CT15 Maturity Model

CT15 Maturity Model

About this Tool/Enabler

Objectives and benefits

The purpose of the Maturity Model is to provide practitioners with a framework, a set of questions per
operating model dimension and present an insightful dashboard overview of the client's Current State
and desired Future State maturity levels.

The enabler evaluates a client's 'Current State' state across the dimensions Operational Strategy,
Process and Policy, People and Organization, Technology and Data, and Performance Management.
There are qualitative questions for each area from 'Basic' to 'Leading practice'. These can be customized
based on the client and the area of the business under review. This document must be used as the
starting point for any Maturity Model developed to support new Advisory services.

How to use this tool / enabler

Refer to the "How to Use" tab.

The sample data shown in the enabler is for a Finance-related engagement and should be modified /
updated to represent the client and scope of work.

When to use this tool/enabler

Diagnose - Understand the Current State
Diagnose - Evaluate Current State

Document details
Last Updated Date: 05-Dec-08
Document Version: V0.5
Point of Contact: U. Kleinsteuber
 1. How to Use

How to Use the Maturity Model

General Instructions
Please read this sheet before starting working with the enabler.
The usefulness of the analysis results of the maturity model depends on the care and accuracy dedicated by the practitioner when entering the client's information in this enabler.
The instructions below set out in detail how each sheet in the workbook is to be used.
Do not change the structure of the single worksheet (insertion/deletion of rows/columns) since this could affect the functionality of this enabler.
The sample data shown in the enabler is for a Finance engagement and should be modified / updated to represent the client and scope of work.
Don't hide the "Hidden" sheet as that will prevent you to add rows on sheet 8.

Specific Instructions

Sheet 1 How to Use

- Read the information in the How to Use worksheet
- No input is required on this sheet and no items are to be changed

Sheet 2 Client Data

- The person completing this workbook should provide their contact details on the client data sheet
- Any other persons involved in the providing information directly into this workbook should also be documented

Sheet 3 Maturity Model Framework

- The maturity model defines five levels along the maturity continuum, defined as follows:
Basic - The organization has defined vision, objectives and goals. The organization is functional in terms of process or technology implementation, but reactive in actions and behavior. Key words: Ad hoc; reactionary; functional silos
Developing - The organization has established frameworks for planning, governance, and controls for most functions. Procedures are defined and implemented to support people and processes in line with strategic goals. Organizational roles,
performance metrics and reporting structures are well defined and communicated. Key words: Documented; planned; repeatable; metrics
Established - The organization has implemented effective governance and compliance across all functions with integrated monitoring and reporting. Monitoring performance and compliance demonstrates objective realization of metrics.
Communication is lateral / across and demonstrates awareness of process interdependencies. Key words: Integrated; measured; managed
Advanced - The organization demonstrates proactive and coordinated response to change. Commonality/consistency is achieved with effective management of variances or exeptions. Change management is integrated in the project management
approach and risk management includes contingency planning. Key words: Proactive; Cross functional integration; Key performance indicators

Leading - The organization consistently demonstrates an organized and integrated approach to performance improvement including lessons learned, improvement targets (metrics refinement). The organization demonstrates rapid adaptability when
addressing change due to external forces or adopting new business or organizational models. Key words: Benchmarking; continuous improvement; adaptive to change
- The Maturity Model Framework is useful to assess the client’s current state situation, to drive the discussion and to primarily identify and prioritize areas of intervention. Should you need to build new questions; the framework will assist you in defining each
level relevant to the question posed.
- When developing other maturity models using this global template there are five design criteria to take into account: 1. There needs to be a clear and logical sequence of increasing 'capability' or capacity from left to right 2. Capability statements should be
as objective and precise as possible 3. Where possible avoid compound criteria or negative criteria within each statement 4. Leading practice statements should be supported by relevant experience illustrating the art of the possible 5. The scores for each
dimension (sheet 7) can be averages or weighted averages. If there are changes to the input questions the weighting needs to be taken into account.

- The five levels along the maturity continuum assist the user to understand which level the client wishes to reach. The framework also helps to determine the level of emphasis required in the Diagnose and Design Phases (if in scope of the engagement).

Sheets 4-5 Scorecards (2 worksheets)

- There are 2 worksheets for scorecards. No input is required on these sheets and no items should be changed.
- The results are calculated automatically. .
- Results are populated on a 1-5 scale for Raw and Weighted Scores.

Sheet 6 Key Findings

- This worksheet is for capturing the key findings during the maturity assessment.

Sheet 7 Maturity Model Questions

- Review the questions on "Process Function" worksheet as they should be modified to support the process / function being reviewed. In the event new questions / criteria are developed, refer to the Maturity Framework to maintain consistency with the
overall model

- Decide with the Ernst & Young team and with the client the level of importance (Column F) for each question of the questionnaire. Client involvement with this issue is crucial as the raw score's will differ from the weighted scores on this basis.
- Fill in the questionnaire together with the appropriate staff or fill it out at the end of a workshop based on the information gathered during interviews, workshops or any other client discussions.
- Each question is assigned a "value" that relates to the current state level of maturity: n/a=0, Basic=1, Developing=2, Established=3, Advanced=4 and Leading=5
- Each question also is assigned a "value" that relates to the "level of importance" (column E) : n/a =0, Less important=1, Important=2 and Very important=3, which is used
to compute a weighted score.

- The average Current State / Future State raw scores and weighted scores for each dimension (operational strategy, process & policy etc.) are calculated automatically.
- A level 5 rating is indicative of a leading company, and is somewhat rare. Even companies that may outperform their competitors may not exhibit all of the characteristics of a level 5 organization. There may be different approaches to meeting the criteria
across industries. When assessing ratings, whether level 5 or other levels, the rating should be supported by reasonable objective evidence.
- For each question there is a notes field. The purpose of the field is to capture verbal comments relating to the question for later use in the assessment (Column N).
- The objective is to have an assessment of the current state and desired future state. The maturity profile should be used together with a quantitative analysis (external benchmarking).
Additional Help Topics
How do I unprotect the file?
- This file has been protected to avoid any deletion of the formulas. To unprotect the file select Tools/ Protection/ Unprotect Sheet. No password will be required.
How do I add lines?
- Each operating model dimension has a yellow button called 'Add?'; click this button to add a blank formatted line to the bottom of the operating dimension.

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 1. How to Use

How do I delete lines?

- Click the red 'X' on the line item you would like to delete and select 'Yes' from the message box. Note: You can not use the Excel "Undo" feature if you complete this action.
How do I paste the scorecard on powerpoint slide?
- To paste the whole scorecard: on powerpoint select Edit/ Paste Special and paste as "Bitmap".
- To paste a portion of the scorecard please unprotect sheet before copying area to powerpoint slide, otherwise you may have an error message.
Why do the Current State and Future State lines in the spider chart have the same color?
- All the dimensions need to be to assessed for the graph to show Current State and Future State as independent lines with different colors.
What do I do if I get the Run Time error '1004' when I try to add a row?
- The macro to add a row in to the maturity model will not run if the sheet called 'HIDDEN' is hidden from view. Use the Excel menu to unhide the 'HIDDEN' sheet: Format > Sheet > Unhide

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Maturity Model Framework

Dimension Basic Developing Established Advanced Leading

Operational ►Driven by cost and efficiency
Strategy ►Functional integration only
►Need for operational enhancement
recognized but understanding is limited
►Middle management drives operational
enhancement
►Some integration with other functions and
stakeholders
►Operational enhancement is a regular agenda
item at executive meetings
►Finance process improvement projects
mandated and budget allocated
►Senior executives relate performance issues to
process design flaws
►Senior executives drive operational
enhancement and personally take part
►Resources allocated to performance
improvement programs
►Optimized finance process performance
viewed as a competitive advantage
►Control and authority delegated to process
owners by senior executives
►Executives are directly involved in process
enhancement
►Strategy formulation is driven by process
capability
►Competitive advantage driven and shared
with stakeholders

Process & Policy ►Department focused finance processes
►Legacy design serves as context for
enhancement
►Enterprise wide standards and governance
lacking
►Limited cross functional finance processes
►Process inputs, outputs and stakeholders
documented
►Enterprise wide standards and governance
established but is limited
►Finance process transitioned from functional to
process focus
►End to end process design formally documented
and published
►Enterprise wide standards and governance
established and published
►Finance process fully integrated with
enterprise processes and systems
►Formal SLA’s established between
functional areas
►Continuous improvement program
chartered
►Process seamlessly integrated across
enterprise boundaries
►Formal SLA’s established with customers
and suppliers
►Electronic model of process and systems
established

People & ►Employees are able to name processes
and key measures
Organization
►Team work is occasional with reliance on
“experts”
►Management is accountable for results
►Local and functional level autonomy
►Understanding of other function needs and
dependencies is limited
►Informal/ part-time process owner role
►Management performance tied to operational
improvements
►Hierarchical management structure
►Local and functional level autonomy limited
►Employees trained on end to end process
►Team work and self management form part of
employee development
►Process compliance audits indicate adherence
to process
►Formal process owner role established
►Local and functional level autonomy eliminated
►Employees can describe how their work
affects other processes and enterprise
performance and how their work compares to
benchmarks
►Process owner spends significant time
optimizing and integrating process
►Finance function centralized and organized
around process
► Employees can explain extended enterprise
process and dependencies
► Employees look for signs that the process
should change
► Process owner is a member of highest
decision making authority
► Process owner derives rolling strategic plan
for finance process from enterprise strategy

Technology & ►Fragmented and legacy IT systems ►IT integration characterized by point-to-point ►IT architecture supports systems integration via ►Integrated enterprise performance ►Extended enterprise performance systems
Data support the process system interfaces services / middleware monitoring systems support continuous deployed
►IT integration exists in silos dedicated to ►Cross functional initiatives launched but have a ►IT performance is measured via defined service improvement ►IT systems and processes are resilient and
business functions (e.g., finance, operations, systems bias level agreements ►Systems to automate process execution adaptive to changes in business requirements
marketing) ►Data Governance is established and ►Data Governance is established between the across the enterprise
►Data management processes are defined coordinated across the IT function business (data ownership) and IT (data
and effective within IT management)

Performance ►Formal value derived measurement ►Basic cost and quality metrics deployed ►Metrics used to benchmark performance ►Metrics support and reinforce strategic ►Metrics used to measure extended
Management program not chartered ►Metrics tracked in order to drive performance ►End to end process metrics based on customer objectives enterprise performance
►Basic finance, cost and quality metrics improvement requirements ►Management use metrics to create ►Metrics and targets regularly reviewed
►Individual performance linked to enterprise awareness and motivate staff ►Metrics inform strategic planning
performance
 Leading

s are directly involved in process

nt
ormulation is driven by process

ve advantage driven and shared

lders

eamlessly integrated across

oundaries
A’s established with customers
s
model of process and systems

s can explain extended enterprise

dependencies
s look for signs that the process
ge
wner is a member of highest
king authority
wner derives rolling strategic plan
rocess from enterprise strategy

enterprise performance systems

s and processes are resilient and

hanges in business requirements

ed to measure extended
erformance
d targets regularly reviewed
orm strategic planning
L1 Operational Strategy Process & Policy
ID Sub-Dimension ID Sub-Process

OS01 Strategy and Objectives PP01 Process integration

OS02 Operating model PP02 Governance
OS03 Outsourcing PP03 Internal controls
OS04 Strategy PP04 Documentation
OS05 Alignment PP05 Controls
OS06 Leadership awareness PP06 Reporting
OS07 Leadership behaviour PP07 Decision support
OS08 Leadership style PP08 Process design
OS09 Teamwork culture PP09 Expectations
L2
OS10 Process model PP10 Governance
OS11 Role of Finance PP11 Process Improvement
OS12 Risk management
OS13 Reporting of compliance
OS14 Risk identification and assessment
OS15 Customer focus
OS16 Change orientation
OS17 Knowledge management
OS18 Alignment

Note: Each of the above L2's may have 1 or more questions / measures (L3's)
 People & Organization Technology & Data Performance Management
ID Sub-Process ID Sub-Process ID

PO01 Culture TD01 IT Strategy PM01

PO02 Operating model TD02 Industry standards PM02
PO03 Alignment TD03 Human Resource Systems PM03
PO04 Competency TD04 Automation PM04
PO05 Roles and responsibilities TD05 Reporting standards PM05
PO06 Decision support TD06 Reporting automation PM06
PO07 Authority TD07 Data reliability PM07
PO08 Activities TD08 Decision support PM08
PO09 Knowledge TD09 IT support
PO10 Skills TD10 Development
PO11 Behavior TD11 Masterdata
PO12 Process ownership
PO13 Influence
PO14 Career development
PO15 Appraisal
PO16 Organizational structure
PO17 Communication

e questions / measures (L3's). In this example each of the L2s has only 1 question
Performance Management
Sub-Process

Role and position of Finance

Alignment
Alignment
Controls
Alignment
Metrics
Methodology
Responsibility
FUNCTION

Score 0.0 0.0

Dimension: Operational Strategy
Weighted 0.0 0.0 Maturity Level
Add ? Sub- Level of
ID Question Current State Future State Basic Developing Established Advanced Leading Comments
Dimension Importance

The strategy and objectives are clearly defined,

The strategy and objectives are clearly defined, well understood, communicated and
The strategy and objectives are clearly defined, well understood and communicated and consistently deployed and measured. Strategy
To what extent are the goals of the
OS Strategy and The strategy and objectives are not defined, Strategy and objectives are defined but not well understood and communicated. However, consistently deployed across the organization. and objectives are continuously challenged and
Ï 01 Objectives
organization defined, understood and N/A N/A N/A
communicated or deployed understood, communicated and deployed they are not consistently deployed and Strategy and objectives are reviewed annually enhanced to recognize changes in the
deployed?
measured across the organization (or more frequently, as appropriate), and organization and external environment in order
measured on a consistent basis to drive and achieve market leading
performance

Business cases have been reviewed showing

Globally standardized and centralized by large possible advantages of outsourcing or Global
To what extent does the organization have a
OS Operating Processes are decentralized, activities are Some degree of centralization. Processes are regions (regional shared service center per SSC. The company has knowingly organized
Ï 02 model
clear vision on the centralization and N/A N/A N/A
uncoordinated. not standardized across the organization.
Centralized and standardized by country
continent), but it is not part of a global shared its process in such a way (regional, global or
standardization of processes?
service center outsourced) that unlocks value for the
organization.

All Finance process activities are assessed for

Other Finance process activities are assessed outsourcing potential, with outsourcing
Core transaction processing activities are
for outsourcing potential, with outsourcing implemented based on the results of the
None or very few of the transactional Finance A few activities are assessed for outsourcing assessed for outsourcing potential, with
OS To what extent are Finance activities implemented based on the results of the assessment. The business performs regular
Ï 03
Outsourcing
assessed for outsourcing?
N/A N/A N/A activities are outsourced. Outsourcing potential. The organization started to build a outsourcing implemented based on the results
assessment. The effectiveness of the assessments of outsourcing feasibility and has
assessment is an ad-hoc activity. framework for outsourcing assessment. of the assessment. There is a framework for
outsourcing models is reviewed on a routine a well-defined outsourcing framework in place.
outsourcing assessment.
basis The effectiveness of the outsourcing
arrangement is reviewed on an ongoing basis

Predictive capabilities and market leadership.

Adaptive to market dynamics within weeks.
Adapt/react to market dynamics within 12 Adapt/react to market dynamics within 3-6 Continuously adaptive to market dynamics in
Reactive to market conditions within 1-2 years, The organization is arranged completely
OS months. Some cross-functional integration to months. Organization-wide process leadership near real-time. The organization and its
Ï 04
Strategy How capable is the organization to change? N/A N/A N/A typically chasing a competitor. Integration
solve pains. Initial entry into point-to-point is established. The business process is the
around processes. Optimized
partners are organized around processes.
within functions. Driven by cost and efficiency processes+execution yield competitive
integration with partners foundational element of the organization Competitive advantage is driven and shared by
advantage
partners

Process terminology is part of the

A mid-level manager has a passion for organization’s vocabulary and is widely used in
To what extent do people throughout the A senior manager visibly promotes the concept The Finance executive allocates sufficient
performance improvement and is lobbying with The leadership of the Finance function daily practice. Involvement in Finance function
OS Finance function demonstrate an and has committed time and resources to resources for performance improvement efforts.
Ï 05
Alignment
enthusiasm for process performance
N/A N/A N/A more senior management and leadership to performance improvement effort lies with
performance improvement efforts (eg. Process Management discussions often touch on
and performance improvement is considered
adopt a process performance improvement senior management. part of everyone’s responsibility and is
improvement? efficiency, cost reduction, working capital etc). finance process and process terms.
approach. accordingly reflected in performance
management and reward systems respectively.

All executive discussions of finance operational

The finance executive recognizes the need to
Finance process performance improvement is performance are framed in process terms. The
improve finance process operational Members of the executive group relate
To what extent does the finance executive a frequent agenda item at executive meetings. Executive meetings are organized around executive group perceives process
OS Leadership performance but has only a limited organization performance problems to specific
Ï 06 awareness
perceive business process management as N/A N/A N/A
understanding of the power of business
Executives demonstrate a genuine interest in
fragmentation and design flaws in particular
major business processes. The Finance management not as a project, but as a way of
a way of managing the finance function? performance improvement techniques. Process strategy is expressed in process terms. managing the business. Budgeting is done by
process management and performance processes.
terminology is used sporadically. process. Executives are directly involved in
improvement.
redesigning all governing processes.

Resources (financial and human) have been Executive compensation is aligned and based Finance executives are familiar both with
To what extent do members of the senior A finance senior executive endorses and Budget has been allocated for finance process assigned to a finance process improvement on a combination of organization and process business concepts and with the drivers of
OS Leadership
Ï 07 behaviour
finance team perform their own work around N/A N/A N/A invests in finance process operational improvement training and initiatives, and effort in pursuit of explicit stretch goals; performance; funding is available for process organization performance and can describe
process management? improvement. improvement projects have been mandated. managers who attempt to impede the program integration. Executive discussions of strategy how their work affects other processes and the
are appropriately disciplined. and operations are framed in process terms. organization's performance.

The finance executive leading the finance

A decision authority matrix that empowers
Senior managers actively solicit ideas from process performance improvement program Leadership is exercised through vision and
process owners' decision making has been
To what extent does the finance executive The finance executive has started shifting from lower levels of the finance function; some cross spends significant personal time influence. Most operating decisions do not
OS Leadership developed and agreed to; job descriptions
Ï 08 style
exercise leadership through vision and N/A N/A N/A a top-down, hierarchical style to an open, functional task forces are in operation and the communicating and promoting the program,
explicitly recognize autonomy and decision-
reach executive level; executive development
influence rather than command and control? collaborative style. finance executive is following some of their and weaves process concepts and goals into emphasizes teamwork and motivational ability.
making responsibility.
recommendations. all business discussions.

Standard charters have been drawn up for Finance employees have established working
Managers are willing to assign people to inter- project teams, and many people have Finance employees define their jobs in team relationships with counterparts in customers
To what extent is teamwork with internal
OS Teamwork Teamwork is project focused, occasional, and departmental teams, but only on a short-term experience working in such teams. Team terms and volunteer to assist team-mates; and suppliers and with internal stakeholders;
Ï 09 culture
stakeholders, customers and suppliers N/A N/A N/A
atypical. basis. behaviours and team success are recognized managers are willing to re-asses their domain’s relevant information is shared quickly and
demonstrated?
and rewarded. performance for larger goals. openly across and within the organization
boundaries.
A project team has recognized and named a All managers and many employees’ can
Core, enabling, and governing processes (and
How far does the organization process number of end-to-end, cross-functional describe the process model and where they fit The process model positions processes in the
OS The organization has identified some of the sub-processes) are depicted and inter-related
Ï 10
Process model model extend Finance and to what extent is N/A N/A N/A
finance processes.
processes that unlock value for external
in a graphical representation; senior executives
in it. Projects within Finance and other areas of context of multi-company processes. Strategy
the model used for strategy development? customers and support the management of the organization are organized around formulation is driven by process capabilities.
have formally endorsed the model.
value creation. processes.

Finance performs the role of 'business partner’;

advising the business and pro-actively
Finance performs the role of 'scorekeeper', manages drivers of value creation and
Finance performs the role of 'scorekeeper' and
Finance performs the role of ‘scorekeeper’. 'commentator' and 'custodian'. Finance works protection. The roles of 'scorekeeper',
Finance performs the role of ‘scorekeeper’. 'commentator'. Finance is both reactive and
Finance efforts are reactive and focused on with the business to provide compliance and 'commentator', 'custodian' and 'business
Finance efforts are reactive and focused on has taken on the proactive role of 'custodian' to
OS Role of What is the role of Finance within the transaction processing and providing month- effective risk management and control. partner' are balanced. Finance pro-actively
Ï 11 Finance organization?
N/A N/A N/A transaction processing and providing month-
end financial reports and a limited number of
provide adequate internal financial controls.
Business recognizes the value of decision provides business insight and robustly
end financial reports. Finance is not involved in Finance comments on business events and is
business reports. Finance is incidentally support available from Finance and requests challenges and supports business decisions
business decision making. consulted in business decision making as a
involved in business decision making. support and comments beyond the normal (the business actively invites Finance to do so).
normal course of action.
course of action. Finance professionals are regularly requested
to support multidisciplinary teams in projects
and programs.

The company has a company-wide Risk

The company has a company-wide Risk
To what extent has the company The company has a company-wide Risk Management Framework that is promoted by
OS Risk The company has no Risk Management The company has a company-wide Risk Management Framework that is promoted by
Ï 12 management
implemented a Risk Management N/A N/A N/A
Framework Management Framework
Management Framework that is promoted by
the Board of Management. The Framework has
the Board of Management. The Framework has
Framework? the Board of Management been implemented, is centrally supported and
been implemented, but it is not widely used.
is widely used.
Helene L. Norbut:
why the gaps? Incomplete Risk Management and Compliance are
permanent topics on the agenda with
Risk Management and Compliance are not on RiskorManagement
n/a? and Compliance are
OS Reporting of To what extent are risk management and management meetings and team meetings.
Ï 13 compliance compliance reported?
N/A N/A N/A the agenda with management meetings and permanent topics on the agenda with
Periodically an overall business risk-profile is
team meetings management meetings and team meetings
generated and reported to business/operational
management
 Risk identification and assessment is
Risk identification and assessment is Risk identification and assessment is truly
Risk identification and assessment is regularly comprehensive in scope, highly structured and
comprehensive, well developed and applied in comprehensive, highly evolved and efficiently
Risk undertaken across the organization as a consistent in application being effectively
Risk identification and assessment does not a consistent manner driven centrally to provide integrated into the full scope of business
OS identification To what extent is risk identification and distinct and separate activity occurring in integrated into key processes and activities
Ï 14 and assessment done?
N/A N/A N/A occur on a structured or consistent basis within
pockets of the organization focused on the
a broad view of risk across the organization in
across the organization to provide guidance for
management and planning activities. This
the organization the context of strategies and objectives and enables the achievement of strategy and is a
assessment objectives and risks of an individual area or the efficient allocation of risk and control
coordinated with ongoing processes and key driver of success and sustainability across
function resources and the prioritization of management
activities within individual areas or functions the organization
activities

The connection between customer satisfaction The full range of customer contact points with,
To what extent do finance employees focus The identities and needs of internal
There is a widespread belief that a customer and work activities has been established and is and expectations of, the organization has been
OS Customer on collaborating with internal stakeholders There is uncertainty and conflict about how to stakeholders and final customers have been
Ï 15 focus and suppliers to meet the needs of the final
N/A N/A N/A
meet customer's needs.
focus is important, but there is limited understood; finance employees frame tabulated and widely communicated; managers
determined and relevant metrics have been
appreciation of what that means. discussions in terms of internal stakeholder and and employees understand how their work
customer? deployed.
final customer impact. impacts other parts of the organization.

Operating performance inadequacies and key

There is limited acceptance in the finance Proposals for change are met with more People demonstrate comfort with changes to Being on the lookout for signs of change and
sources of stakeholder dissatisfaction are
OS Change To what extent do employees view change function about the need to make modest enthusiasm. Employees urge managers to jobs, roles, rewards, etc., when those are proactively suggesting ways to address
Ï 16 orientation as inevitable?
N/A N/A N/A
change. Employees’ acceptance to change is
acknowledged by people at all levels. There is
make change and volunteer specific positioned as necessary for improved strategic changes are considered normal and a part of
growing acceptance to change among
low. suggestions. operation and performance. everyone's role.
employees.
A knowledge sharing culture supporting
Some process knowledge is available for A knowledge sharing culture exists to the A knowledge sharing culture supports full knowledge gathering and sharing is fully
OS Knowledge To what extent is knowledge management An informal knowledge sharing culture exists
Ï 17 management an integral part of strategy execution?
N/A N/A N/A personnel. Knowledge is updated periodically
within the process.
degree of allowing some cross-sharing of knowledge gathering and sharing across the established providing for timely sharing of
– annually or longer. knowledge within the process. process. knowledge across the process and the
organization.

A formal strategic plan and budget derived from

The finance process owner clearly articulates The finance process owner works across the organization strategic plan exists for
The finance process owner identifies and the value of end-to-end process design and organization process boundaries to address finance and finance process improvement.
To what extent do finance process owners The finance process owner sponsors
OS documents the process, communicates the links it to organization strategy; oversees and finance process integration and performance Inter-process impacts are reflected in the
Ï 18
Alignment participate in organization-level strategic N/A N/A N/A
process to finance employees, and sponsors
improvement and standardization projects that
runs process enhancement; and regularly improvement. Process owner is focused on strategic plan for finance process. The finance
planning and collaboration? touch on other functional areas.
small-scale performance improvement projects. communicates performance expectations and integrating finance process in the organization process owner sponsors and drives extended
results. to improve organization performance. organization finance process enhancement and
continuous improvement projects.

Score 0.0 0.0

Dimension: Process & Policy
Weighted 0.0 0.0 Maturity Level
Add ? Level of
ID Sub-Process Question Current State Future State Basic Developing Established Advanced Leading Comments
Importance

Lack of integration is indicated by static

Finance has fully transitioned from functional to
business processes, and functional and There is limited cross-functional/process Most of the processes are integrated across Total process integration across the extended
PP Process To what extent are the processes process focus, including management
Ï 01 integration integrated?
N/A N/A N/A geographic silos. Departments focus only on coordination (often manual, onetime efforts).
structure, execution teams, and performance
the organization and there is a commitment to organization. Key processes flow seamlessly
their own work and communications across Systems drive baseline process continuous process improvement program. across firewalls.
evaluation.
departments is mostly informal
There is no governance of the transactional There is some governance of the transactional Full governance of the transactional
To what extent does governance of the
departments / shared service center to departments / shared service center to departments / shared service center
PP transactional departments / shared service
Ï 02
Governance
center safeguard internal control, quality,
N/A N/A N/A safeguard internal control, quality, efficiency safeguard internal control, quality, efficiency safeguards relevant internal control, quality,
and other requirements. The internal demands and other requirements. The internal demands efficiency and other requirements. Internal
efficiency and other requirements?
from the organization are not adequately met. from the organization are reasonably met. demands from the organization are fully met.
Internal controls are fully aligned with the
To what extent are internal controls aligned
PP Internal The company has not adopted an internal Internal controls are not aligned with the Internal controls are reasonably aligned with Internal controls are fully aligned with the strategy and risk profile of the organization, and
Ï 03 controls
with the strategy and risk profile of the N/A N/A N/A
control framework strategy and risk profile of the organization the strategy and risk profile of the organization strategy and risk profile of the organization enable effective and efficient management of
organization?
major risks
Interconnections, dependencies and resources
An end-to-end design of the process have been
To what extent does process documentation The documentation of the finance processes is There is accessible documentation of how work shared with other processes are explicitly A dynamic electronic model of the process and
defined and formally documented, and is
PP Documentatio support management analysis of primarily functional, but identifies some is to be performed at the functional and activity shown. There are explicit connections between underlying systems architecture has been
Ï 04 n environmental changes and process
N/A N/A N/A
interconnections among the stakeholders level. However, this is not aggregated across
accessible to employees and managers. A
the process documentation and the established and is supported by a rich tool set
process for the maintenance and ownership of
reconfigurations? involved in executing the process. the full end-to-end process. organization's information systems architecture that is accessible to employees and managers.
documentation has been established.
and blueprint.

Controls consistently assist in the achievement

Basic control systems are in place but Control design broadly meets objectives and An effective and efficient control framework is
PP Frequent control failures have been identified of business objectives and are subject to
Ï 05
Controls How effective is the controls framework? N/A N/A N/A exceptions in control coverage or effectiveness
or risks not effectively managed by control
mitigates risk with limited or infrequent established and is fully integrated across the
continuous improvement in line with changing
are common place exceptions to effective operation lines of defense
business and environmental circumstances

There is a well-defined reporting process that is

Report preparation is mostly automated, with aligned across the business and produces an
There is some consistency and automation in Report-preparation is partly automated.
core data values automatically populated in integrated set of reports. The report
To what extent are processes in place to Reporting and planning processes are reports, but still a high degree of manual effort Analysis and explanations of variances is
PP reports. The reporting provides drill down and preparation is fully automated, with the focus of
Ï 06
Reporting explain financial performance, risks and N/A N/A N/A disjointed, with effort focused on data collection to check data values and confirm the integrity provided on a routine basis, and involves
analysis capabilities to support the commentary work effort being on providing commentary and
issues? and presentation activities of data. Analysis and explanations of variances manual processes to collect additional
on reports. Commentary is provided on a explanations. The commentary is forward
is provided on an ad-hoc basis information to support the commentary.
routine basis and in a consistent format. looking and support management actions and
decisions.

The company has a well defined decision

The company has a well defined decision
support and project appraisal process in place,
support and project appraisal process in place,
involving the assessment of project against
The company has established a decision involving the assessment of project against
criteria clearly aligned to the business strategy.
There is a basic decision support and project support and project appraisal process which defined criteria. The company periodically
To what extent are processes established to There is a continous process to monitor and
PP Decision There are few formal decision support and appraisal framework in place. Projects are assesses the performance of the project prior evaluates the performance of a project, during
Ï 07 support
support ongoing decision support and N/A N/A N/A
project appraisal processes. assessed mostly based on financial criteria, to the project commencing and at defined which all relevant assumptions underlying the
evaluate project performance, during which all
business case appraisal? relevant assumptions underlying the project/
prior to the start of the project. checkpoints. All relevant assumptions project/ business are evaluated. Upon project
business are evaluated. Upon project
underlying the project/ business are evaluated. evaluation, corrective action is taken when
evaluation, corrective action is taken when
appropriate. After a project, Finance always
appropriate. After a project, Finance always
evaluates the performance of the project.
evaluates the performance of the project.

The process design objectives are explicit and

A detailed end-to-end extended organization
stated in terms of company objectives and
The process design precisely reflects interfaces process design has been established and
The process has not been designed from an customer needs. An integrated, precise, cross-
A general description of the end to end process with, and the requirements of, other formally agreed to with all of the relevant
end-to-end point of view. Legacy design is used functional, end-to-end specification of the
flow is derived from the existing functional flow organization processes. Clear specifications of stakeholders. Precise specifications of
as the primary context for performance process has been created and documented,
PP Process To what extent are finance processes of work. Some performance improvement information flows and data sharing are information flows and data sharing across
Ï 08 design designed to enhance performance?
N/A N/A N/A improvement. Management control reliance is
techniques can be applied. Management
specifying who, where, in what order, under
established. Management control reliance is organization boundaries are established.
placed on detect controls; less than 5% of what circumstances and how the activities and
control reliance is placed on detect controls; 5 - placed on a mixture of prevent and detect Management control reliance is predominantly
these controls are automated. Non value controls are performed. Management control
10% of these controls are automated. controls; 26 - 50% of these controls are placed on prevent controls; level of control
activities are common. reliance is placed on a mixture of detect and
automated. automation exceeds 51%. Non value activities
prevent controls; 11 - 25% of these controls are
are rationalized.
automated.
 To what extent have expectations between Formal specifications for the different types of
Interfaces between organization processes are Interfaces with extended organization
finance process owners and the owners of A high level model detailing process inputs, stakeholders, the value they require from the
PP The process inputs, outputs, suppliers, and defined and understood. Formal internal processes are defined and understood. Formal
Ï 09
Expectations customer and supplier processes that N/A N/A N/A
customers have been identified.
outputs, suppliers and customer has been process, and their performance expectations of
service level agreements (SLAs) have been SLAs with customer and supplier processes
interface the finance processes been defined and documented. the process and its outputs have been
defined and agreed to. have been defined and agreed to.
established? established.
Policies and procedures are well developed
Policies and procedures are limited to key Policies and procedures are regularly referred
Policies and procedures are not defined and Policies and procedures are well developed, and consistently applied throughout the
PP How effectively do policies and procedures areas. An established process for developing to by external parties and emulated within the
Ï 10
Governance
support the organization?
N/A N/A N/A there is no consistent process for developing
and maintaining policies and procedures is in
communicated and understood, but not organization and continually updated in
sector. Policies have an impact on the external
and maintaining policies and procedures consistently applied across the organization accordance with changes in business strategy,
place business environment
objectives and other requirements
Improvement is identified in conjunction with Efficient and effective Improvement is
Improvement is reactive to the immediate need Specific improvement activities are reactively Continuous improvement is successfully
PP1 Process What programs are in place to continually the development of overall corporate plan but consistently undertaken and significantly
Ï 1 Improvement improve operations?
N/A N/A N/A following business or control failure with identified in conjunction with growth of, or
there are some deployment challenges in terms
deployed and integrated effectively with the
enhances the organization’s ability to meet its
variable success in deployment changes in the business existing business and its processes
of time and cost objectives

Score 0.0 0.0

Dimension: People & Organization
Weighted 0.0 0.0 Maturity Level
Add ? Level of
ID Sub-Process Question Current State Future State Basic Developing Established Advanced Leading Comments
Importance

Cultural fit starts at the employee selection

Culture is less adversarial and there are some Culture is collaborative and functional teams Culture is highly collaborative and the
Culture is adversarial, mutual distrust. No process, which includes process & cultural
PO cross-functional/process teams; however there focus on high quality execution. Process organization is focused on optimizing process
Ï 01
Culture What is the culture of the Finance function? N/A N/A N/A formal change management procedures. I’ll do
is limited understanding of crossdepartmental leaders define, deploy, enhance, and maintain definitions and execution. There is some
attributes. Ongoing process training for
my job, you do yours employees and new employees go through
process needs and dependencies core processes. process training for employees.
onboarding process training.

Shared Service Center ("SSC") established but

limited to the processing of core transaction Tax policy strategy, special projects,
Operational and functional silos; standardized
processes (e.g. AR, AP, T&E and masterdata External reporting, general accounting, fixed management reporting, sales and trade
PO Operating Operational and functional silos; non-standard core transaction processes like AR, AP, T&E
Ï 02 model
How is the Finance function organized? N/A N/A N/A
core transaction processes. and masterdata maintenance are standard
maintenance). Center of Excellence providing asset accounting, cost accounting and tax relations and other processes transitioned to
guidelines for non-standard processes compliance reporting transitioned to the SSC. the SSC. All Finance process activities are
across the silos.
established. SSC governance standards assessed for outsourcing potential
established.

Individual performance objectives are centrally Individual performance objectives are clearly
Individual performance objectives are aligned Individual performance objectives are aligned
Individual performance objectives are not coordinated and aligned to the strategy and and measurably congruent with organizational
PO To what extent are staff and key functions to the strategy and objectives of the with the organization strategy are fully
Ï 03
Alignment
aligned to the objectives of the organization?
N/A N/A N/A aligned to the strategy and objectives of the
organization but not well understood,
objectives. However, individual performance
integrated and embedded into all individual
strategic objectives and coordinated across the
organization objectives are not fully integrated across the lines of defense in the most efficient and
communicated or coordinated processes and activities
organization’s lines of business effective manner possible

Key individuals have developed deep skills in

finance, process performance improvement
Senior managers recognize the resource Training and development systems are in place
To what extent are people with appropriate A few people have other organization and change management. Finance provides a
A small group of people have other represented by people with broad and deep that support finance as a career; finance and
finance competency and process experience and/or formal finance training and diverse learning and development environment
organization experience and/or formal finance skills in finance and process performance process subject matter resources are managed
PO performance improvement skills present education and have had experience with and infrastructure to keep finance staff up to
Ï 04
Competency
across the organization? To what extent is
N/A N/A N/A training and education but a limited
process performance improvement in other
improvement and fund the development of
date. Finance has little difficulty in attracting
as a critical organization resource; mechanisms
appreciation for process performance such skill sets. Finance employees create an are in place to support them as a community of
there a formal process for developing and organizations and/or formal process training professional and adequately skilled individuals
improvement. annual development plan to formalize their excellence. Business and professional ethics
retaining skills in place? and education. for vacant positions. Certifications for internal
learning ambitions. are integral to learning programs.
learning programs are also accredited
externally.

Roles, activities and responsibilities are fully

Roles, activities and responsibilities are based
Roles, activities and responsibilities are loosely and mutually aligned between the business
Roles, activities and responsibilities are defined on the guidelines from the corporate Finance Roles, activities and responsibilities are fully
defined and not documented. Roles, functions, units' Finance Function and the corporate
and documented, but not based on corporate Function. Authority levels are in place but at and mutually aligned across the extended
To what extent are roles and responsibilities responsibilities and tasks of the Finance Finance Function. Authority levels are
PO Roles and guidelines. Roles, activities and responsibilities times impede operational performance. organization. Authorization is limited to a single
Ï 05 responsibilities
defined and aligned; duties segregated and N/A N/A N/A Function lack clarity and transparency.
are clear and transparent. Authorization levels Authorization levels are held on the system. All
rationalized so as to not impede operational
event. All employees are able to access
authorization levels in place? Authorization levels are not in place or are not performance. All employees are able to access
were communicated but poorly implemented. employees are able to access relevant policies, relevant policies, procedures, working
communicated. The organization lacks relevant policies, procedures, working
Duties are inadequately segregated. procedures, working instructions and manuals. instructions and manuals on-line.
segregation of duties. instructions and manuals on-line. Duties are
Duties are segregated.
segregated by the system.

All Finance employees frequently support All Finance employees frequently support
Finance frequently supports decision making decision making on business cases being part decision making on business cases being part
Finance does not support decision making on Finance sometimes supports decision making
on business cases being part of of multidisciplinary teams (marketing, sales, of multidisciplinary teams (marketing, sales,
PO Decision To what extent does Finance support business cases and is not engaged in on business cases being part of
Ï 06 support decision making on business cases?
N/A N/A N/A
multidisciplinary teams (marketing, sales, multidisciplinary teams (marketing, sales,
multidisciplinary teams (marketing, sales, operations, etc). Even when policies do not operations, etc). Even when policies do not
operations, etc), but not all of the Finance require such, the Finance Function is frequently require such, the Finance Function is always
operations, etc) operations, etc)
employees participate invited to participate in projects and major invited to participate in projects and major
business decision making business decision making

The process owner role is formal, documented A significant amount of the process owner's The process owner sits on the organization
The process owner role is informal and may be
To what extent is the finance process owner The process owner is an individual or a group and announced, with responsibility and time is committed to the process. The process governance board/ management team. The
PO part-time; the role is usually filled by the
Ï 07
Authority a member of the organization's most senior N/A N/A N/A informally charged with improving the process's
functional manager with the largest role in the
authority for driving end-to-end process owner's rewards and compensation are based process owner is accountable and responsible
decision making authority? performance. improvement. A portion of process owner on process and interprocess performance and for inter-organization, end- to-end process
process.
compensation is tied to process performance. improvement goals. performance and improvements.

A formal strategic plan and budget derived from

The finance process owner works across
the organization strategic plan exists for
The finance process owner clearly articulates organization process boundaries to address
The finance process owner identifies and finance and finance process improvement.
To what extent do finance process owners The finance process owner sponsors the value of end-to-end process design and finance process integration and performance
PO documents the process, communicates the Inter-process impacts are reflected in the
Ï 08
Activities participate in organization-level strategic N/A N/A N/A
process to finance employee's, and sponsors
improvement and standardization projects that links it to organization strategy; oversees and improvement. Process owner is focused on
strategic plan for finance process. The finance
planning and collaboration? touch on other functional areas. runs redesign; and regularly communicates integrating finance process in the organization
small-scale performance improvement projects. process owner sponsors and drives
performance expectations and results. to improve organization performance.
interorganization finance process redesign and
continuous improvement projects.

Finance employees are able to explain the

finance process in its entirety including
interfaces with other processes across the Finance employees understand fundamental
To what extent are finance employees Finance employee's can identify the processes organization, how metrics are calculated, how industry structure and trends are able to
Finance employee's can name the processes
PO familiar with the organization's industry and of which they are part, who the stakeholders End-to-end process orientation is a formal part these relate to entity performance, and how to explain the extended organization process
Ï 09
Knowledge
trends and are able to describe how their
N/A N/A N/A they execute and identify some key metrics of
are, what value the process provides them, and of finance employee training. use the metrics to analyze finance process including interfaces and inter-dependencies
the process performance.
work supports organization performance? how well the process is performing. performance. They can describe how their with internal stakeholders, external customers
process performance compares to industry and suppliers.
benchmarks and leading practice
organizations.

HR records and process improvement

Finance employees have formal orientation of Formal training in teamwork and self- documentation show that finance employees
Finance employees lack skill for process Formal training and education in decision-
To what extent are finance employees process performance improvement tools (e.g. management is part of finance employee successfully deploy process improvement
problem solving and process improvement making and in giving and receiving feedback is
PO versed in finance process performance problem-solving, storyboards, etc). Finance development. Informal teams have formed techniques. Finance teams identify process
Ï 10
Skills
improvement, project management and
N/A N/A N/A techniques. Some individuals have an informal
employees participate in basic enhancement around natural work groups. Supervisors have
documented in finance employee training
improvement opportunities and creative
orientation of process performance records. The number of supervisors is further
change implementation? and problem-solving projects within the finance begun the shift from direction to coaching; the alternatives. Coaches replace supervisors
improvement tools. reduced; the role of the coach is formalized.
function. number of supervisors has been reduced. institutionalizing finance capacity to act as a
‘business partner’
 Process compliance audits, performance
Finance employees exhibit an understanding of Finance employees understand competitive
Finance employees focus some of their effort results, team assessments, and individual
the cross-process impact of their work. Finance pressures and the impact on finance
Finance employees have some allegiance to on basic performance improvement and employee evaluations indicate strong
PO To what extent are finance employees able employees monitor and manage their own processes. Finance employees demonstrate
Ï 11
Behavior
to identify improvements to a process?
N/A N/A N/A the process, but owe primary allegiance to their problem-solving projects within their process adherence to the process. Finance employees
performance in terms of its impact on other understanding of the needs of people working
role within the finance function. area; such efforts are aligned to the larger communicate with others working in the
stakeholders and on process goals and for customers and suppliers and regularly seek
process. process and shape their work activities as a
metrics. opportunities to enhance performance.
result.

The process owner role is formal, documented A significant amount of the process owner's The process owner sits on the organization
The process owner role is informal and may be
The process owner is an individual or a group and announced, with responsibility and time is committed to the process. The process governance board/ management team. The
PO Process To what extent is the finance process owner part-time; the role is usually filled by the
Ï 12 ownership role defined?
N/A N/A N/A informally charged with managing the process's
functional manager with the largest role in the
authority for driving end-to-end process owner's rewards and compensation are based process owner is accountable and responsible
performance. improvement. A portion of process owner on process and interprocess performance and for extended organization, end- to-end process
process.
compensation is tied to process performance. improvement goals. performance and improvements.

The finance process owner has been given

authority to enhance and deploy the process,
The finance process owner controls and
and authority for a portion of the budget for Process owner controls the IT and overall
allocates human and financial resources for the
process-enabling systems and the performance improvement and change
To what extent can finance process owners The finance process owner lobbies for the The finance process owner frequently makes improvement and execution of the finance
PO maintenance of legacy systems; can requisition management budget related to the process; is
Ï 13
Influence influence other functional areas to make N/A N/A N/A process but can only encourage functional presentations about the process and its
specific individuals for full-time assignment to engaged in budgeting for process execution;
process, including finance, IT and other
process changes? managers to make changes. performance to peers and senior managers. personnel; and has authority and budget to
the process enhancement effort; can veto and is a formal contributor to process team
launch extended organization finance process
maintenance efforts on relevant legacy performance evaluations.
performance improvement initiatives.
systems; and specifies business requirements
for relevant new systems.

The internal development of personnel is

The process has formal policies that include
actively managed and recognized as a cheaper
PO Career To what extent is there a career Personnel are not assigned individual succession planning and career mapping. Succession plans and career mapping are
Ï 14 development development program in place?
N/A N/A N/A
counselors and mentors.
Personnel have informal counselors.
However, these policies are mainly applied to
and more effective long-term alternative.
integrated and actively tracked.
Individual career aspirations are managed
management only.
through counselor and mentor programs.

PO To what extent is training and performance Personnel are not required to have personal Formal documented policies and procedures A recognition and reward program is in place A recognition and reward program is in place
Ï 15
Appraisal
appraisals conducted?
N/A N/A N/A
learning and development plans.
Informal learning plans exist.
require personnel to have learning maps. and is applied annually. and is applied throughout the year.
Well defined organizational structures are Well defined organizational structures are
The organizational structures are defined, aligned to the strategy and objectives, operate designed to meet the strategy and objectives,
Does the organizational structure support a
PO Organizational Organizational structures are not clearly Key organizational structures are defined, yet a aligned to the strategy and objectives, are efficiently and effectively and are consistently operate efficiently and effectively, are
Ï 16 structure
strong governance framework? N/A N/A N/A
defined number of informal structures remain understood and for the most part, operate deployed across boundaries. The impact of the consistently deployed across boundaries and
effectively organizational structure on risk and control is influence others within the sector and broader
considered on an informal basis business environment

Technology is fully leveraged to exchange

knowledge and disseminate decisions and
Clear communication protocols exist and are Technology supports effective communication
messages in a timely and effective manner.
open, two-way communication with all and plays a key role in supporting two-way
Communication systems exist but are not Two-way open communication is actively
There are no formal communication systems or stakeholders is actively encouraged. communication. Open and clear lines of
How effectively does the organization formally defined. IT systems are used, but not encouraged and systems and processes are in
PO Communicatio processes in place to disseminate key Technology is extensively used to disseminate communication are established and aligned
Ï 17 n
communicate to internal stakeholders? N/A N/A N/A
decisions and messages. Communication is
fully leveraged to support internal
decisions, key messages and promote the with the culture of the organization. Knowledge
place to validate that key messages have been
communications. Communication is still received and understood. Effective
largely one-way (top-down) culture of the organization. Knowledge capture is captured, but opportunity exists to develop
primarily one-way (top-down) communication is aligned to the culture of the
and communication is recognized as an the use of IT to communicate knowledge and
organization and is considered, by
opportunity that has not yet been fully exploited support effective communication
stakeholders, to provide a significant
competitive advantage

Score 0.0 0.0

Dimension: Technology & Data
Weighted 0.0 0.0 Maturity Level

Add ? Level of
ID Sub-Process Question Current State Future State Basic Developing Established Advanced Leading Comments
Importance

Leverage ERP systems for integration across

enterprise and value chain using global
instance strategy. IT strategy aligned with
Business strategy. Enterprise Architecture
discipline ingrained across the enterprise with
Leverage ERP systems for enterprise wide
active collaboration with business & technology
integration. Global ERP instance strategy for
Leverage ERP systems for cross-functional partners. Utilize . Leading edge tools for
efficient consolidation and reporting and lower
integration. IT supports business process proactive business process management and
Independent systems with some degree of infrastructure costs. Utilize Business Process.
leadership team in initiatives (business monitoring. IT Service management standards
Independent systems with minimal automation. integration and automation. Migration from Management (BPM) platforms to automate
objectives focused). System and instance such as ITIL adopted across enterprise.
TD Which statement describes your IT Integration only within functional silos or Legacy systems to new enterprise process execution, monitoring, and control
Ï 01
IT Strategy
environment?
N/A N/A N/A
business units. Legacy enterprise system(s) application/ERP platform in progress. Point-to-
consolidation to streamline processes and
across the Enterprise. Architectural standards,
Dedicated teams for identification of emerging
reduce costs. Architectural standards, policies technologies and leading industry trends for
lacking performance, scalability and flexibility. point partner integration. IT leads cross- policies and guidelines exist for most business
and guidelines exist partially across functions enabling business transformation and
functional initiatives (systems focused) functions across enterprise. IT Service
and regions. IT mostly viewed as a support innovation. Focus on Green IT to contribute to
management standards based practices exist
function and Cost/Expense to the Business. environment conservation and improve
partially in functions/regions. IT viewed as an
corporate citizenship image. IT talent and
effective business partner.
leadership development key corporate priority.
IT represented in all executive/C-level business
decisions. IT viewed as an effective business
partner, competitive advantage and a strategic
enabler.

A common enterprise wide ERP platform is

Multiple ERP/enterprise systems within
An ERP or similar integrated system is deployed that reflects leading industry
business units/functions support finance
implemented across the enterprise. Data and standards and supports enterprise finance
Existing legacy information systems support processes. A middleware or similar system is
To what extent does the IT system adhere to interface standards are employed in the management. Technologies, policies,
TD Industry Fragmented legacy IT systems support Finance and reinforce functional orientation ; these used to integrate and extract finance process
Ï 02 standards
industry standards and support the finance N/A N/A N/A
processes. Integration only within functions. systems lack data and interface standards and performance data from legacy systems. Basic
system. A formal dashboard system is used to standards, and processes for sharing,
process? track and report process KPIs. All applications reporting, monitoring, and proactively
communicate ineffectively. process modeling technology is employed and
supporting finance are supported by a common managing enterprise business performance are
a spreadsheet-based system or similar is used
infrastructure. deployed. The finance information system is
for tracking key finance process metrics.
the key business information system.

Formal development planning and talent

management processes are enabled by
HR applications help in tying a portion of organization wide HR application platform.
Fragmented HR systems enable evaluation HR applications enable most performance
To what extent do HR systems reinforce Finance function managers manually monitor reward and compensation to end to end People are matched to positions regardless of
Human and reward process to explicitly recognize appraisals and variable compensation based
TD collaboration, personal learning, and performance and reward the attainment of finance process performance. Process-based geography. Reward and recognition systems
Ï 03
Resource
organizational change for Finance
N/A N/A N/A
functional excellence and the resolution of
contributions towards process improvement
job descriptions, skill requirements, and training
on finance process-related performance. HR
support risk taking and personal and
Systems projects and the development of competency in system enables process centric job definitions
organization? functional problems. are provisioned in HR system for access and professional development on the part of the
problem-solving. and career planning.
maintenance by all managers. individual. Where appropriate, a portion of
rewards and compensation are tied to inter-
organization process performance.
 Manual interventions are minimal and
automation leveraged for processes to the
Manual interventions are minimal and
maximum extent possible. An integrated
automation leveraged for processes to the Manual interventions are minimal and
information system configures all transaction
maximum extent possible. An integrated automation leveraged for processes to the
processing cycles. Automated workflow to route
information system configures several maximum extent possible. An integrated
TD To what extent are transactional processes Manual interventions are limited and most documents to relevant personnel. Automated
Ï 04
Automation
automated?
N/A N/A N/A Manual interventions are frequently required
processes are automated
transaction processing cycles (accounts information system configures several
transaction processing performance monitoring
payable, accounts receivable, cash transaction processing cycles. Automated
tools in use with proactive measures to correct
management, fixed assets, inventory workflow to route documents to relevant
repetitive incidents automatically based on
management, general accounting, statutory personnel
predefined business rules. Extensive reporting
reporting; if applicable).
and historical trend analysis for identification of
ongoing improvement opportunities.

Plans, budgets, forecasts and management

reports have standard structures and formats
that are aligned with enterprise wide reporting
Plans, budgets, forecasts and management standards and formats reflecting user’s way of
reports have standard structures and formats. processing information (e.g. strategic review
Plans, budgets, forecasts and management
To what extent are planning and reporting Plans, budgets and forecasts have no standard Plans, budgets, forecasts and management Plan, budget and forecast formats are aligned reports use extensive visuals and integration of
TD Reporting reports have standard structures and formats
Ï 05 standards
formats standardized and used consistently N/A N/A N/A structures and formats, and are not aligned reports have standard structures and formats
across enterprise. Plan, budget and forecast
with reporting formats. Planning calculation internal, external and qualitative business
across the organization? with reporting formats within business units / functional silos. methods and assumptions are aligned and measures rather than detailed tables and lists).
formats are aligned with reporting formats.
standardized, with common models used Planning calculation methods and assumptions
across the organization. are aligned and standardized, with common
models used across the organization.
Integrated planning models reflect
interdependencies between functions.

An enterprise wide platform based on ERP or

similar software is used for planning, budgeting
and forecasting functions These tools are
robust, easy to use, and highly automated.
Other advanced features include: (i)
Configuration of hierarchical models of the
business. (ii) Workflow: Business process
A corporate central department develops and
A corporate central department develops and automation, incorporating routings, status
maintains a standard set of IT tools for An enterprise wide platform based on ERP or
Development and maintenance of IT tools for maintains a standard set of IT tools for monitoring, and alert notifications.(iii)
planning, budgeting and forecasting. IT tools similar software is used for planning, budgeting
To what extent are the planning, budgeting planning, budgeting and forecasting is done in planning, budgeting and forecasting. These International capabilities: Support for foreign
TD Reporting used are spreadsheet based (eg. Excel). IT and forecasting functions These tools are
Ï 06 automation
and forecasting tools robust, automated and N/A N/A N/A the business unit. The IT tools used are
tools for budgeting and reporting are aligned
tools are robust and easy to use. The tools are
robust, easy to use, and highly automated,
currencies and languages. (iv) Modeling:
integrated? spreadsheet based (e.g. Excel). No alignment used consistently across business units and Formulas to model scenario-based business
within business units. These tools are used They are aligned with reporting formats at
with reporting formal integration exists along with alignment drivers and for spreading and calculating
independently by business units without formal enterprise level.
with reporting formats at enterprise level. detailed or summary values. (v) Annotation
integration at enterprise level.
capabilities: The ability to document, in context,
the underlying assumptions used to develop
the business models. (vi) Versioning: The ability
to maintain separate versions of plans,
including tracking of revisions. (vii) Data
management tools: ETL Tools for importing and
exporting

Standard data definitions used across the

enterprise as well as value chain leveraging a
common Master Data Management system
Standard data definitions used across the based on ERP platform. All management
Standard data definitions are used throughout enterprise leveraging a common Master Data information is captured and analyzed via single
Data definition standards exist within business
No standards exist for data definitions. Data is the enterprise. Most company wide Management system based on ERP platform. global instance of ERP platform. Best of breed
TD To what extent is data defined and used units but are not consistent across enterprise.
Ï 07
Data reliability
consistently throughout the company?
N/A N/A N/A inconsistent and redundant with no formal data
Procedures for checking data integrity and
management information is captured in a All management information is captured and tools used for Data Quality. The number of
maintenance procedures in place. central data warehouse Automated tools in use analyzed via single global instance of ERP manual interventions/actions in the process
consistency are in place.
for data integrity and consistency checks. platform. Best of breed tools used for Data from data source to the report is reduced. Data
Quality. governance best practices are implemented in
alignment with process engineering and
organizational structure design efforts. Data
managed as a corporate asset.

Industry leading statistical software for decision

Finance supports decision making with Finance supports decision making by
support is used to enhance quality and
scenario analysis performed in spreadsheet developing and analyzing broad and detailed
efficiency by using advanced algorithms and
Finance does not have any technology tools to Finance supports decision making with basic based models. Standard spreadsheet based scenarios (involving multiple assumptions and
TD Decision To what extent does Finance use technology simplifying information presentation. Data
Ï 08 support to support decision making?
N/A N/A N/A help in decision making process. Manual data scenario analysis performed in spreadsheet templates are designed and implemented for risk management techniques). Standard
warehousing techniques and data mining are
comparison and analysis. based tools. decision-support/ scenario modeling within (statistical) applications for decision support are
used for analyses. Industry and market specific
business units but not consistent across used to enhance quality and efficiency of
factors included in modeling techniques for
organization. decision support activities.
business decisions.

Policies for support processes are established.

Causal analysis of IT defects and other
Changes to the configuration items are tracked IT Support processes are defined and
problems is performed and alternatives are Quantitative (measurable) objectives based on IT support processes follow leading standards
and controlled. Non-compliance with QA managed. Configuration baselines are
TD To what extent do IT activities support proposed. Guidelines to determine which customer needs and business objectives have such as ITIL. Root cause analysis and
Ï 09
IT support
finance systems?
N/A N/A N/A
issues are subject to a formal evaluation
standards is tracked and communicated, and established and maintained. Regular audits are
been established for IT support processes and continuous improvement initiatives are
resolution is addressed. Root causes of defects performed of IT support processes and strong
process are established. Data collection and the processes have been stabilized. institutionalized.
and other problems are systematically adherence to the process is reported.
storage procedures are specified.
addressed to prevent their future occurrence.

The requirements of Finance are analyzed and

validated, and a definition of supporting The application development and deployment
Finance needs, expectations, constraints, and A process for enhancing the application
Finance requirements are refined and functionality is developed. Requirements are process followed by IT and the management of
To what extent is IT able to address the interfaces are collected and translated into development and deployment process is
TD elaborated on. Policies for planning and validated to facilitate the resulting product to the requirements of Finance is stable and
Ï 10
Development technology and data requirements of N/A N/A N/A customer requirements. Requirements are
performing the requirements management perform as intended. IT is able to provide reliable. Quantitative objectives which address
defined. IT supports continuous improvement in
Finance? managed and inconsistencies with project fulfilling the requirements and relevant
process are established. adequate resources. Requirements are quality and performance, based on finance
plans are identified. business objectives of Finance.
monitored and controlled; where necessary needs and business objectives are established.
appropriate corrective action is taken.

Single data entry; maintenance occurs via the

Master data is managed centrally via a ERP system; ERP system enforces
common ERP or similar software platform. independent online capture and release
System access for the maintenance of sensitive
Manual change request forms are authorized Single point of data entry, changes and (review and approval) of data changes. Data
masterdata is restricted; segregation of duties
prior to master data changes. System access deletion; maintenance occurs via a system Warehouse is used for customized ad-hoc
TD1 To what extent is masterdata integrity and Masterdata maintenance is decentralized; is enforced. Change request forms are
Ï 1
Masterdata
quality enforced by the system?
N/A N/A N/A
performed in an ad-hoc reactive manner.
for the maintenance of sensitive masterdata is
periodically reconciled to edit reports.
interface that enforces independent capture reporting. Best of breed Data Quality software
mostly limited. Master data maintenance is and approval of data changes. System field is used across the enterprise and value chain
Mandatory fields and naming conventions are
decentralized. level validations prevent data anomalies; event to enforce data quality that integrates with
established.
driven desk top ("push") exception reporting is enterprisewide masterdata system based on
used. ERP platform. Masterdata integrity and quality
is reliable.
 Score 0.0 0.0
Dimension: Performance Management
Weighted 0.0 0.0 Maturity Level
Add ? Level of
ID Sub-Process Question Current State Future State Basic Developing Established Advanced Leading Comments
Importance

The performance of the Finance Function and

The performance of the Finance Function and its processes is measured against budget for
The performance of the Finance Function and its processes is measured against budget for distinguished areas within the Finance
its processes is measured against budget for distinguished functions within the Finance Function. Achievement of major objectives are
distinguished areas within the Finance function. function. Achievement of major objectives are also measured. The Finance Function monitors
The performance of the Finance Function and
Role and How is the performance (effectiveness, The performance of the Finance Function and Achievement of major objectives are also also measured. The Finance Function monitors surprises coming out of the financial closing
PM its processes is measured against budget and
Ï 01
position of efficiency, cycle time, productivity, quality N/A N/A N/A its processes is measured against budget.
also the achievement of major objectives.
measured. The Finance Function monitors surprises coming out of the financial closing and forecasting process. The administrative
Finance and value added) of Finance measured? Working capital is not monitored or managed. surprises coming out of the financial closing and forecasting process. The administrative processes are evaluated with efficiency and
Working capital reviews are initiated.
process. The administrative processes are processes are evaluated with efficiency and quality of service KPI's. The Finance Function,
evaluated with efficiency KPI's. Working capital quality of service KPI's (balanced scorecard). its processes and owrking capital are regularly
is somewhat being monitored and managed. Working capital performance is actively compared to external benchmarks. Finance
managed. management is evaluated on its value adding
role also by the business.

Based on the business strategy, specific targets

are defined and translated into a well balanced
Based on the business strategy, specific targets
set of (controllable) operational and financial
are defined and translated into a well balanced
KPIs, which build upon relevant and well-
set of (controllable) operational and financial
Based on the business strategy, specific targets defined business drivers. Plans, budgets and
KPIs, which build upon relevant and well-
The operational plan, the P/L and B/S are are defined and translated into a well balanced forecasts are based on these KPIs. The KPIs
PM To what extent does business strategy The operational plan and the budgeted P/L are defined business drivers. Plans, budgets and
Ï 02
Alignment
translate to executable targets?
N/A N/A N/A
one and provides the targets for the business
translated into a well balanced set of set of (controllable) operational and financial
forecasts are based on these KPIs. The KPIs
are applied consistently throughout all
(controllable) operational and financial KPIs. KPIs. Plans, budgets and forecasts are based Business Lines. Personnel incentives of
are applied throughout all business Lines.
on these KPI's management functions are based upon
Finance and business employees have a
controllable operational and financial KPIs.
common understanding of the business
Finance and business employees have a
objectives.
common understanding of the business
objectives.

The KPIs have been translated into process

The KPIs have been translated into process
performance indicators. They are frequently
PM To what extent have KPIs been translated The KPIs have not been translated into process The KPIs have somewhat been translated into The KPIs have been translated into process performance indicators. They are frequently
Ï 03
Alignment
into process performance indicators?
N/A N/A N/A
performance indicators process performance indicators performance indicators monitored by the process owners, together with
monitored by the process owners, together with
the controller. They are also taken into account
the controller
for individual performance review and rewards.

Formal process leadership establishes Process teams responsible for overall Inter-organization process teams own
Local and functional level authority / autonomy. Hierarchical mgmt. structure. Independent
PM priorities. Business cases drive projects. performance. Relevant process metrics performance. Relevant process metrics are
Ï 04
Controls To what extent are process metrics used? N/A N/A N/A No organization-wide standards or governance. functional department decisions. Limited
Process metrics tied to individual and team institutionalized as main performance used to measure bi-directional partner
No formal value measurement program organization-wide standards or governance
performance measures performance

A causal model of organization performance

that cascades organization strategic goals into A causal model of extended organization
Metrics and targets are directly linked to
Finance process metrics are predominantly finance process performance requirements has performance incorporating external customers
stakeholder requirements and are expressed in
PM To what extent have finance process metrics The finance process has some basic cost and legacy, typically lagging indicators at the been defined and agreed to. Finance process and suppliers is defined and agreed to. Joint
Ï 05
Alignment
been derived from organization goals?
N/A N/A N/A
quality metrics. functional level. A few high-level cross-
terms of the end-to-end process and process
goals and metrics reflect interprocess business and end-to-end process goals and
outputs. The administrative processes are
functional metrics are defined and tracked. dependencies. The administrative processes KPIs are established and managed with
evaluated with efficiency KPIs.
are evaluated with efficiency and quality of customers and suppliers.
service KPIs.

Actual and targeted performance metrics are Finance process performance improvement
Metrics trigger finance function continuous
formally reported and managed. Metrics trigger discussions and projects are framed by Extended organization process performance
improvement or problem solving projects. A
Managers view finance process metrics to track and guide end-to-end process redesign and process metrics. Metrics are documented, metrics and targets are regularly reviewed with
limited linkage has been made between finance
PM To what extent do managers use process process performance, identify root causes of improvement projects. The finance processes electronically accessible, and actively reviewed stakeholders. Metrics form an established
Ï 06
Metrics
metrics in strategic planning?
N/A N/A N/A
faulty performance, and drive functional
function performance and overall process
have been formally benchmarked. Finance at all levels. Performance improvement projects process management process. Metrics and
performance. Some limited trending data is
improvements. function managers make use of process address interprocess dependencies; individual targets are reviewed regularly for strategy
available. Benchmarking is performed at the
performance metrics in conducting individual accountability and reward systems are tied to execution and strategic alignment.
finance function level.
performance reviews. process metrics.

Formal documentation of an organization- Business transformation and continuous and

Improvement projects follow a high-level standard process for sustainable performance sustainable performance improvement process
To what extent is continuous and sustainable The organization uses one or more Process improvement projects are conducted
PM roadmap; however different teams may use improvement has been developed; formal and sub-processes are recognized as
Ï 07
Methodology performance improvement supported N/A N/A N/A methodologies for solving problems and by following formal methodologies and
versions of the methodology and varied tool training is provided and compliance with the governance processes. A formal structure with
throughout the organization? making incremental process improvements. documented techniques.
sets. Funding is managed at an executive level. process is expected. A formal program top executive sponsorship has been mandated
management office has been deployed. for process owners to meet on a regular basis.

Employees demonstrate pride in their work and

Employees across all levels: demonstrate a “do in the performance of the organization; reward Employees take pride in the success of other
To what extent is responsibility for the Management performance evaluation and
PM Responsibility for performance rests only with what it takes” approach to their work; work to systems are based in part on organization functional areas and customers. Reward
Ï 08
Responsibility achievement of business objectives placed N/A N/A N/A
high level managers.
rewards system is tied to achieving specific
solve problems; do not limit their concerns to performance; employees demonstrate systems are based in part on extended
on employees? operating improvements.
their own functional area. collaboration with and genuine interest for other organization performance.
areas of the organization.
J19: Helene L. Norbut:
why the gaps? Incomplete or n/a?
 Maturity Dashboard

Weighted Scores Maturity Profile - Weighted

Column D
Dimensions Current State Future State Current State
Operational Strategy 2.0 3.0 Future State
Process & Policy 2.0 3.0
People & Organization 3.0 4.0
Technology & Data 4.0 5.0 Operational Strategy
Performance Management 2.0 3.0
4
Performance Management 2 Process & Policy
0

Technology & Data People & Organization

 Maturity Dashboard

Raw Scores - Equal Dimensions Maturity Profile - Raw - Equal Dimensions

5.0
Column D 5.0
Current State

Maturity Score
Dimensions Current State Future State Leading Practice Current State
Future State
Future State
Operational Strategy N/A N/A 5.0 Leading Practice
Leading
Process & Policy N/A N/A 5.0 4.0 Practice
People & Organization N/A N/A 5.0
Technology & Data N/A N/A 5.0 Operational Strategy
Performance Management N/A N/A 5.0 3.0
0
3.
Vertical Maturity Index N/A N/A 5.0 Performance Management Process & Policy
. 0
0
2.0
Vertical Maturity Index (%) N/A N/A 100.00%

Technology & Data People & Organization

1.0

0.0

Raw Scores - Equal Questions Maturity Profile - Raw - Equal Questions

Column D 5.0
5.0
Current State

Maturity Score
Dimensions Current State Future State Leading Practice Future State
Current State
Operational Strategy N/A N/A 5.0 Leading Practice Future State
Process & Policy N/A N/A 5.0 4.0 Leading
Practice
People & Organization N/A N/A 5.0
Technology & Data N/A N/A 5.0 Operational Strategy
Performance Management N/A N/A 5.0
3.0
0
3.
Vertical Maturity Index N/A N/A 5.0 Performance Management Process & Policy
0
0.
2.0
Vertical Maturity Index (%) N/A N/A 100.00%

Technology & Data People & Organization

1.0

0.0

Basic Developing Established Advanced Leading

This dashboard provides a summary of the Maturity Profile results. It presents the client's current and future states consolidated by dimension. 1 2 3 4 5
The consolidate score is also presented as a percentage compared to the Leading Practice.
Maturity Profile Key Findings

Operational Strategy
Ref# Topic Description

Process and Policy

Ref# Topic Description

People and Organization

Ref# Topic Description

Technology and Data

Ref# Topic Description

Performance Management
Ref# Topic Description
Ï Question N/A N/A N/A Maturity 1 Maturity 2 Maturity 3

Current State (Weighted)

Operational Strategy Process & Policies People & Organization Technology & Data Performance Management WEIGHTED AVERAGE
Function N/A N/A N/A N/A N/A N/A
WEIGHTED AVERAGE N/A N/A N/A N/A N/A

Future State (Weighted)

Operational Strategy Process & Policies People & Organization Technology & Data Performance Management WEIGHTED AVERAGE
Function N/A N/A N/A N/A N/A N/A
WEIGHTED AVERAGE N/A N/A N/A N/A N/A

Current State (Raw) Equal Dimensions Equal Questions

Operational Strategy Process & Policies People & Organization Technology & Data Performance Management DIMENSION AVERAGE QUESTION AVERAGE
Function N/A N/A N/A N/A N/A N/A N/A
AVERAGE N/A N/A N/A N/A N/A

Future State (Raw) Equal Dimensions Equal Questions

Operational Strategy Process & Policies People & Organization Technology & Data Performance Management DIMENSION AVERAGE QUESTION AVERAGE
Function N/A N/A N/A N/A N/A N/A N/A
AVERAGE N/A N/A N/A N/A N/A