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Details

  • Service: Topics, Advisory
  • Date: 3/14/2010

ENR Finance Survey: Insights from Leading Finance Functions 

The sector's top-performing finance functions are twice as efficient and devote more effort to business decision support

 

New research from KPMG International (KPMG) reveals that two-thirds of finance functions in the energy and natural resources (ENR) sector are perceived by the business as controllers and providers of management information as opposed to strategic advisers. Top performers have moved beyond the scorekeeping function to a broader and more strategic leadership role.

Other insights from leading finance functions in the ENR sector:

 

  • Recent economic turbulence has exposed shortcomings in areas typically seen as finance strengths, such as cash flow management, balance sheet insight, budgeting and forecasting
  • Nearly four-fifths of respondents lack a global view of key finance processes and are contending with multiple local systems, manual processes and spreadsheets to deliver management reporting, business planning and project accounting
  • Respondents' views of how finance should be organized differ significantly. Shared services and centers of excellence are only used by half of those surveyed although they are more prevalent in larger organizations
  • Despite ambitions to be strategic business partners, less than 20 percent of respondents say they have a leadership role in key business activities including operational decisions, asset management, capex initiatives, controlling costs and working capital management.


Collectively, the survey findings show that those finance functions which have invested in standard operating models, common processes, systems and ways of working are more efficient and have already created the opportunity to enhance their focus on business planning, analysis and providing insight.