The finance function has entered a period of rapid change, where agility, automation, and artificial intelligence are no longer optional but essential. HollandParker, a trusted name in financial transformation, emphasizes that Chief Financial Officers (CFOs) must redesign their finance target operating model (TOM) now to stay competitive by 2026. Waiting until the pressure builds will leave organizations at a disadvantage in adapting to volatile markets, regulatory changes, and digital-first competitors.
A finance target operating model is not just a structural blueprint—it defines how finance delivers value, manages risk, and aligns with enterprise strategy. Research highlights the need for finance TOMs to evolve from transactional efficiency toward delivering insight and foresight. In practice, this means CFOs must modernize finance by embedding AI, enhancing data governance, and restructuring roles to focus on decision support rather than manual processes.
This article explores four major sub-topics essential to designing a modern finance TOM for 2026: digital finance transformation, AI-readiness and automation, operating agility, and talent realignment. Each area reflects the changing expectations for finance and provides a roadmap for CFOs to act decisively.
Digital Finance Transformation: Building a Data-First Foundation
Digital transformation in finance is more than adopting new tools—it is a full redesign of processes around data as the central asset. For many organizations, financial systems remain fragmented, with legacy ERP platforms that lack real-time reporting capabilities. This creates delays in forecasting, budgeting, and compliance.
By 2026, finance leaders must establish a unified data strategy where financial, operational, and market data flow seamlessly across systems. Industry surveys show that most CFOs plan to increase their investments in digital finance over the next two years. This momentum reflects the recognition that digital finance enables faster insights and strengthens governance.
Key aspects of digital finance transformation include:
- Cloud-enabled ERP systems to provide scalable, secure, and continuously updated platforms.
- Integrated analytics layers that allow predictive forecasting and scenario modeling.
- Standardized data governance frameworks to ensure compliance with evolving regulations such as ESG reporting and global tax transparency.
From firsthand consulting experience, HollandParker has seen finance organizations accelerate close cycles significantly when digital platforms replace manual spreadsheets. This efficiency not only saves time but also allows CFOs to shift focus toward strategy and value creation.
AI-Readiness and Automation: Unlocking Predictive Finance
Artificial intelligence is transforming finance functions by reducing repetitive work and improving accuracy in forecasting. However, AI-readiness requires deliberate planning—an AI-enabled TOM cannot exist without the right infrastructure, data quality, and workforce alignment.
Global research suggests AI could add trillions to the global economy by 2030, with significant contributions coming from productivity gains. For finance, this means automating reconciliations, invoice processing, and compliance checks while embedding predictive analytics into planning cycles.
To achieve AI-readiness by 2026, CFOs should focus on:
- Automating transactional processes through robotic process automation (RPA).
- Deploying machine learning models to identify anomalies, fraud, or cash flow risks.
- Embedding predictive analytics into performance management cycles.
AI also brings opportunities for enhanced risk management. Algorithms can monitor thousands of transactions in real time, alerting teams to potential compliance issues that human review may miss. HollandParker emphasizes that AI-readiness is not only about technology—it requires governance structures, ethical considerations, and training programs so teams can interpret AI outputs effectively.
Operating Agility: Designing for Volatility and Speed
A finance TOM designed for 2026 must prioritize agility. Market volatility, geopolitical disruptions, and shifting supply chains make static annual planning insufficient. Instead, finance must operate as a dynamic business partner capable of rapid scenario planning and continuous reforecasting.
Research shows that companies with agile finance functions are significantly more likely to outperform peers in revenue growth. Agility ensures finance does not simply react to change but anticipates it.
Key elements of agile finance operations include:
- Rolling forecasts to replace rigid annual budgets.
- Dynamic cost management that enables immediate reallocation of capital when opportunities arise.
- Cross-functional squads that connect finance with operations, sales, and supply chain.
Real-world cases highlight how agile finance functions were able to adapt quickly during the COVID-19 pandemic, while rigid TOMs left organizations exposed to disruption. For many leaders, building agility begins with cultural transformation. CFOs must champion adaptability and position finance as a strategic partner to the business.
Talent Realignment: Preparing the Workforce for 2026
While technology drives much of the TOM redesign, talent is the enabler of lasting transformation. CFOs must address how roles evolve as automation and AI absorb routine tasks. Finance teams of 2026 will focus less on reconciliations and more on interpreting insights, influencing strategy, and ensuring compliance in a digital-first environment.
Industry surveys show that CFOs increasingly see themselves as stewards of digital transformation. This underscores the need for finance professionals to develop new skills in analytics, digital literacy, and business partnering.
Key priorities in talent realignment include:
- Upskilling and reskilling programs to prepare staff for AI-enabled decision-making.
- Recruiting digital-native finance talent with expertise in data science and technology integration.
- Creating hybrid roles where finance professionals partner with operations and technology teams.
HollandParker has observed that organizations investing early in workforce transformation see smoother adoption of digital tools. Resistance to change decreases when employees understand how new capabilities enhance, rather than replace, their roles.
By 2026, the most successful finance functions will be those that balance automation with human judgment—leveraging technology for speed while relying on skilled professionals for context, ethics, and strategy.
A Strategic Imperative for CFOs
The finance target operating model for 2026 must embody digital fluency, AI integration, operational agility, and a redefined talent strategy. CFOs who act today will secure a competitive edge, enabling finance to serve as a true partner in enterprise growth.
Insights from HollandParker’s work with finance leaders show that organizations preparing now are better positioned to manage disruption, adopt digital tools smoothly, and respond with agility to market shifts. Building TOM frameworks today allows CFOs to move from reactive reporting to proactive decision support, a transition that will be essential for success in a data-driven economy.
For CFOs, the message is clear: the time to modernize is now. The finance function of 2026 will not wait—and those who delay risk being left behind.
