Don’t underestimate the power of the back office in driving growth

If I asked you to name a business known for having a stand-out back office, I imagine you’d struggle to think of one. It’s not something that companies become well-known for – and yet, high-performing back-office functions fuel excellence front-of-house.

New research from Liberty Blume, developed with FT Longitude and based on a survey of 300 UK business leaders, examines how back-office transformation can drive business success. The report reveals that while the vast majority of companies see business transformation as a key driver of growth in the short-term, many currently undervalue the key supporting functions that can make change happen.

There are some stark figures: almost 80% of those surveyed believe business transformation will drive growth over the next two years. At the same time, three-quarters of leaders say their back offices need to bring more to the table, and one third believe the benefits provided by back-office functions don’t clearly outweigh the costs.

In today’s competitive business environment, the cost-to-value ratio is undeniably important to leaders – but those that don’t make transformation happen risk falling behind. Meanwhile, companies that are moving ahead are seeing real results.

Our report found that most companies engaged in business transformation report significant benefits in multiple areas. Improving compliance, and gaining more time to spend on strategic imperatives, are the two most commonly-cited benefits – in fact, nearly half say transformation has improved both of these areas by 20% or more. Most are also seeing increased employee productivity and reduced operating costs.

Clearly, there are gains to be had for those that are willing to invest in the journey. The back office is no longer just a support function – it has instead become a strategic driver of growth.

The data shows that most businesses realise that change is necessary, but many need to overcome the disconnect between visibility and value when it comes to key supporting functions. Business transformation is no longer optional – it’s now essential for competitiveness. And the companies that embrace change are the ones that will outperform their peers.

For more insights on how business transformation is delivering results, download our new report, Transform to Outperform: The business case for change.