A publicly traded, international metals producer looking to grow in the midst of changing economic and political landscapes. Over the past decade, the company acquired multiple plants and services, kept corporate headquarters staff lean, and allowed many functions to remain decentralized at plant locations.
The CFO and finance team were challenged with inconsistent and immature processes and tools, highly manual and unreliable reporting practices, and a lack of visibility across the business. All of this created a gap in decision making capabilities and resulted in a reactive “fire-fighting” culture.
Additionally, the CFO noted a disconnect between the sales, finance, and operations functions – they tended to work in silos and were ineffective at aligning processes and reporting. Leadership was thus unable to link market demand, operational capacity, and financial resources to strategize on an ideal product mix that would optimize profitability.
Working closely with stakeholders across all entities and regions, KCG consultants focused on developing a customized and integrated sales, finance, and operations planning calendar that delivered on several transformational components:
- Enterprise-driven planning strategy with highly integrated sales, finance, and operations participation – hybrid top-down and bottom up approach
- Continuous forecasting with focus on key business drivers (financial and non-financial), not line item details
- Event based scenario modeling capability
- Timely Planning and Reporting capability utilizing a single version of truth
- Globally consistent processes and tools
- Project included significant technology implementation
Together with client leadership, KCG consultants helped the organization drive towards integrated, streamlined, and consistent financial and operational planning and reporting. Results included:
- Tools and processes that reduced manual effort via increased automation
- Enhanced scenario modeling to support product mix decisions
- First integrated demand and production plans
- Increased transparency across all entities with single, centralized version of the truth and standardized, aligned processes.
- Simplified, driver based-based planning capabilities as a departure from a process mired in insignificant details – reduced forecast cycle time by 2 weeks
- Created new combined capital planning process
- Streamlined consolidation processes with ability to “drill down”
- A world class approach to storing and recording data