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How Deliveroo’s new CFO can deliver efficiency

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By Lianne Gatti, Country Manager, Konsolidator 

Facing the ongoing cost of living crisis, Deliveroo is working on adapting to this new reality, taking on a new CFO – Scilla Grimble. The rapid food delivery service is facing rising competition globally from competitors such as Just Eat, Grubhub and Uber Eats and its share price is down 65% since its IPO last year. Deliveroo recognises that it is in a precarious position and in a recent statement said that the economic context meant that it needed to ‘remain focused on running the company in the most efficient way’.

Deliveroo has identified efficiency as its key driver for growth, and Grimble has got a lot of challenges to ensure that Deliveroo is delivering on its promise to customers as well as ensuring the business is running in a profitable way. With this in mind, it is essential that Grimble is supported with the right technology to ensure that the business can ensure its financials remain in perfect order and it can focus on future growth.

The changing role of the CFO

Across sectors the role of the CFO is starting to move beyond managing the day-to-day activity in the finance team. Those in the role have the potential to be seen as a figurehead and spokesperson for their companies and the role is ever-expanding, with duties moving closer to those of the CEO.

CFOs have a seat at the table when it comes to decision making within businesses and they can become a key and trusted adviser to the CEO. We’ve seen this recently with M&S, whose reshuffle earlier in the year announced Eoin Tonge’s role as chief strategy & finance officer, making him closer to key decisions at the retailer.

As the CFO’s role and responsibilities expand, it is imperative that they are supported with the right technology to ensure that finance systems and calculations are accurate. The right technologies need to be implemented now, not far off in the future. Introducing automation and technology within finance departments will ensure that systems run efficiently with no room for error, giving the CFO room and time to take on strategy and business decision making alongside finance responsibilities.

 

Technology supporting efficiency

Many financial departments still rely on archaic systems like Microsoft Excel, even in some larger organisations, but this is no longer enough. Despite how careful and precise the user is, Excel can easily result in miscalculations and further manual errors, as seen in the JPMorgan scandal where an Excel error led the business to lose $9bn. Even small errors can have a huge and damaging impact on budgets. This can have devastating consequences for the business and potentially shake credibility with stakeholders and the CFO’s personal reputation. While Excel has a rightful place in the accounting and auditing field, it shouldn’t be the only software professionals put their trust into.

Instead, professionals need to shift their trust to emerging technologies. Cloud-based software can track the source of each financial figure, guaranteeing reliability at every stage, while at the same time ensuring compliance and confidence. Robust finances can efficiently set up companies for investment and scaling. This will be crucial for a business like Deliveroo which is looking to stay competitive in the FMCG sector.

Investment in tech to take on the repetitive and data heavy tasks will allow Deliveroo’s CFO to prioritise strategic decisions while ensuring that its financial departments continue to run efficiently. Ambitious CFOs like Grimble who are tasked to ensure that the business continues to run in the most effective way possible need to be supported with the right technology which can handle complexities around financial calculations without the fear of manual error.

Finance professionals are under tremendous pressure as it is, and those responsibilities and pressures are only growing as the CFO role shapeshifts. If Grimble is to deliver true change, she needs to be able to trust the figures in front of her so she can get on with the other parts of her role. What’s more, delivering efficiency will mean ensuring her talented team is able to spend less time on each task – a key advantage to using automation accountancy systems.

Technology is synonymous with efficiency, and automation that supports financial processes and calculations can play a huge role in creating a lean and effective process within a business. If Deliveroo’s new CFO is looking to ensure the business runs in the most economical way possible, then it is imperative it recognises the opportunity that technology will play in helping it reach its full potential.

Banking

Poor software testing puts banks at high risk of IT failures

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 Sune Engsig, VP Product at Leapwork

 

IT failures have plagued the banking industry for several years. From the TSB computer systems meltdown in 2018 costing the bank £330m and causing 80,000 customers to switch to a competitor, to Lloyds, Halifax and Bank of Scotland suffering an IT glitch on payday this year with customers’ faster payments and transfers being delayed.

Despite MPs calling for regulators to act, condemning the number of IT failures in the financial services sector as ‘unacceptable,’ the industry continues to let them happen leaving more and more irate customers locked out of their accounts. But with bank branches disappearing fast, customers are now far more reliant on online and mobile banking, so ensuring technology systems function correctly is paramount.  When you consider the complex compliance and regulatory setup of banks and other financial institutions, and the fact that they are dealing with incredibly sensitive customer information, those that do experience outages can face irreversible consequences such as loss of customer loyalty, severe reputational damage and regulatory fines.

A critical step in mitigating IT failures is having effective testing capabilities in place to find and fix any errors before new software is rolled out to market or new IT migrations take place. This lowers the risk of software failures and outages occurring after launch. Yet, 70% of software testers in banking and financial services think it’s acceptable to release software that hasn’t been properly tested, so long as it’s patched later, according to research by Leapwork. Furthermore, only 40% think software failures are a big risk to their company. But when the impact of an IT failure is so severe, why do banks still take risks?

 

Software testing challenges

Despite the swathes of software businesses now rely upon, 85% of software testing is still done manually. When it comes to the banking sector, as these institutions continue to develop new digitised products and services with increasingly sophisticated and customised software, it is clear that manual testing can no longer be the default. It is time-consuming, cannot scale amidst a skills crisis, and leaves companies open to human error.

There is a huge amount of pressure on IT teams to develop and release new software or manage new IT migrations. A critical step on this journey is having effective testing capabilities in place, like test automation, to find and fix any errors and bugs before new software is rolled out to market. This lowers the risk of outages and failures occurring after launch, which can negatively impact a company’s reputation and bottom line.

However, while some organisations recognise the value of automation tools, many continue to rely too heavily on code-dependant tools which, while an improvement on manual testing, are incredibly complicated to use and thus require specific skills and experience to operate. This means they too are impossible to scale, as they often depend upon developer skills.

 

Skills shortage forcing banks to take risks

Ensuring you undertake proper software testing seems like a no-brainer, but 40% of software goes to market without sufficient testing. The reason why; one in five (21%) of banking and financial services testers say ‘lack of available skilled developers.’ As companies transition from manual to automated testing, which typically requires coding skills, the major global developer skills shortage is creating bottlenecks, increasing costs and delaying project delivery times as development teams try to upskill manual testers, hire new talent or lean on existing developers.

As a result of the skills shortage, only 30% of testers in banking and financial services say they’re using some element of automation (i.e., an automation tool or a combination of manual and automation). In fact, 40% of CEOs across all industries think the fact that their company still relies on manual testing is the main reason why software isn’t tested properly, with 58% of testers in banking and financial services saying ‘underinvestment in test automation’ is the reason sufficient testing does not occur.

 

Testing issues not on CEOs’ agenda until too late

Across all sectors, 69% of CEOs think it’s acceptable to release software that hasn’t been properly tested, so long as it’s patched later, but 68% of testers claim their teams spend five to 10 days per year patching software. While nearly all testers express concern that insufficiently tested software is going to market, the overwhelming majority (75%) of CEOs say they’re confident their software is tested regularly. These numbers show a huge disconnect between CEOs and testers indicating that testing issues are falling under the radar and not being escalated until it’s too late.

 

Moving toward an automated future

Banking and financial services have been thought of as slow-moving and lacking innovation in the past. That isn’t the case anymore, as we’ve seen the industry take great strides towards digitalisation in recent years. However, with that digital transformation and integration of software comes outages, the consequences of which mean millions of pounds lost.

UK banks are at high risk of IT failures due to insufficient software testing, and a reliance on manual testing. On the current trajectory, more and more banks will struggle with failures and outages which could cost them a significant amount in financial and reputational damage. To minimise risk, they need to transition from manual to automated testing and explore testing options that don’t require coding skills so it’s easier to hire in talent or upskill existing team members, whether that be testers or everyday business users. Only then can they increase productivity and time to market while decreasing risk and costs.

 

 

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Business

Financial Services Makes Gains In Employee Engagement

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By Phil Chambers, GM Workday Peakon Employee Voice 

 

A new report shows that the financial services industry improved in almost all elements of employee engagement last year. Can such momentum be sustained?

After more than two years of change, one thing is certain: keeping workers engaged has become more challenging – and more urgent. Record numbers of workers have left their jobs in the UK. And, as turnover has increased, employee engagement – people’s mental and emotional investment in their work and workplace – has been tested. In today’s climate, engagement isn’t a nice-to-have; it’s a business imperative – especially as companies with engaged employees are known to reap benefits including higher productivity, customer satisfaction, and profitability.

The financial services industry hasn’t been immune from the so-called Great Reshuffle. But, according to Workday’s latest State of Engagement Report, it did make measurable gains in employee engagement during 2021. Of the 17 industries analysed, financial services’ engagement ranking jumped from ninth to fifth place.

The report analysed nearly 9 million employee responses from almost 2.5 million employees throughout 2021. It compared the engagement scores given by employees working in different industries over the 12-month period, as well as scores for the 14 drivers of engagement – including autonomy, goal setting, meaningful work, reward, and recognition.

Organisations in the financial services industry have been considered less   quick to evolve than others. PwC recently characterised insurance companies, for instance, as “traditionally risk-averse and slow to change”. But, as the report shows, financial services clearly made some improvements. It is noteworthy given the enduring pandemic-related economic turbulence of 2021 – and the fact that during that time global engagement scores overall slightly declined.

 

Where The Financial Services Industry Improved in Employee Engagement

Remarkably, the financial services industry saw increased rankings and scores in all but one of the 14 engagement drivers that the State of Engagement report measures.

Of all 17 industries analysed, financial services took top place for goal setting by the end of 2021 (up from sixth at the start of the year) and landed among the top three sectors for strategy and recognition too. These strong results indicate the industry provided clear direction to its people at both individual and organisational levels, and appropriately recognised employees when they met their goals.

The improvement in the industry’s overall engagement, however, was driven largely by a sizable increase in its environment driver score in 2021, suggesting that a significant number of employees responded positively to having more freedom around where they worked during the pandemic. Before the pandemic, it was unusual for financial services firms to offer flexible options at all. But, in 2021, more than ever before, many firms’ employees were working remotely or enjoying a hybrid of both remote and in-office work – as and when offices started to re-open. This unprecedented choice in where, how, and when they worked was appreciated, as the report indicates, by many workers in the sector.

 

Where There’s Room For Improvement

As the report found, many employees feel the amount of work they have is increasingly unmanageable. Workload continues to be a pain point across all industries globally, with workload satisfaction scores dipping slightly in 2021. At the end of the year, financial services received its lowest engagement-driver score for workload and ranked 11th among the 17 industries analysed.

This indicates employees in the financial services industry found their workload less manageable as the year progressed, which is perhaps unsurprising when considering the pandemic’s ongoing toll in many parts of the world, and the fact that remote working can lead to ‘always-on’ work lives.

To help mitigate burnout risk and diminished engagement going forward, financial services leaders and managers will need to stay close to their employees in the months ahead to find out how they can best support them, whether that’s with additional resources, greater work flexibility, or updated benefits. By regularly staying abreast of people’s needs and taking the necessary action, organisations can spot potential problems before they lead to resignations.

 

What The Industry Should Avoid Going Forward

In recent months, we’ve seen some financial institutions try to take a “return to normal” approach, requesting their people go back to working onsite five days a week. But, as the report shows, this approach may not be the best one for everyone, particularly as the past two years have revealed that many employees appreciate and benefit from a greater degree of flexibility.

Of course, not all organisations will be able to provide hybrid or remote arrangements for all their people. But greater flexibility doesn’t necessarily have to mean working remotely. It could mean more flexible scheduling options, or a shift in working hours to enable a greater work-life balance.

Either way, to retain the engagement gains achieved in 2021, the financial services industry should resist the temptation to look back, and must instead take learnings from the past two years. Amid so much economic and societal change, and with employees continuing to shift jobs in record numbers, companies cannot simply go back to before, but need to continue moving forward, listening to the needs of their people, and leading with empathy.

Specifically, leaders and managers in financial services will need to stay closer than ever to employee feedback, going beyond listening and working fast to implement change accordingly.

For the industry to continue making positive gains in employee engagement, it will need to: consider how to retain a degree of flexibility – updating models to reflect evolving employee needs; continue to provide clear individual and organisational direction to those working remotely and on site; create and maintain more manageable workloads through prioritisation and automating repetitive tasks; and continue to reward and recognise employees for their hard work and achievements.

While great strides were made last year, it’s more important now than ever that leaders in the financial services industry determine and understand how employees are feeling so that organisations can explore and shape a future of work that works for everyone.

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