The interim manager was commissioned by a supplier to the automotive industry to introduce a Finance Shared Service Center (FSSC) for a total of 7 German companies. He was also tasked with setting up a competent finance team and implementing standardized business processes for the companies. Determining the financing requirements and transparent reporting on the economic situation completed the task. The training of a permanent successor in the role of finance manager rounded off the interim manager's task.
Shortly after the start of the project, another challenge arose. The consequences of the spreading coronavirus pandemic required the introduction of interlinked financial planning to monitor insolvency readiness.
Developing a structure and process organization for the Finance Shared Service Center
In order to create an efficient structure and process organization with suitable team members and appropriate management tools, the interim manager conducted interviews to determine the needs of all relevant stakeholders. He then structured the requirements for the finance function and prioritized the tasks, including through the use of a stakeholder matrix. He then developed a comprehensive project plan together with his team.
One of the high-priority sub-projects was the implementation of meaningful internal management reporting. To this end, he determined and defined relevant performance indicators. One challenge was to reconcile the external financial statements in accordance with IFRS with the internal management reporting in a comprehensible manner. The interim manager contributed his many years of experience in accounting in accordance with IFRS and HGB as well as in the preparation of financial plans. He ensured the dovetailing of controlling and accounting by introducing harmonized timelines, coordinated closing activities and regular reconciliations. The entire process was documented in a closing calendar, which also included the responsibilities.
Rolling liquidity planning coordinated and introduced with the parent company
The finance team at the FSSC temporarily determined the liquidity of the supported companies using a rudimentary template. This was not sufficient to adequately quantify future liquidity requirements. The interim manager therefore agreed a rolling liquidity plan (detailed planning for 10 weeks and aggregated for 12 months) with the parent company. In combination with the new management tools, measures to improve the economic situation were derived at an early stage and potential financial requirements were identified.
Competence profiles created and team set up for the finance function
The complexity of the corporate network and the business models of the companies involved required a range of special skills for the new finance team. In addition to in-depth knowledge of IFRS accounting, for example, agility and flexibility were also required due to the "start-up" nature of the business. The interim manager drew up corresponding role and skills profiles and also assisted with the recruitment process.
In order to ensure efficient processes in the new FSSC, the interim manager developed a training concept. The training sessions included the team members of the Finance SSC as well as employees from interface areas such as HR and Operations. The large number of participants and the broad cross-section promoted a positive side effect: the employees developed the feeling of being "taken along". This strengthened the sense of togetherness within the entire organization.
Corona: securing liquidity, restructuring and monitoring insolvency readiness
After just over two months of the project, the start of the coronavirus pandemic presented the project team with new challenges. The company's situation deteriorated significantly in a short space of time. During this phase, the interim manager reviewed the liquidity planning almost daily. Regular communication and complete financial transparency ensured the parent company's trust and formed the basis for providing the necessary funding.
In order to identify a potential insolvency at an early stage, the interim manager developed a comprehensive and interlinked financial plan (balance sheet, income statement, liquidity planning) in consultation with the management. Based on external IFRS financial statements, he prepared a reconciliation to financial planning in accordance with commercial law. This served as the basis for the final assessment of potential insolvency readiness.
Foundation of a transfer company and relocations to low-wage countries
In the same period, the interim manager worked with the management and the parent company to develop restructuring measures. In addition to setting up a transfer company, operational project activities were relocated to low-wage countries. In addition, organizational structures were streamlined and the cost structure was adjusted in cooperation with the main suppliers.
Finance Shared Service Center successfully put into operation after 6 months
After 6 months, the establishment of the new FSSC was successfully completed. With uniform processes, standardized reporting and a professional finance team, all the prerequisites for transparency have been created. The individual coaching, regular information and self-efficacy of the employees contributed significantly to the achievement of the project goals and employee satisfaction. Just in time for the conclusion of the project, the management of the finance function was handed over to the newly hired and trained Head of Finance.
The interim manager's contributions to ensuring liquidity have made a significant contribution to successfully overcoming the challenges of the coronavirus pandemic. The CFO of the companies managed by the FSSC was significantly relieved by the interim manager's versatile support and was able to focus on strategic issues and the development of other functions.
