Upload
nguyenthuan
View
219
Download
3
Embed Size (px)
Citation preview
Project Information
ResponseProject NameOrganization NameRegionCountryScope of ProjectDivision/Regional Entity (if any)IndustrySub IndustryCurrencyRevenuePeriod end date for data provided
Copyright SAP. All Rights Reserved
Financial Performance and Risk Management: Survey Instructions
Survey Structure
Welcome to the SAP Financial Performance and Risk Management (FPRM) Benchmarking survey. The survey will help you assess your organization's current FPRM process and technology performance, based on key performance indicators and best practices vis-a-vis your peers. The assessment covers all core FPRM processes including Compliance and Risk Management, Budgeting and Forecasting, Business and Operations Analysis and Reporting, G/L and Financial Closing and Cost Accounting and Analysis.
Knowing your strengths vis-a-vis peers, and identifying potential improvement opportunities will help you position your organization for growth and profitability. Upon submission of this survey, you will receive a confidential and comprehensive analysis report, comparing your organization’s performance against your peers, and recommending high-impact strategies for improvement. Here are a few tips before you get started
The survey has three pages:• Page 1 includes general instructions.• Page 2 includes participant profile, key performance indicators and information technology deployed.• Page 3 includes a series of best practices along with their maturity models to help you to assess their importance and adoption/coverage for your organization.• Maturity Model includes descriptions of maturity stages for each best practice listed on Page 3. They should be used as a gauge for best practices Coverage (1 - 5)
Completion Instructions:
Terms and Conditions
Copyright SAP. All Rights Reserved
• An online glossary is in place to address the most common questions. The glossary can be accessed by clicking on the “Help” button.• Please provide all data for the timeframe you indicated in the project set up which should be preferably rolling 12 months and based on most recent annual figures. ONLY for the divisions/ geographies in scope.• In case a question with a numeric answer is not applicable for your organization or in case you cannot answer a question, please leave the answer field blank and do not enter ZERO (“0”).• For % responses, please indicate numbers only without the “%” sign (e.g., 20, NOT 0.2 or 20%).• All financial data needs to be provided in SELECTED CURRENCY only, unless otherwise mentioned.
By your entering of data into this survey, you are indicating your agreement with and acceptance of the terms and conditions associated with SAP’s Benchmarking Program
Click here to review the Terms and Conditions
Financial Performance and Risk Management: Participant Profile
1 Please provide the following basic financial and operating information.
Metric
Credit Rating - S&P Rating (Help)
Financial Performance and Risk Management: Key Metrics
2 Please provide the following Compliance and Risk Management related metrics.Metric
Manual Tested Controls (% of total controls) (Help)
3 Please provide the following Budgeting and Forecasting related metrics. Metric
(Help)
4 Please provide the following Business and Operations Analysis and Reporting related metrics. Metric Avg. Days to Create a New Report with No Previously Defined Report Template (Help)
Annual Revenue Growth (in %) Number of Employees Cost of Goods Sold Selling, General and Administrative Expense Operating Income Days Sales Outstanding Avg. Annual Inventory Days Payable Outstanding
Cost of Capital (in %) Total External Audit Cost Incurred Total Number of Controls (IT and business)
Avg. Cycle Time for Creation of Forecast (in days) Forecast Accuracy (in %)
5 Please provide the following G/L and Financial Closing related metrics.Metric
(Help)
6 Please provide the following Cost Accounting and Analysis related metrics. Metric Total Number of Customers Profitable Customers (in %) (Help)
7 Please provide the total Finance Cost and its break down into main cost categories. Metric
(Help)
8 Please provide the Number of Finance FTEs in the organization.
9 Please provide the average fully loaded cost per Finance FTE.
10 Please provide staffing and cost information for the following Finance sub-processes.Sub-process Finance FTEs
(Help)
Financial Performance and Risk Management: Information Technology Deployed
Avg. Days to Close Monthly Books Avg. Days to Close Quarterly Books Avg. Days to Close Annual Books
Total Finance Costs Headcount Costs External Expenditures Technology Costs Other Costs
Finance Strategy and Leadership Compliance and Risk Management Budgeting and Forecasting Business and Operations Analysis And Reporting G/L and Financial Closing Cost Accounting and Analysis
11 Please provide information on the software products used for supporting Finance processes.
Processes SAP Products Used Other Products Used
Other SAP - please indicate:
12 Please provide the importance of following technology enablers to your organization. Please provide the current state of adoption on these technology enablers.
Technology Enablers
Mobility Cloud Business Intelligence & Analytics In-memory Computing
13 Please provide the % of Finance reports for which MS Office (Excel, Access) is used.
14 Please provide any additional comments/ clarifications for the FPRM KPI information provided above.
Financial Performance Management Treasury and Financial Risk Management Payables Management Receivables Management Accounting and Financial Close Financial Shared Services Corporate Strategy Manage Enterprise Risk and Compliance
Importance (Current/Future Focus)
Please provide the following basic financial and operating information.
Answer
Please provide the following Compliance and Risk Management related metrics. Answer
Please provide the following Budgeting and Forecasting related metrics. Answer
Please provide the following Business and Operations Analysis and Reporting related metrics. Answer
Please provide the following G/L and Financial Closing related metrics. Answer
Please provide the following Cost Accounting and Analysis related metrics. Answer
Please provide the total Finance Cost and its break down into main cost categories. Answer
Please provide the average fully loaded cost per Finance FTE.
External Expenses
Please provide information on the software products used for supporting Finance processes.
Please provide the importance of following technology enablers to your organization. Please provide the current state of adoption on these technology enablers.
Adoption
Name SAP Products/ Other Products/ Vendors
Financial Performance and Risk Management: Best Practices
15 Finance Strategy and Leadership Importance Coverage
An office of strategic planning exists and has executive support to enable the creation of scorecards, objectives and KPIs
16 Compliance and Risk Management Importance Coverage
Risks are linked to the internal controls for on-going monitoring and remediationThe organization has the capability to assess alternative risk responses and scenarios to determine the optimal action
On a scale of 1-5, please rank each best practice in terms of importance and degree of coverage: Importance: 1 = Not important; 5 = Extremely importantCoverage: 1 = No coverage today - Organization does not employ this best practice; 5 = Best practice is fully adopted Please indicate NA for both importance and coverage if best practice is not applicable to your organization:
There is a closed-loop process to link strategic goals to key organization objectives with assigned targets that are communicated downwards and results reported back to the managementFinance leadership has access to a cockpit/dashboard that provides a timely and integrated view into pre-defined set of key financial and operational metricsStrategic planning is not limited to the office of the CFO; IT and HR plans are also aligned to ensure systems and budgets are in place to support the overall strategyStrategic plans are linked to lower level operational and financial plans to ensure correct alignment of KPI and budget information across all unitsFinance system has automated reporting and analysis capabilities to identify which financial processes can potentially drive operational efficiencies and lower costsOwnership and accountability has been assigned for all key metrics to ensure that mitigating actions are executed promptly once a metric falls out of the acceptable range
The organization has established an enterprise wide risk management culture, with clearly defined risk management framework, and responsibilities assigned to the LOBsThe development process for organizational strategies, goals, and objectives take risk into account, and provides for impact assessmentThe organizational establishes risk tolerances and automated reports and alerts are generated for risks exceeds this tolerance thresholds
The finance organization is automatically able to monitor and analyze strategic, operational, compliance, and reporting risks across enterprise systems (e.g. CRM, HCM, etc.)
The organization maximizes the use of automated controls, rather than manual controls to improve assurance
17 Budgeting and Forecasting Importance CoverageThe organization uses rolling forecasts as the basis for their budget planning
The planning system supports establishing top-down strategic objectives and planning from the bottom-up
18 Business and Operations Analysis and Reporting Importance Coverage
All processes are well-documented and meet financial compliance requirements (SOX Section 404, BilMoG, 8th EU Directive, JSOX, Clause 49 for India, etc.)
The organization establishes careful role definition, limits and monitors super-user and emergency access so that only business-required access has been grantedAutomated processes are in place to ensure compliance with global trade laws and regulations (e.g., compliance with Foreign Corrupt Practices Act)The internal audit plan is driven by the enterprise risk management program, ensuring that internal audit is focused on current risks to the organizationInternal audit uses enterprise automation tools (including business intelligence and automated controls testing solutions) for fraud and error detection and investigationIssues identified by internal audit (and other assurance providers) are updated into the enterprise risk management system and their impact on risks assessed
Budgeting and forecasting is a continuous loop process of planning, measuring and simulation that relies on up-to-date insight from multiple functions and regionsStandardized planning models are used throughout the organization ensuring consistency and comparability of submitted resultsThe planning and forecasting process is collaborative allowing supervisors to review the status anytime while individuals work on the plans/forecasts in a virtual teamThe forecasting system allows users to directly access standardized input forms and templates at the beginning of the planning cycleThe organization enables automated budget and forecast simulations by leveraging several key drivers (e.g., revenue growth estimates)
Financial systems are used in the business analysis process by providing historical and forward looking views into financial and operational performanceScorecards are implemented and used to connect strategic to operational goals. Scorecards exist at staff level, as well as management and executive levelsThe organization has capabilities for ad hoc analysis and reporting along key dimensions (customers, regions, divisions etc.) with detailed drill-down visualizationOperational reviews and board package content can be automatically generated directly from financial systems in user preferred formats like PDF, Excel, PPT, Word, etc.The reporting systems automatically surface or send alerts when abnormal or large variances occur based on predefined rules and thresholds
19 G/L and Financial Closing Importance Coverage
The current General Ledger (G/L) Accounting system can handle multiple accounting standards (e.g. US GAAP, IFRS, etc.)The current consolidation system can handle multiple accounting standards (e.g. US GAAP, IFRS)
Intercompany reconciliations are conducted in a decentralized, peer-to-peer manner
The G/L and downstream financial systems are supported for up-to-date accounting data and master data synchronization
A global chart of accounts is used across the entire organization with appropriate mapping of the local accounts to it
20 Cost Accounting and Analysis Importance Coverage
All operational entities within the organization follows standardized costing methods and proceduresCost and profitability reports are generated to the level of product, channel and customer
Real time 'What-if?' analysis is possible, to model and test the impact of changes to profitability before committing to plans
Cost accounting accesses information from all of the integrated components such as G/L, A/P, Billing, Purchasing etc.
The organization is able to allocate internal shared services costs in a manner that reflects actual usage
21
Business and operational analysis is based on a single source (integrated data model) of financial and non-financial information
The financial system can support internal as well as external accounting requirements (e.g. statutory, segment, regulatory and management views)
The system allows prior year comparisons between local GAAP and IFRS during a transition and allows for easy reconciliation
The system allows publishing of financial statements in an interactive format (like XBRL) per SEC requirements, in-house as opposed to out-sourcingChanges in group structure (e.g., changes in equity interests, consolidation frequency and methods) can be processed easily
Cost and profitability reporting uses true cause and effect business rules to assign costs, rather than high-level apportionments
The cost accounting dashboard supports analysis along multiple dimensions including product, location and pre-defined activitiesThe organization regularly reviews the profitability of the product, channel and customer to develop strategies for improvement
Please describe other best practices your company has adopted to drive leading Financial Performance and Risk Management performance.
22
Copyright SAP. All Rights Reserved
Please provide the name, email address, phone number and organization name of any person(s) other than yourself you wish to give permission to actively participate in the benchmarking process. This person(s) will be included in any and all interactions between you and the SAP team related to the validation and comparative results of this survey. By entering this person's contact information, you indicate that you are giving permission for this person(s) to view your organization’s survey data, benchmark results, and related communications; to participate in meetings; and to submit/correct benchmark related data to SAP on your behalf. You also agree that, regarding all aspects of the SAP Benchmarking program, this person(s) is subject to the same level of confidentiality to you as you are to SAP.
Financial Performance and Risk Management Survey: Best Practices Maturity ModelAll stages 1 – 5 can be chosen for any best practice, even if a description is not in place
OrignalShared Services Scope And Adoption
Level 1 Level 2 Level 3 Level 4 Level 5
1
2
An office of strategic planning exists and has executive support to enable the creation of scorecards, objectives and KPIs
Office of strategic planning does not exist
An office of strategic planning exists but does not have executive support to enable the creation of scorecards, objectives and KPIs
An office of strategic planning exists and has executive support to enable the creation of scorecards, objectives and KPIs
There is a closed-loop process to link strategic goals to key objectives with assigned targets. Goals are communicated downwards and results are reported back to management
Key objectives are not linked to strategic goals
Key objectives are informally linked to strategic goals, but there is no feedback process on the results back to management
Key objectives are formally linked to strategic goals, with measures and targets assigned to objectives, and there is an informal feedback process in place to report the results back to management
Key objectives are formally linked to strategic goals, with measures and targets assigned to objectives. There is a process to communicate those goals downwards through the organization and measure the results on the high level
There is an effective close-loop management process that ties key objectives to strategic goals and assigns measures and targets to those objectives. At the same time there is a process to communicate those goals downwards through the organization and measure the results which are reported back to management
3
4
5
Finance leadership has access to a financial cockpit and/ or dashboard that provides a timely view into pre-defined set of key metrics (such as sales information on a daily basis)
Dashboard is manually created on an adhoc/ needs basis
Finance leadership has access to a manually created financial dashboard that provides a view into pre-defined set of key metrics on a quarterly basis
Finance leadership has access to a semi automatically created dashboard that provides a view into pre-defined set of key metrics on a monthly basis
Finance leadership has access to a largely automated dashboard that provides a timely view into pre-defined set of key metrics on a weekly basis
Finance leadership has access to a financial cockpit and/ or dashboard that provides a timely view into pre-defined set of key metrics (such a sales information, etc) on a daily basis
Strategic planning is not limited to the office of the CFO. In particular IT plans and HR plans are closely aligned to ensure systems and budgets are in place to support the overall strategy
Strategic planning is limited to the office of the CFO and does not include input from other departments.
Strategic planning rarely includes input from other departments
Strategic planning occasionally includes input from other departments
Strategic planning includes input from other departments most of the time
Strategic planning is not limited to the office of the CFO but includes input from other departments. In particular IT plans and HR plans are closely aligned to ensure systems and budgets are in place to support the overall strategy.
Strategic plans are linked to lower level operational and financial plans to ensure alignment of KPI and budget information, from more detailed plans, to higher level plans
Strategic plans do not exist or are not linked to lower level operational and financial plans
Strategic plans are linked to lower level financial plans to ensure alignment of KPI and budget information, from more detailed plans, to higher level plans
Strategic plans are linked to lower level operational and financial plans to ensure alignment of KPI and budget information, from more detailed plans, to higher level plans
6
7
8
9
Finance system has automated reporting and analysis capabilities to identify which financial processes can potentially be improved to drive operational efficiencies and lower costs
Finance system does not have appropriate reporting and analysis capabilities to identify which financial processes can potentially be improved to drive operational efficiencies and lower costs
Finance system has limited high level analysis capabilities (which needs to be supplemented with additional manual analysis) to identify which financial processes can potentially be improved to drive operational efficiencies and lower costs
Finance system has automated reporting and analysis capabilities to identify which financial processes can potentially be improved to drive operational efficiencies and lower costs
Ownership and accountability has been assigned for all key metrics on the operational level, to ensure that mitigating actions are executed promptly once a metric falls out of the acceptable range
Ownership and accountability has not been assigned
Ownership and accountability has been assigned for some key metrics on the operational level, however mitigation actions to be executed once a metric falls out of the acceptable range, are not defined
Ownership and accountability has been assigned for some key metrics on the operational level, and mitigating actions are clearly defined
Ownership and accountability has been assigned for most key metrics on the operational level, and mitigating actions are clearly defined
Ownership and accountability has been assigned for all key metrics on the operational level, to ensure that mitigating actions are executed promptly once a metric falls out of the acceptable range
The company has established an enterprise wide risk management culture, with clearly defined risk management framework, and responsibilities assigned to the LOB's
The company does not have an entreprise wide risk management culture
A risk management culture is emerging in some departments/units
The company has established an enterprise wide risk management culture and risk management steps are defined on a need basis
The company has established an enterprise wide risk management culture, with clearly defined risk management framework, and responsibilities are assigned on a need basis
The company has established an enterprise wide risk management culture, with clearly defined risk management framework, and responsibilities assigned to the LOB's
The development process for organizational strategies, goals, and objectives take risk into account, and provides for impact assessment
The development process for organizational strategies, goals, and objectives does not take risk into account, or provide for impact assessment
The development process for organizational strategies, goals, and objectives sometimes take risk into account, in an informal way
The development process for organizational strategies, goals, and objectives consistently takes risk into account, but in an informal way
The development process for organizational strategies, goals, and objectives consistently and formally takes risk into account
The development process for organizational strategies, goals, and objectives take risk into account, and provides for impact assessment
10
11
12
13
Organizational risk tolerances are established and risks exceeding the tolerances identified for appropriate risk response. Automated alerts are generated
Organization risks are tackled as independent events
Organizational risk tolerances are in the process of being established
Organizational risk tolerances are established and appropriate risk response for risks exceeding the tolerances is identified on a need basis
Organizational risk tolerances are established and risks exceeding the tolerances identified for appropriate risk response. However constant manual monitoring of these KRI is required to identify tolerance breach.
Organizational risk tolerances are established and risks exceeding the tolerances identified for appropriate risk response. Automated alerts are generated.
Risks are linked to the internal controls for on-going monitoring and remediation
Risks are not linked to the internal controls for on-going monitoring and remediation
Few risks are linked to the internal controls for on-going monitoring and remediation
Some risks are linked to the internal controls for on-going monitoring and remediation
Most risks are linked to the internal controls for on-going monitoring and remediation
All risks are linked to the internal controls for on-going monitoring and remediation
Alternative risk responses and scenarios are assessed to determine the optimal action
There is no ability to automatically assess alternative risk responses and scenarios to determine the optimal action
There is limited, high level ability to automatically assess alternative risk responses and scenarios to determine the optimal action for select business processes
There is limited, high level ability to automatically assess alternative risk responses and scenarios to determine the optimal action across most business processes
Alternative risk responses and scenarios are automatically assessed to determine the optimal action for select business processes
Alternative risk responses and scenarios are automatically assessed to determine the optimal action for most business processes
The CFO has the automated ability to monitor and analyze strategic, operational, compliance, and reporting risks across enterprise systems (e.g. customer relationship management, human resource management, purchasing)
Finance systems analyze performance of different functions but do not analyze risk
Finance systems analyze risks only across finance systems
Finance systems analyze risks across systems such as customer relationship management, human resource management, purchasing and so forth
14
15
16
All processes are well-documented and meet financial compliance requirements - example, Sarbanes Oxley (SOX) Section 404 requirements, BilMoG, 8th EU Directive, JSOX, Clause 49 for India
The processes to comply with the local and international reporting standards (such as Sarbanes Oxley, Basel II etc) are still evolving and in process of being documented
All processes are well-documented and capable to comply with local reporting standards such as Sarbanes Oxley, Basel II etc
All processes are well-documented and capable to comply with the local and international reporting standards such as Sarbanes Oxley, Basel II etc
The use of automated controls, rather than manual controls, is maximized to improve assurance and minimize cost
Majority of the controls (> 90%) are manual as opposed to being automated
Majority of the controls (> 70%) are manual as opposed to being automated
Automated controls are partially implemented (~50%)
Largely automated controls are in place (>70%)
The use of automated controls, rather than manual controls, is maximized to improve assurance and minimize cost
Access control risks are minimized through: careful role definition, limits to and monitoring of superuser and emergency access, regular monitoring to ensure only business-required access has been granted
Access control risks are not managed, because none of the following are in place: 1) careful role definition (processes in place to prevent segregation of duties issues while granting access rights); 2) limits to and monitoring of super-user access; 3) limits to and monitoring of emergency access to correct data or program errors; 4) regular monitoring to ensure only business-required access has been granted
Access control risks are partially managed, because at least one of the following is in place: 1) careful role definition (processes in place to prevent segregation of duties issues while granting access rights); 2) limits to and monitoring of super-user access; 3) limits to and monitoring of emergency access to correct data or program errors; 4) regular monitoring to ensure only business-required access has been granted
Access control risks are partially managed, because some of the following are in place: 1) careful role definition (processes in place to prevent segregation of duties issues while granting access rights); 2) limits to and monitoring of super-user access; 3) limits to and monitoring of emergency access to correct data or program errors; 4) regular monitoring to ensure only business-required access has been granted
Access control risks are partially managed, because most of the following are in place: 1) careful role definition (processes in place to prevent segregation of duties issues while granting access rights); 2) limits to and monitoring of super-user access; 3) limits to and monitoring of emergency access to correct data or program errors; 4) regular monitoring to ensure only business-required access has been granted
Access control risks are minimized through: careful role definition (processes in place to prevent segregation of duties issues while granting access rights); limits to and monitoring of super-user access; limits to and monitoring of emergency access to correct data or program errors; regular monitoring to ensure only business-required access has been granted
17
18
19
20
21
Effective automated processes are in place to ensure compliance with global trade laws and regulations (e.g., compliance with Foreign Corrupt Practices Act)
Compliance with global trade laws and regulations is ensured manually
Compliance with global trade laws and regulations has been automated for some regulations/countries
Effective automated processes are in place to ensure compliance with global trade laws and regulations (e.g., compliance with Foreign Corrupt Practices Act)
The internal audit plan is driven by the enterprise risk management program, ensuring that internal audit is focused on current risks to the organization
The internal audit does not take risk into account
The internal audit takes risk into account in an informal manner
The internal audit plan is driven by the enterprise risk management program, ensuring that internal audit is focused on current risks to the organization
Internal audit uses enterprise automation tools (including business intelligence and automated controls testing solutions) for fraud and error detection and investigations
Internal audit uses manual methods for fraud and error detection and investigations
Internal audit uses enterprise automation tools for fraud and error detection and investigations in some areas
Internal audit uses enterprise automation tools (including business intelligence and automated controls testing solutions) for fraud and error detection and investigations
Issues identified by internal audit (and other assurance providers) are updated into the enterprise risk management system and their impact on risks assessed
Issues identified by internal audit (and other assurance providers) are not tracked in an enterprise risk management system
Issues identified by internal audit (and other assurance providers) are updated into the enterprise risk management system
Issues identified by internal audit (and other assurance providers) are updated into the enterprise risk management system and their impact on risks assessed
The company is using rolling forecasts as the basis for their budget
The company is not using rolling forecasts as the basis for their budget
The company is using rolling forecasts as the basis for their budget for some functions and some regions
The company is using rolling forecasts as the basis for their budget for all functions and regions
22
23
24
25
Budgeting and forecasting is a continuous loop process of planning, measuring and modeling that relies on up-to-date "actual" results and scenario-based collaboration across business functions and regions
No continuous loop process, no up to date insight from multiple functions and regions
Budgeting and forecasting process takes into account feedback from few functions within one region
Budgeting and forecasting process takes into account feedback from most functions within one region
Budgeting and forecasting process takes into account feedback from most functions and most regions
Budgeting and forecasting is a continuous loop process of planning, measuring and simulation that relies on up-to-date insight from multiple functions and multiple regions
Standardized planning models are used throughout the organization ensuring consistency and comparability of submitted results
No standardized planning models are used
Initial efforts in place to standardize planning models in some regions/business units
Standardized planning models are used across some regions/business units
Standardized planning models are used across most regions/business units
Standardized planning models are used throughout the organization ensuring consistency and comparability of submitted results
The planning and forecasting process is collaborative in that it allows supervisors to review and approve the status at any point in time while individuals work together on the creation of the plans/ forecasts in a virtual team environment
The planning and forecasting process is not collaborative
The planning and forecasting process is collaborative in some areas, and exchange or approval of documents happens in a manual fashion
Supervisors and teams collaborate fully on plan/forecasts, and exchange or approval of documents happens in a manual fashion
Supervisors and teams collaborate fully on plan/forecasts, and exchange or approval of documents happens sometimes in a manual fashion, sometimes in a virtual team environment
The planning and forecasting process is collaborative in that it allows supervisors to review and approve the status at any point in time while individuals work together on the creation of the plans/forecasts in a virtual team environment
The forecasting system allows users to directly access standardized input forms or electronically distributes standardized templates at the beginning of the planning cycle
The forecasting system does not allow users to directly access standardized input forms
The forecasting system allows users to directly access standardized input forms but does not electronically distribute standardized templates at the beginning of the planning cycle
The forecasting system allows users to directly access standardized input forms or electronically distributes standardized templates at the beginning of the planning cycle
26
27
28
29
Budget and forecast simulations can be automatically produced or results simulated using several key drivers (e.g. revenue growth estimates)
Budget and forecast simulations are done manually
Budget and forecast simulations can be automatically produced or results simulated using only a limited number of key drivers
Budget and forecast simulations can be automatically produced or results simulated using only several key drivers (e.g. revenue growth estimates)
The planning system supports top down strategic objectives and planning from the bottom up
There is no capability to systematically combine top down strategic objectives with allocations and planning from the bottom up
The planning system supports top down strategic objectives, but allocations and planning from the bottom up are not systematically integrated
The planning system supports top down strategic objectives, allocations and planning from the bottom up, enabling consensus process
Financial systems are used in the business analysis process by providing historical and forward looking views into financial and operational performance
Business analysis (on both financial and operational performance) is mainly manually conducted
Business analysis leverages financial systems for historical information on financial performance
Business analysis leverages financial systems for historical information on financial and operational performance
Business analysis leverages financial systems for historical information on financial and operational performance, and has forward looking capabilities to analyze financial performance
Financial systems are used in the business analysis process by providing historical and forward looking views into financial and operational performance
Scorecards are implemented and used to connect strategic to operational goals. Scorecards exist at staff level, as well as management and executive levels
Balanced scorecards are not used
Balanced scorecards are in place to connect strategic to operational goals, but they are updated infrequently
Balanced scorecards are in place to connect strategic to operational goals, and they are updated on a monthly basis
Balanced scorecards are implemented to connect strategic to operational goals, and they are updated on a daily basis
Real time Balanced Scorecards are implemented and used to connect strategic to operational goals. Finance is actively involved in the design and execution of the Balanced Scorecard
30
31
32
33
Analytical systems allow for online ad-hoc analysis and reporting along key dimensions (customers, regions, divisions etc.) as well as drill-down to the desired level of detail
Analysis is mainly manually conducted
Analytical systems allow for online analysis and reporting based on standardized reports along key dimensions (customers, regions, divisions etc.)
Analytical systems allow for online ad-hoc analysis and reporting along key dimensions (customers, regions, divisions etc.)
Analytical systems allow for online ad-hoc analysis and reporting along key dimensions (customers, regions, divisions etc.) with limited drill-down capabilities
Analytical systems allow for online ad-hoc analysis and reporting along key dimensions (customers, regions, divisions etc.) as well as drill-down to the desired level of detail
Operational reviews and board package content can be automatically generated directly from financial systems in the formats users prefer. (PDF, Excel, PowerPoint, Word, etc.)
Operational reviews and board package content has to be manually generated from financial systems
Operational reviews and board package content can be automatically generated directly from financial systems for some formats
Operational reviews and board package content can be automatically generated directly from financial systems in the formats users prefer. (PDF, Excel, PowerPoint, Word, etc.)
Reporting systems automatically surface or send alerts when abnormal or large variances occur based on predefined rules and thresholds
Reporting systems do not detect abnormal or large variances occur based on predefined rules and thresholds
Reporting systems automatically identifies abnormal or large variances based on predefined rules and thresholds, but does not have automated alerting capabilities
Reporting systems automatically surface or sends alerts when abnormal or large variances occur based on predefined rules and thresholds
Business and operational analysis is based on a single source (integrated data model) of financial and non-financial information providing consistent data across all views of information
Many separate and non integrated sources in place
Most financial information resides in few separate and non integrated data sources, and they are not integrated with non financial information
There is a single data source for most financial information but it is not integrated with non financial information
There is a single data source for most financial information, with integration to some non financial data sources
Business and operational analysis is based on a single source (integrated data model) of financial and non-financial information providing consistent data across all views of information
34
35
36
37
38
39
The financial system can support internal as well as external accounting requirements (e.g. statutory, segment, regulatory and management views)
The financial system does not support all required internal and external accounting requirements
Separate financial systems support internal and external accounting requirements (e.g. statutory, segment, regulatory and management views)
The financial system can support both internal as well as external accounting requirements (e.g. statutory, segment, regulatory and management views)
The current general ledger (G/L) accounting system can handle multiple accounting standards (e.g. US GAAP, IFRS)
The current general ledger (G/L) accounting system is designed for a single accounting standard (e.g. US GAAP, IFRS)
The current general ledger (G/L) accounting system can handle a few but not all required accounting standards
The current general ledger (G/L) accounting system can handle all required accounting standards (e.g. US GAAP, IFRS)
The current consolidation system can handle multiple accounting standards (e.g. US GAAP, IFRS)
The current consolidation system system is designed for a single accounting standard (e.g. US GAAP, IFRS)
The current consolidation system system can handle a few but not all required accounting standards
The current consolidation system can handle all required accounting standards (e.g. US GAAP, IFRS)
System allows prior year comparisons between local GAAP and IFRS during a transition and allows for easy reconciliation
System allows des not allow prior year comparisons between local GAAP and IFRS during a transition
System allows prior year comparisons between local GAAP and IFRS during a transition
System allows prior year comparisons between local GAAP and IFRS during a transition and allows for easy reconciliation
Intercompany reconciliations are conducted in a decentralized, "peer-to-peer" manner
Intercompany reconciliations are conducted centrally by corporate finance
Intercompany reconciliations are centralized on the regional level
Intercompany reconciliations are conducted in a decentralized, "peer-to-peer" manner
System allows publishing of financial statements in "interactive format" (XBRL) per SEC requirements, in-house (as opposed to out-sourcing)
System does not allow for publishing of financial statements in "interactive format" (XBRL) per SEC requirements, and it is therefore outsourced
System allows publishing of financial statements in "interactive format" (XBRL) per SEC requirements, in-house (as opposed to out-sourcing)
40
41
42
43
44
Changes in group structure (e.g. changes in equity interests, consolidation frequency and methods) can be processed easily
Changes in group structure (e.g. changes in equity interests, consolidation frequency and methods) take a lot of effort to process
Changes in group structure (e.g. changes in equity interests, consolidation frequency and methods) take some degree of effort to process
Changes in group structure (e.g. changes in equity interests, consolidation frequency and methods) can be processed easily
The G/L and downstream financial systems are integrated in such a way that account data is up-to-date and synchronized at all times
The G/L and downstream financial systems are not integrated
G/L and downstream financial systems are synchronized via batch updates
The G/L and downstream financial systems are integrated in such a way that account data is up-to-date and synchronized at all times
A global chart of accounts is used across the entire company and local accounts are required to be mapped to the global charts of accounts
A separate local chart of accounts is used by divisions/ regions and these are not mapped to the global chart of accounts
Few regions have standardized on a common chart of accounts
Several regions have standardized on a common chart of accounts
Most regions have standardized on a common chart of accounts
A global chart of accounts is used across the entire company and local accounts are required to be mapped to the global charts of accounts
Cost and profitability reporting uses true cause and effect business rules to assign costs, rather than high-level apportionments
Cost and profitability reporting uses high-level apportionments to assign costs (no cause and effect)
Cost and profitability reporting uses detailed apportionments to assign costs (no cause and effect)
Cost and profitability reporting uses high-level cause and effect business rules to assign costs
Cost and profitability reporting uses more detailed cause and effect business rules to assign costs
Cost and profitability reporting uses true cause and effect business rules to assign costs, rather than high-level apportionments
All operational entities within the company follow standardized costing methods and procedures
Each operational entity within the company follows independent costing methods and procedures, which are then collated at the company level
All operational entities within a region/ division follows standardized costing methods and procedures
All operational entities within the company follows standardized costing methods and procedures
45
46
47
48
49
50
Cost and profitability reports are generated to the level of product, channel and customer
Cost and profitability reports cannot be prepared to the level of product, channel and customer
Cost and profitability reports can be prepared to some degree of detail
Cost and profitability reports are generated to the level of product, channel and customer
Real time 'What-if?' analysis is possible, to model and test the impact of changes to profitability before committing to plans
Only adhoc data is available to model and test the impact of changes to profitability before committing to plans
Monthly data is available to model and test the impact of changes to profitability before committing to plans
Weekly data is available to model and test the impact of changes to profitability before committing to plans
Daily data is available to model and test the impact of changes to profitability before committing to plans
Real time 'What-if?' analysis is possible, to model and test the impact of changes to profitability before committing to plans
Cost accounting accesses information from all of the integrated components such as G/L, A/P, billing, purchasing etc.
Cost accounting cannot automatically access information from G/L, A/P, billing, purchasing etc.
Cost accounting can access select information from select relevant processes (G/L, A/P, billing, purchasing etc.)
Cost accounting accesses information from all of the integrated components such as G/L, A/P, billing, purchasing etc.
The cost accounting system supports cost analysis along multiple dimensions including product, location and pre-defined activities
The cost accounting system does not support cost analysis along multiple dimensions including product, location and pre-defined activities
The cost accounting system supports cost analysis along few, but not all required dimensions (product, location and pre-defined activities)
The cost accounting system supports cost analysis along multiple dimensions including product, location and pre-defined activities
Product, channel and customer profitability is reviewed on a regular basis to develop strategies for improvement
Product, channel or customer profitability are unknown
Profitability is reviewed, but not on a regularly scheduled basis
Some profitablility dimensions (product, customer, channel) are reviewed on a regular, but not necessarily frequent basis
Some profitablility dimensions (product, customer, channel) are reviewed on a regular and frequent basis
Product, channel and customer profitability is reviewed on a regular and frequent basis to develop strategies for improvement
Internal shared services costs are allocated in a manner that reflects actual usage
Internal shared services costs are not charged back
Portions of internal shared services costs are charged back based on blanket allocation
Portions of internal shared services costs are charged back to BU’s, based on transaction volume
Most internal shared services costs are charged back to BU’s, based on transaction volume
Internal shared services costs are allocated in a manner that reflects actual usage