The finance organization needs to reflect both management culture and the relationships between a company’s corporate centre and its business units.

Industry: Industrial Goods

Client: Holding Company

Topic: Financial Management

Client Situation: Our client was in the process of preparation of IPO. They were operating as an industrial goods firm in multiple regions. After a period of acquisitions, a traditional organizational setup was not able to deal with the rising demands.

In particular, the divisional level delayed and complicated processes between the corporate centre and the business units.

In the process of IPO, the client approached us to reorganize the corporate centre, audit and restructure its processes, and transfer a substantial share of activities into a shared service centre to achieve a significant reduction in process time and costs.

Result: The divisional level was eliminated, and its tasks were allocated to the corporate centre and the business units.

Other contributing levers were right-sizing departments, eliminating redundant activities, defining and documenting responsibilities in unclear processes, and consolidating and harmonizing metrics.