Backroom boys in the firing line

Article Abstract:

A growing number of companies in the UK are starting to recognize the need to strengthen their finance and administration departments. The restructuring of the back office has never been considered a top priority in the past because back office overhead accounts for a relatively small portion of a firm's total cost base. However, changes in the business environment are compelling organizations to transform the back office into a function that adds value to the business and can help reduce the company's overheads. Among the developments requiring the revamp of the back office are increased competition, the high cost of doing business in Europe and the increasing harmonization of European legislation. Backroom restructuring can involve the elimination of non-value added activities, outsourcing, consolidation and centralization, the adoption of new technologies and increased emphasis on customer service.

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Get it right before you sign

Article Abstract:

The process of outsourcing the finance function does not stop with the signing of a contract with a vendor. In fact, the signing of the contract can be viewed as the beginning in many ways since the success or failure of the whole initiative will depend on the company's ability to manage the many problems that can arise during the transition between in-house management and sourcing out. Companies can avoid contractual problems by structuring contracts in a way that addresses vital concerns even before they become problems. The contract should be a balanced one, creating a win-win situation for both the outsourcer and the service provider, rather than favoring only one of the parties. Another key to success is constant communication. Without sufficient organizational communication and involvement, the workforce may not provide the support needed to make outsourcing work.

Contracts, Outsourcing

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Take it away

Article Abstract:

The budget is the main reason why large companies are unable to foster innovation and change within their organizations, and therefore fail to achieve competitive success. In the past, the budget was used to control and evaluate managerial performance. However, when knowledge replaced capital as the scarce economic resource, the budget became a hindrance to competitive success. Moreover, they eat up management time, contribute limited value and are not dependable in times of major economic upheavals. In light of these observations, companies should review their management model by developing and introducing new driving mechanisms more suitable to the fast-changing, modern organizations. European companies such as Svenska Handelsbanken, Volvo Cars, IKEA and Borealis have already shed their budgeting process and are now achieving success despite the absence of budgets.

Operational Budgeting, Business, Innovations, Evaluation, Budget, Budgeting, Budgets, Business budgets

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