Design of the High-Performance Finance Function Framework

Design of the High-Performance Finance Function Framework

Copyright: © 2022 |Pages: 37
DOI: 10.4018/978-1-7998-6929-0.ch005
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Abstract

In this chapter, the movements are discussed that are currently shaping or that are expected to transform in the near future the finance function into a higher-quality finance function. Subsequently, these movements are converted into a framework that can be used to create the HPFF. The HPFF framework is then extensively described, and its relation with the HPO framework and its influence on the performance of the finance functions are explained. Also, the difference between the what and the how of the framework is discussed, as are the obstacles that finance function can encounter in practice during their transformation in to an HPFF. Courses of action to surmount these obstacles are also given.
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5.1 Identifying The Movements To The Future Finance Function

When we combine the ideas for a best-performing finance function (Chapter 4, Table 2) with the main activities of the finance function (Chapter 3, section “Summary of the most important activities“), it turns out that all ‘evergreens’ are covered by the suggested ideas (see Table 1). This allows us to conclude that the future finance function will probably broadly perform the same activities as in past decades, but that there are enough ideas to execute these activities in different, better ways that will lead to a higher quality level of the finance function.

Table 1.
Activities of and associated ideas for the future finance function
IdeasEvergreens
1. Increase the efficiency and effectiveness of the finance function▪ Make information more reliable
▪ Optimize processes
▪ Add more non-financial information
▪ Make budgeting more efficient
▪ Implement standardization
▪ Reduce costs
2. Place greater focus on the execution of added value activities
3. Apply even more IT to automate processes▪ Improve ICT systems and architecture
4. Creating closer cooperation with the business by being a business partner▪ Improve implementation capabilities
5. Place greater focus on looking ahead and forecasting▪ Strengthen looking ahead
6. Apply more outsourcing and shared services
7. Create financial self-reliance in the line
8. Pay more attention to the personal development of financial professionals▪ Develop talent
▪ Hire good people
9. Gain greater involvement in the strategy and decision-making processes
10. Develop a specific behavioral profile for each financial role▪ Strengthen innovation capabilities
▪ Improve behavioral aspects
11. Gain deeper knowledge of IT

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