This slide builds—the graphic appears first, then the text appears on the next mouse click.Mr. CFO, today, your organization is administrative and transactional, leaving you little time to be strategic and focused on decision-making.We can take that transactional work, allowing you to gain time to focus on financial reporting and decision support.We can move you from a functional finance organization to a strategic finance organization with a strong business partner who supports you.
In terms of what is IN or OUT of scope for outsourcing, this is just a view. It will, of course, vary by organisation and situation. It can also start tactically and increase in scope as confidence improves.We have seen clients taking a very closed view on the extent of work, for example, can be done in an AP environment, i.e. just simple data input and very limited discretion for coding, so the scope has been much reduced to what is shown here. At the other extreme, we have organisations who have realised that they want a very lean organisation and retain just a financial controller with minimal retained support.What I would like to highlight and draw your attention to is that frequently we encounter is a lack of focus on the retained organisation. Surely, one of the goals and objectives of outsourcing should be to re-focus the retained organisation on PARTNERING with the business to provide insight and forward looking decision making information. Sometimes this transition is not always easy for some individuals as they have gained some level of comfort by dealing with the data from the past, rather than dealing with the potential ambiguity of the future. There is a need to work through this on a case by case basis and bridge gaps that are identified.In addition, the retained organisation will need to acquire news skills across a range of areas including the new dynamic of working with an organisation whose work will be clearly defined, who will have clear expectations of what it can and can’t do and also what it needs of the retained organisation to do its job. Let’s look at a more detailed example......
This client relationship started with the client’s cash application unitIn the client’s words “the staff were poor quality and there was a lack of process consistency or controls”. The client needed a tactical solution to provide a more stable department, but also improve performance in terms of reducing unidentified and unapplied cash positions, to then in turn improve the collections efforts. As a rules based process, this led to maximising the amount of tasks that were included in scope for outsourcing with nearly all the activities – except a small level of exceptions management that remained with the retained team.With this new relationship embedded, this customer then examined the potential for outsourcing to improve the DSO and high level of bad debt write-offs. The existing dunning process, although a low cost solution, simply was not working. By implementing a lower cost collections solution with Sutherland provided CRM systems and PCI compliant payment collection tools, the client was able to show many multiples of returns versus the new operational costs. Overall, however, the client retained all the strategic and larger accounts which, in its view, required an amount of delegation and discretion to be applied. In this case, only 40% of the eventual headcount has been outsourced and this, in fact, now reflects the incremental headcount provided by Sutherland. Let’s move on now to assume that the scope is defined – but what about the potential risks.......?
Finding Focus: How Non-Core Cctivities are Blurring Your Strategic Vision Webinar