McKinsey has published an interesting piece that merits the attention of finance leaders and professionals.
Their Finance 2030: Four Imperatives for the Next Decade1 include:
The planning (i.e., budgeting and forecasting) process for most organizations is long and tedious and occurs on an annual basis, at least. The annual planning cycle is simply not responsive enough to change for most organizations. In recent times, companies have moved to rolling forecasts and driver-based planning to improve forecast accuracy.
Organizations strategically manage 80% of their spending that frequently fall with roughly 20% of their suppliers. The other 20% of spending falls in tail spend category. Frequently this area is overlooked and have potential savings in the range of 10-40%. Dileep addresses how to tackle tail spend, common expense categories that make it up and same case studies to help you visualize the potential for tail spend savings at your company.
Learn about the four keys to strengthening and improving your Supply Chain. Benchmark your supply chain procurement process against the activities of good, great and exceptional finance teams are doing. Dileep also shares steps you can take to capture improvements in the top categories ripe with opportunity.
The single most common problem I’ve come across over the years isn’t coming up with KPIs, it’s coming up with a small selection of the right KPIs.
