Our client on this assignment was a multinational FMCG in the process of implementing a global restructuring programme aimed at creating semi-autonomous national operations that would more efficiently report through a regional, matrix reporting structure.
Restructuring a business’s operations can be a complex process. Particularly when the business is spread all over the world. Implementing the operational implications of new reporting structures called for extensive review of especially financial reporting processes and relationships in each of the locally operating companies (OPCOs)
Coming from a structure in which the client maintained central reporting functions within its multinational structure, the new structure required the respective national OPCOs to assume functional P&L responsibility under their respective function heads - specifically manufacturing; shared services, sales, marketing and distribution.
This, unfortunately, was unfamiliar ground for many national functions and the client required advisory services related specifically to structuring of functional financial reporting and in the development of financial management capabilities within the respective functional heads.
We worked with the client to determine the new financial reporting requirements and how they would be most suitably integrated within the new reporting structures. One of the most important aspects of this assignment was the detailed financial management training that we undertook for the client's senior management and all function heads that would hence bear P&L responsibility for various operations. This training was designed and developed together with the client's global head office in Europe, and customised for the local OPCOs in East Africa.
The training we conducted focused on the following areas:
1. Finance as a management function in the new reporting structure;
2. Generation, analysis and interpretation of financial reporting instruments;
3. Finance-based operational decision-making;
4. Control of working capital;
5. Product costing and competitive pricing;
7. Financial risk management.
The client was able to successfully restructure financial management and reporting, transferring financial responsibility for respective functions to the now well-prepared regional OPCOs and their function heads as was expected in the client's new global strategy.