FIG. 1 Cost as a percent of revenue - FIG. 2 FTEs per billion of revenue

World-class finance organizations continue to outperform the peer group by a wide margin, up to $51 million in cost savings for a typical large company. They deliver services at 46% lower cost (FIG. 1) with greater effectiveness and require 52% fewer full-time equivalents (FTEs) per $1 billion in revenue (FIG. 2).

Unrivaled insights that drive process improvement and finance transformation

Our finance benchmarking services provide access to the unparalleled information and resources that are part of The Hackett Group's proprietary Best Practice Intelligence Center™ – a repository of critical processes, benchmark data and business best practices developed from more than 11,000 business benchmarking projects conducted at the world's leading companies.

Our unrivaled benchmark data gives insight into the performance and business best practices of peers and world-class finance organizations. This insight includes more than 1,809 finance metrics that can help you to:

  • Understand current capabilities
  • Assess performance relative to business value and strategy
  • Identify and prioritize improvement opportunities that offer the greatest potential return
  • Highlight and address areas of risk
  • Plan, manage and accelerate your journey to world-class performance

What makes the difference?

Our business benchmarking services focus on three drivers of world-class finance performance:

  • Factors that drive demand for finance function services, such as complexity (geographies, legal entities, regulatory environment) and volatility (rate of change, M&A activity)
  • Structural factors such as business practices, strategies, service delivery model, staffing levels, skill sets, and technologies used
  • Execution/realization of value, including performance as measured by costs, productivity, resource allocation and value

Then, we use proprietary business benchmarking methodology to quantify your gap to world class – comparing your finance function's ability to execute efficiently (cost and productivity) and effectively (quality and value). We examine comparable organizations so you can see how the best do it and define continuous process improvement steps relevant to your own finance function.

Our analysts use finance metrics such as these to calculate world-class performance
Efficiency Effectiveness
  • Functional and process costs and staffing levels
  • Staff time allocation by process
  • Transaction costs
  • Average labor rates, span of control and staff mix
  • Process efficiency (e.g., cost per invoice)
  • Business analysis (e.g., time analyzing vs. collecting data)
  • Data standardization
  • Application integration levels
  • Finance analysts' acumen to act as business partners
  • Alignment of planning activities with business strategy
  • Forward-looking analysis vs. historical reporting
  • Use of sensitivity, investment and value analysis
  • Forecasting accuracy
  • Shared services utilization levels
  • Use of available technology
  • DPO and DSO
  • Error rates (e.g., invoice errors)

Impact beyond finance function borders

Business processes and systems inextricably link your finance function with other enterprise functions. Process improvements in one area may have a ripple effect on others; for example, improved IT controls may result in more reliable data for decision-making in finance.

Our business benchmarking approach examines efficiency and effectiveness not just within the finance function, but also with a view toward the impact across your enterprise.

The Hackett Performance Exchange™ automatically leverages data from SAP® or Oracle® systems to calculate a cost improvement opportunity, compare performance across the enterprise, and produce timely end-to-end process insights – overnight.

Key deliverables:

  • An executive summary that highlights key findings and recommendations
  • A detailed comparison of finance performance to the statistical median and world-class organizations, across the processes measured
  • Analysis of the root causes of complexity and assessment of the value of finance services delivered, drawing from benchmark comparisons and stakeholder feedback
  • Identification of best practices required to achieve targeted efficiencies and identification of areas at risk due to under-investment
  • Targeted recommendations presented in boardroom-level, results-oriented business terms

Learn More

Depending on objectives, approach and business complexity, a benchmark can typically be conducted in about seven to 10 weeks. To learn about The Hackett Group's finance business benchmarking services, contact us.