Confused, good or high performance? The 3 performance statuses of finance functions and their indicators

In my experience of reviewing finance functions there are 3 performance statuses into which they can fall:

  1. Financial confusion or blindness indicating a lack of preparedness to invest in and value the benefits of decent financial management. Lack of clarity of where the business really stands follows and all the confusion this brings.
  2. Good financial control where the basics are all being well looked after. Financial management is robust providing a decent platform on which to manage the business to a level.
  3. High performance financial management is seen where management have taken significant steps to go beyond the basics and are really driving value from the finance function and its integration with other aspects of the business.

The table below summarises the indicators which I use to understand in which status a finance function sits. This is not a comprehensive list but should allow you to get the picture. (Click on image to enlarge).

You can use these indicators to self-assess your finance function, however, if you would like independent expert help, Bellevue Partners would be happy to carry out a review and provide a short easy-to-understand report (lots of pictures!). Feel free to get in touch if you are interested or have any questions.