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
Saxo Bank analysis: Romania, the ideal place for a fintech revolution

Fintech will produce a revolution and is leaving the door open to real challenges, but also with opportunities for those who embrace it, Laurentiu Nedelcu, CEE manager at Saxo Bank said in a recent analysis.

 Read Full article »
Bitdefender signs accord with American router producer Netgear

The software producer Bitdefender signed a technology licence partnership with the American equipment producer for Netgear networks, which will include in its products security solutions for smart devices, deve

 Read Full article »
Laurentiu Lazar, promoted as Managing Partner at Colliers International Romania

Laurentiu Lazar, Senior Partner, Investment and Valuation Services, will take over as the new Managing Partner of the real estate consultancy company Colliers International Romania, effective as of March

 Read Full article »
Upcoming event brings Retrospective in Labor Legislation on February 15th, at Bucharest

Outsourcing Today, together with Fine Law, organize The 2017's Retrospective in Labor Legislation event on February 15, 2018 at Caro Hotel Bucharest, a knowledge sharing event dedicated to the latest significan

 Read Full article »
A.T. Kearney: The widening impact of automation impact the business model of outsourcing

According to a recent article of A.T. Kearney and based on the findings of Global Services Location Index for 2017, the developing nations have long enjoyed the economic benefits of other countries' offshoring.

 Read Full article »
Freelancing – a solution to staff shortages for companies

According to Smartree Romania, a leading provider in Romania of outsourcing payroll services and personnel administration, freelancing has become more present among Romanians lately. Working with freelancers ca

 Read Full article »
Kaspersky Lab: Targeted attacks on radar for industrial organisations

Of the industrial companies that participated in the IT Security Risks Survey , every fourth has faced a variety of cyberattacks. Worryingly, one of the fastest growing types of threat among the multitude targe

 Read Full article »
E-commerce: Romanian companies sell online on their own, above EU average

A share of 16 percent of all enterprises located in the EU and employing at least 10 people received orders via a website or apps (web sales) in 2016, Eurostat reveals. At the same time, more than 8 in 10 enter

 Read Full article »
FAB LAB Iasi nominated at CEE Shared Services and Outsourcing Awards in Warsaw

Iasi city, in Eastern Romania, together with Conduent company and FAB LAB IASI project have been nominated at CEE Shared Services and Outsourcing Awards, to take place at Warsaw at the Hotel Intercontinental o

 Read Full article »
Endava and Velocity Partners announce merger to become truly global IT player

The merger between Velocity Partners, an innovative software development company with a strong presence in Latin America, and Endava, a global technology company with a sustained consistent growth and offices a

 Read Full article »
 
 
MOST READ ARTICLES
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Romanian Outsourcing Awards for Excell...
» Molson Coors started to grow its busin...
» Romania's IT industry could grow at an...
» TELUS International: How customer serv...
» Capgemini to open new office at Suceav...
» ABB opens the first robotics training ...
» Comdata to buy four subsidiaries of Fr...
» Committed to growth
» Four companies represent Romania in De...
 
EDITOR CHOICE
TELUS International: Chatbots - The pros and cons of automated customer service

Learn what key factors to consider before introducing chatbots to your customer service strategy

 Read Full article »
Why AFI Tech Park is the best value for money office project in Bucharest(P)

Based on the insight that location is a strong criteria employees take into consideration when choosing their workplace, AFI Europe Romania is currently developing AFI Tech Park, the newest office destination i

 Read Full article »
Shifting the workplace perspective towards high-end added value

This month, OUTSOURCING TODAY organized The Workplace of the future in IT and Outsourcing at Caro Hotel Bucharest, a new concept event meant to connect fast-growing corporate tenants from IT and outsourcing ind

 Read Full article »
Andrei Romanescu, Managing Director of Veeam Romania: Outsourcing sector, a decade evolution

Since the early 2000s, this sector has grown at a significant rate (about 20-30% per year). The industry has evolved from focusing on cost and labour arbitrage to adding value – therefore the growth is not so

 Read Full article »
TELUS International Europe: Discover how successful smart-home providers deliver exceptional customer service

Key Takeaways

• Internet of Things (IoT) connected home devices are making the contact center and customer service more important than ever. • A friendly approach and positive attitude are import

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