Supervision of the Control Department in the Italian affiliate of a multinational group in the context of a thorough reorganization of the Finance function.
The company operates in the aviation industry and its Finance Department is undergoing radical change. Team members are mainly very young, also in terms of years of service in the company. They urgently need support in organizing reporting to the parent company. This calls for a skilled, experienced manager to fill the position, currently vacant, and to pave the way for a permanent position.
The problem
The interim manager needs to guarantee the correct and punctual production of periodic reports for the patent company, in compliance with International Financial Reporting Standards and the internal procedures of the group. He also has to produce all the affiliate’s internal reports and share them with the local management, thus ensuring a form of management control and so monitor the performance of their various business areas. In detail, the objectives Contract Manager is required to achieve are as follows:
- To provide immediate support to the management control function through supervision of the Control team
- To draw up the budget for fiscal year 2022, along with quarterly forecasts and monthly closures for fiscal year 2021
- To ensure that the management control system works properly, checking the reliability and accuracy of input and output data
- To play a role in the ongoing implementation of an SAP-based company ERP for the Finance function
The solution
Contract Manager selected a qualified manager with solid expertise in management control. From the outset, he guaranteed full compliance with the parent company’s requirements and took the affiliate’s procedures to the highest standards.
- All budgeting and forecasts activities were completed within set deadlines and as per the parent company’s specifications.
- Monthly closures and management reports were regularly sent to Headquarters.
- Regular reports for analysis at a local level were produced in alignment with the specifications and deadlines set by the CEO.
- A plan to assess the quality of cost accounting data (based on cost centers and internal orders) was drawn up and reconciled with general accounts
- The interim manager successfully sponsored team building within the local management control department. The affiliate’s management appreciated the resulting climate of professionalism and competence which characterized the department’s work and the high standards it had reached.
In addition, the interim manager provided by Contract Manager helped to improve collaboration between Finance and other company functions. This had not always worked well previous to the assignment.