understanding this cultural context is crucial for any transformation effort.

3) New Technology, Old Processes

There’s a common misconception that replacing a tool without changing how you run your business will yield results.

The fact is that simply moving legacy processes into a new tool or technology perpetuates inefficiencies rather than addressing the root causes of problems. For example, automating a flawed process means that the inadequacies of the original process are only executed faster, not eliminated.

Companies can also miss the chance to innovate or redesign those processes to be more efficient, effective, and aligned with current goals and technologies.

I’ve seen countless projects fail because they were overly customized to keep a few people comfortable with how things used to be instead of embracing the full potential of the new tools and processes.

We’re living in a time when innovation is happening at a pace never seen before. Most of us are playing a game of constant catch-up. Who would have thought that:

• Zoom would become a household tool in 2020

• A company no one had heard of could make Google nervous by launching a chatbot (ChatGPT) in 2022

• Nvidia would become the most valuable company in 2024

These companies didn’t just react to change—they anticipated it and were ready to capitalize. They set a clear digital ambition and envisioned a world that would need something they could create. That’s what we all need—a Digital Ambition.

It’s no longer just about staying competitive; it’s about survival.

Companies that don’t innovate will get exposed. For example, thousands of companies were affected when Crowdstrike updated its software. Some who were better prepared recovered quickly, while others struggled. Industry analysts estimate the overall financial loss is between $5-10 billion.

What can you do to future-proof yourselves and the functions you support?

In speaking with our customers, I’ve learned that CFOs are being asked to look beyond their routine responsibilities and lead from the front when it comes to transforming the business and its operations. You’re expected to fund and support innovations in other functions and set an example by leading it yourselves.

Here are a few key points that might help:

1) Invest in Change-Friendly People

Innovation starts with people. You can take ideas from outside resources, but you can’t outsource transformation entirely. I’ve seen enough failed projects where an executive brought in an external agency only to find that their team wasn’t prepared to support the cause.

2) Set a Digital Ambition for Your Function

No matter your role—whether you manage a department or are an individual contributor—set a clear digital ambition that articulates how your function will operate 12-24 months from now. Identify what changes in tools, technology, people, or processes will be needed to get there.

3) Pick the Right Technology Partners

This is crucial. Choose technology partners based not only on their tools but also on their credentials in security, data privacy, and compliance. You need partners with domain-specific expertise who can help you create a vision and roadmap.

4) Partner with Your IT Organization

As a CIO, every time I meet with my functional partners, I learn about their needs. Most conversations start with what they need in the next six months, but I push them to think about their five-year plan. I recommend setting up thought leadership sessions with your IT function to look beyond your current aspirations. The more IT understands your long-term goals, the better they can help you achieve them.

I continue to learn from every transformation experience I lead. I look forward to sharing more perspectives on how your organization can achieve successful digital transformation and realize future-ready financial operations.