Latest News  

Finance orgs drive higher value while spending more than 40 percent less

World-class finance organizations are far more responsive to business needs than their peers, driving greater value and agility while also spending more than 40 percent less and running with about half the staff, according to new research from The Hackett Group, Inc.

2015-10-19 16:17:42

Overall, finance organizations continue to focus on redeploying resources away from transactional work towards higher-value activities to support innovation, growth, and greater agility, the research found. According to The Hackett Group′s research, world-class finance organizations are relying on three strategies to achieve operational excellence, drive higher value and improve agility: strengthening the foundations to enable agile service delivery; unleashing enterprise performance management (EPM) decision-making excellence; and building an adaptive finance organization.

"In today′s business world, finance needs to dramatically improve its agility, so that it can respond quickly to changes in the business environment and deliver greater value to the enterprise," said The Hackett Group Global Finance Advisory Program Practice Leader Jim O′Connor. "This is a significant challenge, and requires changes that don′t always come naturally to finance executives.

"At the same time, cost-cutting remains a primary focus for most finance organizations," said Mr. O′Connor. "At typical companies, there′s still significant room for opportunity here. Transformation efforts will have to be self-funded, and that means improving efficiency, largely by reducing costs in transactional areas."

According to The Hackett Group Principal and Finance Transformation Practice Leader Richard Cardillo, "We′re seeing many clients moving beyond thinking in terms of discrete projects, towards a continuous transformation mode that is both permanent and sustainable. One key to this is transformation management offices, which are in place at 80 percent of top performers. Typical companies rarely use these, and when they do they are far less robust. All top performers are also committing senior-level resources in transformation leadership roles. Finally, top performers see change management activities as vital to the success of their transformation, and rate their activities as far more effective than peers."

According to The Hackett Group′s research, world-class finance organizations now operate at 42 percent lower cost than typical companies, while achieving greater effectiveness. They also require 48 percent fewer full-time employees per billion dollars of revenue. By excelling at cost reduction, they achieve greater efficiency and deliver up to $44 million in savings annually (for a company with $10 billion in revenue). World-class finance organizations are those that achieve top-quartile performance in both efficiency and effectiveness, based on an array of weighted metrics in The Hackett Group′s finance benchmark.

The largest cost gaps between world-class and typical finance organizations are in transactional areas, including customer billing (85 percent gap), travel and expense (70 percent gap) and accounts payable (68 percent gap). Both world-class and typical finance organizations have cut costs by about 18 percent over the past decade. But world-class finance organizations appear to have found it difficult to maintain this level of cost reduction, and experienced a drop of only three percent over the past five years.

The Hackett Group′s research identified three key elements of finance strategy that world-class finance organizations rely on to drive higher value and greater agility.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
Coface opens a regional IT development center in Bucharest and launches recruitment drive for 80 specialists

The Coface Group, expert in credit insurance, will be opening an IT development center in Bucharest at the beginning of April, employing 80 people.

 Read Full article »
CA Technologies acquired Veracode

CA Technologies on Monday announced it's acquiring Veracode, a SaaS-based secure devOps platform provider, for approximately 614 million US dollars in cash. The deal is expected to close in Q1 of fiscal year 20

 Read Full article »
Logicom launched Cloud Marketplace platform in Romania

Logicom, one of the leading distributors of IT solutions and services and Microsoft Cloud Solution provider, announced the launch of Cloud Marketplace platform in Romania.

 Read Full article »
Excelian Luxoft Financial Services strengthens Its APAC presence with the acquisition of derivIT

Luxoft Holding, leading provider of software development services and innovative IT solutions to a global client base, announced that it has entered into a Share Purchase Agreement to acquire derivIT, a Singapo

 Read Full article »
SAP: Only four percent of companies offer customer experience based on contextual data to clients

According to latest findings of business and technology software solutions provider SAP conducted together with CMO Council, only four percent of companies offer real time customer experience based on contextua

 Read Full article »
Manpower: One out of three Romanian companies will hire people in second quarter, 2017

About a third of employers in Romania anticipate an increase of the number of employees in the second quarter of 2017, while only 7 per cent of company representatives foresee a drop of personnel, according to

 Read Full article »
Luxoft depicts top five global trends in software in 2017

According to the latest findings of software and It solutions provider Luxoft, transforming industries and business models within the context of accelerated innovation and strengthened disruptive technologies p

 Read Full article »
Oracle surpasses 9 billion US dollars worth revenues globally

Oracle Corporation announced fiscal 2017 Q3 results with total revenues up to 9.2 billion US dollars, a 2 per cent increase in US dollars and up 3 per cent increase in constant currency, the financial report st

 Read Full article »
Accenture Research: Three critical accelerators to closing the gender pay gap for class of 2020

Women graduating from university in developed markets in 2020 could be the first generation to close the gender pay gap in their professional lifetimes, according to new research from Accenture

 Read Full article »
CA Technologies positioned a leader for identity governance and administration

CA Technologies (NASDAQ:CA) has been positioned by Gartner, Inc., in the Leaders quadrant of the 2017 Gartner Magic Quadrant for Identity Governance and Administration (IGA).

 Read Full article »
 
MOST RECENT VIDEO
 
 
MOST READ ARTICLES
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Luxoft surged 40 per cent in 2015 – ...
» Exclusive OT print issue: Genpact may ...
» Manpower:Romania has world's third hig...
» SocGen's EBS division to grow 60%, exp...
» Bombardier: from Bucharest subway to t...
» People in Shared Services and Outsourc...
» Omnichannel: 4 pillars of a purposeful...
» Companies such as Endava and Fortech d...
» DB Global Technology: 40 per cent of t...
 
EDITOR CHOICE
TELUS International Europe: More proactive, personalized customer experience, thanks to the Internet of Things (IoT)

Industry research is apt to say we're on the cusp of a future full of "smart" devices — that is, billions of everyday items embedded with wireless internet connectivity

 Read Full article »
Romanian Outsourcing Summit: Focus on the added-value of business shared services in Romania

This year's edition of Romanian Outsourcing Summit joined representatives of the government and top representatives of leading companies operating in the sector of business shared services and related industrie

 Read Full article »
Romanian Outsourcing Summit reaches its third edition

OUTSOURCING TODAY, the integrated communication platform of the business services sector, powered by The Diplomat Bucharest, presents the Third Edition of the ROMANIAN OUTSOURCING SUMMIT on March 23rd 2017, at

 Read Full article »
The most critical Key Performance Indicator (KPI) in social media customer service

Measuring the impact that your social media interactions are having on your business — and your bottom line — can be a tricky endeavor. How can you really identify and quantify whether a particular social m

 Read Full article »
SAP employees to teach programming to scholars in Cluj-Napoca

Ten volunteers working for SAP company together with Cartea Daliei association will organize a Scratch programming teaching club to function at Emil Isac school based in Cluj-Napoca, the company announced.

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events