Companies have made considerable progress in addressing their financial and management needs, but still are a long way from providing the next level of information that can improve performance, according to Ventana Research’s new benchmark research, “Financial Performance for the 21st Century.” For most corporations, the research finds, the key barriers to improving financial performance management often are hidden from people in the finance function. These include information technology infrastructure complexity, poor alignment and communication of strategy as well as poor utilization of the available information and analytical tools.
“Not having the right information at the right time, combined with poorly designed processes can severely limit how well all departments – including Finance – do their jobs,” said Robert Kugel, the Ventana Research senior vice president and research director who heads the company’s financial performance management practice. “Addressing these shortfalls does not get accomplished in a single ‘big-bang’ ERP effort. It should be a disciplined series of steps, building on each other, that address the people, processes, information, and technology aspects required by finance.”
The benchmark research addresses how to improve financial performance in the face of these alarming statistics:
- Only 14% of companies actually manage to their strategy, even if they have one that is well-defined and well-communicated.
- Only 25% of respondents understand how their department’s or business unit’s strategic objectives relate to objectives for other departments or business units
- Relatively few get enough actionable leading indicators – metrics that would enable them to avoid managing using only a rear-view mirror. Half have nothing at all to work with.
- Most organizations lack information adequacy and do not have financial information management investments like data warehouses to support efforts.
The research, sponsored by technology provider Teradata is based on an analysis of hundreds of validated respondents from all major industries. The benchmark was conducted with the assistance of media partners Business Finance Magazine and the Institute of Management Accountants.
Please access the white paper here, and to schedule a media interview with research director, Robert Kugel, contact marketing@ventanaresearch.com.
About Ventana Research
Ventana Research is the leading research and advisory services firm focused on the intersection of people, processes, information and technology to enable breakthrough performance. By providing expert insight and detailed guidance, Ventana Research helps clients operate their companies more efficiently and effectively. To learn how Ventana Research Performance Management workshops, assessments and advisory services can impact your bottom line, visit www.ventanaresearch.com.
Media Contact: Marisela Reynoso
(925) 242-2579 marketing@ventanaresearch.com
