0 comments on “How to Measure Performance of Your Finance Organization”

How to Measure Performance of Your Finance Organization

New technology triggers the transformation of finance into an analytics powerhouse that derives insight from data.

Finance will become the enterprise hub of analytics by the end of the decade, if not sooner.

Finance must earn this role quickly or be simply relegated to an automated accounting function.   Success will depend on a finance workforce with very different skills than today.  Automation, robotics processes, and intelligent systems are becoming part of the finance team – i.e., humans and machines will join forces to boosts Finance organization’s influence and value in the business.  Humans will turn to the judgment work that machines cannot do.

Now, between the full shift and today, Finance must strive to promote its value in the business by publishing performance scorecards of its key deliverables and service level objectives.  The scorecards must contain metrics of productivity and efficiency of finance in the overall and in core functional areas.

  • Headcount: ratio to stores or total company
  • Finance G&A cost: ratio to revenues
  • Accounts payable: no. of days to process, volumes per day per person, errors
  • Financial closing: no. of days to complete and release reports to management
  • Tax compliance: no. of days before deadline, incidences of penalties

Gone are the days when finance (and any functional department) can operate and function without published key performance indicators.  Without the performance metrics, no one will understand and appreciate a functional department’s value in the company.  Besides, an organization without measures will just be seen in motion without any direction.

Much sooner than later, challenges in developing performance metrics will become greater as the shift to analytics, and robotics and intelligent systems become more real than just a concept.

Imagine the metrics of performance when finance is fully transformed into the analytics arena.

Finance must keep scoring and expanding the business value it delivers to stay relevant.

Are your people ready to migrate from spreadsheets to analytics? They better be!

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How we can help? Developing and implementing a solid finance transformation agenda is the hallmark of our ACCOUNTING SERVICES model — we build, operate, and transform fundamental capabilities in people, processes, and technology. Contact us to know more about these services.

0 comments on “PEOPLE: INSOURCE OR OUTSOURCE — Which function and why?”

PEOPLE: INSOURCE OR OUTSOURCE — Which function and why?

Future-ready finance creates leaner, high value teams. To achieve this, finance must eliminate the non-value adding activities and focus on what the business needs to succeed.  Repeatable, structured transactional activities can be insourced or outsourced to the right experts in business processing.  Doing so frees MORE TIME for analytics!

  • Insourcing refers to the practice of hiring specialists to fill some spots or simply training in-house personnel to perform specific tasks that could have been outsourced. Insourcing is an option when in-house employees don’t have the needed education, skills, talent or discipline to perform the growing new or higher demands of the tasks.
  • Outsourcing means engaging an outside professional service provider, expert, consultant, freelancer, contractor, or agency.  Savings from outsourcing services can include office costs & equipment, technical solutions, services provided by other department, training and keeping a talent pool.

Insourcing or outsourcing aims to farm out the running of transactional processes and activities in order to focus management time and resources in building and developing the new core demands of analytics.

But then again, here’s something to consider – how do you build and operate an analytics practice given the rarity of analytics talent?

Will retooling of existing employees suffice? Or opt to hire the experienced experts to build, operate and transfer, train and transform your finance organization?

rapid insights zone

How can we help? Accelerating your analytics journey is the core objective of RAPID INSIGHTS ZONE — premium analytics professional services, made available to all business types and sizes. Our services will help you KNOW MORE through analytics, so you have MORE TIME and resources to focus on growth. When you are ready to accelerate your analytics journey and inevitable business transformation, contact us!