Map the Territory

Yesterday I published a video on Finance Process Mapping which was my 7 Tips to Process Map effectively. I had quite a degree of interest in how I approach this from Finance Directors, Program Managers and a few Project Managers currently engaged in what is a challenging activity.

For background if you don't know me I am a Consultant who specialises in Finance Transformation with a Shared Services 'flavour' if required. I have worked for Whitbread, Argos, Deloitte, Logica and the last 12 years as an Interim. I created my first Process Maps at Whitbread mapping the Supply Chain and followed that up at Argos by mapping the Period End process in order to reduce reporting times.

I would say every Project I have done involved me getting a 'handle' on the Processes. It is impossible to advance successfully without an adequate grasp of current Finance capabilities. Let us take a walk through the 7 Steps and see if it helps your current situation.

1. Lead it externally - No Finance BAU team is proficient in Process Mapping

This is actually just the fact of the matter. Accountants train to be Accountants and the junior Finance team members engaged in performing the key parts of the Process are certainly not trained in this skill.

Consulting teams will have experience across multiple sectors and will have a Process Taxonomy that fits your Business, which is critical because...its a top down exercise. Start this by sitting with team members and working bottom up and you are doomed before you start.

2. It is ALWAYS a Top Down exercise - Create the Process Taxonomy first

I have never encountered a Finance team which already knew their Process Taxonomy. Bear in mind my Clients require Transformation support and by their nature have challenges in service delivery. The Taxonomy to many is a Consulting term so think of it as an Atlas with every Country in it. We need an Overview with every Process in it so that we don't miss anything critical.

We then work down from there level by level. Its Finance, its Purchase to Pay, its Accounts Payable, its Invoice Matching, its a Process Flow, its a Desktop Procedure. You get the idea

3. Wipe the phrase 'Its just a Visio diagram' out of your vocabulary

I have not used Visio in a very long time. There I said it, the cat is out of the bag. Do you feel better now? Because nobody likes using Visio. I actually prefer PowerPoint but I am a Consultant we live on Slide decks.

4. Learn to Story tell like an Irishman - Set the Context first

This is what it is all about. Pin this to the inside of your eyelids. Context, Context and Context. A Process Map is worthless in isolation no matter how pretty it looks. Remember what I said we work top down and the metrics are vital. Measure to Manage is the maxim.

Context:

? Business is FMCG ￡500m Turnover, 2,500 FTE at 6 UK Sites ?

? Finance has 120 FTE based at 3 of those Sites ?

? Purchase to Pay (P2P) is 55 FTE with AP all at Site 1 ?

? Procurement has no CPO and is part of Finance...5 FTE ?

? Display the AP Team Organisation Design ?

? List the AP Processes ?

5. Apply Metrics to these Processes

Remember what I said we work top down and the metrics are vital. Measure to Manage is the maxim. A Process Map with no numbers is a car with no petrol.

6. Work with the Team to Document the Process in narrative form only if needs be

Teams don't Process Map naturally but they can more easily describe in video or written format what they do. Drawing Maps is time consuming and in my opinion detracts from focussing on what you are trying to achieve, which in reality is an effective assessment of the Process not a drawing for the Louvre

7. RAG Status the P2P Process Taxonomy from the CFO's perspective

Always remember that if the Output of this exercise does not create Control, Continuous Improvement and a springboard for future Action it is worthless. That is on top of it being one of the toughest exercises in Finance Transformation programs to get a BAU team to do whilst working their day job.

Follow those 7 Key Steps and you will have a Process Bible you can use for efficiency, effectiveness, compliance, training and most critically to drive any ERP RFP Process.

Reach out if you need any support or have any questions. Check out the Website for more Videos - Finance Transformation Resources

Best Regards,

Michael Ryan