How to make your CXOs smile - introduce CI and fast
Finance shared services
We are in the age of continuous improvement. It has taken large multi nationals over 15 years to get here. So if you’re still in the centralise/standardise phase, put your foot on the accelerator, as you have some serious ground to cover.
This week I was at the IOFM conference in Las Vegas. One speaker made an excellent point. Her name was Penny from the Hackett Group.
Listening to the Hackett Group team present is always so affirming. Their deep and far reaching bank of data defends the choices high achieving shared services take risks to follow. And when sharedserviceslink.com members realise change is ahead of them, and then ask me: “is it worth it Susie?” I enjoy pulling out the data and showing them the possibilities.
One data point Penny drew on was the cost of finance as percentage of turnover. In the dark ages when companies weren’t running shared services, this figure was often at 4%. Now, with the wide adoption of shared services, it’s commonly well under 2%. But starkly, Penny compared the statistics of those shared services that have a continuous improvement programme and those that do not.
The difference is 39%, with the non-CI SSOs running finance at 1.26% of turnover, and the CI SSOs coming in at 0.91%.
The message needs to be any clearer? If you are missing a CI programme in your SSO, introduce one quickly, and see your CEO and CFO look happy.
Photo credit: Thetaxhaven