Restructuring of finance departments.

The company operated in the minerals and mining space with a number of operational subsidiaries based around the world. Each operational entity maintained its own finance function and associated activities.

Objective

To build a finance team that was fit for purpose and capable of handling current and anticipated future requirements.

Task

  • To analyse the current structure of the various finance departments.
  • To analyse the tasks being undertaken by each of the finance departments
  • To determine from where finance tasks could be best delivered.
  • To analyse the costs associated with each finance function.
  • To determine whether efficiencies of practice and cost savings could be achieved through “tweaking” the current decentralised set-up or via a centralised group function.

Result

Following a detailed review of the various finance functions, their cost basis and the activities that were being delivered or not delivered, a centralised group finance function was implemented.

The finance function was rationalised, support functions operating in Dubai and Switzerland were closed and the functions relocated to the UK.

This resulted in a slimmed down and more efficient finance team. The overall number of finance staff was reduced by 25%, yielding an overall cost saving of $350k per year.

Coupled with a reduction in costs, enhanced control over operational aspects with more timely and accurate financial information being produced was achieved. The monthly close was reduced from 12 working days to 5.