BookofNumbers2002FinanceFinance02BON-final5/7/0210:28AMPage2TABLEOFCONTENTSExecutiveSummary.................................................................................1BestPracticesPerspectivesStrategicAlignment.....................................................................2Partnering.................................................................................4Organization..............................................................................6Technology.................................................................................8Process...................................................................................10ProfileofaWorld-ClassFinanceOrganization.............................................12BestPracticesBenchmarkingStudyMethodologyandBenefitsofParticipation..............................16RecentEnhancements................................................................19StudyDemographicsandParticipants.............................................20HackettBestPracticesSMandAnswerthink.................................................21BEONTHEROADTOLASTINGIMPROVEMENTSINJUSTFOURWEEKSCompaniesofanysize,industryorgeographyarewelcometoparticipateatanytimeinourongoing,globalbestpracticesbenchmarkstudies.Ournew,acceler-atedbenchmarkingprocessmakesitpossibletocompletethestudyinaslittleasfourweeks.Companiesthatcompletethebenchmarkreceiveaconfidential,detailedcomparisonoftheirperformancerelativetoaverageandworld-class,pluscustomizedrecommendationsforquickwinsandlonger-termopportunitiestoreducecosts,bettermanageriskanddelivergreatervalue.Participationalsoentitlescompaniestoayearofaccesstobestpracticesmetrics,improvementideas,conferences,whitepapersandotherresourcesthroughouronlinebestpracticesresource.Pleasecontactustoll-freeat(866)442-2538orfromoutsidetheUnitedStatesat(330)656-3110,orvisitwww.hackettbestpractices.comformoreinformation.©2002AllmaterialcontainedhereinisthesolepropertyofAnswerthink.Allrightsreserved.Finance02BON-final5/7/0210:28AMPage31EXECUTIVESUMMARYOur2002BookofNumbers–Financeunderlinesseveraldistinctchallengesfacingmostfinanceorganizationstoday:amongthem,dealingwithalegacyofexcesscostandcom-plexityandcreatinglastingvalue.Processesareobsoleteandtechnologyinvestmentsarenotfullyleveraged.Moreover,measurementpracticesrarelyprovideexecutiveswiththeinformationtheyneedtocreatesustainableshareownervalue.Inaddition,theglobaleffectsofarecessionandtheeventsofSeptember11,2001,shiftedtheconceptofriskmanagementtocenterstage,butthewaysinwhichmostfinanceorganizationsconceiveofandmanageriskareextremelylimited.Finally,thedecentralizationmovement,whichstrovetoincreasetheresponsivenessofindividualbusinessunitsbygrantingthemgreaterdecision-makingautonomy,endedupcreatingduplicative,paper-basedsupportfunctionswhosecoststodayweighheavilyonearnings.Averagefinanceorganizationsremainweddedtoatradi-tional,self-governing,control-orientedmodusoperandi.Incontrast,thosethataremostsuccessfulrelyonprovenbestpracticestohelpthemparedownexcesscostsandenablethemtosimultaneouslymanageriskandcontributetovaluecreation.Belowareafewofthemostintriguingtrendsintheevolutionofbestpracticesinfinance:•Acomprehensiveapproachtofinancecostreduction,encompassingpeople,processesandtechnology,isdemonstrablymoreeffectivethan“spot”solutions.•Contrarytothewidespreadbeliefthat...
