|By Business Wire||
|February 4, 2014 09:30 AM EST||
While most corporate finance organizations say they are highly committed to moving to global standards, more than half are failing to see success in this area, according to new research from The Hackett Group, Inc. (NASDAQ: HCKT). Over the past two years, minimal improvements have occurred at typical companies, and most dramatically underestimate the commitment required to execute on this key finance strategy and achieve true transformation, The Hackett Group's research found.
The new findings are drawn from The Hackett Group's 2013 Global Finance Organization Model Study. In order to affect change, The Hackett Group's research recommends that companies more effectively prioritize transformation projects, create teams dedicated to change, and focus on developing the skills required to support a globalized operating model.
"There's no question that finance has many important projects to undertake in order to provide higher value to the business," said The Hackett Group Finance Executive Advisory Program Global Practice Leader Tom Willman. "But their attention is getting divided, and the hoped-for gains in areas such as implementing global standards still haven't materialized to any significant degree. Today, most companies are once again targeting comprehensive transformation in this area over the next few years. But it's tough to imagine they'll succeed unless they can change the way they prioritize and resource their transformation efforts."
The Hackett Group's research showed that across seven major dimensions of the finance service delivery model, there is a high level of ambition for change. "Companies have told us that they hope to more than double their adoption of global standards for KPIs & reporting, technology platforms, master data and process design/build," said The Hackett Group Senior Research Director Lynne Schneider. "The re-emergence of internal finance transformation groups shows that finance executives are making a commitment to transform. Nearly all of the companies that participated in our study have secured finance transformation/business improvement capabilities within the company."
However, The Hackett Group's research shows clearly that most companies have failed to meet transformation goals in this area. For example, at the end of 2011, 42 percent of finance functions said they planned to have predominantly global standards for master data over the next two to three years, but more than half said they did not actually achieve that goal by 2013. Companies are hoping to double their use of global standards for master data over the next two to three years, moving from 19 percent today to a target of 38 percent.
Over the next two to three years, the most frequently cited areas for transformation in The Hackett Group's study are: planning and performance management and business analysis; and process improvement and function management. Within planning and performance management and business analysis companies are largely focused on three areas: driving improvements in the timeliness of the planning and forecasting; accuracy and responsiveness of planning, budgeting and forecasting processes; and the provision of timely, highly relevant management information and analysis to drive better business decisions. Within process improvement and function management, companies are focused on the transition to a customer-focused finance organization that delivers a comprehensive and consistent service portfolio while implementing the capabilities and resources required to drive transformation and continuous improvement of those services.
Addressing Skills Gaps - A Key to Successful Transformation
The research found that for transformation efforts to succeed, companies must address skills gaps and talent issues. The Hackett Group found that companies are planning to make substantial investments in HR management practices within finance over the next two to three years to address several key staffing issues. Most are focusing on expanding learning and development programs, both to close skills gaps and improve executive development. Many are taking into account the fact that a global HR infrastructure will allow them to acquire staff with the skills they need regardless of their location. Companies are also seeing the balance of finance hiring changing, as hiring continues to slow in advanced economies, with a greater emphasis on the need for specialist skills.
A related and serious talent-related challenge stems from the disappearance of the traditional development path for finance professionals, the research found. Today, entry-level positions are predominantly located halfway around the world from corporate headquarters. In addition, some of the most sought-after skills associated with finance transformation are seeing high demand combined with difficulty to attract or retain. Change management and process improvement, high-level tax expertise, and the ability to think and act strategically are all among the skills that fall into this category.
Recommendations - Prioritize, Dedicate Resources, Add Skills
The Hackett Group recommends that in order for finance organizations to make their high ambitions for global standards a reality, they need to effectively prioritize their projects and desired goals in a clearly defined and communicated roadmap, dedicate adequate resources to change, and add or develop the skills it needs to support the increasingly globalizing operating model of the business. Teams of dedicated resources are essential for driving these large transformations, as opposed to individuals who work on these initiatives in addition to their “day jobs,” the research found. Addressing the skill and talent gaps associated with the change will be absolutely critical in ensuring that plans are executed effectively and that the gains from the transformation are achieved and sustained into the future. The potential payoff for success in this area is significant. The Hackett Group's research shows that world-class finance organizations operate at about half the cost of typical companies, while achieving higher effectiveness.
About The Hackett Group
The Hackett Group (NASDAQ: HCKT), a global strategic business advisory and operations improvement consulting firm, is a leader in best practice advisory, business benchmarking, and transformation consulting services including strategy and operations, working capital management, and globalization advice.
Utilizing best practices and implementation insights from more than 8,400 benchmarking studies, executives use The Hackett Group's empirically-based approach to quickly define and implement initiatives that enable world-class performance. Through its REL group, The Hackett Group offers working capital solutions focused on delivering significant cash flow improvements. Through its Archstone Consulting group, The Hackett Group offers Strategy & Operations consulting services in the Consumer and Industrial Products, Pharmaceutical, Manufacturing, and Financial Services industry sectors. Through its Hackett Technology Solutions group, The Hackett Group offers business application consulting services that help maximize returns on IT investments. The Hackett Group has completed benchmark studies with over 3,500 major corporations and government agencies, including 97% of the Dow Jones Industrials, 84% of the Fortune 100, 87% of the DAX 30 and 48% of the FTSE 100.
More information on The Hackett Group is available: by phone at (770) 225-7300; by e-mail at [email protected].
Effectively SMBs and government programs must address compounded regulatory compliance requirements. The most recent are Controlled Unclassified Information and the EU’s GDPR have Board Level implications. Managing sensitive data protection will likely result in acquisition criteria, demonstration requests and new requirements. Developers, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by incorporating changes.
Oct. 26, 2016 11:30 AM EDT Reads: 1,755
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...
Oct. 26, 2016 11:30 AM EDT Reads: 2,518
Enterprises have been using both Big Data and virtualization for years. Until recently, however, most enterprises have not combined the two. Big Data's demands for higher levels of performance, the ability to control quality-of-service (QoS), and the ability to adhere to SLAs have kept it on bare metal, apart from the modern data center cloud. With recent technology innovations, we've seen the advantages of bare metal erode to such a degree that the enhanced flexibility and reduced costs that ...
Oct. 26, 2016 11:29 AM EDT
Qosmos, the market leader for IP traffic classification and network intelligence technology, has announced that it will launch the Launch L7 Viewer at CloudExpo | @ThingsExpo Silicon Valley, being held November 1 – 3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The L7 Viewer is a traffic analysis tool that provides complete visibility of all network traffic that crosses a virtualized infrastructure, up to Layer 7. It facilitates and accelerates common IT tasks such as VM migra...
Oct. 26, 2016 11:00 AM EDT Reads: 200
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Oct. 26, 2016 11:00 AM EDT Reads: 3,170
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Oct. 26, 2016 10:30 AM EDT Reads: 1,121
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
Oct. 26, 2016 10:15 AM EDT Reads: 5,166
operations aren’t merging to become one discipline. Nor is operations simply going away. Rather, DevOps is leading software development and operations – together with other practices such as security – to collaborate and coexist with less overhead and conflict than in the past. In his session at @DevOpsSummit at 19th Cloud Expo, Gordon Haff, Red Hat Technology Evangelist, will discuss what modern operational practices look like in a world in which applications are more loosely coupled, are deve...
Oct. 26, 2016 10:15 AM EDT Reads: 1,886
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Oct. 26, 2016 10:15 AM EDT Reads: 4,954
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
Oct. 26, 2016 10:00 AM EDT Reads: 2,020
In his session at 19th Cloud Expo, Nick Son, Vice President of Cyber Risk & Public Sector at Coalfire, will discuss the latest information on the FedRAMP Program. Topics will cover: FedRAMP Readiness Assessment Report (RAR). This new process is designed to streamline and accelerate the FedRAMP process from the traditional timeline by initially focusing on technical capability instead of documentation preparedness. FedRAMP for High-impact level systems. Early in 2016 FedRAMP officially publishe...
Oct. 26, 2016 10:00 AM EDT Reads: 459
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
Oct. 26, 2016 10:00 AM EDT Reads: 1,807
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...
Oct. 26, 2016 10:00 AM EDT Reads: 479
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Oct. 26, 2016 10:00 AM EDT Reads: 2,619
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It doe...
Oct. 26, 2016 09:45 AM EDT Reads: 1,837