In today’s complex business environment, the finance function needs to demonstrate its value to the business by proactively supporting the decision making process and providing in-depth insights into the enterprise’s performance, while at the same time complying with all relevant financial and regulatory reporting requirements.
More precisely, organizations need insight into the cost and related profitability of their products, customers and their different activities. Managers need accurate information about cost drivers to assess cost implications in order to quickly take corrective actions in light of changing market circumstances.Furthermore, potential cost optimization exercises need a solid, objective basis for benchmarking.
In order to fulfill this value-adding role of supporting the profitability and growth of the business, the finance function needs to base itself on objective business drivers to support these strategic decision making and scenario analysis.
- Insight into the cost and related profitability of products, customers and different activities performed
- Management reports do not provide timely, accurate and transparent insights in the performance of the organization
- Lack of insight in what factors drive costs and profitability and which performance indicators should be followed up
- Expert knowledge on data mining and data manipulation is required to retrieve this performance information efficiently and create performance reports
- Internal processes such as budgeting and forecasting are intensive and time consuming
- Reconciliation between budget and actuals and identification of the source of the offset is difficult Internal process methodology and roles & responsibilities are unclear and lead to inefficiencies
How KPMG can help
The KPMG Enterprise Performance & Cost Management team helps clients turning their finance department into a value adding business partner, by assisting them on topics such as:
- Cost and profitability analysis of products or services, markets and clients
- Strategic decision making and outsourcing
- Benchmarking Integrated information management Reporting definition & development
- Planning, budgeting and forecasting Business intelligence platform & analytics
- Measures / KPI’s / metrics Performance scorecards / dashboards
Working with our team can help you:
- Analyze and improve the cost accounting setup (by identifying business drivers and cost drivers, cost structures and cost models), in order to obtain cost transparency as an objective basis for decision making
- Set up a solid, objective basis for benchmarking in the light of potential cost optimization exercises
- Identify Key Performance Indicators (KPI’s) which drive performance and profitability to increase insight in performance
- Improve your performance reporting and allow broad budget vs. actuals analysis and variance analyses
- Optimize your budgeting and forecasting process by using specialized software
- Develop a dashboard or performance scorecard to report metrics and KPI’s in an efficient and understandable way