The fact is...
Top performing finance functions operate at half the cost of the typical function - and are still able to deliver*
CFOs find themselves facing a juggling act to achieve the right balance between three competing agendas; insight, efficiency, and compliance and control - in addition to managing and motivating their people.
This is no easy challenge. However, the fact is top performing finance functions are able to operate at approximately 50% of the cost of the average function, and still find the right balance.
So how are they able to do this?
It is clear top performers recognise the need to approach cost management strategically by distinguishing savings opportunities from spending that is needed to sustain the delivery of business objectives and provide the insight demanded by the business.
In particular, top performers are:
- Making better use of high value specialists' time by actively standardising and simplifying data models across markets and within business units
- Transferring routine transactional activity to consolidated service centres and looking at whether more complex activities such as financial reporting or project accounting could also be put in a shared service environment
- Combining financial and non-financial management information and developing simple and transparent metrics to align financial performance with the delivery of strategic objectives
- Focusing on providing business insight and employing 30% more insight employees than the typical finance function
- Investing in business partnering capabilities by paying staff engaged in insight activity almost 25% more than the typical finance function.
To find out more on this subject, please contact your usual PwC contact or Andrew McCorkell (020 7213 1509).
* Based on the benchmark analysis of over 100 participating companies (largely FTSE 200 firms, but also international groups of similar size and complexity), comprising over 1700 discrete businesses, in 60 countries.
