Reorganizing a Global Accounting Organization - Case Studies

ScottMadden assisted a global accounting organization to centralize and streamline in order to improve controls and reduce costs.

The Global Corporate Controller organization consisted of over 550 full-time equivalents in 36 locations around the world
The organization had evolved over time without a clear theme. Some functions, such as accounts payable, had been centralized in the U.S., but not elsewhere. Most functions were highly decentralized
Implementing improved accounting controls to comply with Sarbanes-Oxley requirements in a decentralized environment was a concern
The performance of the organization was good, with most cost and performance benchmarks reflecting above-average performance compared to peers
The Controller's management team recognized that it needed a more thoughtful and consistent approach to its organizational design to improve accounting controls and advance performance to the top quartile

Formed a project team consisting of key members of the controller's management team, representatives from IT and HR, and ScottMadden
Conducted a thorough assessment of the current organizational design. All accounting positions (company and contractor) in the organization were inventoried, labor costs were estimated, and spans of control and layers in the organization were calculated
Developed and assessed alternative service delivery models relative to company-specific criteria. A model was selected and refined to create the future organization design
Developed a business case for the new organization

The new organizational design was structured around one shared service center for each global theatre (Americas; Europe, Middle East & Africa; and Asia Pacific)
Global programs (e.g., credit) were to be managed from corporate headquarters, with theatre-based employees based in the shared service centers
The corporate controller, global program leads, and governance and policy functions were to be located in corporate headquarters
Cost savings of approximately 15% were realized from reduced headcount and lower wage rates

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