Helped business to unlock real values by designing a right COA
Our client is a digital advertising and media agency, having a staff of 45 individuals, and they were having small to large scale projects with different clients, their most projects were with government bodies. They contacted us to provide them with finance process improvement advice. The engagement took a month and below are the engagement challenges, solution and results
- Business units, profit & cost centres and COA were poorly designed and it was difficult to extract business reports and monitor performance, the current COA design was prepared without consultation with the business unit and hence there was disagreement.
- The system generated reports doesn’t full the reporting requirement of tax, the custom of other regulatory bodies, the finance function has a workaround that increases time and efforts.
- It is not clear who has the ownership of COA and it is not updated with changing business model, statutory or finance requirement.
- The COA has limited scalability
- The blueprint of COA doesn’t exit
- There is no link between key performance indicators and the COA
We followed a systemic step-by-step approach.
The eight key steps used were:
- Obtained understanding the requirements of the management & performance reporting
- Obtained understanding requirement of other internal & external stakeholders ( i.e regulators, banks, etc.)
- Obtained understanding how the COA can enhance performance visibility and improvement
- Consider overall governance model
- Designed & developed:
- System structure with consultation with business unit ( Profit centre, cost centre, business segment, business line)
- New COA and blueprint
- Performance matrix reporting
We understanding that
“a poorly designed COA can negatively impact the organization ability to obtain analytical granularity, transaction processing efficiency and fulfilling the requirement of different shareholders”
The results obtain were as follows:
- Improved sales and operations efficiency
- Better utilization of technology
- Improved business performance by transferring profit center responsibility to business unit head.
- Better reporting with highly level of data granularity
- Finance funcation able to save time
- Better business partnering with business