Cfo Insights - Achieving High Performance Through Finance Business Process Outsourcing

Many CFOs have led their companies to invest in ERP and shared services in order to create leaner, more global organization structures. Today, they seek more radical transformation through business process outsourcing (BPO). CFO Insights is a practical, comprehensive guide to this exciting, fast-growing field. It features expert advice from the CFOs of major companies worldwide, including BP, Procter & Gamble, Dell, and Exel. Step by step, it takes you through the stages of a successful outsourcing solution - from evaluating providers and contracting, through transition planning and risk management.
“We have seen cost reductions every year for each of the 13 years of our outsourcing experience – now, finally, we are seeing the outsourcing market mature. The advancement of multi-client centers will create new value. As new low cost centers spring up around the world I want to have easy access to the opportunities.”
—Ala n Eilles, CFO Downstream, BP
“Outsourcing is not about sitting still. On the one hand, as CFO, you have to be in control, and have the right control mechanisms in place. On the other, this is an evolving relationship where both parties feel empowered and energized to make a real difference in the business.”
—John Coghlan, Group Finance Director of Exel
“My view of the CFO’s role is relatively simple: How do you add value? The CFO has to be in the forefront in understanding, at a strategic level, the relative economics of different parts of the business model – and vitally play a decisive role in deciding what should be insourced and what should be outsourced.”
—Clayton Daley, CFO, Procter & Gamble

Stewart Clements is president of Accenture Finance Solutions (AFS), Accenture's finance and accounting outsourcing business. In this role he is responsible for the business strategy; development of Accenture's delivery centre network; finance- and outsourcing-focused assets and tools; and the management and development of organisational capabilities. He has more than 18 years experience in finance change programs and finance outsourcing. Mr. Clements is a Chartered Accountant and has a degree in Accountancy from Glasgow University. Based in London, he has been with Accenture for nearly 20 years.
Michael Donnellan is a lead partner in Accenture's outsourcing and consulting business. He has more than 20 years' experience in the professional services industry. Mr. Donnellan has also worked extensively on the research, development and deployment of innovative operating models. An engineer by background, he has spent the last decade focusing on the new role of finance in the modern corporate enterprise. In 1997, he co-authored CFO: Architect of the Corporation's Future, which resulted in the adoption of new finance and accounting organisational models by numerous corporations around the world.
Cedric Read led the PricewaterhouseCoopers Finance Consulting Practice, where he was a finance strategy consultant for 25 years. During this time he advised hundreds of global CFOs, providing strategic consultancy to a range of large multinational companies including Unilever, Microsoft, Shell and GlaxoSmithKline. Through his company, CCR Partners, Mr. Read continues to develop his vision of finance's future. He is the lead author of three previous books: CFO: Architect of the Corporation's Future; eCFO: Sustaining Value in the New Corporation; and CFO as Business Integrator.

“…offers a detailed strategic look…. A highly readable book, laden with case studies…compulsory reading for any business considering outsourcing…” (Financial Director, July 2004)
“…a highly readable book, laden with case studies…compulsory reading for any business considering outsourcing…” (Financial Director, 1st July 2004)
“…brings together frontline advice from the chief financial officers of a number of high-profile companies…” (Accounting Today, 23 August – 5th September 2004)

Abbreviations.
1. The Finance Outsourcing Landscape.
Transforming the finance function through outsourcing.
The impact of finance BPO on the corporate agenda.
The CFO and finance transformation.
Why move to shared services?
Outsourcing: Who is doing what?
CFO concerns.
The outsourcing promise.
CFO insights.
2. Creating an Operating Model for High Performance.
Changing to a global business model based on brands and technology.
What is a ‘high-performance’ company?
Differentiated operating models.
Innovation in consumer goods and retail.
Coping with major upheaval.
The pharmaceutical networked model.
So what do you outsource – and why?
Strategies for change and innovation.
CFO insights.
3. Suppliers: Options for Service Delivery.
Considering future business partners.
Trends in business process outsourcing.
How far should you go with outsourcing?
The move to multisourcing.
Choosing your supplier combination.
Shaping the outsourcing relationship.
Planning a delivery strategy.
CFO insights.
4. Scoping: Deciding What to Outsource.
Developing a high-performance finance function with superior alignment to the competitive imperatives of the business.
Where to cut the process.
Purchase-to-pay.
Order-to-cash.
Credit and receivables management.
General accounting, reporting, and decision support.
The integrated F&A outsource proposition.
CFO insights.
5 Global Sourcing of Service Delivery.
Migrating to a global delivery network.
Three ways to source globally.
Mapping the offshore landscape.
Using geography to mitigate risk.
Sourcing choices.
Outsourcing due diligence.
Emerging global shared service center networks.
Technology shapes the future.
CFO insights.
6.Pricing and Shaping Your Deal.
Shaping the deal for a co-sourcing.
Pulling the levers of shareholder value.
Shaping the contractual relationship.
Pricing options.
Pricing and contracting principles.
Tax considerations.
The negotiation lifecycle.
CFO insights.
7. Stakeholders: Achieving Buy-In.
Reaching stakeholders through open and honest communications.
Lead from the top: The CEO and CFO working together.
Your new stakeholder: Your outsource partner.
Third-party advisors.
Employees: Treating them with care and integrity.
The role of HR in outsourcing.
Communications strategy.
CFO insights.
8. Ensuring a Successful Transition.
Transitioning to a European outsourced shared service center.
Transition framework.
Transition management.
Detailed implementation planning.
People strategy.
Communication strategies.
Leading the transition.
CFO insights.
9. Reducing Risk with Outsourcing.
Weighing up risk and outsourcing.
Identifying the risks.
What can go wrong in the contracting phase?
Setting up the right governance structure and relationships.
The risks of going global.
Financial, legal, and tax risk.
Sarbanes-Oxley and European International Accounting Standards (IAS).
CFO insights.
10. Continuous Improvement: Keeping the Deal Working.
Building on success over time.
Getting things right from the start.
Making the commercials match the intent.
Outsourcing is about relationships.
Keep focusing on service management.
Integration and service management.
Pushing for continuous improvement.
Refreshment through contract renewal.
Keeping score.
CFO insights.
11. Finance BPO – the Future.
Innovation insights.
Accenture finance solutions: Worldwide interconnectivity.
The impact of next-generation technologies.
Finance and performance mastery in the future.
CFO insights.
Biographies.
Index.