Issues to consider

Questions you may be asking yourself

Financial management
  • Is it taking longer than a 3 months to create budget information and there are still large variances in some line items?
  • Have you experienced a decrease in free cash flow and do you know how you compare to your competitors in terms of days sales, inventory, and payables outstanding?
Procurement and supply chain
  • Do you know what percentage of indirect spend is controlled by the procurement department?
Business process activities
  • Are total IT or finance costs more than 1% of total revenue?
  • Are your financial plans consistently misaligned with shifting operational activities?
  • Have your SG&A costs remained flat or increased with decrease in demand?
Performance management
  • Do you have clear visibility into your company’s current performance? Do you have actionable management information at your finger tips?
  • Is this information continuously reviewed and in line with the overall company strategy?