New research from ACCA suggests that finance leaders see challenges in implementing global business service models, as well as recognising the significant impact they may have on the traditional role of the finance organisation.
With many finance functions within businesses having moved into outsourced or shared services models, for some businesses the next phase is GBS – the aggregation of functions such as finance, human resources, IT, property and facilities into one organisational construct and governance model.
ACCA’s report suggests chief financial officers could bring even more value to the business through this structure, but the model poses potential risks for finance chiefs and the finance function remit, and may alter traditional finance career opportunities.
Deborah Kops, principal, Sourcing Change and co-author of the report, says: "Today’s CFOs should be prepared for GBS, and understand what it means for the finance function as a whole. Will GBS free them up to focus on more strategic objectives?"
Jamie Lyon, ACCA head of corporate sector, said: "Finance leaders see advantages and disadvantages in moving to a GBS model. While it may enable CFOs to bring more value to the business and play a much more strategic role across the whole enterprise, it could be a distraction to the further transformation of the finance function, particularly if the CFO becomes the corporate owner."
Creating more value
The ACCA report Global business services: a game changer for the finance organisation? reveals that GBS could increase the impact of finance by combining comprehensive data, technology and capability across business functions to provide more accurate and actionable business insights, and free up finance chiefs to focus more on all their other responsibilities.
Jamie Lyon said: "GBS potentially has benefits such as enabling even quicker market entry and business integration as organisations evolve their business models. It should also give a much better 'end-to-end' view of business processes, and that means opportunities to drive further efficiencies. But it also necessitates CFOs looking across the entire finance activity map and determining what remains in 'finance', and what can move into a GBS operation. It essentially redefines what is 'core' and 'non-core' to the finance organisation."
Press release
Report
© ACCA - Association of Chartered Certified Accountants
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article