Accenture Benchmarking Solutions From Insight to Action

Management Consulting
Accenture
Benchmarking Solutions
From Insight to Action

Implemented by skilled
professionals and supported
by proven assets, Accenture
Benchmarking Solutions
helps companies quickly
perform an objective
assessment of the cost
and performance of their
finance function, identify
and quantify improvement
opportunities, and build the
foundation for sustained
high performance.
The importance of
benchmarking
The finance function is a specialized
and valuable resource that is critical
to the success of any organization.
Accenture’s ongoing research into the
characteristics of high-performance
businesses has found that high
performers exceed their peers in the
ability to develop distinctive capabilities
within their finance function to create
a competitive advantage.
Accenture research has also
demonstrated that leading finance
organizations do three things very well
to achieve and maintain their leadership
position. They:
• Regularly identify the gaps between
today’s finance capabilities and those
necessary to be competitive in
the future.
• Strive to be leaders in those
capabilities that are most important
given the needs of their business.
• Pursue improvements via formal,
structured change programs.
In other words, leading finance
organizations identify the areas of most
need within the finance function—and
areas where they can have the most
impact on the business—and structure
a change program to help ensure that
the company gets the most out of
scarce finance resources.
In many organizations, however, the
finance function struggles to meet
those high standards with cost and
performance varying widely. Finance
cost as a percentage of revenue can
easily be two or three times higher
for one company compared to another.
Similar disparities exist in terms of
the performance of finance functions.
Many companies are unaware of how
their cost and performance compares
to that of their peers, especially high
performers. Without an accurate
assessment of the current state of
the finance function, change programs
are too often a hit-or-miss series of
disparate initiatives that fail to deliver
a sound return on investment.

Figure 1: Benchmarking answers critical questions and builds the foundation
for improvement
How much do I truly spend to deliver finance services?
How is finance time spread across various finance processes?
How effective is my finance organization at delivering value?
How does my organization compare to others?
What are the drivers/root causes of cost and performance?
Where are the biggest opportunity areas?
What is the value of closing the gaps?
This need for a clear understanding of
the current capabilities of the finance
function is why benchmarking is a
critical component of any finance
transformation program.
What is finance
benchmarking?
Benchmarking is the process whereby
an organization captures specific data
related to its costs and performance,
and then compares this cost and
performance data externally to a
composite average of other companies.
The benchmarking process can also be
used internally: Organizations operating
in several countries, or with multiple
operating units and divisions, can
compare cost and performance metrics
across those different entities. A top
performer often emerges internally
whose practices can then be adopted
and leveraged across the enterprise.
This combination of internal and
external benchmarking helps to identify
the most important gaps between an
organization’s current state and where
it wants to be, helping to create both
a road map and a business case for
change. (See Figure 1.) Benchmarking
can also generate the rigorous cost
and performance baseline necessary
to effectively track progress on that
road map over time in terms of
cost reductions and performance
improvements. Ultimately, benchmarking
helps organizations put in place a
rigorous and continuous improvement
process to bring out higher levels
of performance across the organization.
If one is to use benchmarking to drive
high performance through the finance
function, however, numbers alone are
not enough. No database of information
will churn out a ready-made
prescription for a company’s unique
set of circumstances. The quantitative
dimension of benchmarking must be
supplemented by a qualitative analysis
informed by a deep understanding of
finance function leading practices
All cost components, processes and
organization entities.
Process based view of activities
and costs to supplement the
organization view.
Quality, accuracy, cycle time, and
positive impact on the business.
Cost and performance – in total, by
process, and by region.
Organization model, process
design, technology usage, and
data structures.
Specific processes, regions, business
units, and/or cost components.
Quantified cost reduction and
performance improvement
opportunities.
and how they can be applied given
the company’s industry, strategic
goals and constraints.
Providing that combination of
quantitative and qualitative analysis
through advanced benchmarking
capabilities that can generate insights
and drive high performance is the
distinctive advantage of Accenture
Benchmarking Solutions.
2

Accenture Benchmarking
Solutions: From insight
to action
Working in close collaboration with a
client’s finance leadership, Accenture’s
skilled professionals use the unique
assets of Accenture Benchmarking
Solutions to deliver a comprehensive
benchmarking assessment of the
finance function. We then help a
company translate insights from
the benchmarking analysis into an
actionable set of initiatives, supported
by a rigorous business case that can
address shortcomings identified through
the benchmarking process. With a
sound set of comparative numbers and
an analysis of the implications of those
numbers, Accenture helps companies
use the benchmarking process to drive
high performance. The net result is
efficient and effective use of scarce
finance function resources.
Accenture’s benchmarking process
involves several phases that help
companies discover, deliver and
maintain the value from an analysis
of their finance function performance.
Collecting data
Working with personnel from your
finance function, we begin by
gathering relevant data related to
costs, headcount, cycle time and
performance. We are guided in this
effort by the Accenture Finance Process
Excellence Framework. The framework
looks across all major processes of
the finance function, allows drilldown
into the sub-processes and
activities that make up each process,
and provides a common structure to
help ensure consistent comparisons
across companies and internally across
different businesses or locations.
(See Figure 2.)
We supplement the data gathered in
this phase with targeted executive
interviews that enable us to put the
numbers into the proper context
for analysis. This phase of the
3
benchmarking process establishes
a formal baseline that helps make
comparisons and also enables the
measurement of progress when a
transformation program is eventually
put in place.
This first phase of work typically
generates insights—even before the
formal benchmarking comparison—that
are valuable to an executive team. For
example, we worked with a company
looking to reduce selling, general and
administrative (SG&A) costs following
a major acquisition. In the data
collection phase of benchmarking,
the company gained a greater
understanding of the redundancies
that existed in its various finance
organizations around the world. That
understanding was key to eventually
delivering cost savings from its finance
transformation program.
Performing the
benchmarking comparison
In the next phase of work, we perform
an external benchmarking comparison
for the finance function in total as well
as for individual finance processes. The
assessment gives company executives
a powerful snapshot look at how the
finance function compares with peers,
providing a quartile ranking of finance
cost and performance metrics across all
finance processes. This analysis allows
us to identify processes not being
performed at competitive levels of cost
or service relative to peers.
In addition to the quantitative analysis
we perform a qualitative assessment.
This evaluation looks at the extent
to which externally validated leading
practices have been adopted. It also
helps identify root causes and drivers
underlying the current performance of
the finance function.
Accenture’s approach during this
phase of work is to identify leading
practices not only within a specific
industry but across all industries. This
is important because companies can
learn from others outside their industry
as well as from within. For example,
banks have completely transformed
their “products” based on insights
from consumer products companies.
Retail companies compete in an
extremely tight margin environment
and therefore offer lessons for other
industries where cost reduction is
critical to success. And many energy
companies have established truly global
operating models that can be adopted
by companies in other industries. If
a company only compares itself to
like companies, they may miss out
on opportunities to adopt innovative
practices that can give them a
competitive advantage in their industry.
We also benchmark costs and leading
practices internally by comparing
geographies and business units to one
another. This helps to identify internal
cost and performance leaders so that
their experiences and approaches can
be identified for possible adoption by
other parts of the organization.
A benchmarking analysis permits
executives to cast an objective light
on their finance function, and on the
presumptions by which it operates. For
example, during a recent benchmarking
study, executives found that what they
had always referred to as “low-cost
transaction processing” was, in fact,
not low-cost at all. This finding enabled
them to put in place more aggressive
plans to bring costs into line with
companies identified as top performers
and bring focus to an area that was
previously not on its management’s radar.

Figure 2: Accenture’s Finance Process Excellence Framework provides a consistent, processed
based structure for benchmarking data collection and analysis
1.0 Finance Function Management
1.1 Manage Finance Organization
1.2 Drive Enterprise Wide Change
2.0 Finance and Accounting
Operations
2.1 General Accounting and
Reporting (Record to Report)
2.2 Fixed Asset Accounting
2.3 Accounts Payable
2.4 Travel & Expense
Reimbursements (T&E)
2.5 Order to Cash
2.6 Product Costing and
Inventory Accounting
2.7 Finance Systems and Data Structures
Identifying and quantifying
improvement opportunities
Based on a summary of cost and
performance data and on the related
qualitative assessment and root-cause
analysis, we help finance executives
identify specific improvement
initiatives to close the gap between
their performance and that of external
leaders. This summary of initiatives
mapped against projected benefits
enables companies to create change
programs that can return the most
benefits for the least cost. With a road
map in place, supported by an objective
business case, companies are better
equipped to take the specific steps
necessary to transform their finance
organization.
Tracking improvements
over time
High performance means achieving
sustainable business results. Full
value will not be generated from
3.0 Enterprise Performance
Management
3.1 Strategic Planning/
Shareholder Value Targeting
3.2 Target Setting
3.3 Planning, Resource
Allocation and Forecasting
3.4 Performance Reporting
and Analytics
4.0 Corporate Finance
4.1 Internal Controls
4.2 Investor Relations
4.3 Treasury and Cash
Management
4.4 Corporate Tax
a finance transformation program
unless structures and processes are
put in place to help a company track
improvements. Accenture Benchmarking
Solutions helps companies put in place
the metrics and assessment capabilities
that enable them to measure progress
against their baseline over time.
A leading practice adopted by many
of the top performers is to conduct
additional periodic benchmarks,
creating a platform and a culture for
continuous improvement. This regular,
periodic benchmarking is important
given the pace of change in today’s
business markets. It identifies new
opportunities as they arise and helps
an organization redirect its finance
function to take advantage of
those opportunities.
5.0 Enterprise Risk
Management
5.1 Financial Risk
Management
5.2 Non-Financial
Risk Management
4

Accenture has a long
track record of working
collaboratively with finance
executives to drive successful
change in their organizations
that can generate greater
shareholder value. Our
benchmarking process is
rigorous, fast, pragmatic,
and actionable—leading an
organization rapidly from
insight to action.
5
Why Accenture?
With proven assets, deep skills in the
finance area and broad experience
applying Accenture Benchmarking
Solutions, Accenture is ideally
positioned to help your organization
drive high performance through
finance benchmarking. Our distinctive
advantage can be found in:
Our approach
Our benchmarking process is rigorous,
fast, pragmatic and actionable—leading
an organization rapidly from insight
to action.
Our depth and breadth
of experience
Accenture has a long track record of
working collaboratively with finance
executives to drive successful change
in their organizations that can generate
greater shareholder value. We have
a dedicated Finance & Performance
Management service line focused on
all aspects of the CFO agenda. We
also have the industry-specific insights,
global market access and skilled
practitioners to help companies
across all industries and geographies
develop a deeper understanding of
their finance capabilities and drive
transformational change.
Our research and
thought leadership
Our Finance & Performance
Management service line is
acknowledged as an industry thought
leader. Our ongoing research program
into high-performance finance—based
on primary research, CFO surveys and
our own client experiences—explores the
relationship between finance mastery
and achieving high performance.

Our tools and assets
Accenture Benchmarking Solutions uses
a proven project methodology with a
rigorous process for data collection,
consolidation and validation, as well as
results analysis and interpretation. Our
quantitative and qualitative assessment
tools include:
• Metrics: A formal list of important
metrics for cost, headcount, quality,
cycle time and volume across all
finance processes.
• Database: A benchmarking
database comprised of companies
of all sizes across multiple industries
and geographies.
• Tools: Standardized data collection
tools for capture and consolidation
of data.
• Mastery scales: Summaries for each
major process that define “basic,”
“competitive,” and “mastery” levels
of performance.
• Leading practices: An extensive
list of leading practices across all
finance processes.
• Interview guides for qualitative
analysis: Efficient and comprehensive
discussions with client executives that
support effective root-cause analysis.
Our people
Making it all happen is our team of
experienced practitioners. Accenture’s
Finance & Performance Management
service line maintains a dedicated core
of thousands of deeply experienced
professionals in finance and accounting
capabilities. A typical benchmarking
engagement would include an on-site
team that works collaboratively with
your leadership to execute the project
as well as subject matter advisors in
finance function benchmarking who
serve as advisors throughout the
benchmarking process, from planning
to data collection to results analysis.
6

About Accenture
Accenture is a global management
consulting, technology services and
outsourcing company. Combining
unparalleled experience, comprehensive
capabilities across all industries and
business functions, and extensive
research on the world’s most successful
companies, Accenture collaborates
with clients to help them become
high-performance businesses and
governments. With more than
178,000 people in 49 countries, the
company generated net revenues of
US$19.70 billion for the fiscal year
ended August 31, 2007. Its home
page is www.accenture.com.
Copyright © 2008 Accenture
All rights reserved.
Accenture, its logo, and
High Performance Delivered
are trademarks of Accenture.
About Finance &
Performance Management
The Accenture Finance & Performance
Management service line helps clients
on their journey to high performance
by identifying critical issues relative to
the office of the CFO, setting strategic
direction and successfully delivering
innovative solutions to transform their
finance management capabilities. We
offer a range of financial consulting
services, focusing on the areas
of corporate finance, enterprise
performance management, finance
operations and risk management.
Contact
For more information about how
Accenture Benchmarking Solutions
can help your finance organization
move from insight to action to high
performance, please contact us at:
fpm.service.line@accenture.com
We have the breadth of experience,
global resources, superior assets and
deep knowledge and insights to help
the CFO create new forms of value
that can drive high performance.
Our extensive research, insight and
innovation, global reach and delivery
experience have made us a worldwide
leader, serving thousands of clients every
year, including many of the FORTUNE®
500 companies across virtually all
industries. For more information, visit
www.accenture.com/fm or contact us
at fpm.service.line@accenture.com.
North America
David Davidson
david.a.davidson@accenture.com
Senior Executive, Finance &
Performance Management
Charles Wise
charles.p.wise@accenture.com
Senior Manager, Finance &
Performance Management
Europe, Africa and
Latin America
Dr. Christian Campagna
christian.campagna@accenture.com
Senior Executive, Finance &
Performance Management
Björn Lagerbring
bjorn.lagerbring@accenture.com
Senior Executive, Finance &
Performance Management
Asia Pacific
Naohide Nomura
naohide.nomura@accenture.com
Senior Executive, Finance &
Performance Management