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F I N A N C E T R A N S F O R M AT I O N T H E E VO L U T I O N O F V A L U E C R E AT I O N


World class Finance: From administration to value creation The drivers of change in the Finance function and the answers of world class Finance Trends and drivers of change Higher Performance

Reduced Complexity

Constant business demand to operate on higher productivity-, higher quality- and lower costlevels

Optimization of maneuverability and efficiency calls for lean set-up with high degree of standardization

World class Finance… Effectiveness  Provide global standardized financial service portfolio

 Ensure lowest possible error rates and cycle time

Efficiency  Make optimal use of financial resources

CFO‘s greatest challenge today: Balancing costs and quality in an increasing competitive market

 Constantly search for reengineering opportunities

Expertise  Understands customer`s perspective & market dynamics

More legal requirements need consistent transparency of actions and integrated process monitoring

More Compliance

Growing global set-up of market leading companies increases demand for functional steering

Growing Globalization

 Develop sufficient level of functional expertise and skills

Transparency  Deliver high degree of financial transparency  Facilitate optimal decision making & monitoring

Is your company ensuring best possible financial support? 2


Extend focus to all elemental components


Successful Finance Transformation: Different elements to consider Overview of Finance Transformation‘s key questions

Transformation Stage 2: Implementation

World Class Finance

Are implementation -roadmap, -topics and -schedule defined?

Are principles for companywide implementation defined?

Transformation Stage 1: Concept

Are roles & responsibilities documented? Have all areas (systems, functions) of standardization been considered? Are all Governance topics and key activities included?

Service Delivery

Governance

Is the target picture accepted by all relevant stakeholders?

Are all goals of transformation defined?

Is the Finance organization connected to corporate strategy?

Organization

Is a common vision developed and adequately communicated?

Change Management

4


Create stability by effective balancing


Successful Finance Transformation: Adequate balancing of elements Holistic approach towards Finance Transformation Service Delivery

Governance

 Define service catalogue according to vision and target picture

 Align policies & guidelines with future service model

 Consider organizational changes derived from application of activity split

 Define profiles and responsibilities for Finance management units within organization

Alignment Cycle

 Ensure organization supports new functional concept

 Establish communication model within organization

 Build effective holistic organizational model towards new leadership roles

 Set up consistent project controlling to safeguard transformation goals

Organization

Change Management

Extensive preparatory strategy work is needed to pave the way of upcoming transformation 6


Same principles for different situations


Different conditions, individual solutions – same target Schematic overview of influencing factors and range of possible configurations Target: Focus on highest possible functional value creation – effective steering, optimal business support, efficient services

Internal factors

Influencing Conditions Company size Structural complexity Business model & -demands IT-landscape Regional spread Degree of standardization Leadership system/culture …

Configurations Governance

Service

Organization

Active involvement and steering

Shared Service Center

Business Partner (BP) Community

Coaching

Task bundling

Set-up of local BP organization

Guidelines

Outsourcing

Allocation of BP tasks

External factors

Market dynamics

Economic development Competitive position Share- & stakeholder interests Customer & supplier structure Legislation dynamics Disclosure obligations …

Target-design of transformed organization depends on specific conditions 8


Activate the right levers to reach a new performance level


Four optimization levers ensure successful transformation Overview

As-Is

1

2

3

4

Service Delivery (Processes & IT)

Governance (Guidelines, Policies, Steering)

Organization

 One regional functional model; centralized data storage

 No standardized service model, media interruptions & data redundancies  Low service quality and unnecessary costs

1

 Different productivities across the region

2

 Complexity due to different set-up and strategy of local functional organizations  Organizational focus on administration – low skill profiles dominate

Change Mgmt.

 No clear vision; incomplete strategy  Fragmented, inconsistent communication; lack of alignment with key players

 Significant increase in effectiveness and efficiency (reduction of process/ IT costs)  Consistent catalogue regarding roles & responsibilities incl. policies & guidelines

 Inconsistent definitions and policy guidelines – no “functional cooperation”

(HQ, BP, SC. locals)

(Project Mgmt. Communication)

Future

 Steering methodology and functional community established  One regional consistent organization model incl. authorities of respective units

3

4

 Organizational focus on high performance & value creation – balanced skill-sets  Sharp target picture of future organization defined; overarching roadmap developed  Roadshow conducted; scattered efforts incl. key player encompassed in one team

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Use the right set-up to bring the power on the road


2-phase approach to deliver the roadmap Santiago`s „Finance Transformation Roadmap“ Individual Positioning

Target Picture

 Conduct kick-off meetings with relevant key stakeholders Santiago Roadmap

 Detail future service delivery- and organizational model

 Analyze proven practice and individual positioning (interviews, questionnaires, on-site visits)

 Define future roles & responsibilities  Detail technical prerequisites

 Align findings with key stakeholders within community

 Deliver 1. estimates regarding cost/benefits

 Estimate and prioritize possible optimization potentials

 Derive next steps regarding rollout concept

Receive transparent insights in current operations Kick-off

2 Weeks

Derive future target picture and first steps of implementation Results Analysis

2 Weeks

Target Picture

Fast program to initiate your transformation process 12


Santiago: The Strategy and Structure Advisors


Santiago Advisors: Competent partner for CFO’s Selected finance programs and contact to Santiago Santiago supports midsize companies and multinational corporations with the development and implementation of tailor-made innovation programs. We offer you proven finance programs – please do not hesitate to contact us for more information (please tick boxes):  Do you want to increase your finance service efficiency?

 Finance Shared Services

 Do you want to finance your growth path?

 Financing Growth

 Do you want to gain insights into finance project methodologies?

 Individual project profile

Contact Santiago:

Your data (please use fax +49 2156 49669-19)

Santiago GmbH & Co. KG

Firma: ____________________________

Postfach 40 12 02

Name: ____________________________

D – 47866 Willich

Straße: ____________________________

Fax +49 2156 49669-19

Ort:

www.santiago-advisors.com

Telefon: ____________________________ Mail:

Dr. Juan Rigall

Dr. Alexander Tarlatt

Managing Director

Managing Director

juan.rigall@santiago-advisors.com

alexander.tarlatt@santiago-advisors.com

Mobile +49 151 2033 53 21

Mobile +49 151 2033 53 22

____________________________ ____________________________

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Finance Transformation  

FINANCE TRANSFORMATION FINANCE TRANSFORMATION THE EVOLUTION OF VALUE CREATION

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