Unlocking potential · 2015. 6. 3. · Unlocking potential October 2013 Slide 11 11% 13% 13% 11%...

Unlocking potential

www.pwc.co.uk

Finance effectiveness benchmark study 2013

October 2013

PwC

Benchmark coverage

October 2013 Unlocking potential

Slide 2

Spanning

98 countries

More than

200 blue-chip organisations

Over

2,750 datasets

PwC

Assessing finance– a fact-based approach

Slide 3


Business Insight

Compliance & Control

Efficiency

PwC

The cost of finance is stabilising, ending the previously increasing trend – but there is still a substantial gap between ‘average’ and top quartile performers


Slide 4

Cost of finance, as a percentage of revenue, at typical firms

0.9% Cost of finance at top quartile firms

0.6%

0.82%

0.93%

1.02%

0.93%

0.54% 0.56% 0.61%

0.56%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

2009 2010 2011-12 2012-13

Finance cost as a percentage of revenue

Median Top quartile

PwC

A similar variation occurs in different peer groups


Slide 5

1.48%

0.96%

0.50%

0.86%

0.63%

0.26%

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.50%

1.75%

High Medium Low

Median Top quartile

Finance cost as a percentage of revenue

Typical industries:

Financial services

Manufacturing Professional services Technology Energy/oil/minerals

Tourism/Travel Retail/consumer

PwC

Moving from transactions to business insight


Slide 6

67%

70%

61%

60%

16%

14%

16%

15%

18%

16%

23%

25%

0% 20% 40% 60% 80% 100%

2009

2010

2011-12

2012-13

Percentage of finance effort

Efficiency Control Insight

PwC

Up to the task: Business insight Top performers look very different to typical organisations


Slide 7

Over 50% more people

in ‘business partnering

roles’

Over 20% higher pay

for insight roles

30% more time on

business analysis

Budget 10% faster and

complete forecasts in less

than half the time and

PwC

Data gathering continues to require substantial time


Slide 8

64% 52%

60% 50%

64% 53%

36% 48%

40% 50%

36% 47%

0%

20%

40%

60%

80%

100%

Medium Top quartile Medium Top quartile Medium Top quartile

Percent of time spent on data gathering versus analysis

Data gathering Analysis

2010 2011-12 2012-13

PwC

Efforts to reduce the budgeting and forecasting cycles are starting to show some progress


Slide 9

120 120

103

20 19 17

94 90 90

7 7 7

0

20

40

60

80

100

120

140

2010 2011-12 2012-13 2010 2011-12 2012-13

Budgeting and forecasting cycle (days)

Median Top quartile

80% Report that the

accuracy of forecasts is

critical to the running of

the business

Only 45% believe the

forecast outputs are

reliable

but

Source: PwC, Unlocking Potential: Finance Benchmark study 2013

Budget Forecast

PwC

There is a substantial gap between aspiration and performance


Slide 10

Management Reporting: The compilation and creation of management reports as required enabling managers to make decisions.

Finance has the ‘right capabilities’ in place (i.e. critical thinking, technical skills, managerial skills, organisational discipline, etc.).

1

2

3

4

5

7

9

10

11

12

13

14

15

16

17

18

19

20

6

8

Importance Rank

Performance Rank

1

2

3

4

5

7

9

10

11

12

13

14

15

16

17

18

19

20

6

8

Importance Rank

Performance Rank

PwC

The percentage of finance staff devoted to business partnering remains consistent


Slide 11

11%

13% 13%

11%

19% 19% 19% 18%

0%

5%

10%

15%

20%

2009 2010 2011-12 2012-13

Median Top quartile

Percentage of finance FTEs in business partnering

But there are many examples of real improvement

in the quality and impact of business partnering….

PwC

Technology


Slide 12

50% Have data

warehousing in place

Only 17% of companies

have a self-service reporting

application

Only 11% have applied

a standard data taxonomy

Almost 50% have reporting

processes that rely on manual

spreadsheet manipulation

but

“In the coming years, some form of SaaS or cloud technology will play an important part in the finance organisation of many companies”

PwC

Some forward-looking companies are pushing hard to develop their finance functions


Slide 13

Example: Finance as the catalyst for cultural change, working across the silos in the total supply chain, and using technology to drive integrated business planning

Example: Multi-function shared services, identifying

the right mix of language and professional skills and

employee rotation to work across multiple geographies

Example: Driving to get data gathering time to zero

through the use of automation and ERP standards. Goal

is to have finance team devote 100% of time to

analysis, business partnering, and insight generation

PwC

The 2013 Finance Benchmark Report focuses on three main themes


Slide 14

Further evolution of the finance function – Insight generation, finance-business partnerships, and the CFO as Chief Performance Officer

Talent – Adapting finance recruitment, training and development practices to address evolving needs

Technology and automation – Reducing budgeting and reporting cycles, smarter planning, and the adoption of technologies to support insight-generation

http://www.pwc.co.uk

This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the

information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the

accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members,

employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to

act, in reliance on the information contained in this publication or for any decision based on it.

© 2013 PricewaterhouseCoopers LLP. All rights reserved. In this document, "PwC" refers to the UK member firm, and may sometimes refer to the PwC

network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

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Unlocking potential · 2015. 6. 3. · Unlocking potential October 2013 Slide 11 11% 13% 13% 11%...

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