Defining the Finance Organization
Deliver Financial Excellence and best practices consistently through strategy, people, processes and intelligent systems
CFOs that question the way their finance function is organized will come across a number of considerations to take into account. What are the expectations of business stakeholders? How do you organize finance to allow more effective business partnering? How can finance be involved in strategic decisions while still performing the operational tasks? How do I address service vs. cost consideration? How do I keep my talents on board? Which profiles do I need?
Finance Transformation ensures that financial excellence and best practice is delivered efficiently and consistently through strategy, people, processes and intelligent systems. With this objective in view, Deloitte has developed a framework in order to accompany its Finance clients, whatever their size, to undergo small to major transformation.
Designing a finance organization and its target operating model is not drawing boxes on a sheet of paper and is more than an organization chart that delineates the direct and indirect reporting relationships between different positions
Designing a finance organization and its target operating model is not drawing boxes on a sheet of paper and is more than an organization chart that delineates the direct and indirect reporting relationships between different positions. Deloitte’s structured approach on Finance Organization provides a common view on the target business organization and defines or clarifies your vision and how the strategy can be operationalized.
CFOs also have to address multiple stakeholders and conduct their teams towards more business partnering, enhancing proactivity in seeking value creation for the organization from a Finance perspective. This deeply impacts how finance would like to execute its 4 main roles (also called “4 faces of the CFO”): Strategist, Operator, Steward and Catalyst.
In order to assist you when transforming your organization, Deloitte’s Finance Transformation team will help you work on your finance organization’s key enablers:
- Finance organization structure: your organization’s efficiency and effectiveness is heavily determined by its organizational structure of which characteristics are the organization model (e.g. functional vs. process), the number of layers (organizational levels having supervisory responsibilities) and the span of control (the number of people reporting directly to one individual).
- Systems & information: we help you assess the level of maturity of your technology and identify areas for improving the way systems are supporting people and processes: process automation, simplification and system rationalization are key examples of areas of focus.
- Executive clarity - having a common language for communication, comparison & change as well as a clearly defined understanding of the business. It also outlines the future size & shape of the organization.
- Local finance transformation & optimization - opportunity to truly optimize the size, shape, structure and delivery of the business.
- Strategic finance cost reduction – deeper than short-term cost cutting, a review of all Finance & Operations (incl.sourcing) is required to fundamentally change the cost/income ratio.
- Getting the ‘house in order’ – anticipating in order to have a clear articulation of the organization’s composition and its’ base lining.
- Strategic re-orientation – systemic issues within the organization and major corporate re-directions will require some unconstrained thinking. Reorganizing the Finance enables this process.
- Acquisition consolidation – a Finance Reorganization will highlight where the operational and IT synergies will come from and support the integration process.