Finance Transformation, Back Office Centralisation

  • Post Acquisition Integration
  • Regional Shared Services
    • design/creation
    • implementation/transition

ORGANISATION

  • Global residential and electronic security provider ($6.5b sales – 25,000 FTEs)
    • South Africa – ($650m sales – 8000 FTEs)

project SCOPE

  • centralization of company after many take-overs standardization of business processes
  • Shared Services Center (SSC/BSC) creation Profitability improvement

project GEOGRAPHY

South Africa (6 main cities)
Pretoria, Johannesburg, Port Elisabeth, Cape Town, East London, Durban

FINDINGS

  • Dynamic acquisitions, resulting in lack of cooperation between offices in different cities
  • Inefficient processes
  • Lack of standardization
  • Duplication of back office functions
  • Permanent GM% decrease
  • Lower than targeted EBIT

CHALLENGES

  • 6 offices in different cities, working independently without cooperation
  • Negative attitude of managers
  • Resistance for change
  • Poor corporate culture
  • Lack of knowledge about controls and risks
  • Complicated and not coherent processes in each office

ACTIONS

  • Analysis of processes in the region
  • Documentation and testing
  • Identification of back office costs duplications
  • Identification of the most effective processes
  • preparation of SSC road map using identified optimal processes (R2R, P2P, OTC)
  • Project team building to create SSC
  • Implementation of SLAs and KPIs
  • SSC/BSC business processes transfer
  • Peep portfolio profitability analysis
  • Portfolio optimisation to increase profitability

DELIVERABLES

  1. Fully operational and efficient SSC/BSC
    • processes – O2C, P2P, R2R designed and implemented.. Sales, procurement and operational support processes centralized in SSC/BSC. Procedures harmonized
  2. Back office staff reduction
    • (-70FTEs) and SG&A costs by -$2m)
  3. Performance metrics established
    • (KPIs & SLAs)
  4. Cooperation culture implementation
    • reduction of fights between offices,
    • Management centralization, elimination of silos
  5. Profitablity improvement
    • profitablity increase of from +5% to +8% EBIT
    • developed plan to get back to targeted 20% GM

EXPERTISE APPLIED

Finance & Accounting

  • Strategic Fin. Planning, Execution
  • Budgets/Forecasts/Actual P&L/BCF
  • FP&A, Statutory, Group Reporting
  • Financial and reporting discipline

Business Turnaround

  • Portfolio evaluation & optimization (sales)
  • GM optimization (operations)
  • Back office costs optimization (SG&A):
    • Restructuring & Process Improvement
    • Centralization
    • Regional Shared Services (SSC/BSC)
      • creation, transition, management,
      • continuous improvement

Change management

  • addressing staff concerns,
  • facilitating cultural alignment
  • operational processes streamlining

Project management

  • proper process planning
  • roadmaps preparation and execution
  • efficient resources allocation

DOWNLOAD FILE

Finance transformation – office centralization (pdf) – less than 1MB

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