ACCA, SLASSCOM holds executive briefing session
On finance transformation:
A preoccupation for CFOs in today's global economy is how they can
shape and evolve the optimal finance model to drive business
performance. Increasingly, finance and accounting delivery through
shared services and outsourcing is playing an important part in
optimizing the structure of the finance function.
Dushan Soza, Managing Director, WNS Global Services Sri
Lanka, Trevin Jayasekera, Group Finance Director, Brandix
Lanka, Vipula Gunatilleka, Chief Corporate Officer, Aitken
Spence Group, Ronnie Peiris, Group Finance Director and
Executive Director of John Keells Holdings and Jehan
Perinpanayagam who was the moderator for this session at the
briefing. |
A breakfast meeting that included a keynote address and the panel
discussion focused on the challenges, issues and opportunities in
finance transformation through shared services and outsourcing was
jointly organized by ACCA (the Association of Chartered Certified
Accountants), the global body for professional accountants, and The Sri
Lanka Association of Software and Services Companies (SLASSCOM) at the
Cinnamon Grand recently.
The session presented insights from experts on finance transformation
and the use of shared services and outsourcing. The presentation
explored current issues, challenges and opportunities, and presented
unique perspectives on how successful transformation programmes can be
delivered.
The session was based on report developed and produced by ACCA. The
content was created from a series of interviews with shared services and
outsourcing experts from across the world.
The keynote speaker, Ronnie Peiris, Group Finance Director and
Executive Director of John Keells Holdings, outlined the many steps and
key areas that can be used to improve this transformation.
ACCA's report showed that if the expert respondents are
representative, there is no turning back from the adoption of shared
services and outsourcing as a meaningful finance transformation tool.
The benefits included transparency, lower cost, greater efficiency,
standardization and improved governance and more are now taken for
granted by the industry.
It was also noted that there were different approaches to Finance
Transformation that were evident.
The application of these delivery models is however still a work in
progress and different approaches to finance transformation are evident.
Some leaders use shared services and outsourcing as a "Functional Fix"
improving finance operations and processes, while others see finance
transformation as a means to transform the business rather than stop at
a better finance function. Regardless of the endpoint, finance leaders
stand firm in their belief that transformation is a journey not only in
terms of value creation but also in the evolution of the finance model.
There was also a strong relationship between the finance model and
the business transformation ambition. Where a "Functional Fix" is
sought, the sourcing model of choice is outsourcing. Conversely, those
finance leaders seeking to drive business performance grapple with a
much greater degree of model complexity.
They see beyond the finance function and focus on the 'connectedeness'
of the finance function to the rest of the business transforming and
aligning end-to end processes regardless of where they are housed. This
requires significant influencing capability internally and externally.
They understand that they must focus on the business need evaluating the
best means to integrate finance into the business in order to be
effective.
Whilst cost remained a starting point, it was also noted that today's
finance leaders are becoming more attuned to provider skills, placing
greater demands to improve their capability. They are consciously
mapping solutions and considering the providers ability to create value,
flexibility and their service approach against their transformation
requirements, as opposed to simply adopting a classic straightforward
buyer -provider relationship for finance and accounting services.
Finance leaders and outsourcing providers alike named change
management as the biggest barrier and in particular cited the
organizations inability to assimilate new ways of working as a key
challenge. Concerns about the capability of the retained team were
equally evident and it is now being questioned of how the retained team
add value.
Another concern of finance leaders were about the natural
misalignment between themselves and the provider, believing that service
delivery is often sub-optional, with different incentivisation
approaches ,varying transformation expectations and goals and different
economic interest in transition speed. Finance leaders therefore
expressed concern that some providers promote a 'one size fits all'
approach.
There was also a growing realization from finance leaders of clients
that effective sourcing is synonymous with service and that while cost
benefits are achieveable, service benefits are rather more elusive.
Increasingly finance leaders differentiate between the quality of
service delivery they receive and the achievements of service level
agreements..
A panel discussion followed which was moderated by Jehan
Perinpanayagam, with eminent panelists that included Dushan Soza,
Managing Director, WNS Global Services Sri Lanka, Trevin Jayasekera,
Group Finance Director, Brandix Lanka, Vipula Gunatilleka, Chief
Corporate Officer, Aitken Spence Group and .Ronnie Peiris, Group Finance
Director and Executive Director of John Keells Holdings.
The panelists gave their views on the topic presented and it was
agreed on conclusion that if finance leaders seek transformation that
drives improved business performance rather than simply the achievement
of finance goals, a more complex service delivery model is likely to be
needed.
Mastering the ability to effectively make the change to this new
model is critical. Finance leaders therefore, must be ambitious enough
and capable of developing and sustaining the right model that connects
the business to significantly drive higher levels of business
performance.
The retained finance team must adapt to attain new capabilities, such
as deep insight, governance, management and services to make shared
services and outsourcing work as part of a new financing model for
business. |