Introduction and challenges
The CFO has four main roles:
- to guarantee the financial sustainability of the enterprise (guardian of the temple)
- to generate value for the shareholder (strategist)
- to optimize the financial performance of operations (business activist)
- to transform back offices, processes and systems (transformer)
To achieve these objectives, the CFO needs talented teams and must rely on an efficient organization with robust and well-defined processes. Unfortunately, this is not always the case. Over the years, as acquisitions progress, situations become more complex with several finance IT systems and misaligned processes and practices, etc. In addition, there is often a strong expectation from group management to obtain more immediate, reliable forecasts and implement a cost-competitive administrative and financial function.
These challenges lead CFOs to review their organization and launch transformation plans for their function. A finance transformation plan often addresses the following areas: improvement of finance IT systems and processes, development of centers of excellence to strengthen expertise, redesign of the management framework to improve the enterprise’s financial management, and development of the finance teams’ skills.
The main challenge is establishing an effective finance function that meets the enterprise’s operational and strategic challenges.
How we can help
Argon & Co works with the CFO to build the transformation plan for their function. Our experience in finance departments and our expertise in functional transformation provide real added value in developing the transformation plan.
Our methodology consists of three key steps:
- Carry out a diagnosis of the existing situation
- Focused interviews with function managers and “internal clients” (CEOs and operational departments) to identify strengths and areas for development
- Analysis of the maturity of the finance department’s practices in relation to internal and external best practices (e.g. organization, processes, talents and skills)
- Benchmarking of the finance function
- Sharing of findings in the finance steerco and alignment on key challenges and axes of transformation
- Co-construct a vision and a trajectory for transformation underpinned by a business case
- Integration of transformation objectives into a unified group vision (destination point)
- Scenario scoring for the operating model evolution of the function and recommendations
- Design of transformation roadmaps
- Evaluation of the business case whilst ensuring resource allocation is in line with the ambition
- Launch implementation by triggering quick wins
- Sparking momentum through roll-out of quick wins
- Coordination and launch of transformation sub-projects
- Formalization of detailed design deliverables outlining the target operating model of the function (e. g. target organization, RACIs)
Argon & Co also supports the CFO in the implementation phases of transformation projects.