What seems to be the problem?
Performance of finance function on 6 core dimensions
Finance function rating on LASER scale
You run a business that has reached a decent size (let’s say, £10m turnover). You love what you are doing and want to kick on, raise some funding and scale-up to the next level (why not £50m turnover?). But there is a problem... Cash-flow is tight and you are not sure that your finance function is up to the job. They’ve been stretched getting to where you are now. Your FD is busy applying the financial paddles to keep cash flowing and she has not got enough time to step back and make the changes that are needed to:
a) pass the due diligence process for raising more money
b) introduce the sophistication of financial management needed for growth and
c) generally reduce the stress of those who work in and around the finance function.
What do you do?
You can replace your FD but that will take time, and it might not help. And you think that she could actually be capable of taking the finance function on that journey but she is simply over-stretched. With some help she maybe able to get there. Why not arrange some coaching for her?
The first step on the journey to a better finance functions is to take a step back and identify the specific improvements that need to be made.
To help you achieve this the visual tools demonstrated above allow evaluation of the finance function to be done quickly and objectively. By answering a series of simple questions any experienced finance professional can create a picture of the changes that are needed . In fact, not just one picture but two.
You can do the analysis yourself: just contact me and I'll send you the template of questions; or I can come and do the assessment for you.
Once completed, you will receive an easily understood diagnostic of where to focus your future management effort to make improvements.
The top picture shows how the 6 dimensions of your finance function are performing:
is there enough funding?
what is the the information like that it creates?
how are the people who run it performing?
how effective are the processes which underpin it?
how appropriate is the strategy and business plan?
what are the technology tools like which make it tick?
The second picture gives the finance function a rating on the 5-pointed LASER scale:
is it LEAN?
how ACCESSIBLE is the information it creates?
how SPEEDY is it in turning things round?
are its team ENGAGED with your business?
and finally how ROBUST is its output?
Armed with this analysis the process of change can begin: the case for change can be made, supported by easily understandable analysis. A plan can be created which focuses on areas that will make the biggest differences to performance.
Progress can be monitored using the visual tools over the months and years to come.
IIf you would like to find out more about how this tool can help your business run a more effective finance function please get in touch.