In 2024, ScottMadden and APQC conducted the seventh cycle of the biennial Finance Shared Services benchmarking study to examine trends in delivery models, governance structures, staffing levels, performance, and the use of technologies within shared services. Our analysis identified top-performing organizations that consistently achieved top-quartile performance across eight key performance indicators, demonstrating excellence in staffing, efficiency, customer service, and cost. The top performers were compared to the other participants, termed the comparison group, and were more likely to engage in three key practices: 

• Employ end-to-end processes 

• Use global process owners for process governance 

• Leverage robust technology, automation, and advanced analytics 

A significantly larger percentage of the top-performer group has adopted end-to-end (E2E) processes compared to other participants. Nearly 80% of top performers have implemented record-to-report (R2R) processes, whereas only 61% of the comparison group has done so. Further, top performers were more than twice as likely to have adopted order-to-cash (O2C) processes. 

ScottMadden sees this broader E2E adoption often tied to efforts to improve cash flow and reduce downstream work, particularly in accounts receivable and collections. Much of this rework can be traced to data entry errors originating upstream in sales order processing. By managing the full process continuum, organizations can address root causes instead of repeatedly fixing symptoms. 

Adopting E2E processes enables organizations to holistically optimize workflows, improving coordination, collaboration, and accountability between upstream and downstream activities. This integrated view of process performance is a critical enabler of efficiency and service quality in high-performing finance organizations.

While service level agreements (SLAs) are the most common model for global process governance among all organizations, top performers show the highest use of global process owners. A global process owner is a single individual accountable for the performance and improvement of a given process across the entire organization. 

Specifically, 71% of top performers leverage global process owners, compared to 61% of the comparison group. This represents a clear upward trend, as adoption among top performers has increased from 39% in 2020 to 63% in 2022 and now reaches more than 7 in 10 leading organizations. 

This steady increase reflects a growing recognition of the value a dedicated individual brings in optimizing complex processes, ensuring accountability, goal alignment, innovation, continuous improvement, quality, and standardization across the enterprise. 

Technology, Automation, and Advanced Analytics

Top performers demonstrate greater maturity in technology adoption. At the median, top performers leverage six of the nine types of technologies studied, compared to five for the comparison group. These technologies enhance their efficiency, as evidenced by top performers’ faster median cycle time for the monthly financial close, likely due to their extensive use of financial close automation technology (80% of top performers vs. 44% of the comparison group). Top performers are also 1.4 to 1.9 times more likely to have implemented automation technologies, such as robotic process automation, chatbots, and generative AI, which enables greater efficiency and leaner staffing. 

ScottMadden has noticed that top performers often build automation centers of expertise that create a comprehensive strategy, placing the right technology on the right tasks. The deployment of well–thought–out suites of technology, rather than opportunistic proof of concepts from the comparison group, is likely driving these results. 

Interestingly, top performers and the comparison group experience different challenges in adopting AI. Top performers face challenges, such as shortages of skilled resources, technical expertise, and technology maturity, while the comparison group struggles with change-related challenges, such as a lack of organizational buy-in and stakeholder readiness. 

ScottMadden has noticed a general misunderstanding of what AI can and should do compounded by stakeholders’ mistrust of AI due to poor data, errors, and bias. This has made it challenging for both top performers and the comparison group to make significant strides at this early stage of AI integration into shared services processes. 

Additionally, top performers exhibit greater analytics maturity, with 61% leveraging advanced analytics with a predictive or comprehensive focus. Predictive analytics involves on-demand data available via dashboards, while comprehensive analytics incorporates structured and unstructured data, dashboards, and predictive models. In contrast, the comparison group primarily focuses on reporting and analysis, using metrics with some analytics in discrete systems or with data warehousing. This maturity of data analytics enables top performers to make data-based improvements, supporting their top performance.

The 2024 Finance Shared Services benchmarking study highlights the practices that distinguish top-performing organizations from their peers. These levers drive superior performance, with top performers achieving median cost and staffing efficiencies that are two to three times better than those of the comparison group. 

For finance shared services leaders, these insights offer actionable takeaways to enhance their operations and improve efficiency, quality, and customer service: 

• Optimize workflows with end-to-end processes, with emphasis on O2C 

• Enhance accountability with global process owners while maintaining transparency through SLAs 

• Invest in technology and advanced analytics while continuing to understand the benefits and challenges of AI 

• Recognize and address both technical and change-related challenges in adopting new technologies 

These approaches can help finance shared services leaders position their organizations for top performance, driving both operational excellence and strategic value. Contact ScottMadden to learn more.