Development of Methodology for Financial Structure formation

Project Objective

Development of methodology (regulation) that will lay a foundation for the financial controlling system and in fact will determine the management approach to business.

Main goals:

• Choose the management “approach” (vision) ;
• Elaborate a hierarchy of financial responsibility centers that
  • Corresponds to the formation order of a financial result;
  • Can be used for integrated management of economic performances.

Stages of the project:

• Introduction to the Company:
  • Strategy;
  • Organizational structure;
  • Business processes;
  • Management accounting;
  • Motivation system.
• Development of methodology for financial structure formation:
  • Determination of the financial structure type (approach to business):
    • Region-oriented;
    • Product-oriented;
    • Customer-oriented.
  • Selecting and listing the financial responsibility centers (FRC);
  • Determining the FRC type:
    • Revenue center (RC);
    • Cost center (CC);
    • Marginal revenue center (MRC);
    • Profit center (PC);
    • Investment center (IC);
    • ….
  • The FRC hierarchy development;
  • Appointment of the CFO management;
  • Confirmation of the CFO financial indicators;
  • Assignment of the CFO management responsibilities for the corresponding indicators;
• Drafting of the document Regulations for a Financial Structure.

Conduct Procedures:

• Preparation of a preliminary list of the documents submitted by the Customer and analysis of these documents;
• Preparation of a list of questions for the Customer’s responders and analysis of the answers;
• Analysis of the information received;
• Confirmation and approval of the developed documents according to the financial structure formation methodology.

Project Outcomes:

• Formalized methodology (regulation) of financial structure formation which is aligned with the goals and objectives of the project;
• Structured list of works and required investments to automate the financial structure formation methodology.

Value for the Customer:

• Formalized management approach to business and to the financial result formation process;
• Integrated management approach to control economic performances;
• Provision with a foundation for the financial controlling system;
• Provision with a foundation for the senior executives motivation system;
• Monitoring and evaluation of the management activities