Finance Function Redesign Delivers $2M in Savings and 30% Faster Close for HVAC Leader
Context
Seeking a scalable finance model to support long-term growth
Our client, a $600M leader in the HVAC and plumbing industry, had grown rapidly through the acquisition of over 15 operating companies. This expansion created complexity, and the existing finance organization was not equipped to support the company's long-term growth ambitions. They needed a clear vision for their future finance function and engaged us to design a scalable operating model with well-defined roles, responsibilities, and processes, and then partner with them to implement the new structure
What We Discovered
Process fragmentation and system inefficiencies hindered performance and trust.
Through in-depth stakeholder interviews, detailed process mapping, and financial data analysis, we uncovered several critical issues that were creating inefficiencies and undermining confidence in financial reporting across the organization:
- Fragmented Operations: Each operating company utilized different technology instances and followed varied processes, creating significant inconsistencies and hampering corporate finance efficiency.
- Process Bottlenecks: Manual steps and inefficiencies in core processes resulted in a protracted month-end close, averaging an excessive 23 - 27 days.
- Cash Flow Constraints: Significant challenges in Accounts Receivable management led to delayed vendor payments and strained the organization's cash flow.
- Data Integrity Gaps: Sync errors and inadequate controls between new and legacy systems resulted in unreliable data and frequent, time-consuming reporting discrepancies.
- Eroded Trust in Financials: The accumulation of these operational and process issues undermined the organization's confidence in its own reported financial information
Results and Impact
Delivering immediate savings, enhanced efficiency, and a foundation for scalable growth.
Our partnership enabled the client to transform their finance function, delivering measurable improvements in efficiency, cost, and operational capability. The key outcomes include:
- Realized $2M in direct annual cost savings while building a foundation for $3.8M in projected cost avoidance as the business scales.
- Reduced the month-end close timeline by 30%, enabling more agile decision-making and increasing the reliability of financial reporting.
- Strengthened the finance function's capabilities for managing operations at scale, leading to improved employee retention, higher morale, and a stronger foundation for future growth.
What We Did
A comprehensive redesign of the finance function, from structure to systems.
Our team provided end-to-end support, from initial design to full implementation, to build a modernized and scalable finance function. Key initiatives included:
- Finance Organization Redesign: We designed and implemented a future-state, hybrid finance structure to centralize key activities, clarify roles, and optimize staffing. We partnered closely with HR and Legal to operationalize the new model seamlessly.
- Core Process Optimization: Over 50 core finance processes were mapped and redesigned, with a focus on critical areas like Procure-to-Pay, Order-to-Cash, and Record-to-Report to eliminate bottlenecks.
- Standardization and Documentation: We developed and rolled out more than 20 Standard Operating Procedures (SOPs) to unify workflows, embed best practices, and preserve institutional knowledge through the transition.
- Technology Enablement and Automation: Our team assessed the system architecture and data flows to deploy key automation solutions, including AP/AR auto-matching, invoice exception workflows, and enhanced reconciliation between financial and operational platforms.
- Performance Management Framework: We established and deployed clear KPIs, standardized close calendars, and built performance dashboards for Treasury, FP&A, and Accounting to drive accountability and transparency.
- Comprehensive Change Management: We executed a structured change management plan, including targeted communications, “train the trainer” programs, and direct Go-Live support to ensure smooth adoption and empower finance leaders.
