Finance Operating Model
Finance functions grow as the businesses they serve grows, but it is common for this evolution to produce different finance operating models for various regions and lines of business especially when growth comes through M&A activities. The resulting inconsistency increases costs and fosters duplication of activities. As a result Finance functions are trying to develop a common and consistent global finance operating model that standardises both transactional and business support services across geographies and business units. This involves confirming activities that should be owned by Finance, what location these activities should be conducted, optimising cost, in-house staffing and outsourced resources.
A global approach may include the use of shared services and centers of excellence to drive efficiency whilst maintaining quality or control. This may also be accompanied by use of a global talent pool where resources are located offshore for commodity services and to fill leadership and management roles.
ALaS combines its capital markets expertise, process design and functional expertise to help clients design their target operating model. The target operating model describes how processes, people and systems could be arranged to achieve optimum efficiency for the future business and identifies where to prioritise change activity to achieve the greatest benefit. This includes:
- Assessing limitations of current operating model and potential for improvement
- Defining principles to define the future operating model
- Defining the target operating model and implications for each business.
- Developing a roadmap for delivering the defined model, system requirements, resources, cost and timeline.