Human Evolution is the Key to Successful Innovation and Process Transformation

Melissa Hall, Senior Vice President in Finance and Head of Global Tax, Assurant

Melissa Hall, Senior Vice President in Finance and Head of Global Tax, Assurant

Innovation and process transformation are critical for the success of financial teams within organizations. With the rise of new technologies and changing consumer demands, financial teams are facing pressure to adapt and transform their operations to remain competitive. However, such transformations are not easy and require careful planning, strategic execution, and a deep understanding of potential pitfalls and impediments to success. One of the most significant challenges to successful process transformation is the human element within financial teams.

The most common approach to financial innovation and process transformation is through the adoption of new technologies. This could involve the implementation of new software systems, the use of artificial intelligence (AI) and machine learning (ML) algorithms, or the development of new financial products and services. The goal of these innovations is to improve the speed, efficiency, and accuracy of financial operations while also enhancing the customer experience. However, the adoption of new technologies alone is not enough to ensure success if they are not used properly and extensively by the team; the human element must also be considered. Financial teams are heavily reliant on human expertise and judgment to make decisions, manage risks, and deliver results in tight timeframes. As such, the successful adoption of new technologies and processes requires a deep understanding of how people think, behave, and interact with each other.

Humans are inherently resistant to change. Change can be uncomfortable, unfamiliar, and even threatening to individuals. As financial teams adopt new technologies and transform their operations, the implementation strategy should consider ways to help team members overcome this natural resistance to change and embrace new ways of working. One such strategy is to communicate the benefits of change clearly and transparently to team members. This could involve explaining how the new technologies and processes will improve efficiency, reduce errors, and enhance the customer experience. Additionally, financial teams can involve team members in the decision-making process and provide opportunities for feedback and input. By involving team members in the process, they are more likely to feel ownership over the changes and be invested in their success.

“As financial teams adopt new technologies and transform their operations, the implementation strategy should consider ways to help team members overcome this natural resistance to change and embrace new ways of working.”

Another crucial insight is the importance of a growth mindset. People with a growth mindset believe that their abilities and intelligence can be developed through hard work and dedication. They embrace challenges and see failure as an opportunity to learn and grow. Financial teams can foster a growth mindset by providing team members with opportunities to learn new skills, take on new challenges, and experiment with new ways of working. By creating a culture of psychological safety, team members can speak up, share their opinions, and take risks without fear of retribution or punishment. When team members feel psychologically safe, they are more likely to embrace change, take risks, and innovate.

Financial transformations are complex and costly, so an understanding of the potential impediments is critical for success. Leaders must recognize the importance of the human element and invest in the training and development of their team members to facilitate the necessary human evolution in a financial transformation. Financial teams must invest in training and development programs that equip team members with the necessary skills and knowledge to adapt to new ways of working. Leaders must create a culture that fosters innovation, experimentation, and risk-taking, while also providing a psychologically safe and supportive environment for team members to learn and grow.