This eBook outlines the 15 metrics recommended by The Hackett Group to benchmark your organization against world-class finance leaders
The Hackett value grid shows how your baseline performance compares to your peer group and world-class performers.
World-class performance is defined as the top quartile performance in operational efficiency and effectiveness process metrics.
EFFICIENY
World-Class organizations are more efficient, by having:
EFFECTIVENESS
World-Class organizations are more effective, by having:
Monitoring performance helps organizations identify process issues before they become a significant problem that affects business outcomes
The Hackett Group has identified the top 15 success metrics and benchmarked them against world-class companies based on the processes’ efficiency and effectiveness. In this eBook, we delve deeper into how the best-in-class organizations compare with the rest in the O2C cycle.
Efficiency Metric
World-class organizations are 33% faster in onboarding customers.
Best Practices from World-Class Organizations:
Benefits:
Efficiency Metric
World-class organizations have faster Improved productivity to work on high value customers and more accurate credit operations with the help of sophisticated, automated and dynamic credit modeling tools.
Best Practices from World-Class Organizations:
Benefits:
Efficiency Metric
World-class organizations reflect lower billing process costs by 8% in comparison to the overall database.
Best Practices from World-Class Organizations:
Benefits:
Efficiency Metric
World-Class organizations have been able reduce their average time to bill by 33% thus improving their cash inflow.
Best Practices from World-Class Organizations:
Benefits:
Efficiency Metric
World-class organizations reduced billing errors by 1.8% by automating their billing and invoicing
Best Practices from World-Class Organizations:
Benefits:
Efficiency Metric
Automated billing and invoicing helps top performers to reduce billing errors and create an exceptional customer experience
Best Practices from World-Class Organizations:
Benefits:
Efficiency Metric
Best Practices from World-Class Organizations:
Benefits:
Efficiency Metric
World-class organizations have twice the percent of hands-free cash posting with lower process costs
Best Practices from World-Class Organizations:
Benefits:
Efficiency Metric
Top performers have established a dispute resolution process that requires less escalation and speeds time to dispute closure
Best Practices from World-Class Organizations:
Benefits:
Efficiency Metric
World-class organizations established a More bandwidth to work on invalid deductions dispute resolution process that reduced escalation by 5% (half).
Best Practices from World-Class Organizations:
Benefits:
Efficiency Metric
World-class organizations have established automated collection process that enables lowered process costs by 66%.
Best Practices from World-Class Organizations:
Benefits:
Efficiency Metric
World-class organizations have established proactive and strategic collections process that enables 30% more contacts per FTE
Best Practices from World-Class Organizations:
Benefits:
Efficiency Metric
World-Class organizations leverage smart automation and create direct bottom-line impact by improving metrics such as ADD
Best Practices from World-Class Organizations:
Benefits:
Efficiency Metric
World-class organizations leverage smart automation to improve process effectiveness by 12%
Best Practices from World-Class Organizations:
Benefits:
Efficiency Metric
World-class organizations are able to reduce process cost by 56% in total by leveraging automation technologies.
Best Practices from World-Class Organizations:
Benefits:
We have gone past the point where there is a debate over whether or not businesses should undergo digital transformation. It is now a matter of experiencing the temporary disruption caused by the transformation process or suffering disruption from your competitors’ digital initiatives.
To start with the digital transformation journey, finance execs should consider heavy investment in the following areas:
Automation of clerical repetitive tasks across C2C
Core automation means that costs are low, and effort is allocated to the right tasks
A single, integrated platform
More effective in delivering services to internal and external stakeholders
AI-driven automation technology
Low-error rates in tasks
Integrated reporting and analytics
Better decision making and insights
Using big data and machine learning
Improved outcomes of A/R actions – meaning faster, more effective collections
Digital transformation can play a major role in helping peer-group organizations catch up to their world-class competitors. However, the reality is that the definition of world-class will continue to evolve as leading financial operations deploy smart technologies to transform themselves.
Thus, the quest for achieving world-class status never ends. Its future will require continuous improvement of cost structure, effectiveness, and stakeholders’ perceptions of how finance adds value to its performance.
HighRadius is a Fintech enterprise Software-as-a-Service (SaaS) company that leverages Artificial Intelligence-based Autonomous Systems to help companies automate Accounts Receivable and Treasury processes. The HighRadius® Integrated Receivables platform reduces cycle times in your order-to-cash process by automating receivables and payments processes across credit, electronic billing and payment processing, cash application, deductions, and collections.
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HighRadius Integrated Receivables Software Platform is the world's only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway - covering the entire gamut of credit-to-cash.