Today’s evolving financial landscape requires organizations to transform obsolete systems into future-ready infrastructures. Financial systems in particular need to align with compliance standards. The shift from reactive problem-solving to proactive transformation involves eliminating redundancies, automating processes, embedding analytics, integrating cloud platforms, enhancing data interoperability and adopting zero trust cybersecurity.

Here are eight best practices for implementing automation technology or taking on any modernization challenge:

1. Lead with people-centric change management. No technology or solution will work without day one buy-in from the people who will use it. Communication at every step sets the stage for success. Flow charts and brainstorming sessions with key stakeholders allow managers to talk through a workflow that addresses everyone’s needs. Touch points and progress updates keep stakeholders informed, and robust user training ensures adoption and mission alignment.
2. Streamline processes before you digitize. In a federal financial system, it’s common for accounts payable and receivable operations to function in isolation. A rigorous analysis sets the stage for creating a more efficient workflow that eliminates redundancy and obsolete manual processes. It’s essential to study the policies and procedures that guide workflows in manual or legacy systems and translate them to intelligent automation technology. Here, it’s often helpful to look at other federal agencies to see what has worked and lessons learned.
3. Automate intelligently to enhance mission focus. Automation for its own sake goes nowhere. It must be targeted not just to cut costs but also to free up the skilled federal workforce from repetitive, low-value tasks better suited for machine learning. Once liberated by artificial intelligence and automation, workers can focus on high-level analysis, strategic planning, and mission-critical objectives.
4. Mandate data interoperability for a single source of truth. In too many cases, one set of information does not connect to or integrate with another. Worse than these data silos are manual processes. Employees often work offline from Excel spreadsheets, making it even tougher to integrate the operations of federal agencies. Modernized core systems allow for the secure, seamless sharing of data to drive cross-agency collaboration, ensure comprehensive reporting and guarantee accurate analytics.
5. Embed analytics to drive proactive decision-making. Why look behind when you can look ahead? Cleaner financial statements stem from real-time, predictive insights. Upgraded systems integrate dashboards, data visualizations, reports and other forms of business intelligence. Their streamlined views empower leaders to anticipate future needs and challenges.
6. Build on a secure and scalable cloud framework. Rather than stack new technology on an obsolete core, cloud computing systems evolve as technology improves and make enhanced cybersecurity possible. What’s more, cloud technology can scale to handle massive data loads, integrate new tools and provide superior accessibility that a modern federal workforce demands.
7. Secure by design with a zero trust architecture. In the current threat landscape, security cannot be an afterthought. In a zero trust environment, no external data or outsider enters a system and third parties are granted access only after a thorough vetting. Continuous authentication is crucial. To work across systems, data scientists and data miners will extract only what is needed and clean the data first.
8. Develop your battle plan. Just as in the military, proactive transformation requires a clear, strategic roadmap. Follow these steps to produce a battle plan unique to your organization’s needs and challenges:

• Conduct a comprehensive assessment. Analyze your current financial systems to identify pain points, redundancies and areas where manual processes are a bottleneck. This analysis will streamline your processes before you digitize them.
• Convene key stakeholders. Map out new workflows and secure buy-in across the organization. Communication is fundamental, from initial brainstorming sessions to ongoing progress updates.
• Create a phased process. Instead of a massive, disruptive overhaul, implement your plan in manageable iterations. Focus on intelligently automating one or two key processes first, such as accounts payable or receivable. Use these initial wins to demonstrate value and build momentum. Embed analytics as you go to measure progress and make proactive adjustments.
• Scale up. Use this solid foundation in a secure cloud framework to integrate new tools, enhance data interoperability, and ensure that your system is both future-ready and protected by a zero trust architecture.

This structured approach will improve decision-making, transparency and service delivery while meeting compliance mandates as you move your organization from reactive problem-solving to a proactive and successful transformation.

Tabatha Turman is the founder and CEO of Integrated Finance and Accounting Solutions.

The post From obsolete to obligatory: 8 best practices for upgrading federal financial systems first appeared on Federal News Network.