“Made to Measure”
1. Horus Consulting
2. Maldon, Essex
The business is a global leader in online measurement and is the subsidiary of a large PLC. The current Finance Director did not get on with the Vice President of Finance and several key metrics were missed. As a result the Finance Director resigned.
The purpose of the assignment was to:
- Significantly reduce the debtor days (a major concern for the group)
- Ensure complete and accurate monthly reporting (deadlines had been missed and error levels had increased)
- Restore confidence in the Maldon Finance Team
Following an initial meeting with the Vice President of Finance and a brief handover from the departing Finance Director an action plan was drawn up.
The team role analysis revealed that the finance department were good individually but unable to work as a team. The Management Accountant was technically strong and a good source of knowledge, purchase ledger just required management and guidance, but the issue was poor credit control, quality issues and a culture of blame between manufacturing, quality and finance.
- Weekly meetings were held between finance, quality and manufacturing to target the reasons on why customers were not paying their debts.
- Regular discussions with staff and clear direction
- Map out the existing process, review the constraints and blockages, analyse what is needed by whom?
- Talk to people in all areas of the business – sales, operations, quality and manufacturing to ensure issues were resolved
Other issues were looked at during this time as confidence in the finance team grew: – for example an incentive scheme for sales staff, sales and procurement strategy and unexpected tax issues.
- Debtor days reduced from 66 to 50 , scrap rates fell and working capital increased
- Improvement in morale, leading to less mistakes and willingness to undertake new ideas
- New improved management pack providing local management with KPI’s relevant to them