SME owners and CFOs today are increasingly aware of two important facts:
1. Finance doesn’t just support the business, it can also advance it.
2. To plan, implement, and improve its finance infrastructure (finance and accounting organization) is a strategic competency for the organization. It is as much a core competency as any other.
How do you view the functioning of your organization today?
|Old Paradigm of Work||New Paradigm of Work|
|The people and the departments that takes care of the various functions that come together to make it happen.||Business objectives are pursued in end-to-end processes cutting across functional departments and people.|
|Finance and Accounting exists to support the business||Finance and Accounting exists to continuously strive to increase value to the business and help achieve competitive advantage.|
|Roles are designed based on Organizational Structure.||Roles are designed based on customer need and business strategy.|
|Capability is constrained by the people on your rolls||The most appropriate capability is deployed irrespective of whether it is internally, externally, globally sourced or technology enabled.|
Organizational Structure and Functional Departments fading away
The ability to see business strategy being driven by end to end processes instead of functional departments is making modern organizations more efficient and therefore more competitive. This is an opportunity for today’s SMEs. They begin to embrace a new paradigm for business services that has the following concepts:
- End to end processes : Design is influenced more by customer needs and business strategy than organization structure
- Global talent engagement (internal and external service providers): the most appropriate capability is deployed be it internal, external, technology enabled or globally sourced. A balanced portfolio of services and processes spans across functions in an end to end process perspective, which is the focus rather than department
- High value services: Increasing value to the business is the driving goal across the organization. The ability and flexibility to adopt new processes, assemble talent, deploy new technology and centrally collect and analyze relevant data are more important than functional/departmental service levels and cost benchmarks which are a given.
- Strong central governance