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
EY announces new global talent programs to prepare its people and its business for the future of work

EY recently announces a series of new global talent programs designed to prepare its workforce and its business for the future of work, including LEAD, a new global model for career, development and performance

 Read Full article »
Societe Generale European Business Services invests in innovative solutions made by Romanian start-ups

Societe Generale European Business Services, part of the international group Societe Generale, had ended its first corporate accelerator program dedicated to start-ups in Romania – Catalyst 2.0.

 Read Full article »
SAP launches free online courses for teens passionate about technology

SAP announced it has prepared several free online technology courses to be launched this fall for young and teens passionate about technology such as: Teens Get Coding! And Teaching Programming to Young Learner

 Read Full article »
Oracle gains cloud revenues up 51 per cent to 1.5 billion US dollars in new fiscal year's Q1

Oracle Corporation announced fiscal 2018 Q1 results, with total revenues up 7 per cent from the prior year to 9.2 billion US dollars. Cloud plus On-Premise Software Revenues were up 9 per cent to 7.4 billion US

 Read Full article »
Stefanini names Farlei Kothe as vice-president for EMEA

IT solutions developer Stefanini announced the naming of Farlei Kothe as vice-president for EMEA region. The new manager will coordinate the company's software development division from Bucharest.

 Read Full article »
Endava marks 10-year presence in Iasi and plans growth countrywide

British company Endava marks ten-year presence at Iasi, in North-Eastern Romania and also announces the opening of a new office in United Business Center of Palas Iasi compound.

 Read Full article »
Portland Trust celebrates 20-year anniversary with start of last phase of Oregon Park, Bucharest

The central European property developer Portland Trust and US based Ares Management are embarking on the final phase of Oregon Park, their new office park in Bucharest. This event coincides with the company 20

 Read Full article »
WBE: Which EU country is most at risk of cybercrime?

Computer users in South Eastern Europe may want to review their digital security after new research revealed they are the most vulnerable to cyber crime, a press release of Website Builder Expert (WBE) states.

 Read Full article »
GE opens new software center in Bucharest, looks for highly skilled IT specialists

GE announced that it speeds up growth for its software and digital resources in Romania and kicks off the recruitment campaign for GE Power's Grid Software Solutions (SWS) center in Bucharest.

 Read Full article »
DB Global Technology creates new technology hub, digital workplace floor and event venue

DB Global Technology S.R.L. (DBGT), Deutsche Bank's technology centre in Bucharest, has inau-gurated a new research and development hub, a digital workplace floor and a state-of-the-art event venue, according t

 Read Full article »
 
MOST RECENT VIDEO
 
 
MOST READ ARTICLES
» GE opens new software center in Buchar...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» HIpark, a new office project of 21.000...
» DB Global Technology creates new techn...
» Stay updated on People in Shared Serv...
» Molson Coors started to grow its busin...
» Endava opens fintech hub and doubles n...
» Romania, Europe's third and world's 13...
» Genpact's COO: Staying ahead of the cu...
» Capgemini to develop, deploy, and main...
 
EDITOR CHOICE
TELUS International Europe: How big banks and fintechs are working together to innovate the customer experience

Comparing financial technology (fintech) companies to legacy financial institutions can invoke an image of David and Goliath. Fintech firms may be small, particularly when compared to the established titans of

 Read Full article »
Wipro launches automotive center of excellence in Romania

Wipro Limited, global information technology, consulting and business process services company, announced the launch of an Automotive Center of Excellence (CoE) in Timisoara, Romania. This CoE will help Wipro d

 Read Full article »
TELUS International Europe: The convergence of customer service and digital marketing/NewGen technologies: What does it mean for businesses?

Technology shapes the way we educate, communicate, conduct business and advance science, all while maintaining significant influence on the global economy. But the way we engage with technology is changing

 Read Full article »
Stay updated on People in Shared Services and Outsourcing Forum, October 19

Outsourcing Today organizes the third edition of People in Shared Services and Outsourcing Forum, on October 19, 2017 in Bucharest at Caro Hotel.

 Read Full article »
Preparing for the new future

Business shared services in Romania is by nature a flexible, mobile and diverse community and in this context, local markets develop their own particularities to address the global changes, to adjust to new dem

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