Many CFOs and the finance organizations they lead have started to take on new strategic roles within the enterprise. Their goal is to enforce stricter control processes to ensure legal and regulatory compliance, offer strategic insights into the internal and external business environment, and connect the business strategy with daily operations through performance tracking.
Finance Vision 2020 presenation used for the launching of our book at the Finance Transformation Summit (organized by Alex van Groningen) on December 2, 2008
The document discusses strategies for finance departments to become more strategic business partners rather than back-office administrators. It notes that the pendulum has swung from finance being financial policemen in the 1990s to now focusing more on controls due to governance regulations. However, finance departments can become more strategic by acting as chief focus officers to help companies prioritize, building external networks to find opportunities, and integrating with other departments to better understand the business.
The document discusses how robots and artificial intelligence are changing the skill sets needed for finance transformation projects. It notes that routine tasks are being automated, increasing the need for skills like data analysis, project management, and strong interpersonal skills. To succeed, organizations must have the right mix of seniority, experience, and skills mapped to their specific project needs. Maintaining the right grade mix over time, as tasks change, is important for delivering projects and long-term services effectively.
How to Bring About Finance Transformation on Your Own TermsWorkday, Inc.
In this deck, experts from PwC and Workday explain how finance leaders can use automation, artificial intelligence, and analytical skills to help their teams adapt to rapid change.
Best in Class Finance Transformation - Best Practices for the Finance FunctionProformative, Inc.
The evolution of the CFO role from controlling and reporting to strategy and support for the exec team now includes responsibility to deliver value for key stakeholders, such as investors. Top finance organizations are capable in multiple components of enterprise performance management (EPM), including strategic planning, execution, cost visibility, driver behavior, forecasting, planning, predictive analytics, ERM, and process productivity improverment (lean and Six Sigma). This workshop covers effective EPM frameworks, optimal organizational structure, talent management, leveraging technology to improve processes, and best practices for process change.
Speaker:
Birgit Starmanns, Senior Director, Solution Marketing, SAP
Presentation delivered at CFO Dimensions 2013
Workshop
Finance 2020: Designing a Finance function to meet new demandsDeloitte Canada
The document discusses how the finance function needs to be reimagined and transformed to meet future business needs. Traditional finance is not well-equipped to provide strategic insights that leadership requires. The future of finance will see operational tasks moved to centralized shared services with standardized processes and mobile/cloud technologies. Analytics will be leveraged to provide data-driven insights. Specialized finance roles will be embedded in business units. Finance will need new skills in consulting, analytics, and business knowledge. CFOs must develop a vision and blueprint to evolve their finance team by rethinking processes, organization, talent, and technologies.
Complete Business Frameworks Toolkit - Strategy, Marketing, Operations, Consu...Flevy.com Best Practices
Download this primer now from slideshare.
Full version here:
https://flevy.com/browse/business-document/complete-consulting-frameworks-toolkit-644
This is a very comprehensive document with over 350+ slides--covering 51 common management consulting frameworks and methodologies (listed below in alphabetical order). A detailed summary is provided for each business framework. The frameworks in this deck span across Corporate Strategy, Sales, Marketing, Operations, Organization, Change Management, and Finance.
These frameworks and templates are the same used by top tier consulting firms. With this comprehensive document in your back pocket, you can find a way to address just about any problem that can arise in your organization.
The level of detail varies by framework, depending on the nature of the management model. Examples, templates, and case studies are provided.
FULL LIST OF MANAGEMENT CONSULTING FRAMEWORKS & METHODOLOGIES:
1. ABC Analysis
2. Adoption Cycle ( Consumer Adoption Curve)
3. Ansoff Market Strategies
4. Balanced Scorecard
5. BCG Growth-Share Matrix
6. Benchmarking
7. Blue Ocean Strategy
8. Break-even Analysis
9. Business Unit Profitability
10. Economics of Scale
11. Environmental Analysis
12. Experience Curve
13. Cluster Analysis
14. Company & Competitor Analysis
15. Consumer Decision Journey ( McKinsey Consumer Decision Journey)
16. Core Competence Analysis
17. Cost Structure Analysis
18. Customer Experience
19. Customer Satisfaction Analysis
20. Customer Value Proposition
21. Fiaccabrino Selection Process
22. Financial Ratios Analysis
23. Gap Analysis
24. Industry Attractiveness & Business Strength Assessment
25. Key Purchase Criteria
26. Key Success Factors (KSF)
27. Market Sizing & Share
28. McKinsey 7-S
29. Net Present Value
30. PEST Analysis
31. Porter Competition Strategies
32. Porter's Five Forces
33. Portfolio Strategies
34. Price Elasticity
35. Product Life Cycle
36. Product Substitution
37. Relative Cost Positioning
38. Rogers' Five Factors
39. Scenario Techniques
40. Scoring Models
41. Segment Attractiveness
42. Segmentation & Targeting
43. Six Thinking Hats
44. Stakeholder Analysis
45. Strengths & Weaknesses Analysis
46. Structure-Conduct-Performance (SCP)
47. SWOT Analysis
48. SWOT Strategies
49. Treacy / Wiersema Market Positioning
50. Value Chain Analysis
51. Venkat Matrix
Early integration planning is critical for successfully implementing your M&A transaction. Mergers and acquisitions can create immediate value opportunities and provide a solid foundation for growth. However, a key challenge for any merger or acquisition is to quickly integrate operations using the same employees who are required to run the day-to-day business. Early planning, e.g., even prior to having a deal in place, will help you jumpstart the M&A integration process and can minimize employee distraction and workload. This document provides an overview of the steps that you can take to prepare for your merger or acquisition and successfully overcome these challenges.
For more information, please visit www.scottmadden.com.
Finance Vision 2020 presenation used for the launching of our book at the Finance Transformation Summit (organized by Alex van Groningen) on December 2, 2008
The document discusses strategies for finance departments to become more strategic business partners rather than back-office administrators. It notes that the pendulum has swung from finance being financial policemen in the 1990s to now focusing more on controls due to governance regulations. However, finance departments can become more strategic by acting as chief focus officers to help companies prioritize, building external networks to find opportunities, and integrating with other departments to better understand the business.
The document discusses how robots and artificial intelligence are changing the skill sets needed for finance transformation projects. It notes that routine tasks are being automated, increasing the need for skills like data analysis, project management, and strong interpersonal skills. To succeed, organizations must have the right mix of seniority, experience, and skills mapped to their specific project needs. Maintaining the right grade mix over time, as tasks change, is important for delivering projects and long-term services effectively.
How to Bring About Finance Transformation on Your Own TermsWorkday, Inc.
In this deck, experts from PwC and Workday explain how finance leaders can use automation, artificial intelligence, and analytical skills to help their teams adapt to rapid change.
Best in Class Finance Transformation - Best Practices for the Finance FunctionProformative, Inc.
The evolution of the CFO role from controlling and reporting to strategy and support for the exec team now includes responsibility to deliver value for key stakeholders, such as investors. Top finance organizations are capable in multiple components of enterprise performance management (EPM), including strategic planning, execution, cost visibility, driver behavior, forecasting, planning, predictive analytics, ERM, and process productivity improverment (lean and Six Sigma). This workshop covers effective EPM frameworks, optimal organizational structure, talent management, leveraging technology to improve processes, and best practices for process change.
Speaker:
Birgit Starmanns, Senior Director, Solution Marketing, SAP
Presentation delivered at CFO Dimensions 2013
Workshop
Finance 2020: Designing a Finance function to meet new demandsDeloitte Canada
The document discusses how the finance function needs to be reimagined and transformed to meet future business needs. Traditional finance is not well-equipped to provide strategic insights that leadership requires. The future of finance will see operational tasks moved to centralized shared services with standardized processes and mobile/cloud technologies. Analytics will be leveraged to provide data-driven insights. Specialized finance roles will be embedded in business units. Finance will need new skills in consulting, analytics, and business knowledge. CFOs must develop a vision and blueprint to evolve their finance team by rethinking processes, organization, talent, and technologies.
Complete Business Frameworks Toolkit - Strategy, Marketing, Operations, Consu...Flevy.com Best Practices
Download this primer now from slideshare.
Full version here:
https://flevy.com/browse/business-document/complete-consulting-frameworks-toolkit-644
This is a very comprehensive document with over 350+ slides--covering 51 common management consulting frameworks and methodologies (listed below in alphabetical order). A detailed summary is provided for each business framework. The frameworks in this deck span across Corporate Strategy, Sales, Marketing, Operations, Organization, Change Management, and Finance.
These frameworks and templates are the same used by top tier consulting firms. With this comprehensive document in your back pocket, you can find a way to address just about any problem that can arise in your organization.
The level of detail varies by framework, depending on the nature of the management model. Examples, templates, and case studies are provided.
FULL LIST OF MANAGEMENT CONSULTING FRAMEWORKS & METHODOLOGIES:
1. ABC Analysis
2. Adoption Cycle ( Consumer Adoption Curve)
3. Ansoff Market Strategies
4. Balanced Scorecard
5. BCG Growth-Share Matrix
6. Benchmarking
7. Blue Ocean Strategy
8. Break-even Analysis
9. Business Unit Profitability
10. Economics of Scale
11. Environmental Analysis
12. Experience Curve
13. Cluster Analysis
14. Company & Competitor Analysis
15. Consumer Decision Journey ( McKinsey Consumer Decision Journey)
16. Core Competence Analysis
17. Cost Structure Analysis
18. Customer Experience
19. Customer Satisfaction Analysis
20. Customer Value Proposition
21. Fiaccabrino Selection Process
22. Financial Ratios Analysis
23. Gap Analysis
24. Industry Attractiveness & Business Strength Assessment
25. Key Purchase Criteria
26. Key Success Factors (KSF)
27. Market Sizing & Share
28. McKinsey 7-S
29. Net Present Value
30. PEST Analysis
31. Porter Competition Strategies
32. Porter's Five Forces
33. Portfolio Strategies
34. Price Elasticity
35. Product Life Cycle
36. Product Substitution
37. Relative Cost Positioning
38. Rogers' Five Factors
39. Scenario Techniques
40. Scoring Models
41. Segment Attractiveness
42. Segmentation & Targeting
43. Six Thinking Hats
44. Stakeholder Analysis
45. Strengths & Weaknesses Analysis
46. Structure-Conduct-Performance (SCP)
47. SWOT Analysis
48. SWOT Strategies
49. Treacy / Wiersema Market Positioning
50. Value Chain Analysis
51. Venkat Matrix
Early integration planning is critical for successfully implementing your M&A transaction. Mergers and acquisitions can create immediate value opportunities and provide a solid foundation for growth. However, a key challenge for any merger or acquisition is to quickly integrate operations using the same employees who are required to run the day-to-day business. Early planning, e.g., even prior to having a deal in place, will help you jumpstart the M&A integration process and can minimize employee distraction and workload. This document provides an overview of the steps that you can take to prepare for your merger or acquisition and successfully overcome these challenges.
For more information, please visit www.scottmadden.com.
The Future of Finance Function 2016 survey sponsored by Aptitude Software.
An insight into the changing role of the CFO and what can be done to ease the transition.
The document discusses M&A integration services provided by DD Consulting. It outlines DD Consulting's approach to integration, including establishing a governance structure and integration management office. It also references tools and checklists used in their integration methodology, and lists key topics addressed in integration planning like HR, IT, and communications.
Best Practices for Enterprise Performance ManagementPerficient, Inc.
The document discusses best practices for enterprise performance management (EPM) and budgeting processes. It outlines challenges with traditional spreadsheet-driven budgeting approaches and how purpose-built planning applications can help by linking strategic goals to plans, monitoring execution, and providing consistent insights across the enterprise. Real-world examples from Texas Children's Hospital and Wyman Gordon show how EPM solutions have helped streamline budgeting and given managers better access to timely forecast data.
The document outlines 20 steps to ensure success for a finance transformation project. It recommends appointing a project sponsor and steering committee to oversee the project. A project manager should be appointed to lead the assembly of a project team to gather requirements, select software, and produce key documents like a project charter and system design document. Other steps include purchasing technology, configuring software, user acceptance testing, training, migrating data, going live, and celebrating project completion. The overall goal is the successful delivery of a new finance system to meet changing business needs through a rigorous project process.
The Pathways program delivers results by dramatically reducing dropout rates and increasing post-secondary enrollment. It creates substantial economic and social value, with a return of over 24 times the initial investment per student. Evaluation of additional sites confirms the program is portable and effective in other neighborhoods. While the need is large, as over 70,000 Canadian youth could benefit, the program consistently achieves success and aims to expand its reach.
Intense competition and slow growth in mature markets have magnified uncertainty and put pressure on costs, just as regulators are escalating their demands. Research shows that CFOs and other senior finance executives believe that their function can play a key role but the ability to impact these challenges depends on levels of maturity and preparedness, which vary widely across companies and industries, as well by sub-functions. Here are the key findings from our research on how enterprises are driving transformation to achieve business impact.
Commercial Due Diligence Process PowerPoint Presentation SlidesSlideTeam
This complete deck can be used to present to your team. It has PPT slides on various topics highlighting all the core areas of your business needs. This complete deck focuses on Commercial Due Diligence Process PowerPoint Presentation Slides and has professionally designed templates with suitable visuals and appropriate content. This deck consists of total of eighty two slides. All the slides are completely customizable for your convenience. You can change the colour, text and font size of these templates. You can add or delete the content if needed. Get access to this professionally designed complete presentation by clicking the download button below. https://bit.ly/2AaulrY
Post Merger Integration Toolkit - Framework, Best Practices and TemplatesAurelien Domont, MBA
This Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 2000 hours of work. It is considered the world's best & most comprehensive Post Merger Integration Toolkit. It includes all the Frameworks, Tools & Templates required to increase the value creation of your Mergers & Acquisitions. This Slideshare Powerpoint presentation is only a small preview of our Toolkit. You can download the entire Toolkit in Powerpoint and Excel at www.slidebooks.com
Strategic Operating Model Defines How a Company Looks and Works. This document gives a good overview of the the various aspects of the concept including:
1. Understand the Linkage Between Strategy and an Operating Model.
2. Recognize the Key Components of a Company’s Operating Model.
3. Familiarize Use of Operating Models to Make Comparisons Across Companies.
Business & consulting toolkits free sample in powerpointDonald Gest
The document advertises business and consulting toolkits created by former consultants from McKinsey, Deloitte, and BCG. It claims the toolkits save thousands of hours of work and allow users to learn best practices from top companies. The toolkits cover various topics like corporate strategy, finance, marketing, and more. Users can access templates, frameworks, and other tools typically used by consultants. The document promotes the toolkits as a cheaper alternative to hiring consultants directly.
Your Digital Finance Transformation JourneyWorkday, Inc.
When it comes to navigating digital transformation within finance, no two organizations or industries are alike.
View this slide deck to learn how Workday and Deloitte are partnering to provide customers across industries with a perfect path forward, and can help you set a clear strategy for your journey.
Mergers and Acquisitions Toolkit - Framework, Best Practices and TemplatesAurelien Domont, MBA
This Toolkit was created by ex-McKinsey & Deloitte Consultants, and JP Morgan Investment Bankers, after more than 2,000 hours of work. It is considered the world's best & most comprehensive Mergers and Acquisitions Toolkit. It includes all the Frameworks, Tools & Templates required to improve the M&A capability of your organization and boost your personal career. This Slideshare Powerpoint presentation is only a small preview of our Toolkit. You can download the entire Toolkit in Powerpoint and Excel at www.slidebooks.com
Go to www.slidebooks.com to access the editable version in Powerpoint and Excel of this Management Consultant Toolkit created by former management consultants from Deloitte and McKinsey.
SpringOwl's 99 Page Presentation On Turning Around ViacomEric Jackson
In this 99 page presentation, we lay out why Viacom's stock price has been cut in half in the past year, and our proposed plan for turning the company around.
Post Merger Integration - Challenges & SolutionsSusan Peters
The document provides information about TayganPoint Consulting Group and their services related to mergers, acquisitions, and divestitures. It summarizes their approach to post-merger integration, which involves cross-functional teams led by senior leaders to identify opportunities beyond cost synergies. It highlights benefits like transparency, data-driven decision making, and clear communication. The document also discusses industry trends challenging integrations and questions for clients to consider regarding due diligence.
The document outlines best practices for digital transformation based on a presentation by Arrk Group. It discusses the importance of digital transformation for businesses and the need for clear leadership and vision. It also emphasizes building a digital-first culture, digitizing customer experiences, creating a unified digital platform, focusing on agile execution, and learning from digital examples in areas like instant loans and stock updates.
M&A success: Using an integration playbook to make your deal workGrant Thornton LLP
The document discusses how using an integration playbook can help mergers and acquisitions succeed where often they fail. It notes that only about 50% of M&A deals achieve their financial goals. An integration playbook establishes a repeatable process for integrating acquisitions based on past lessons learned. It identifies key risks to address such as retaining employees, aligning cultures, and realizing synergies. Having an experienced leader execute the playbook with input from past deals can help mergers integrate functions smoothly and achieve their strategic objectives.
This document discusses the balanced scorecard framework. It begins by explaining that a balanced scorecard is a measurement and management system that translates an organization's vision and strategy into objectives and measures across four perspectives: financial, customer, internal business processes, and learning and growth. It describes how organizations use balanced scorecards to identify the key factors that create long-term value and align goals and initiatives across different departments. The document also explains that while balanced scorecards were initially used by for-profit organizations, they can also be adapted for use by non-profits and governments. It argues that balanced scorecards help organizations overcome barriers to strategic implementation and execution by creating alignment across the organization.
The document outlines plans to improve the FP&A (financial planning and analysis) function over the next year at a company. It discusses assessing the current state, including issues with strategic planning, budgeting, forecasting, and performance reviews. The goals for FP&A are to continually improve processes and systems, provide better visibility and understanding of business performance and strategies, and become a more valued partner to the business. The year 1 strategy focuses on beginning to improve capabilities, creating visibility into drivers and KPIs, partnering with business leaders, and supporting strategy tracking.
The document discusses the roles and responsibilities of finance teams in modern organizations. It describes how the CFO now plays a strategic role similar to the CEO in driving growth and shareholder value. The controller takes on operational finance responsibilities. Typical teams include the controller, corporate development, investor relations, and transaction processing. Key priorities for large finance teams include invoicing, management reporting, and collection despite many competing projects. Standardizing processes and using integrated systems can help address challenges.
This document provides an instructor guide for accounts payable training. It includes an overview of issuing payments, processing supplier invoices, and matching invoices to purchase orders and receipts in Oracle Payables. The guide contains objectives, agendas, demonstrations, practice exercises, and review questions for each topic. It is intended to teach users how to perform key accounts payable functions in Oracle Payables Release 11i.
The Future of Finance Function 2016 survey sponsored by Aptitude Software.
An insight into the changing role of the CFO and what can be done to ease the transition.
The document discusses M&A integration services provided by DD Consulting. It outlines DD Consulting's approach to integration, including establishing a governance structure and integration management office. It also references tools and checklists used in their integration methodology, and lists key topics addressed in integration planning like HR, IT, and communications.
Best Practices for Enterprise Performance ManagementPerficient, Inc.
The document discusses best practices for enterprise performance management (EPM) and budgeting processes. It outlines challenges with traditional spreadsheet-driven budgeting approaches and how purpose-built planning applications can help by linking strategic goals to plans, monitoring execution, and providing consistent insights across the enterprise. Real-world examples from Texas Children's Hospital and Wyman Gordon show how EPM solutions have helped streamline budgeting and given managers better access to timely forecast data.
The document outlines 20 steps to ensure success for a finance transformation project. It recommends appointing a project sponsor and steering committee to oversee the project. A project manager should be appointed to lead the assembly of a project team to gather requirements, select software, and produce key documents like a project charter and system design document. Other steps include purchasing technology, configuring software, user acceptance testing, training, migrating data, going live, and celebrating project completion. The overall goal is the successful delivery of a new finance system to meet changing business needs through a rigorous project process.
The Pathways program delivers results by dramatically reducing dropout rates and increasing post-secondary enrollment. It creates substantial economic and social value, with a return of over 24 times the initial investment per student. Evaluation of additional sites confirms the program is portable and effective in other neighborhoods. While the need is large, as over 70,000 Canadian youth could benefit, the program consistently achieves success and aims to expand its reach.
Intense competition and slow growth in mature markets have magnified uncertainty and put pressure on costs, just as regulators are escalating their demands. Research shows that CFOs and other senior finance executives believe that their function can play a key role but the ability to impact these challenges depends on levels of maturity and preparedness, which vary widely across companies and industries, as well by sub-functions. Here are the key findings from our research on how enterprises are driving transformation to achieve business impact.
Commercial Due Diligence Process PowerPoint Presentation SlidesSlideTeam
This complete deck can be used to present to your team. It has PPT slides on various topics highlighting all the core areas of your business needs. This complete deck focuses on Commercial Due Diligence Process PowerPoint Presentation Slides and has professionally designed templates with suitable visuals and appropriate content. This deck consists of total of eighty two slides. All the slides are completely customizable for your convenience. You can change the colour, text and font size of these templates. You can add or delete the content if needed. Get access to this professionally designed complete presentation by clicking the download button below. https://bit.ly/2AaulrY
Post Merger Integration Toolkit - Framework, Best Practices and TemplatesAurelien Domont, MBA
This Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 2000 hours of work. It is considered the world's best & most comprehensive Post Merger Integration Toolkit. It includes all the Frameworks, Tools & Templates required to increase the value creation of your Mergers & Acquisitions. This Slideshare Powerpoint presentation is only a small preview of our Toolkit. You can download the entire Toolkit in Powerpoint and Excel at www.slidebooks.com
Strategic Operating Model Defines How a Company Looks and Works. This document gives a good overview of the the various aspects of the concept including:
1. Understand the Linkage Between Strategy and an Operating Model.
2. Recognize the Key Components of a Company’s Operating Model.
3. Familiarize Use of Operating Models to Make Comparisons Across Companies.
Business & consulting toolkits free sample in powerpointDonald Gest
The document advertises business and consulting toolkits created by former consultants from McKinsey, Deloitte, and BCG. It claims the toolkits save thousands of hours of work and allow users to learn best practices from top companies. The toolkits cover various topics like corporate strategy, finance, marketing, and more. Users can access templates, frameworks, and other tools typically used by consultants. The document promotes the toolkits as a cheaper alternative to hiring consultants directly.
Your Digital Finance Transformation JourneyWorkday, Inc.
When it comes to navigating digital transformation within finance, no two organizations or industries are alike.
View this slide deck to learn how Workday and Deloitte are partnering to provide customers across industries with a perfect path forward, and can help you set a clear strategy for your journey.
Mergers and Acquisitions Toolkit - Framework, Best Practices and TemplatesAurelien Domont, MBA
This Toolkit was created by ex-McKinsey & Deloitte Consultants, and JP Morgan Investment Bankers, after more than 2,000 hours of work. It is considered the world's best & most comprehensive Mergers and Acquisitions Toolkit. It includes all the Frameworks, Tools & Templates required to improve the M&A capability of your organization and boost your personal career. This Slideshare Powerpoint presentation is only a small preview of our Toolkit. You can download the entire Toolkit in Powerpoint and Excel at www.slidebooks.com
Go to www.slidebooks.com to access the editable version in Powerpoint and Excel of this Management Consultant Toolkit created by former management consultants from Deloitte and McKinsey.
SpringOwl's 99 Page Presentation On Turning Around ViacomEric Jackson
In this 99 page presentation, we lay out why Viacom's stock price has been cut in half in the past year, and our proposed plan for turning the company around.
Post Merger Integration - Challenges & SolutionsSusan Peters
The document provides information about TayganPoint Consulting Group and their services related to mergers, acquisitions, and divestitures. It summarizes their approach to post-merger integration, which involves cross-functional teams led by senior leaders to identify opportunities beyond cost synergies. It highlights benefits like transparency, data-driven decision making, and clear communication. The document also discusses industry trends challenging integrations and questions for clients to consider regarding due diligence.
The document outlines best practices for digital transformation based on a presentation by Arrk Group. It discusses the importance of digital transformation for businesses and the need for clear leadership and vision. It also emphasizes building a digital-first culture, digitizing customer experiences, creating a unified digital platform, focusing on agile execution, and learning from digital examples in areas like instant loans and stock updates.
M&A success: Using an integration playbook to make your deal workGrant Thornton LLP
The document discusses how using an integration playbook can help mergers and acquisitions succeed where often they fail. It notes that only about 50% of M&A deals achieve their financial goals. An integration playbook establishes a repeatable process for integrating acquisitions based on past lessons learned. It identifies key risks to address such as retaining employees, aligning cultures, and realizing synergies. Having an experienced leader execute the playbook with input from past deals can help mergers integrate functions smoothly and achieve their strategic objectives.
This document discusses the balanced scorecard framework. It begins by explaining that a balanced scorecard is a measurement and management system that translates an organization's vision and strategy into objectives and measures across four perspectives: financial, customer, internal business processes, and learning and growth. It describes how organizations use balanced scorecards to identify the key factors that create long-term value and align goals and initiatives across different departments. The document also explains that while balanced scorecards were initially used by for-profit organizations, they can also be adapted for use by non-profits and governments. It argues that balanced scorecards help organizations overcome barriers to strategic implementation and execution by creating alignment across the organization.
The document outlines plans to improve the FP&A (financial planning and analysis) function over the next year at a company. It discusses assessing the current state, including issues with strategic planning, budgeting, forecasting, and performance reviews. The goals for FP&A are to continually improve processes and systems, provide better visibility and understanding of business performance and strategies, and become a more valued partner to the business. The year 1 strategy focuses on beginning to improve capabilities, creating visibility into drivers and KPIs, partnering with business leaders, and supporting strategy tracking.
The document discusses the roles and responsibilities of finance teams in modern organizations. It describes how the CFO now plays a strategic role similar to the CEO in driving growth and shareholder value. The controller takes on operational finance responsibilities. Typical teams include the controller, corporate development, investor relations, and transaction processing. Key priorities for large finance teams include invoicing, management reporting, and collection despite many competing projects. Standardizing processes and using integrated systems can help address challenges.
This document provides an instructor guide for accounts payable training. It includes an overview of issuing payments, processing supplier invoices, and matching invoices to purchase orders and receipts in Oracle Payables. The guide contains objectives, agendas, demonstrations, practice exercises, and review questions for each topic. It is intended to teach users how to perform key accounts payable functions in Oracle Payables Release 11i.
How Unilever transformed its finance structure, leading to involvement of CFO with CEO for major decision making processes of the company. Unilever being one of the biggest FMCG company needed the finance structure to be modified because of the globalization.
Capgemini's Finance Vision 2020 presentation of Klaasjan Doeswijk for the Good To Know More event organized by Randstad Search&Selection on June 26, 2009.
Performance Management from Office of the CFO series of events 2013Rick Yvanovich
During 2013 we hosted a series of Office of the CFO events. One section related to Performance Management and was based on materials from CIMA.
This slideshare is an extract from that presentation. It was delivered originally by CIMA and then subsequently by myself.
Best practice finance diagnostic review longconradfsr
The document outlines a blueprint for integrating the finance function after a merger and acquisition. It discusses seven critical issues facing Chief Financial Officers as the role of finance shifts from scorekeeper to business partner. The issues include business partnering, performance measurement, information as a competitive asset, organizational skills, cost management, financial risk management, and coordinating improvement projects.
This document discusses finance transformation and becoming a strategic business partner. It provides an overview of finance challenges, objectives of high-performing finance organizations, and a maturity model assessment tool. The key aspects of a successful transformation include having a clear business case, executive support, program management, addressing cultural issues, and effective communication throughout the process. The payoff is shifting from transactional to more analytical/strategic work, optimizing resources, and enhancing business competitiveness over time.
Business Transformation - Finance Transformation using SAP Solutionsvenunala
The document discusses strategies for business and finance transformation at a consumer packaged goods company. It recommends leveraging SAP solutions to achieve integrated end-to-end business processes, gain insights from data analytics, streamline applications, and ensure strategic initiatives are aligned with business goals. Key focus areas include supply chain optimization, working capital management, consumer insights, mobility, and leveraging existing SAP investments to transform processes and systems.
Cima transforming the role of finance into a strategic business partner irela...Irelan Tam
The document discusses the evolving role of finance from a focus on cost efficiencies and controls to becoming a strategic business partner focused on value creation. It outlines how finance professionals can transform by embracing business analytics to support decision making and growth strategies. The challenges of business partnering are also examined, particularly for small and medium enterprises.
This report analyzes opportunities for shared services between Bombala Council, Cooma-Monaro Shire Council, and Snowy River Shire Council. It finds that while resource sharing provides limited benefits, centralized services and joint ventures can achieve greater efficiencies through economies of scale. The report examines the Western Border Councils Alliance as a case study, noting it has realized over $5.7 million in savings through regional collaboration. The report conducts a high-level financial analysis of two shared service options - water/wastewater services and centralized corporate services - finding they could result in efficiency dividends of up to 15% through reduced staffing costs and other savings. It recommends Bombala, Cooma-Monaro
10 Best Practices of a Best Company to Work ForO.C. Tanner
What does it take to be named a Best Company to Work for by FORTUNE magazine? For starters, a winning culture, collaboration, and creating an environment for learning and growth. Take a look at these slides for more ideas!
Cost-to-Serve Reporting and the Unrealized Potential in the Propane IndustryTouchStar
This presentation examines the traditionally fragmented approach to technology in the LP Gas delivery industry compared to business outcomes gained when that technology is integrated across an organization. The end-result is an ability to leverage existing technology to predict route profitability before dispatching fleet assets.
Originally presented by TouchStar Americas General Manager Shelby Ahmann at The 27th World LP Gas Forum and 29th AIGLP Congress incorporating the 2014 Global Technology Conference.
The state of privacy and data security complianceFindWhitePapers
With new privacy and data security regulations increasing, organizations are asking questions. Do the new regulations help or hinder the ability to protect sensitive and confidential information? With these new regulations on the march, how can you remain competitive in the global marketplace? This report provides answers and examines how compliance efforts can impact a company's bottom line.
The survey of SSON's global membership identifies 7 key characteristics that are driving the second wave of finance transformation:
1. Knowledge-based teams are becoming more common, with nearly 60% moving in this direction.
2. Data-driven business intelligence is a growing capability, with 3/4 of shared services implementing BI teams to drive insights.
3. Despite potential benefits, only 11% have defined master data management processes, while many are still assessing solutions.
4. Technology priorities include automation, data analytics, and collaboration tools to support mobile workers.
5. While outsourcing remains relevant, most rely primarily on in-house capabilities and analytics.
6. More are leveraging global business services
Strategic Role of Today’s CFO : The New CFO AgendaSanjay Uppal
The document discusses the evolving role of the chief financial officer (CFO). Stakeholders now expect CFOs to take on more strategic responsibilities beyond traditional finance and accounting duties. CFOs are shifting their focus from controllers to strategists in order to help drive business decisions and value creation. Additionally, CFOs now face pressures like increased transparency requirements, global capital markets, and the need to enhance skills and technology to effectively meet rising stakeholder demands.
This document discusses finance transformation, including what it means and how to achieve it. Finance transformation refers to making finance more effective and efficient through real-time information, quality processes, and cost reductions. Key enablers include management buy-in, standard systems and processes, and a culture of continuous improvement. Successful companies have leadership driving transformation from the top down and treating it as an ongoing effort rather than just addressing symptoms. Finance must be structured as an internal business focused on supporting company growth through business partnering, accounting, and specialist finance functions.
Customer journey driving business growth for large and small companiesMartin Wright
The document discusses the importance of understanding the customer journey and using customer insights to drive business growth. It provides examples of how Halifax General Insurance and McCarthy & Stone improved conversion rates and sales by mapping customer journeys and addressing pain points. The document also stresses the importance of putting customers at the heart of business decisions and embracing organizational change to align with customers' emotional experiences. Failing to understand customers can lead companies to make incorrect assumptions. Understanding the customer journey across all channels is vital as customer expectations increase around convenience and service.
This document outlines Project Blue, which aims to consolidate merchandising roles from Swindon to Watford. Key points:
1) Project Blue has two workstreams - trading operations and managing business change/transition. It will transition roles from Swindon to Watford over 9 months from November 2008 to May 2009.
2) The project aims to improve trading performance through a consolidated team in one location. It identifies costs of around £2.5 million for redundancies and office moves but estimates ongoing annual savings of £1.3 million including from payroll and improved sales.
3) Critical success factors include timely decision making, recruiting the right staff, managing redundancies, and fully transferring knowledge to the
This document summarizes opportunities with a growing boutique management consultancy firm. The firm specializes in product development, distribution advice, customer segmentation, and other front office initiatives for clients in retail banking, asset management, cards and payments, and life and pensions. They are seeking Associate Directors and Principal Consultants with 10+ years of consulting experience to help grow their specialized sectors and deliver client engagements. Successful candidates will have top-tier consulting backgrounds, industry experience, and a proven track record of developing new business and implementing practical solutions for financial services clients.
The document discusses the need for integrated Corporate Performance Management (CPM) across organizations. It outlines the typical performance management cycle of strategy formulation, alignment and execution, measurement and analysis, and review and refinement. It argues that isolated improvements to parts of this cycle often fail and that a principles-based CPM approach is needed to bring systematic and integrated improvements. This approach focuses on best principles like comprehensive planning, disciplined execution and review, information-based decision making, integrated processes, and nimble management to increase strategy effectiveness and execution efficiency.
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The document discusses the evolution of the finance function from the 1960s to present and future. It describes how the finance function has transformed from a focus on "creative accounting" and scorekeeping to prioritizing compliance, efficiency, decision support, and becoming a business partner. The future of finance is outlined as providing predictive insights into performance, growth, and risk to help drive business decisions as a true strategic partner. Finance is utilizing new technologies and analytical skills to integrate diverse data sources and provide real-time insights beyond just financial data.
The document provides an overview of a survey of over 900 finance professionals about planning, budgeting and forecasting (PBF) processes. There are three key findings:
1) Current PBF processes are often flawed, with budgets produced as politically agreed numbers rather than aligned with business realities. Ownership of PBF is also unclear.
2) To improve PBF, organizations must create the right culture where PBF is a joint business-finance partnership. PBF ownership should shift to the business over time. Incentives should also align with long-term strategic goals.
3) Integrating PBF enterprise-wide using high quality data, and deploying effective technology solutions can help make PBF a
De afgelopen maanden heb ik met veel CFO´s gesproken over de transformaties die hun Finance Organisatie moet doormaken om aan de veranderende eisen en wensen van Executives, managers en stakeholders te voldoen. Ligt hun focus momenteel nog op transactionele core finance activiteiten, voor de nabije toekomst is het hun ambitie om bedrijfsbreed veel meer waarde te leveren op het gebied van analyse en beslissingssupport.
Bedrijven die goed scoren op Finance Efficiëncy alsmede in staat zijn om betrouwbare Business Insight te leveren aan de diverse business units, zijn volgens de IBM Global CFO Survey 2010 aantoonbaar succesvoller op het gebied van omzetgroei, EBITDA en Retun of Invested Capital.
Ik wil graag de uitkomsten van 1500 face-to-face interviews met CFO´s met jullie delen, daarom ´share´ ik het rapport ´The New Value Integrator – Insights from the CFO Survey´.
Who is increasingly instrumental in helping CEOs and Boards make high-impact decisions – the choices and trade-offs that build or destroy enterprise value? CFOs.
Based on input from more than 1,900 CFOs and senior Finance leaders worldwide, the IBM Global CFO Study indicates that the demands on CFOs are rising and extend well beyond traditional financial control and supervision.
But in a constantly changing environment, how can CFOs provide their enterprises with a competitive edge? How can they help the business make not just faster but smarter decisions?
In the 2010 study, one group of Finance organizations – called Value Integrators – consistently outperforms their peers. They are not only more effective, but their enterprises also perform better financially.
Their secret? Driving a combination of two key capabilities – Finance efficiency and business insight – across their organizations. Although study results show that each capability provides important benefits, the highest performers excel at both.
Read the study to learn more about this multiplier effect and how to create it within your own organization.
The document discusses the evolving role of Chief Financial Officers (CFOs) toward becoming Chief Growth Officers. It notes that since the financial crisis, CFOs have taken on more strategic roles within their organizations. Specifically, CFOs are now expected to spend more time driving growth and profitability initiatives rather than just managing finances. The document outlines how CFOs can position themselves as strategic partners that leverage data insights to support revenue growth, market expansion, and shareholder value. It provides examples of key areas where CFOs can partner with the business, such as using real-time data analysis to inform strategic decision making and managing risks as opportunities for growth.
White Paper: Predictability Through Planning AgilityHost Analytics
Outperform your competition by making financial processes more relevant in driving organizational excellence, efficiency and informed decision-making, while improving forecast and budget accuracy.
The document discusses best practices for assessing forecasting process performance. Traditionally, performance was assessed based on cost and accuracy, but a better approach integrates three dimensions: rolling forecasts that allow flexibility, consistency through bottom-up involvement of budget owners, and modeling focused on key drivers rather than excessive detail. Assessing the forecasting process helps organizations improve their capability to adapt to changing business conditions.
The report examines companies' business planning processes and finds that:
1) While many companies' planning meets expectations, only 33% achieve excellent performance in planning, budgeting, and forecasting.
2) Companies with decentralized planning processes are more likely to accurately forecast revenue within 2% but are less efficient than centralized peers.
3) Most companies (61%) centralize planning at the corporate level, while 21% decentralize among business units. Centralized planning is more efficient but decentralized planning yields more accurate forecasts.
4) Many companies take over 15 days on average to complete revenue forecasts, strategic plans, operating plans, and annual budgets indicating room for improved cycle times.
Finance Process Optimization - Mapping the Journey to High PerformanceStephen G. Lynch
The document discusses using the Six Sigma model to optimize finance processes, which includes 5 steps: define, measure, analyze, improve, and control processes to enhance service delivery, drive out costs, and deliver value to stakeholders. It provides details on each step, such as defining customers and requirements, measuring baseline metrics and costs, analyzing performance gaps against benchmarks, and prioritizing improvement opportunities based on factors like critical processes and inefficiency. The goal is to transform processes through the Six Sigma methodology to meet stakeholder expectations.
With a fundamental shift in the CFO mission, the finance function has become a critical change agent across organizations. The role of financial leaders such as CFOs is evolving, from a traditional financial controller, to one that drives performance improvements across the organization.
The document discusses the changing role of the CFO from a back office role focused on compliance and cost efficiency to a more strategic front-facing role. It is based on a survey of over 500 finance decision makers across Europe and Southeast Asia. Key findings include that CFOs are now expected to partner with the CEO and provide real-time insights for decision making. Finance functions are focusing on improving data integration, reporting speed and accuracy to better support strategic decision making. While finance organizations still have room for improvement in capabilities like detecting new opportunities, their roles are transforming to be more advisory and focused on business priorities like innovation, customers and strategy.
The document discusses enterprise performance management (EPM) and the results of surveys conducted with over 2,600 finance professionals. It finds that EPM processes like planning, budgeting, forecasting, performance reporting, and cost analysis are often disjointed and not well integrated. Additionally, ownership of these processes frequently remains with the finance function rather than the wider business. The document advocates integrating EPM processes, focusing on key value drivers, and addressing challenges like data quality and technology adoption to help organizations better manage performance.
Delivering more value to the business through
performance measurement and improved decision
support is the top priority for the finance function
through 2020. Among senior finance professionals
participating in the 2014 EY Global Insurance CFO
Survey, 71% indicated that “being a better business
partner” ranked among their top three priorities,
with 35% placing this as number one.
For the last 20 years, organisations have invested into transformation of the entire financial consolidation process from ERP accounting systems to financial consolidation software in order to improve the way of tackling the challenge of Financial Close & Balance Sheet Consolidation with modern software solutions. Despite these
investments, more than 90 per cent of organisations still rely on spreadsheets to gather information from disparate financial systems and perform variance analysis on financial statements, compiling information from multiple sources. The requirement for transparency in financial statements is non-negotiable, and this starts with the financial close and reporting process. Financial consolidation software solutions have certainly
improved the process, driving organisations towards a more consistent chart of accounts, and supporting the period end processes, such as allocations and inter-company eliminations. However, when looking at the actual activities that finance employees perform each month, it is clear that there are still significant gaps. This article provides a realistic view of the use of technology to improve the financial close and reporting process
and achieve increased quality, accountability, auditability, efficiency and ultimately, regulatory compliance.
Sanjay Mehta, CEO, MAIA Intelligence Pvt. Ltd. authored this article for The Chartered Accountant (CA) Journal, March 2011.
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2. Table of Contents
Executive Notes 1
Introduction 2
Is Cost All That Matters? 3
Whether to Outsource or Share Services 5
Conclusion: A Checklist for a Strategic Finance Function 11
3. BEST PRACTICES IN
CREATING A STRATEGIC
FINANCE FUNCTION
An SAP/APQC Collaboration
by Katharina Muellers-Patel
5. EXECUTIVE NOTES
In the wake of recent accounting scandals and in the approaches to streamline and automate finance
increasingly competitive business environment, functions while ensuring that they keep cus-
many CFOs and the finance organizations they lead tomers happy (in the case of shared-services
have started to take on new strategic roles within the arrangements).
enterprise. They are aiming at enforcing stricter con-
2. With the efficiency of the transaction and control
trol processes to ensure legal and regulatory compli-
functions assured, these companies can turn to
ance, offering strategic insights into the internal and
devising a more strategic approach for finance –
external business environment, and connecting the
giving finance not only more of a decision-
business strategy with daily operations through per-
making responsibility in risk management and
formance tracking.
compliance but also a proactive role in managing
The trend toward a more strategic role is echoed by the daily cash position and thus increase resources
the responses of participants in recent research con- for quick strategic moves.
ducted by APQC, an internationally recognized non-
One global consumer products company took a two-
profit organization that provides best-practice
step approach to a more strategic path for finance. In
research, metrics, and measures. The participants
the first step, the company developed a more effi-
indicated that, three years down the road, they antic-
cient cash management, accounts payable, and
ipate spending 30% more time on decision support
accounts receivable group of functions in its world-
and management (see Figure 3). According to the
wide operations, based on greater transparency of
same research, however, in spite of their aspirations,
information. In the second step, the company devel-
participants have not made much progress toward a
oped “straight-through processing” along every level
greater strategic role. Finance organizations, no mat-
of the finance function, leveraging its global reach to
ter what their size, report to APQC that they still
maximize cash management efficiency, foreign-
spend almost two-thirds of their time on transaction
exchange exposure, and the global supply chain to
processing and controls and only one-third on deci-
help fund growth, participate in new marketing and
sion support and management.
distribution arrangements, and comply with world-
The difficulty in evolving the finance role lies in wide regulations.
bridging the current gap between the finance func-
Given the current state of the finance function in
tion that emphasizes greater efficiency and the
U.S. companies, the challenges to that function, and
finance function that becomes a partner in manag-
the road map to increasing its strategic capabilities,
ing the business. The best companies have found that
the following article will share the results of SAP
reaching the goal of a more strategic finance func-
research as well as APQC’s Open Standards
tion warrants a two-step approach, as follows:
Benchmarking CollaborativeSM (OSBC) research. The
1. These companies improve the efficiency of the OSBC research is the first global set of common stan-
various functions that come under the finance dards for business processes and data, giving organi-
umbrella and, in the process, free up corporate zations an independent, authoritative resource for
resources for other activities. As one global trea- evaluating and improving business practices.
sury manager put it, “We must develop a finance
function that is as efficient as it can be, replicate it
globally, and then use it effectively to help us
quickly establish brands and enter new markets.”
Companies like this one choose a variety of
1
6. INTRODUCTION
Benchmarking is an important tool that finance Financial strategy and planning
organizations use to stay competitive. It allows them Internal controls
to determine the value of adopting best practices and Treasury
changing business processes. To assess the trends in Revenue accounting (order to cash)
the finance function and identify best practices, General accounting
APQC has evaluated the performance of more than Fixed assets and project accounting
130 finance organizations as part of its OSBC Accounts payable and expense reporting
research.1 The research included the following key Tax
processes: Payroll
>$10 billion <$100 million >100,000
<500
19% 14% 16%
$100 million–
29% $1 billion
13%
31%
39%
10,000–
39%
100,000
500–10,000
$1 billion–$10 billion
Figure 1: Organization Size by Revenue Figure 2: Organization Size by Number of
Employees
The research group encompasses a
wide sampling of organization sizes.
Although the majority of respondents
are billion-dollar-plus organizations,2
their size in terms of revenue and
number of employees covers a
complete spectrum, as depicted in
Figures 1 and 2.
Study Demographics
1. As of August 2005
2. All monetary amounts cited herein are in U.S. dollars.
2
7. IS COST ALL THAT MATTERS?
Despite more than 10 years of lip service paid to the However, some finance organizations have already
idea of a strategic finance function – and the increas- made significant progress on their journey to
ing strategic demands on finance – most companies becoming a strategic business partner, as illustrated
admit that, while they do want to focus more on in Figure 4. First-quartile performers allocate only
decision support and management, they are in reali- 30% of full-time equivalent (FTE) time to transaction
ty still spending almost half of their time on transac- processing, enabling them to invest 45% of their
tion processing (see Figure 3). resources in decision support and management
activities.
17%
The right staffing mix, however, does not necessarily
+15% 26%
imply cost-efficient operations. From an overall cost
18% perspective, the survey identified three important
+7%
21% highlights, as follows:
21%
Finance costs tend to be relatively lower for
+3% larger companies.
23%
Among companies with comparable revenues,
there are still significant cost differences.
44%
-11%
30%
The main source of differences are the types of
organizational structure for finance (for exam-
ple, whether there are shared services and the
Today In Three Years level of centralization) and the type of IT (the
Decision Support
level of automation or degree of systemic
integration).
Management
Control
The first insight is not surprising, as larger compa-
Transaction Processing nies would be able to leverage economies of scale (see
Figure 3: Finance Organization Time
Figure 5).
Allocation3
First
Figure 4 Quartile
30% 25% 25% 20%
Staffing Profile
Transaction Processing
(Percentage of
Control
FTEs of Total)4 Average 44% 21% 18% 17%
Management
Decision Support
Fourth
60% 20% 10% 10%
Quartile
3. APQC’s OSBC research data
4. APQC’s OSBC research data
3
8. those from which it derived no competitive advan-
Business Unit SME Medium Large Enterprise
Revenue 50MM 500MM 5B Revenue tage. While the strategy succeeded and growth was
Average 5.4% 5.7% 1.1% 1.0% maintained, operational difficulties began to show
Median 2.7% 0.7% 0.6% 0.8% up. Each of the acquisitions brought along its own
type of IT system; each had its own finance function
Figure 5: Finance Costs as a Percentage of and its own approach. The result was a nightmare
Revenue5 for the CFO. Working with a benchmarking firm to
determine which finance functions were not in the
However, within each revenue band, some compa-
top quartile of productivity, he found that finance
nies had as much as 16 times higher finance costs
transaction processes clearly needed to be changed –
than other companies with approximately the same
to mirror best practice.
revenues (see Figure 6).
10.00%
6%
Revenue
Personnel
8% Systems
1.00% Overhead
Other
9% Outsourcing
0.10%
65%
12%
0.01%
$10 MM
$100 MM
$1 BN
$10 BN
$100 BN
Revenue
Figure 6: Total Costs as a Percentage of
Revenue
Figure 7: Finance Function Cost Allocation
Among all the cost drivers, however, the extent to
which the company established shared services is the
The CFO decided that a shared-services arrangement
strongest driver for cost efficiency (apart from rev-
would help increase productivity, especially for
enues). It is logical that, in line with the focus on
transaction-based functions. He decided to start by
transaction processing, personnel represent the
developing a shared-services arrangement with pay-
largest cost element, on average, comprising 65% of
roll, which suffered from inefficient processes and
all finance function costs (see Figure 7).6
lack of automation. The result was world-class. The
SAP research has shown that leading companies financial center now operates so effectively that it
maximize the efficiency of transactional activities as has begun to show a profit when employees ask for
a first step on the road to a more strategic approach. extra processes (cash advances, stop payments, man-
One globally diversified industrial manufacturer, for ual checks, and so forth). The internal customers
example, has been coping with the complexities whose staff members use direct deposit and the self-
inherent in an acquisition growth strategy that service portal are charged less than those whose
resulted in more than 60 acquisitions and an almost employees prefer paper transactions. The keys to
equal number of divestitures (55 in all). The CEO success are the use of service-level agreements and a
wished to hone in on the segments in which the well-thought-out performance management process
company’s product line led the market and exit to establish and track productivity goals with
customers.
5. APQC’s OSBC research data
6. APQC’s OSBC research data
4
9. WHETHER TO OUTSOURCE OR SHARE SERVICES
If you want to reduce costs or improve service levels, when collection becomes critical, the utility can
should you move to outsourcing, or is shared ser- concentrate on enforcing collection rules where
vices the answer? Outsourcing is becoming increas- necessary, while the outsourcing service continues to
ingly prevalent as a way to decrease costs for both deal with the majority of customers who do not
large and small companies. For example, APQC’s overstep the rules.
OSBC research found that when three or more func-
In a similar way, small to midsize companies have
tions are outsourced, average costs of finance as a
begun to outsource as a way to gain efficiencies they
percent of revenue are only one-fourth of those costs
cannot otherwise obtain. While a shared-service
without outsourcing.
arrangement can pay off for a large company, this
Companies normally approach outsourcing in approach does not always work for a smaller firm
stages, with payroll and tax among the first to be that does not have the volume of transactions neces-
outsourced and fixed assets, general accounting, and sary to gain the associated efficiencies. On the other
accounts payable and expense as part of a second hand, outsourcing provides obvious advantages for
wave (see Figure 8). Finance strategy and planning, companies that are not as complex or large.
internal controls, and treasury are not typically out-
Companies also like to use shared services: when
sourced; revenue accounting and order to cash
managed well, shared services can improve process
might emerge as another outsourcing application in
effectiveness while helping decrease costs. The OSBC
the future.
research found that the lowest-performing compa-
The outsourcing strategy varies among industries nies most often had not implemented shared services
and sizes of companies. Order-to-cash functions are for any function and, as a result, incurred the high-
not widely outsourced today, except notably in the est cost of the finance function as a percentage of
public utilities and energy sectors. In these indus- revenue (see Figure 9).
tries, where the number of customer payments is
One consumer products company made the move
high and customers tend to get behind in their pay-
toward shared services and gradually improved the
ments, many companies outsource both their
performance of the finance function. The company
accounts receivable and credit functions, processing
optimized both IT systems and organization. The
all customers through outside services. At the point
person in charge of finance shared services
40% Wave 2 Outsourcing
Figure 8 Fixed Assets/
Outsourcing Growth (%)
Project Accounting
Outsourcing Waves7 General
Accounting
AP/Expense
Order to cash has the 20%
potential to become a more Not Typically Outsourced Wave 1 Outsourcing
frequently outsourced Revenue Accounting
(Order to Cash)
process.
Treasury Payroll
Financial Strategy Internal Tax
0% and Planning Controls
0% 30% 60%
Outsourcing Penetration (% Participants)
7. APQC’s OSBC research data
5
10. consistently improves the function by measuring efficiency. The utility, which serves a large metropol-
and tracking improvements. This company’s transac- itan area, is diverse and decentralized. The customers
tion center has become largely automated, freeing of the shared-services center pay for its costs in pro-
up finance employees to perform more value-added, portion to the benefits they gain. Performance mea-
customer-oriented financial work. sures are based on the results of shared services from
other utilities around the country. The flexibility of
Another example is a global pharmaceutical compa-
the payroll shared-service system has helped the
ny that has used shared services for more than 15
company streamline processes and dramatically
years and simply changed the technological founda-
reduce cycle time. The unit more quickly isolates
tion. The company had developed a philosophy of
problems (such as employees who do not enter the
centralization as part of its long-term strategy to
required number of hours) and addresses them
standardize, reduce costs, and increase control and
before a payroll run. Continual benchmarking
economies of scale as it embarked on a path of
against other companies in the same industry helps
growth through acquisitions in the 1990s. Accounts
the utility firm find places to consolidate and elimi-
payable has been a shared service ever since. The
nate duplication of effort.
process was run on various legacy systems but then
upgraded to an overall enterprise resource planning Besides the cost efficiency inherent in these improve-
(ERP) system that handled the parent company’s ments, an unforeseen benefit of shared services is
transactions. Now, however, the company realizes that employees in the payroll function can take on
that processes cannot be made more efficient with- other responsibilities with a longer-term impact,
out changing the technology again. The company is such as developing new-hire orientation programs
experimenting with a fully integrated procure-to- and providing training programs in financial man-
pay approach that will require integrating systems agement. As the finance function takes on more
and developing the omnibus measurement system strategic roles, it has been able to provide a new level
necessary to track transactions. of incentives for its employees and has seen its histor-
ically high turnover rate moderate over time.
In another case, a large utility turned to shared
services with the initial intent of increasing cost
Finance Costs as % of Revenues with Increasing Usage of Shared Services
Figure 9
Impact of Shared Services
on Overall Finance Costs8
8. APQC’s OSBC research data
6
11. MORE EFFECTIVE IT LEADS TO MORE reporting. For example, more than two-thirds of
EFFICIENT FINANCE FUNCTIONS companies with less than 33% automated processes
were unable to provide process cost data. Only 32%
APQC’s OSBC research reaffirmed that more effec-
of companies with more highly automated processes
tive use of technology helps companies achieve
were unable to provide detailed process cost data.
greater levels of efficiency and gradually frees up
personnel for more strategic tasks requiring more Looking further into the impact of automation, the
thought and managerial capacity. First, the OSBC OSBC research found that packaged financial soft-
research showed that companies with a higher ware (versus custom applications or spreadsheets
degree of automation have lower overall finance combined with manual processes) is used in most
costs.9 Companies that had automated more than core finance processes, including accounts receivable
66% of their finance processes had average finance and payable, payroll, general accounting, and fixed-
costs of 1.2% of revenues, while companies with less asset accounting. As a result, companies have suc-
automation had average finance costs of 3.0% of rev- ceeded in reducing staffing levels in these areas (see
enue. For example, companies that relied on manual Figure 10). On the other hand, less than 40% of the
techniques or spreadsheets for cost accounting and companies that submitted data to the OSBC research
cost management had average costs three times as database had off-the-shelf software implemented in
high for that process ($2.21 per $1,000 of revenue) the areas of cash management and planning, budget-
than companies with an automated process (only ing, and forecasting. These areas were among the
$0.72 per $1,000 of revenue). most staff-intensive processes within the finance
function.
Even more interesting, APQC found through the
OSBC research that while more automation means The OSBC research also found a correlation between
decreased costs, little automation even impedes the level of cost decrease and the lack of IT
A shared-services unit provides centralized management and
execution of specific activities on behalf of multiple users
(such as business units or sites) using common processes
and systems. Shared services acts as a business partner for
its customers that are composed of different divisions and
functions within the same company. Each customer agrees to
the quantity, quality, and cost of services provided, and costs
are charged out based on usage. Most companies actually
formalize service agreements between the shared-services
unit and its internal customers.
Shared-services units are generally evaluated on the following
performance metrics:
Cost
Customer service (cycle time, percent of errors)
Utilization and productivity
Defining Shared Services External benchmarks
9. In terms of APQC’s OSBC research, a process is not considered automated if it is manual or if spreadsheets are used.
7
12. complexity. OSBC research participants reported that MORE EFFECTIVE IT ENABLES MORE
their average costs decreased dramatically when they STRATEGIC FINANCE FUNCTIONS
used a single instance of ERP software and a com-
The use of an integrated ERP system by the finance
mon chart of accounts (see Figure 11). When they
function also paves the way to a more strategic
used multiple instances or even multiple applica-
approach. If a company establishes a more integrated
tions, the cost was more than 50% higher than with
process, planning and reporting cycle times are
the single instance and common chart of accounts.
reduced significantly, providing data for critical deci-
sions much sooner and enabling improved decision
% of Total Payments for Application Usage – Bar
Chart; Average Headcount Allocation – % in Circles making by company executives. For example, look-
ing at budget preparation cycle time or closing of
*
monthly accounts, APQC’s OSBC research revealed
that companies relying heavily on manual processes
or spreadsheets took an average of 90 days to prepare
their annual budgets, versus an average of 62 days for
companies relying on an ERP system. The OSBC
research also showed that companies with a rolling
forecast reduced annual budget preparation time to
60 days from 85 days on average. The average OSBC
research participant generated $330,000 in cost sav-
ings each additional day the budget cycle time was
Custom
Manual/Spreadsheet
reduced (through technology and improved
Vendor Package processes).
*Includes A/R
Given the improvements possible through the effec-
Figure 10: Application Usage and Labor
tive use of ERP, finance professionals confirmed that,
Allocation by Finance Function10
moving forward, IT would take over more of the
transactional aspects of the function, while they
would take over decision support and financial
Figure 11 Planning/ Cost Accounting/ Ev aluating and
Budgeting/ Cost Management Managing
Forecasting Fi nancial
Comparison of Pe rformance
Single-Instance ERP Single-instance accounting
versus Multiple software/ERP, common
chart of accounts
$1.60 $1.69 $1.87
Instances/Multiple
Multiple instances or
Applications multiple accounting $2.62 $3.55 $3.21
software applications
(Cost of the Process per
$1,000 in Revenue)11
10. APQC’s OSBC research data
11. APQC’s OSBC research data
8
13. management activities, helping to make the finance a four-phase approach and using software from SAP.
function more strategic. This forward thinking is The end point: complete transparency of financial
revealed in the OSBC research: despite the current data across all global divisions. The CFO believes that
focus on processing transactions, OSBC research cash generation is the lifeblood of a consumer prod-
respondents all indicated that, three years hence, ucts company, affecting all parts of the organization.
they would be more involved with decision support Cash, in fact, is the barometer of the success of the
and management activities, underscoring the basic company’s brand-building exercises; sales indicate
importance of these more strategic capabilities (see the strength of the brand and generate the cash that
Figure 3). allows the company to fund its brand-building activi-
ties in new regions and new product areas. To devel-
These respondents reflect the fact that CFOs and
op the capability to monitor and understand the
finance functions must deal with a wealth of new
company’s cash flow, however, the CFO realized he
difficulties, including many that are at the heart of
had to take care of endemic and chronic inefficien-
the company’s strategic goals – such as increasing
cies and data difficulties in the following areas:
shareholder wealth. The CFO’s function has become
pivotal to a company’s health in the following ways: Cash management
Foreign-exchange processes
Balancing revenue generation against cost
Funds transfers
efficiency
Month-end closing and accounts receivable
Assessing risk daily
Siphoning off risk into the future through The problems with cash management were symbolic
sophisticated use of derivatives for the CFO of the root of all other evils. The process
Managing earnings expectations and the need to was essentially manual, took most of the day, and
create shareholder value resulted in many mistakes. That led to missed fund-
Mitigating the deleterious effects of exchange- ing opportunities in the commercial paper market,
rate fluctuations whose rates rise during the day; seizing opportunities
Managing the company’s compliance process to required understanding the cash position immedi-
make certain it meets governmental regulations ately at the start of the day. From there, according to
the CFO, the finance function could achieve all
Yet it is difficult for the finance function to manage other strategic objectives.
the earnings flow and shareholder expectations for
In Phase One, the company standardized and estab-
those earnings, given increasing global competition
lished new processes to reconcile bank accounts
and regulatory constraints. To achieve excellence in
daily, concentrate cash, determine a final number to
finance requires a greater attention to balancing
borrow or invest each day, improve control, enhance
operational efficiency and strategic effectiveness. The
accuracy, and pare down the number of FTEs
foundation for both is a great deal of analysis, data,
involved in the function. In another development,
and management time devoted to each, as well as
global vendor payments were integrated with the
more automation of nonstrategic, operational
bank payment systems, and customer receipts posted
processes, freeing up staff to perform the data
to the general ledger. Each day, the company could
collection.
then reconcile all global account information.
AN EXAMPLE OF A STRATEGIC Contracts in the ERP system were linked to the daily
FINANCE FUNCTION cash position, providing performance reporting and
investment calculation.
A global consumer products company has created
highly successful strategic finance functions based on
9
14. In Phase Two, the CFO integrated the systems of the Phase Four completed the process of developing this
offshore divisions into the main system. That tactic strategic approach. This final step entailed entering
assures he can see the state of cash management in all foreign-exchange and commodities hedging con-
operations around the world. tracts into the system, enabling the company to rec-
oncile them itself without going through a third-
Phase Three involved implementation of straight-
party processor. The company went so far as to do
through processing, whereby payments are transmit-
away with all manual processing in accounting for
ted directly to the bank from payment data. A single
derivative contracts, as well. Not only did the compa-
platform uses payment files extracted from the SAP®
ny reduce costs, but it also created the type of trans-
accounts payable and treasury applications for all
parency and audit trail necessary to truly comply
types of payment. In effect the central treasury
with the Sarbanes-Oxley Act.
department has become the house bank for all of the
company’s far-flung subsidiaries. The company
believes straight-through processing eliminates costly
errors caused by processing different payments in dif-
ferent countries. In addition, the straight-through
processing of foreign exchange has cut down on diffi-
culties in reconciling payments and revenues in the
30 or more currencies in which the company
operates.
10
15. CONCLUSION: A CHECKLIST FOR A STRATEGIC
FINANCE FUNCTION
The best companies, and their CFOs, recognize the In a similar way, you can also determine whether
importance of ready access to the right information you are on the right track if your financial software
to drive the right choices between different variables. provides the following:
To help determine whether your finance function is
A single source for financial information (a pre-
moving toward a strategic approach, take a moment
requisite for managing business processes
and decide whether your system does the following:
beyond financials more effectively)
Accelerates closing processes through automa- More timely access to accurate data, improving
tion, workflow, and collaboration communication between finance and operations
Improves business analysis and decision support Increased alignment between front- and back-
by providing historical and forward-looking office applications, enabling management to bet-
views, including benchmarks ter administer and track business strategy and
Deploys performance management tools that decisions
analyze the company and its resources Reduced cost of compliance with industry regu-
Maximizes cash flow through improved billing, lations (U.S. Financial Accounting Standards
receivables, collections, payments, and treasury Board and Sarbanes-Oxley)
management Improved security and controls and reduced risk
Increases effectiveness of compliance efforts of contractual and regulatory noncompliance
through comprehensive auditing, deeper report- Improved predictability, particularly with budget
ing, and management of internal controls
(Sarbanes-Oxley)
One CFO admitted, “Until we began to appreciate
the importance of simplicity in thinking through
In addition, a truly integrated systemic foundation our finance function and making it more strategic,
should help you achieve the following: we did not realize the way that technology can help
you deal with complexity, and allow you to achieve
Develop a closed-loop management process of
the strategic goals finance should achieve.”
strategy formulation, communication of goals,
and measurement
Monitor the performance of strategic key suc-
ABOUT APQC AND THE OSBC
cess factors using external and internal
RESEARCH
benchmarks
Use tools that support a financial planning The OSBC research helps executives benchmark
process that integrates global strategic planning within their industry as well as with best-in-class
and specific operational planning problems in a organizations with comparable processes. Spear-
closed-loop process headed by nonprofit research firm APQC, the OSBC
research standardizes the processes and measures
that organizations worldwide use to benchmark and
improve their performance. After contributing per-
formance data to the OSBC database, participants
receive custom reports, at no cost, comparing their
practices to top performers and relevant peers to
pinpoint improvement opportunities. For more
information, call 1-800-776-9676 or 1-713-681-4020.
11