Finance function measurement and benchmarking

The Finance Effectiveness Benchmark is an evidence-based assessment to underpin the drive for superior finance performance. Our methodology provides a clear ‘baseline’ of strengths and weaknesses around the three competing objectives of finance: Business Insight, Efficiency and Compliance and Control.

With focus on both quantitative and qualitative aspects of finance, we utilise PwC’s existing expertise in HR function measurement as well as our consulting thought-leadership on best practices. Our analysis is designed to provide strategic insight, helping to answer the challenging questions facing CFOs on how to best balance cost efficiency, control and business partnering to the wider organisation. We help build an accurate baseline of performance by measuring the size, shape and nature of finance to help drive these decisions.

Drawing data from the breadth of our client work, the PwC dataset can help organisations to understand what top performing finance functions are doing differently today to achieve excellence.

Fig 1: PwC framework for measuring finance function effectiveness

The PwC finance benchmark helps in the following important ways:

• It provides a baseline against which to measure progress
• It cross-references with top quartile organisations to identify opportunities for improvement
• It allows you to prioritise quick wins vs. longer term solutions
• It assesses whether finance is delivering the service that the business needs
• It allows you to set specific targets for your organisation, given your industry and your wider business strategy
• It provides a measurement framework for ongoing assessment

Why PwC?

• Our online benchmarking tool is practical and easy to use and provides clear process definitions to minimise the data collection effort
• The dataset is more up-to-date than any other provider and is refreshed annually which allows for a current, meaningful analysis
• The focus is strategic and customer-driven: our analysis looks at finance as a whole, but can also dive deeper into certain areas based on your objectives
• We use a single, simple framework – the finance effectiveness triangle – to help a client through a journey of continuous improvement, from initial benchmark to strategy driven by best practice, through to implementation

Using our new Finance Effectiveness Benchmark tool, PwC has published a report outlining some of the early findings from the assessment of leading UK companies.

To download a copy of the report please visit: http://www.pwc.co.uk/eng/publications/finance_benchmarking_survival_and_success.html

For more information please contact us at enquiries@saratoga.pwc.com or call +44 (0) 207 213 1313.