We have a choice . . . .
We can focus solely on cost reduction within our own span of control.
OR, and preferably AND,
We can focus on being recognized as an enterprise value creator as well as cost reducer.
This is the top aspiration for Finance and GBS leadership in a recent survey.
The only sustainable way to achieve this is to become become better business partners and “SHIFT LEFT” in our thinking.
We know that 95% of the challenges and inefficiences in transaction finance activities, for example, are caused by actions (or lack of action) that takes place in prior stages of the value stream. Just consider Accounts Payable or Credit & Collections as examples.
“End to End” process thinking, collaboration, alignment, ownership (it’s a spectrum!) is a critical strategy for achieving enterprise value.
Because the alternative is “silo” thinking and “silo” operations, which results in what we have always had;
- A focus on optimizing a small part of the value stream that affects the customer/consumer
- We have narrow performance targets that are misaligned to our peers elsewhere in their “silos” in the cycle
- We drive impressive productivity and efficiency gains in our “silo”
- We negatively impact activities upstream and downstream (but that’s not our problem!)
- We contribute to a poor customer experience
- Overall planned business outcomes are not achieved
It is obvious really, but the demands of business sometimes conspire to create an environment that doesn’t work.
But there are proven strategies that can help win executive and create a coalition for change.
“Start with WHY?” is a great Step 1.
“What Does Good Really Look Like?”
“What are our end-to-end processes?”
“How do we align performance expectations?”
If this topic resonates, you can get the “Playbook” for end-to-end process enablement here . . .
We have a choice. It is in our hands.
Thanks for reading