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.

1. Finance Transformation Finance Transformation Phil Price Chartridge Associates CFO Europe, Readers Digest International 5th July 2011

2. Finance Transformation Introduction What does Finance Transformation mean? What does it mean to you; where is it on your agenda? What are the key enablers? Why are some companies leaders and some laggards? What does it mean for Finance structure & culture?

3. Finance Transformation Introduction Phil Price, CFO Europe, Readers Digest International Passionate about driving and delivering profitable business growth based on World Class Finance through a focus on total quality, process excellence, ruthless continuous improvement and high performance teams. Quintiles Transnational, Professional Services Organisation Iron Mountain Europe Bausch + Lomb Readers Digest Europe Interactive session Maximum participation Key takeaways?

4. Finance Transformation What does Finance Transformation mean? Effectiveness & efficiency Real-time information; forward looking v backward Quality; right first time; zero defects Cost as % of revenue Benchmarking Outsourcing Continuous improvement Standardisation

5. Finance Transformation What does it mean to you; where is it on your agenda? Cost cutting Better MIS Improved controls Supporting growth Supporting contraction Change is the norm Are you being Reactive or Pre-Emptive?

6. Finance Transformation What are the key enablers? Why do 80% of change programs fail? Management buy in Driven from the top Desire to move forward & change Culture Standard systems Standard processes Clarity of ownership

7. Finance Transformation Why are some companies leaders and some laggards? Is there Leadership? Is there a Burning platform? Are other issues more important? How do you get into the Virtuous Circle? Is the Culture a help or a hindrance? Is there a Focus on performance? Are you looking to treat the disease rather than the symptoms?

8. Finance Transformation What does it mean for Finance structure & culture? Finance as a business Finance mission Finance structure Finance culture

9. Finance Transformation Finance as a business Is Finance an overhead? Is Finance a cost centre? Or is Finance a “business within a business”, with: Products & services Customers Competitors

10. Finance Transformation Finance Mission Deliver quality information to our partners on a timely basis, cost effectively Drive business performance Grow revenues Improve margins Maximise cash Manage risk

11. Finance Transformation Finance Structure Business partnering & FP&A General accounting, control & reporting Transactional activities Credit control Specialist Finance, eg Tax & Treasury

12. Finance Transformation Finance Culture Leadership: If you don’t know where you are going, any direction will do Motivated and energetic team Every person doing what you want every minute of every day Performance focus What gets measured gets done Clarity of Ownership Quality focus; right first time, zero defects Change friendly; change leading Continuous improvement; lean & six sigma Ruthless Continuous Improvement Machine From Reactive through Pro Active to Pre Emptive

13. Finance Transformation Conclusions ?

14. Finance Transformation Finance Transformation Phil Price Chartridge Associates CFO Europe, Readers Digest International 5th July 2011