I have worked with many organizations and each company has its own way of controlling finance.
In some companies we never know who is in finance as as all the decisions related to cost and benefit are taken care by Delivery or direct management.
There are some organisations where Finance has say in everything. This type of management is dangerous for growth of organizations.
I can't take the name of companies for legal reasons but i can quote an example how the finance nose the impact your organization.
A company has dedicated Travel department to book the travel tickets for employees. A request is raised by the employee and it goes for approval to Line manager. Now request is moved to second line manager could be Delivery manager, approves the travel. But before this second line manager could approve they need a thing called budget. So the request goes to someone in Finance (business finance manager) to allocate the budget. Wait a second before this BFM could approve the request they need money at account level. So the request goes to someone AVP level to allocate money to account level. So BFM approve the amount. And Second line manager approves it finally.
This entire process can take 2 weeks or sometime forever if the person who wants to travel does not chase these folks. So ultimately the travel date nears.
Travel booking team books the ticket what ever is cheapest at the moment. So it could be the 3 time higher amount if the tickets could have been booked 2 weeks before as it is a last minute. Similar thing happens with Accommodation arrangement higher price are paid for hotel booking in last minute booking.
This kind of complex decision making process ends up with,
1. Poor money management
2. Poor results
3. Too much actual cost considering too many people's salary, process, system, last minute cost
4. Low employee moral
5. Low customer confidence
6. Missed revenue and missed opportunities
7. Damage to company image.
Above is real life example how having too much financial control could jeopardize your goals to become successful organization.
In some companies we never know who is in finance as as all the decisions related to cost and benefit are taken care by Delivery or direct management.
There are some organisations where Finance has say in everything. This type of management is dangerous for growth of organizations.
I can't take the name of companies for legal reasons but i can quote an example how the finance nose the impact your organization.
A company has dedicated Travel department to book the travel tickets for employees. A request is raised by the employee and it goes for approval to Line manager. Now request is moved to second line manager could be Delivery manager, approves the travel. But before this second line manager could approve they need a thing called budget. So the request goes to someone in Finance (business finance manager) to allocate the budget. Wait a second before this BFM could approve the request they need money at account level. So the request goes to someone AVP level to allocate money to account level. So BFM approve the amount. And Second line manager approves it finally.
This entire process can take 2 weeks or sometime forever if the person who wants to travel does not chase these folks. So ultimately the travel date nears.
Travel booking team books the ticket what ever is cheapest at the moment. So it could be the 3 time higher amount if the tickets could have been booked 2 weeks before as it is a last minute. Similar thing happens with Accommodation arrangement higher price are paid for hotel booking in last minute booking.
This kind of complex decision making process ends up with,
1. Poor money management
2. Poor results
3. Too much actual cost considering too many people's salary, process, system, last minute cost
4. Low employee moral
5. Low customer confidence
6. Missed revenue and missed opportunities
7. Damage to company image.
Above is real life example how having too much financial control could jeopardize your goals to become successful organization.
