Breaking Down Silos: WhenHR and Finance Collaborate Mary Henry              Mark Johnson HR on Demand            B2B CFO® ...
Objective   Define silos and the shift away from them.   Benefits of coordination, cooperation    capability development...
Mark Johnson   CPA with KPMG an international accounting firm for    12 years   Senior financial executive for large ret...
Definition of a Silo   A metaphor to a grain silo where each    employee, division or department interacts    primarily w...
Examples of SilosThis phenomenon exhibits itself in a   number of ways such as:   This is MY department syndrome   “That...
The 4 C’s of Customer FocusedSolutions   Coordination – Companies need mechanisms that    allow customer related informat...
Silos are Common   Only 37 % of 23,000 employees in a recent    poll said that they have a clear    understanding of what...
How do we Fix the Problem?1. Eliminate needless Formality and Hierarchy2. Provide One Click Access to the Entire    Organi...
Eliminate needless Formality andHierarchy   Share resources through staff e.g.    accounting intern for HR   Commit to r...
Provide One Click Access   Streamline the communication of important    information flow between accounting and HR eg.   ...
Design Dedicated Physical Spaces forCollaboration   Design collaborative physical spaces in    offices and conference roo...
Adopt Common Systems andProcesses•   Develop an enterprise wide information reporting    system (ERP) that provides all de...
Characteristics of KPI’s   Only have 3 to 5 KPI’s for an organization   Roll up departmental KPI’s to address    company...
Some Key Performance Indicators   Sales volume per unit or location   Margin per product or location   Cost per unit or...
Challenges with KPI’s   Expensive or difficult to determine   Adjusts to changing needs in the company   Difficulties i...
Establish Cross Functional Mentoring•   Encourage staff in accounting and HR to find mentors in the    other department to...
Breaking Down Silos“In most situations silos rise up not because of what executives are doingpurposefully but rather becau...
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Breaking Down Silos: When HR and Finance Collaborate

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Metaphoric Silos — since each employee, division or department interacts primarily within their specific “grain” silo rather than with other groups across the organization — need to be broken down to increase productivity and profitability. Mark Johnson of B2B CFO collaborates with Mary Henry of HR on Demand to produce the PowerPoint and lecture.

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Breaking Down Silos: When HR and Finance Collaborate

  1. 1. Breaking Down Silos: WhenHR and Finance Collaborate Mary Henry Mark Johnson HR on Demand B2B CFO® June 20th , 2012
  2. 2. Objective Define silos and the shift away from them. Benefits of coordination, cooperation capability development and connection. What does that mean for HR and Finance? Work through business problems with the customer focus
  3. 3. Mark Johnson CPA with KPMG an international accounting firm for 12 years Senior financial executive for large retailers including Victoria Secret Stores, Kay-Bee Toys, Conway Stores and PetsMart Partner for B2B CFO® with clients in manufacturing, health care, education, hospitality, construction and litigation support
  4. 4. Definition of a Silo A metaphor to a grain silo where each employee, division or department interacts primarily within that silo rather than other groups across the organization. Silos also extend to systems and data. As systems fail to interact and data becomes trapped and unavailable to key decision makers.
  5. 5. Examples of SilosThis phenomenon exhibits itself in a number of ways such as: This is MY department syndrome “That’s not my job” Information isolation
  6. 6. The 4 C’s of Customer FocusedSolutions Coordination – Companies need mechanisms that allow customer related information sharing Cooperation – People closest to the customer have authority to act Capability development – Organizations need employees with generalist skills Connection – Developing relationships with external partners
  7. 7. Silos are Common Only 37 % of 23,000 employees in a recent poll said that they have a clear understanding of what their company was trying to achieve and why.Stephen Covey The 8th Habit: From Effectiveness to Greatness
  8. 8. How do we Fix the Problem?1. Eliminate needless Formality and Hierarchy2. Provide One Click Access to the Entire Organization3. Design Dedicated Physical Spaces for Collaboration4. Adopt Common Systems and Processes5. Establish Cross - Functional Mentoring
  9. 9. Eliminate needless Formality andHierarchy Share resources through staff e.g. accounting intern for HR Commit to regular meetings between finance and accounting staff Provide a direct line of communication with department heads (CFO and the VP of Human Resources)
  10. 10. Provide One Click Access Streamline the communication of important information flow between accounting and HR eg. Staffing changes, promotions, budget overruns, etc. Maintain common databases for monthly financial information and headcount Provide financial statements with history and details that are readily available and reliable
  11. 11. Design Dedicated Physical Spaces forCollaboration Design collaborative physical spaces in offices and conference rooms (i.e. accounting and HR are physical situated near each other) Use video conferencing and other technology to connect directly with accounting and HR in distant locations
  12. 12. Adopt Common Systems andProcesses• Develop an enterprise wide information reporting system (ERP) that provides all departments and divisions information from a common database• Establish and report on key performance indicators (KPI’s)• Utilize software tools for scheduling of employees, performance evaluations and other related HR processes to ensure effective and efficient operations with budgets
  13. 13. Characteristics of KPI’s Only have 3 to 5 KPI’s for an organization Roll up departmental KPI’s to address company- wide KPI measures KPI differ by organization KPI’s provide a direction, benchmark, target and timeframe Includes operation and financial information
  14. 14. Some Key Performance Indicators Sales volume per unit or location Margin per product or location Cost per unit or location Overhead or fixed costs Utilization % of plant capacity or capital equipment Revenue per employee Payroll cost per employee Hourly rate of labor per unit
  15. 15. Challenges with KPI’s Expensive or difficult to determine Adjusts to changing needs in the company Difficulties in benchmarking Rough guide rather than a precise measurement
  16. 16. Establish Cross Functional Mentoring• Encourage staff in accounting and HR to find mentors in the other department to increase communication and expand and broaden skills• Manage external resources that are shared such as a third party payroll services, payroll benefits and executive recruiters through cooperative teams between finance and accounting• Create a multidepartmental team for difficult budgeting activities such as headcount management, bonus structure and payroll adjustments
  17. 17. Breaking Down Silos“In most situations silos rise up not because of what executives are doingpurposefully but rather because of what they are failing to do: provide themselvesand their employees with a compelling context to work together.”“To tear down silos, leaders must go beyond behaviors and address the contextualissues at the heart of the departmental separation and politics.” - Patrick Lencioni Silos, Politics and Turf Wars

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