Proven Techniques for Optimizing Your Financial Planning & Analysis ProcessProformative, Inc.
In this session, you will learn best practices for optimizing the planning process including how to adopt a driver-based model, efficiently manage rolling forecasts, embrace “what if” scenario modeling and provide more meaningful reporting and analysis to impact decision making. You will gain insights from comprehensive industry research recently conducted with hundreds of financial professionals around the world in order to understand key industry trends and best practices that are working for leading edge organizations today. In addition to the research, subject matter experts will share numerous practical steps for improving performance management processes in your organization. You will come away with real-world methodologies to help you improve and shorten your budgeting process and will also enable better decision making and organizational alignment that will help you to optimize performance.
Speaker: Tony Ard, Director of Solutions Engineering, Axiom EPM
Presentation delivered at ProformaTECH 2014 - http://www.proformatech.com
Track: Operational Advantage | Session: 5
Genpact helps leaders of some of the largest enterprises
transform and run their processes and operations, including
the very complex and industry-specific. We help enterprises to be more competitive by becoming more intelligent: adaptive, innovative, globally effective and connected by enabling tighter management of costs, risks, regulations, and supporting growth.
Best Practices in Financial Planning and Analysis | 2013 Business Analytics S...Cartegraph
Loras College is proud to present our annual Business Analytics Symposium on March 27, 2014 at the Grand River Center in Dubuque, IA. Industry experts will share their insights about the evolving field of business analytics opportunities. Learn about everything from best practices when analyzing data to the importance and benefits of building a culture of analytics within your organization.
To learn more, secure your seat or to take advantage of group discounts visit www.loras.edu/bigdata.
Delivering Value with Financial Performance: Leading FP&A Practices of High-G...Proformative, Inc.
The FP&A organization along with the rest of finance is undergoing a transformation, with increasing responsibilities and their accompanying challenges, all of which have to be undertaken with limited resources. FP&A leaders, like their peers in other finance groups, are being asked to elevate their focus and extend their reach across the organization, while still delivering on traditional blocking and tackling activities. Hear from FP&A leaders who have created significant company value while navigating high growth business environments. Learn how best practices – on KPIs, planning cycles, rolling forecasts, and other techniques – have enabled high performance, both for their functions and for their overall business.
Speakers: Eileen Tobias, Sr. Director of FP&A, NetSuite
Eric Zimmerman, Manager of Financial Planning and Analysis, Infusionsoft
Presentation delivered at ProformaTECH 2014 - http://www.proformatech.com
Track: Operational Advantage | Session: 4
Financial planning and analysis (FP&A) is the process of forecasting a company's future financial performance and managing its financial resources to meet those forecasts. FP&A professionals are responsible for creating accurate financial models, developing budget proposals, and analyzing past financial performance in order to identify trends and recommend improvements.
Making driver-based planning and budgeting workAnaplan
For Finance departments to best navigate through the twists and turns of today’s fast moving marketplace, a haphazard, once-a-year budgeting process just doesn’t cut it. To survive and thrive in this environment, this process needs to change to be more agile, align around a consistent set of resources, and attain a trusted level of accuracy.
One reliable way to transform your budgeting process is to integrate the modeling that budget contributors typically do on spreadsheets to deliver driver-based planning and budgeting. With benefits such as being able to rapidly reforecast with minimal effort, having operational capacity always aligned, and better decision making that comes from having a deeper insight into variances, it has obvious appeal. So why is it not more widely used?
View these slides from our webinar with Forrester Research and Proformative and watch the full webinar here: https://www.anaplan.com/webinars/driver-based-budgeting/
Proven Techniques for Optimizing Your Financial Planning & Analysis ProcessProformative, Inc.
In this session, you will learn best practices for optimizing the planning process including how to adopt a driver-based model, efficiently manage rolling forecasts, embrace “what if” scenario modeling and provide more meaningful reporting and analysis to impact decision making. You will gain insights from comprehensive industry research recently conducted with hundreds of financial professionals around the world in order to understand key industry trends and best practices that are working for leading edge organizations today. In addition to the research, subject matter experts will share numerous practical steps for improving performance management processes in your organization. You will come away with real-world methodologies to help you improve and shorten your budgeting process and will also enable better decision making and organizational alignment that will help you to optimize performance.
Speaker: Tony Ard, Director of Solutions Engineering, Axiom EPM
Presentation delivered at ProformaTECH 2014 - http://www.proformatech.com
Track: Operational Advantage | Session: 5
Genpact helps leaders of some of the largest enterprises
transform and run their processes and operations, including
the very complex and industry-specific. We help enterprises to be more competitive by becoming more intelligent: adaptive, innovative, globally effective and connected by enabling tighter management of costs, risks, regulations, and supporting growth.
Best Practices in Financial Planning and Analysis | 2013 Business Analytics S...Cartegraph
Loras College is proud to present our annual Business Analytics Symposium on March 27, 2014 at the Grand River Center in Dubuque, IA. Industry experts will share their insights about the evolving field of business analytics opportunities. Learn about everything from best practices when analyzing data to the importance and benefits of building a culture of analytics within your organization.
To learn more, secure your seat or to take advantage of group discounts visit www.loras.edu/bigdata.
Delivering Value with Financial Performance: Leading FP&A Practices of High-G...Proformative, Inc.
The FP&A organization along with the rest of finance is undergoing a transformation, with increasing responsibilities and their accompanying challenges, all of which have to be undertaken with limited resources. FP&A leaders, like their peers in other finance groups, are being asked to elevate their focus and extend their reach across the organization, while still delivering on traditional blocking and tackling activities. Hear from FP&A leaders who have created significant company value while navigating high growth business environments. Learn how best practices – on KPIs, planning cycles, rolling forecasts, and other techniques – have enabled high performance, both for their functions and for their overall business.
Speakers: Eileen Tobias, Sr. Director of FP&A, NetSuite
Eric Zimmerman, Manager of Financial Planning and Analysis, Infusionsoft
Presentation delivered at ProformaTECH 2014 - http://www.proformatech.com
Track: Operational Advantage | Session: 4
Financial planning and analysis (FP&A) is the process of forecasting a company's future financial performance and managing its financial resources to meet those forecasts. FP&A professionals are responsible for creating accurate financial models, developing budget proposals, and analyzing past financial performance in order to identify trends and recommend improvements.
Making driver-based planning and budgeting workAnaplan
For Finance departments to best navigate through the twists and turns of today’s fast moving marketplace, a haphazard, once-a-year budgeting process just doesn’t cut it. To survive and thrive in this environment, this process needs to change to be more agile, align around a consistent set of resources, and attain a trusted level of accuracy.
One reliable way to transform your budgeting process is to integrate the modeling that budget contributors typically do on spreadsheets to deliver driver-based planning and budgeting. With benefits such as being able to rapidly reforecast with minimal effort, having operational capacity always aligned, and better decision making that comes from having a deeper insight into variances, it has obvious appeal. So why is it not more widely used?
View these slides from our webinar with Forrester Research and Proformative and watch the full webinar here: https://www.anaplan.com/webinars/driver-based-budgeting/
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
How FP&A Can Become a Better Business PartnerCarl Seidman
FP&A is increasingly recognized as a true business partner. In its expanded role, FP&A is helping the business to improve planning and to better align with its organizational strategy.
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.
Review of Information Technology Function Critical Capability ModelsAlan McSweeney
IT Function critical capabilities are key areas where the IT function needs to maintain significant levels of competence, skill and experience and practise in order to operate and deliver a service. There are several different IT capability frameworks. The objective of these notes is to assess the suitability and applicability of these frameworks. These models can be used to identify what is important for your IT function based on your current and desired/necessary activity profile.
Capabilities vary across organisation – not all capabilities have the same importance for all organisations. These frameworks do not readily accommodate variability in the relative importance of capabilities.
The assessment approach taken is to identify a generalised set of capabilities needed across the span of IT function operations, from strategy to operations and delivery. This generic model is then be used to assess individual frameworks to determine their scope and coverage and to identify gaps.
The generic IT function capability model proposed here consists of five groups or domains of major capabilities that can be organised across the span of the IT function:
1. Information Technology Strategy, Management and Governance
2. Technology and Platforms Standards Development and Management
3. Technology and Solution Consulting and Delivery
4. Operational Run The Business/Business as Usual/Service Provision
5. Change The Business/Development and Introduction of New Services
In the context of trends and initiatives such as outsourcing, transition to cloud services and greater platform-based offerings, should the IT function develop and enhance its meta-capabilities – the management of the delivery of capabilities? Is capability identification and delivery management the most important capability? Outsourced service delivery in all its forms is not a fire-and-forget activity. You can outsource the provision of any service except the management of the supply of that service.
The following IT capability models have been evaluated:
• IT4IT Reference Architecture https://www.opengroup.org/it4it contains 32 functional components
• European e-Competence Framework (ECF) http://www.ecompetences.eu/ contains 40 competencies
• ITIL V4 https://www.axelos.com/best-practice-solutions/itil has 34 management practices
• COBIT 2019 https://www.isaca.org/resources/cobit has 40 management and control processes
• APQC Process Classification Framework - https://www.apqc.org/process-performance-management/process-frameworks version 7.2.1 has 44 major IT management processes
• IT Capability Maturity Framework (IT-CMF) https://ivi.ie/critical-capabilities/ contains 37 critical capabilities
The following model has not been evaluated
• Skills Framework for the Information Age (SFIA) - http://www.sfia-online.org/ lists over 100 skills
From annual budget to rolling forecast - Karine CochetKarine Cochet
On April 18 & 19, 2013, I participated as a speaker at the FP&A Innovation Summit in Hong Kong,
Organized by IE. (Innovation Enterprise), the Financial Forecasting & Planning Innovation Summit brought together CFO and FP&A Directors from all around Asia.
During 2 days, we, Finance executives, were able to share our experience and discuss around the 2013 Summit Topic: “Today companies rely on a solid FP&A process, this requires the ability to access, collect and analyze both financial data and forward-looking non-financial measures such as trends in customer demand or commodity prices”
In my presentation, I focused on Driver-based forecasting and rolling forecast.
“Traditional annual budget process is often seen as a time-consuming exercise, with limited value, whose underlying assumptions are quickly outdated. In a time of increasing competition and fast changing environment, there is a need for a more agile way to predict the future. In the presentation, we will discuss the opportunity to introduce a more flexible approach based on driver-based forecasting and rolling forecast. We will consider the impacts of such a move on the organizations.”
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.
Reinventing the Record-to-Report Process for Worry-Free Governance, Risk & Co...Proformative, Inc.
Video & Slides: http://www.proformative.com/events/reinventing-record-report-process-worry-free-governance-risk-compliance
Statutory financial reporting and filing has experienced profound change of late. Unrelenting regulatory pressure, shortened deadlines, digital mandates, and accounting complexity make the Record-to-Report (R2R) process extremely expensive, inefficient, and fraught with risk for the Office of the CFO. This educational session will focus on highlighting the current state of the record-to-report process and understanding the expense impact of R2R on the bottom line. It will also show attendees how to identify critical R2R efficiency opportunities while minimizing risk across the financial close, compliance and disclosure management efforts. Lastly, attendees will learn best practices and things to avoid in the R2R process.
Speakers:
Mike Duderich, Finance Director, Americas R2R Operations, Unilever
Ken Fritz, Executive Vice President, Trintech
Presentation delivered at CFO Dimensions 2013 - www.cfodimensions.com
Track: Governance, Risk, Compliance | Session: 1
Presentation by Drs. Robert S. Kaplan and Dr. David P. Norton, at Palladium Summit. XPP is the Execution Premium Process, the professional implementation blueprint of the Kaplan-Norton Balanced Scorecard framework.
See the Palladium BSC Hall of Fame:
https://www.slideshare.net/mihaione/palladium-kn-bsc-hall-of-fame
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
FP&A sits at the core of corporate finance. That includes strategy, planning, forecasting, and analysis, where everyone from financial analysts to the CFOs themselves make their biggest impact and drive the business. It simply makes sense to be as automated and efficient (linear) as possible, minimizing time spent on data gathering and dissemination and maximum time spent where it counts – thinking about how we make the business better.
This webinar will lay out the case for fully leveraging technology in your FP&A organization and processes, with a focus on strategies, best practices and real-world examples. This will be brought to you by Jeff Wuest, a former global finance leader at Procter and Gamble.
This webinar will also include a demonstration of how the right technology can help shift your workload from collecting and consolidating data to delivering insights for business growth.
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
How FP&A Can Become a Better Business PartnerCarl Seidman
FP&A is increasingly recognized as a true business partner. In its expanded role, FP&A is helping the business to improve planning and to better align with its organizational strategy.
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.
Review of Information Technology Function Critical Capability ModelsAlan McSweeney
IT Function critical capabilities are key areas where the IT function needs to maintain significant levels of competence, skill and experience and practise in order to operate and deliver a service. There are several different IT capability frameworks. The objective of these notes is to assess the suitability and applicability of these frameworks. These models can be used to identify what is important for your IT function based on your current and desired/necessary activity profile.
Capabilities vary across organisation – not all capabilities have the same importance for all organisations. These frameworks do not readily accommodate variability in the relative importance of capabilities.
The assessment approach taken is to identify a generalised set of capabilities needed across the span of IT function operations, from strategy to operations and delivery. This generic model is then be used to assess individual frameworks to determine their scope and coverage and to identify gaps.
The generic IT function capability model proposed here consists of five groups or domains of major capabilities that can be organised across the span of the IT function:
1. Information Technology Strategy, Management and Governance
2. Technology and Platforms Standards Development and Management
3. Technology and Solution Consulting and Delivery
4. Operational Run The Business/Business as Usual/Service Provision
5. Change The Business/Development and Introduction of New Services
In the context of trends and initiatives such as outsourcing, transition to cloud services and greater platform-based offerings, should the IT function develop and enhance its meta-capabilities – the management of the delivery of capabilities? Is capability identification and delivery management the most important capability? Outsourced service delivery in all its forms is not a fire-and-forget activity. You can outsource the provision of any service except the management of the supply of that service.
The following IT capability models have been evaluated:
• IT4IT Reference Architecture https://www.opengroup.org/it4it contains 32 functional components
• European e-Competence Framework (ECF) http://www.ecompetences.eu/ contains 40 competencies
• ITIL V4 https://www.axelos.com/best-practice-solutions/itil has 34 management practices
• COBIT 2019 https://www.isaca.org/resources/cobit has 40 management and control processes
• APQC Process Classification Framework - https://www.apqc.org/process-performance-management/process-frameworks version 7.2.1 has 44 major IT management processes
• IT Capability Maturity Framework (IT-CMF) https://ivi.ie/critical-capabilities/ contains 37 critical capabilities
The following model has not been evaluated
• Skills Framework for the Information Age (SFIA) - http://www.sfia-online.org/ lists over 100 skills
From annual budget to rolling forecast - Karine CochetKarine Cochet
On April 18 & 19, 2013, I participated as a speaker at the FP&A Innovation Summit in Hong Kong,
Organized by IE. (Innovation Enterprise), the Financial Forecasting & Planning Innovation Summit brought together CFO and FP&A Directors from all around Asia.
During 2 days, we, Finance executives, were able to share our experience and discuss around the 2013 Summit Topic: “Today companies rely on a solid FP&A process, this requires the ability to access, collect and analyze both financial data and forward-looking non-financial measures such as trends in customer demand or commodity prices”
In my presentation, I focused on Driver-based forecasting and rolling forecast.
“Traditional annual budget process is often seen as a time-consuming exercise, with limited value, whose underlying assumptions are quickly outdated. In a time of increasing competition and fast changing environment, there is a need for a more agile way to predict the future. In the presentation, we will discuss the opportunity to introduce a more flexible approach based on driver-based forecasting and rolling forecast. We will consider the impacts of such a move on the organizations.”
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.
Reinventing the Record-to-Report Process for Worry-Free Governance, Risk & Co...Proformative, Inc.
Video & Slides: http://www.proformative.com/events/reinventing-record-report-process-worry-free-governance-risk-compliance
Statutory financial reporting and filing has experienced profound change of late. Unrelenting regulatory pressure, shortened deadlines, digital mandates, and accounting complexity make the Record-to-Report (R2R) process extremely expensive, inefficient, and fraught with risk for the Office of the CFO. This educational session will focus on highlighting the current state of the record-to-report process and understanding the expense impact of R2R on the bottom line. It will also show attendees how to identify critical R2R efficiency opportunities while minimizing risk across the financial close, compliance and disclosure management efforts. Lastly, attendees will learn best practices and things to avoid in the R2R process.
Speakers:
Mike Duderich, Finance Director, Americas R2R Operations, Unilever
Ken Fritz, Executive Vice President, Trintech
Presentation delivered at CFO Dimensions 2013 - www.cfodimensions.com
Track: Governance, Risk, Compliance | Session: 1
Presentation by Drs. Robert S. Kaplan and Dr. David P. Norton, at Palladium Summit. XPP is the Execution Premium Process, the professional implementation blueprint of the Kaplan-Norton Balanced Scorecard framework.
See the Palladium BSC Hall of Fame:
https://www.slideshare.net/mihaione/palladium-kn-bsc-hall-of-fame
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
FP&A sits at the core of corporate finance. That includes strategy, planning, forecasting, and analysis, where everyone from financial analysts to the CFOs themselves make their biggest impact and drive the business. It simply makes sense to be as automated and efficient (linear) as possible, minimizing time spent on data gathering and dissemination and maximum time spent where it counts – thinking about how we make the business better.
This webinar will lay out the case for fully leveraging technology in your FP&A organization and processes, with a focus on strategies, best practices and real-world examples. This will be brought to you by Jeff Wuest, a former global finance leader at Procter and Gamble.
This webinar will also include a demonstration of how the right technology can help shift your workload from collecting and consolidating data to delivering insights for business growth.
Measuring the Roi of Planning Software Boston June 2012Ben Lamorte
It was a small group of about 15 FP&A pros gathering around the conference room at the Boston Hilton. We analyzed conditions that suggest it is better to stick with spreadsheets for budgeting and planning. Then we looked at cases where it is a "gray area" as well as "no brainer" cases for replacing spreadsheets based on estimating the ROI of implementing a dedicated planning application.
Web Analytics: Defining & Driving Key Performance Indicators for Your Higher ...Percussion Software
Learn how using analytics can help you make better decisions and deliver higher ROI for your college’s website. Percussion Software will cover five easy ways to start using web analytics to increase your college’s student engagement and ultimately drive enrollment.
Learn more here: http://www.percussion.com/edu
In this presentation you will find information about importance of Key Performance Indicators (KPI's) for subscription-based (SaaS) Internet startups.
The full list of metrics mentioned in the presentation, exact formulas, and examles you can find at http://datmachine.co/saas_metrics.
If you have any questions, don't be shy to drop me a line on my email: efremov(at)datmachine.co.
PR News Digital Summit: Measuring ROI + KPIs for Digital PRTim Marklein
Presentation on "Measuring ROI + KPIs for Your Digital PR Efforts" -- delivered by Tim Marklein, Executive VP of Measurement & Strategy for Weber Shandwick -- presented as part of panel session October 7, 2010 at the PR News Digital Next Practices Summit in New York City.
The Future of Financial Planning and AnalysisSAP Analytics
CFO Research conducted a global survey of 335 senior finance executives, Sponsored by SAP, and sought to gain a better understanding of how finance leaders aspire to support business decision-makers in the pursuit of value creation—and how leading-edge financial planning and business analysis capabilities factor into those aspirations. Here we present key findings from that survey.
Determining the Mathematical ROI of a Project Management Office (PMO) Impleme...Ricardo Viana Vargas
Slides from the white paper which objective is to present, discuss and apply a mathematical model based on the use of Monte Carlo simulation in conjunction with researches on project success/failure rates of projects to develop a 10 step model to calculate the mathematical return on investment (ROI) for the Project Office implementation.
Starting a restaurant is an ambitious undertaking. Many restaurants fail within a few years of opening because of poor planning. But don’t fear. Here at Bizimply we have over 20 years experience in the restaurant industry and have the ideal resource to lead you to success.
How does one decide if a Metric qualifies as a Key Performance Indicator? and if so, what are the characteristics of an excellent online marketing KPI?
Best Practices in Creating a Strategic Finance FunctionFindWhitePapers
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.
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.
Mastering Finance in Business
The role and impact of financial management on strategy, operations, and business performance
A Deloitte Research Global Manufacturing Study
Financial Statements Analysis: Wealth Creation and Wealth Maximisation at Tel...iosrjce
Information technology revolution has gained popularity with companies’ success depending
virtually on the exchange of information. As a result, it has brought to consideration the need to create and
sustain technologies through which information can be transmitted and received, and the telecommunication
industry has been a major development. The research paper seeks to analyse the financial statements of a
telecom company to determine whether the company created wealth and suggesting ways to improve wealth
creation. Factors such as operational results, key economic variables and customer satisfaction were explored.
A questionnaire survey was employed to collect primary data. The questionnaires were distributed by hand and
some were emailed. Results of the survey were reported and customer suggestions and concerns were noted.
Secondary data was obtained from the financial statements as well as operational reviews available on the
website. Data was analysed and it was discovered that the company has revolved significantly and its
performance has improved over the years. However, it was highlighted that a lot still needs to be done.
Therefore recommendations to pave way for future studies have been suggested.
Transforming Finance and Accounting to Optimize Financial CloseCognizant
Many firms are working to accelerate and improve the daily financial close, but are far from ready. By formalizing the F&A value chain, modernizing and strengthening their F&A platform, assessing and optimizing existing service models and heightening overall F&A governance, companies can achieve this goal, supported by a set of success factors for measuring progress and aligning transformation activities.
White paper providing the business case for integrating strategy with finance and operations to achieve superior strategy execution and organization performance
The main objective of this paper such as the Karachi Stock Exchange market development working capital management (WCM) on firm performance is to determine the impact. In this paper the chemical industry for the period 2009-2014 to 6 years for a sample of 22 firms Karachi Stock Exchange (KSE) working capital management and firm performance of different variables used for analysis . Working Capital Management to measure the variables that were used in this study are the number of recovery days , days in inventory and size , leverage , inventory , equity , sales and gross domestic product (GDP) numbers are control variables. Firm performance measure used in this study for the dependent variable is the return on assets. Firm size is positively affected by the firm’s profits. Firms whose profits are high, their working capital firms are not interested in management and firm performance. The result of the study and working capital is negative relationship between firm performance shows. Is a positive relationship between size and profitability? Firm size is increased or decreased profit increased or decreased respectively. Moreover, profits and principles that support the pecking order used by firms are negative relationship between debts.
Numbers that Make Sense: Virtualizing Finance and Accounting in Life SciencesCognizant
Learn about Virtualization and how it can help Life Sciences companies overcome their business challenges like: reducing costs, increasing flexibility and efficiency, and increasing competition position and innovation.
Using Adaptive Scrum to Tame Process Reverse Engineering in Data Analytics Pr...Cognizant
Organizations rely on analytics to make intelligent decisions and improve business performance, which sometimes requires reproducing business processes from a legacy application to a digital-native state to reduce the functional, technical and operational debts. Adaptive Scrum can reduce the complexity of the reproduction process iteratively as well as provide transparency in data analytics porojects.
It Takes an Ecosystem: How Technology Companies Deliver Exceptional ExperiencesCognizant
Experience is evolving into a strategy that reaches across technology companies. We offer guidance on the rise of experience and its role in business modernization, with details on how orgnizations can build the ecosystem to support it.
The Work Ahead: Transportation and Logistics Delivering on the Digital-Physic...Cognizant
The T&L industry appears poised to accelerate its long-overdue modernization drive, as the pandemic spurs an increased need for agility and resilience, according to our study.
Enhancing Desirability: Five Considerations for Winning Digital InitiativesCognizant
To be a modern digital business in the post-COVID era, organizations must be fanatical about the experiences they deliver to an increasingly savvy and expectant user community. Getting there requires a mastery of human-design thinking, compelling user interface and interaction design, and a focus on functional and nonfunctional capabilities that drive business differentiation and results.
The Work Ahead in Manufacturing: Fulfilling the Agility MandateCognizant
According to our research, manufacturers are well ahead of other industries in their IoT deployments but need to marshal the investment required to meet today’s intensified demands for business resilience.
The Work Ahead in Higher Education: Repaving the Road for the Employees of To...Cognizant
Higher-ed institutions expect pandemic-driven disruption to continue, especially as hyperconnectivity, analytics and AI drive personalized education models over the lifetime of the learner, according to our recent research.
Engineering the Next-Gen Digital Claims Organisation for Australian General I...Cognizant
In recent years, insurers have invested in technology platforms and process improvements to improve
claims outcomes. Leaders will build on this foundation across the claims landscape, spanning experience,
operations, customer service and the overall supply chain with market-differentiating capabilities to
achieve sustainable results.
Profitability in the Direct-to-Consumer Marketplace: A Playbook for Media and...Cognizant
Amid constant change, industry leaders need an upgraded IT infrastructure capable of adapting to audience expectations while proactively anticipating ever-evolving business requirements.
Green Rush: The Economic Imperative for SustainabilityCognizant
Green business is good business, according to our recent research, whether for companies monetizing tech tools used for sustainability or for those that see the impact of these initiatives on business goals.
Policy Administration Modernization: Four Paths for InsurersCognizant
The pivot to digital is fraught with numerous obstacles but with proper planning and execution, legacy carriers can update their core systems and keep pace with the competition, while proactively addressing customer needs.
The Work Ahead in Utilities: Powering a Sustainable Future with DigitalCognizant
Utilities are starting to adopt digital technologies to eliminate slow processes, elevate customer experience and boost sustainability, according to our recent study.
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Moving Financial Planning and Analysis to the Next Level
1. • Cognizant 20-20 Insights
Moving Financial Planning and
Analysis to the Next Level
Turning over contextual tasks to a trusted partner can free
finance professionals to work on key strategic imperatives
and contribute to business growth.
Executive Summary focused on operational tasks, such as days-to-
close and journal entry accuracy and timeliness.
Many finance organizations are still fighting the
These narrow definitions of effectiveness only
age-old battle to optimize efficiency and effec-
tiveness. In today’s dynamic global economy,
Finance Organization Costs
however, agility and performance are challenges
that finance must now conquer.
as a Percent of Revenue
Truth be told, many finance organizations have 1.6
become more efficient than ever. In just the last
1.4 1.35
few years, the average company has reduced total
finance costs from an estimated 1.35% of revenue 1.2
to 0.93%, and leading companies are approach-
1 0.93
ing one half of one percent (see Figure 1).1
0.78 0.82
0.8
It is now time for finance to demonstrate how
it can support business strategy, competitive 0.6 0.54 0.56
analysis, overall enterprise performance planning
0.4
and management, and drive revenue and profit
growth. This white paper charts a course to help 0.2
finance departments accomplish these goals.
0
2008 2009 2010
Effectiveness Redefined
Top Quartile Median
Effectiveness is as important as ever, but the
effectiveness expected of the finance department
Source: PricewaterhouseCoopers Finance
is much broader than ever before. Much of what Benchmark Study, 2011
finance has traditionally called effectiveness Figure 1
cognizant 20-20 insights | august 2012
2. indirectly translate to true business outcome Leading FP&A organizations2 are moving beyond
effectiveness. their historic scope of supporting a narrow set
of financial measures and are expanding to
Today’s enterprise must respond to a host of accommodate broad enterprise performance
new challenges and opportunities. The most management needs, such as business perfor-
disruptive challenges facing enterprises today mance reporting and analysis, profits forecasting,
are the increases in volatility and the emergence planning cycles, risk management, operations
of a new master IT architecture that we call the analysis and expanded analytics on both internal
SMAC stack, comprising integrated social, mobile, and market data. In addition, they are also digging
analytics and cloud technologies. The SMAC stack into an expanded scope of detailed line item
is changing the way that enterprises engage their expense analysis in an effort to leave “no stone
employees, customers and suppliers, from slow, unturned” in their search for immediate expense
structured, infrastructure-heavy interactions to reduction opportunities.
rapid, infrastructure-light, unstructured and more
personalized interactions. What’s Next for Finance
Increasing FP&A activities, while shrinking the
Increased volatility can be seen, felt and measured
overall finance function budget, will require a
in many ways, and it demands an increase in
large reduction in non-FP&A finance activities, as
enterprise agility. It can be measured in unem-
well as a more cost-effective way to deliver FP&A.
ployment data, GDP data, corporate revenues
Finance and accounting outsourcing (FAO) is one
and profits, personal incomes, commodity prices,
effective way to accomplish the required transfor-
consumer sentiment and a long list of other
mation while improving agility (see Figure 3, next
measures. One example is the S&P 500 stock
page).
price index, which is a broad measure of the stock
market’s price level. One glance at a chart of the All finance transaction processing (e.g., AP, AR,
S&P 500 Index shows an unprecedented level of GL, FA) can be outsourced, as well as select
volatility over the past dozen years (see Figure 2). compliance activities (e.g., routine statutory
filings, audit support). Transaction processing
A new set of challenges and opportunities
and compliance outsourcing yields significant
exist for financial planning and analysis (FP&A)
savings (typically 30% to 50%, we have found)
groups, thanks to the increased volatility of the
as a result of provider scale, consolidation,
world’s economies, currencies, stock markets
increased automation, process reengineering and
and regulatory environments, combined with
cost arbitrage from relocating work to lower cost
elements of the SMAC stack, such as the prolif-
locations.
eration of ”big data” and associated analytics.
S&P 500 Index: Market Volatility
1.60K
1.40K
1.20K
1.00K
0.80K
0.60K
0.40K
0.20K
0.00K
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Source: Yahoo Finance Graphs
Figure 2
cognizant 20-20 insights 2
3. Finance Transformation: From Cost Reduction to Profitability
Phase IV B
Low
• Freeing up FP&A resources
to partner with businesses
to enhance enterprise
Phase IV A performance and
impact the bottom line.
• Offshoring/outsourcing –
management reporting,
audits, analysis, risk 30-50%
management, actuarial
analysis, internal consulting,
Phase III project management.
Time
• Offshoring/outsourcing –
transaction processes
30%-50%
Phase II • Centralization of analytics,
budgeting, audit, etc.
• Centralization –
transaction
10%-15%
Phase I processes
• Shared services
• Process standardization centers onshore
• Headcount reduction
• Process improvements, 10%-15%
Cost Reduction
High
re-engineering
• Technology & automation
Figure 3
In addition to cost reduction, FAO provides as well, including scale, technology, cost arbitrage
additional process improvements, such as tighter and access to skills. The reduction in expenditure
controls from the separation of duties, up-to-date on transaction and compliance work derived from
process documentation, more comprehen- outsourcing, combined with selective outsourcing
sive metrics reporting, better audit trails and of FP&A work, will enable an expansion of FP&A
heightened transparency. activities while shrinking the overall F&A budget.
Another significant lever to pull is the outsourc- Leading companies have already started out-
ing of portions of FP&A. With 25% of finance’s sourcing FP&A processes, such as balance sheet
budget taken up by FP&A,3 there is considerable preparation; competitor analytics (including
scope for cost savings. Of course, some portions segmentation and SG&A benchmarking); audit
of FP&A should always be kept in-house, such as support and reporting; implementing ABC models
assigning a finance leader to each unit to partner for activity-based costing, along with analysis and
with the business, explain results, lead the budget reporting; and decision support. These companies
process, etc. have also reaped the benefits of FP&A outsourc-
ing beyond cost reduction, such as reporting
But many other portions of FP&A — such as cycle-time reduction or increased forecasting
variance analysis, routine and ad hoc reporting, accuracy or productivity.5
market analysis and various analytical tasks —
can be outsourced (see Figure 4, next page). Just The advancement of technology also requires
by centralizing common FP&A activities (data FP&A organizations to change. Most ERP and con-
gathering, data cleansing and data aggregation), solidation software environments now provide
companies can achieve a 30% reduction of FTEs.4 business stakeholders with the ability to drill down
and understand finance and accounting data and
From our discussions with many finance orga- reasons for variances. Therefore, some of the tra-
nizations, we have observed that business ditional value provided by the FP&A team has now
analysts typically spend over 50% of their time been automated (see Figure 5, next page).
gathering, aggregating and scrubbing data. The
use of highly skilled and highly paid business F&A Outsourcing Benefits
analysts to perform basic data manipulation is The cost savings from transactional finance and
a waste of scarce talent. Outsourcing the data compliance outsourcing can be split between
management tasks provides additional benefits reducing the overall cost of finance and funding
cognizant 20-20 insights 3
4. To Outsource, Or Not
• FP&A Processes
Processes Extensively Processes Never
Processes Increasingly Outsourced
Outsourced Outsourced
• Real Estate Management • Budgeting and Financial Planning • Strategic Planning
• Internal Audit • Acquisitions & Divestitures
• Internal Audit • Accounting/Tax Policies
• Financial Analysis • Business Partnering
• Project Management
• Expense/Revenue Allocations
• Performance Measurements
• Multi-dimensional Reporting
• Analytics
• Risk Management
• Actuarial Analysis
• Financial Consolidations
• BU Financial Statements
• Statement Prep
• SEC Filings
• GAAP Adjustments
• Trial Balance Analysis
• SOX Planning
• Finance Change Management
• Tracking Competitor Financial Performance
Figure 4
the expansion of FP&A into expanded business Example 1: Fleet
partnering, enterprise performance management Many companies provide vehicles to employees,
and expanded line-item expense analysis. The primarily the sales force. While policies and
increased analysis of line-item expenses, although procedures exist to monitor and control costs,
a tactical initiative, helps make FP&A a self-fund- fleet management becomes a challenge for a
ing operation. large diversified organization with multiple
locations. Fleet cost is a one- or two-line item
The expansion of line-item expense analysis helps
on a company’s P&L. While this is not a material
companies focus on expense lines they normally
cost and is not significant for a drill-down
would not consider. Companies can expect to save
review, a detailed analysis of fleet costs of
between 5% and 10% of the costs of these newly
major corporations, in our experience, provides
analyzed cost elements, performing the analysis
an opportunity to reduce costs by taking a
either in-house or through an external provider.
FP&A: Old and New
Traditional View The New World
Back-office function. Revenue generating/self-financing function.
Provide insights into business. Finance business partners, provide insights and help drive
decisions and compliance.
Fragmented across various departments/ Consolidated/centralized function with ability to drive
divisions of the company. standardization and leverage best practices.
No significant role in policy decision-making. Ability to influence policy and change by providing
insights on business impact.
Compliance with policies and established Provide visibility into non-compliance with policies and
practices not a major focus area. established practices.
50% to 60% of the individual analyst’s time 70% to 80% of time spent on understanding data, trends
spent on data gathering and cleansing. and variances.
Figure 5
cognizant 20-20 insights 4
5. structured approach. Such an approach would • Example 2: Travel and Expense
include the following: Most companies have well-established travel
>> Compare the fleet cost line items with the and expense (T&E) policies and approval limits,
headcount report from HR. including arrangements to audit expenses on a
random sample basis. T&E is a significant cost
>> Ensure that only active employees have ve- item for almost every company.
hicles assigned to them.
>> Check whether the employee is entitled to a FP&A can provide insights into T&E expense and
company car and is in accordance with the help drive down cost by doing the following:
policy.
>> Provide visibility into line-level details (com-
>> Send an e-mail to all supervisors of inactive mon BI tools, sub-ledger-level analysis, etc.).
employees and reconfirm if the employee
has left the organization. >> Partner with the operations team.
>> Send an e-mail to all employees with mul- >> Identify potential cost reduction areas
tiple vehicles or those who are not in com- (e.g., airfare, hotel, phone).
pliance with the policy and seek an explana- >> Publish a dashboard to provide details of all
tion. travel not in compliance with policy.
>> Send a list of all inactive employees or
The Bottom Line
those not in compliance, along with the
vehicle numbers, to the fleet manager to While FP&A outsourcing and refocusing provides
ensure vehicles are returned to the leasing almost immediate cost reduction results, the true
company and confirmation is obtained. benefit is the ability to increase efforts to support
the company’s top-line and bottom-line growth.
Taking these steps will not only ensure that
the charges are accurate but will also help to FP&A outsourcing helps free highly skilled profes-
accurately attribute the cost to the correct cost sionals from doing routine work to spend more
center or company code if the employee has time partnering with the business to manage
been transferred to another location or group and execute strategy. This expands the scope of
company. FP&A groups from traditional financial planning
and analysis to true enterprise performance
management.
Footnotes
1
“Drifting or Driving? Finance Effectiveness Benchmark Study 2011,” PricewaterhouseCoopers, 2011.
2
Examples include Boeing and BBC (Source: “Finance Strategy: Delivering the Partnering Role,” IBM.)
3
“Developing a Center of Excellence (CoE) for Financial Planning and Analysis,” Deloitte, 2011.
4
Beyond Concierge: Transforming the FP&A Operating Model,” Deloitte, 2009.
5
“Financial Planning & Analysis: The Next Frontier of Business Process Outsourcing?” Deloitte, 2010.
cognizant 20-20 insights 5