Case studies

Management Reporting

Management reporting implementation in a global life science company

Background

The client is a global company active in life sciences and performance materials. They are investing to become a more integrated organization.

The client has an on-going program with Deloitte to bring about a state-of-the-art Enterprise Performance Management platform, covering mainly financial consolidation and management reporting, but also touching on planning, budgeting & forecasting where applicable.

 

For the reporting phase of the program, the client wished to:

  • Introduce a functional P&L and related Cost of Sales accounting.
  • Standardize financial management reporting world-wide.
  • Provide the central finance department with more flexible reporting.

Approach

To ensure a successful roll-out of streamlined global financial reporting, the project was broken down into the following logical components:

  1. Define reporting strategy – to define reporting objectives linked to business strategy and ensure buy-in from all relevant stakeholders.
  2. Design financial management reporting – to define reporting content to effectively steer, forecast & monitor financial performance.
  3. Implement financial management reporting – to design & implement reporting processes, tools and governance.

 

As from the start, both the central finance department and all 9 business units (including their respective local offices) were involved.

Outcome

As a result of the reporting phase of the program, the client now benefits from more efficient financial management reporting and more effective business decision-making thanks to:

  • Better measurement of business performance thanks to the introduction of a functional P&L (more suitable for a high value-added business vs. a volume-driven business).
  • Standardization of corporate, business unit and local financial management reporting, with improved link to strategy.
  • ‘One version of the truth’ for all consolidated financial information (integration of legal & managerial data streams).
  • Increased information accuracy, timeliness & transparency.
  • Set-up of an organized-wide management reporting governance.
  • Better reporting of cross-business unit ventures and faster integration of acquisitions.
  • Flexible self-service reporting that allows central finance to slice & dice financial information based on business needs.
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