case studies
Finance Process Modernization for a Family-Owned Conglomerate
Noel DCosta
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When I sit with finance leaders in family-owned conglomerates, one theme comes up again and again and that is Finance Process Modernization. The teams are still leaning on Excel to pull the group numbers together. It worked for years, no doubt, but once you start running businesses across the UK, Africa, and Asia, the cracks begin to show. What was once manageable suddenly feels messy and unreliable.
I remember one CFO quietly admitting that by the time his finance team finished consolidating the numbers, the board had already moved on to asking new questions. He said, “We close in 15 days, but the world changes in five.” This is the CFO of a multi-million family-owned business!
That comment stuck with me, because it shows how dangerous delays can be. Decisions that shape expansion or investments end up resting on numbers that feel stale.
The problems are often predictable:
Too much manual rework in consolidation.
Conflicting spreadsheets that tell different stories.
Leadership losing confidence in what is presented.
Some executives shrug it off, but eventually, someone at the board table asks why other companies can report in five days while their own team takes three times as long. Usually at this moment, there is silence!
Now, I would not say Excel is useless, but relying on it alone becomes risky. Modern finance needs structured systems that connect across regions. Tools discussed in resources like ERP AI advisory or even comparisons between Oracle ERP and SAP make it clear. The shift is less about fancy technology and more about giving leaders reliable numbers when they need them.
And if you ask me, the real threat is not the cost of change. The bigger risk is standing still while competitors speed ahead. So here is a case study where I helped this family business in their finance process modernization.
Finance process modernization is about moving away from manual, fragmented tasks and shifting to streamlined, automated workflows. It gives finance teams faster access to accurate data, which helps improve decision-making and reduces costly delays.
The Pain Point in Finance Process Modernization: Spreadsheet-Driven Consolidation
The finance team had a tough job. Each region, whether in the UK, Africa, or Asia, sent in its own spreadsheets. They looked different every time, and sometimes they arrived late.
Pulling them together was a difficult process. People spent days chasing numbers, fixing formats, and checking balances that never seemed to match. It felt endless, and no one trusted the outcome fully.
By the time the close was complete, the reports for the board were already out of date. Sometimes they landed weeks later, and that caused a lot of frustration at the top. Decisions had to be made without reliable figures.
The numbers were questioned more often than not, and the team could feel the pressure rising. Executives kept asking why was there a huge Excel dependency? This is because it was slowing everything down and creating mistakes that were hard to catch.
Auditors noticed the same issues. They raised concerns about the way consolidation was handled, pointing out the risks of running such a large process on disconnected spreadsheets.
That made the CFO’s position even harder. A CFO under pressure needs clear numbers for the board but instead had to explain delays and uncertainty.
Planning was no easier. By the time the figures were ready, operations had already moved on. Strategic goals and day-to-day activity were no longer aligned. Leaders wanted clarity, but what they got was a time lag that made long-term planning harder than it needed to be.
A few things stood out very clearly:
Reconciliation work took far too long.
Intercompany balances became arguments instead of solutions.
Reports came late, which left leadership without confidence in the numbers.
Finance Process Modernization Challenges and Solutions
| Common Problem | Impact | How to Fix It |
|---|---|---|
| Over-reliance on spreadsheets | Errors creep in, reporting slows down, and the team spends more time reconciling than analyzing. | Shift consolidation and reporting into SAP Group Reporting and SAP Analytics Cloud for structured data flows. |
| Weak data governance | Inconsistent master data leads to mismatched results across subsidiaries and delays audits. | Invest early in governance frameworks, with clear ownership and controls before adding automation. |
| Mixing consolidation and planning | Teams confuse compliance reporting with forecasting, which muddies accountability. | Keep S/4HANA Group Reporting for consolidation and SAP Analytics Cloud for planning and forecasts. |
| Cultural resistance to change | Finance stays locked in “spreadsheet firefighting,” limiting time for value-added analysis. | Promote training, highlight quick wins, and shift performance metrics toward insight generation. |
| Lack of adoption across subsidiaries | Modern tools get underused, and global visibility remains fragmented. | Run onboarding programs across entities and track usage to drive consistent adoption. |
The Approach: Implementing SAP Group Reporting & SAP Analytics Cloud Planning
The company decided that the old way could no longer support its size. After a long systems evaluation, they chose SAP S/4HANA Group Reporting to handle financial consolidation across all regions. It was not an easy choice, but the benefits were clear once the requirements were mapped out.
- One of the biggest gains came from automated intercompany elimination. Before, teams had to email spreadsheets back and forth to balance group transactions. Now the system eliminated those mismatches directly, and the team felt a sense of relief because the process that once consumed days became part of the standard close.
- The same applied to currency translation. What used to be a manual calculation in Excel was handled automatically with built-in rules that were more reliable.
- Ownership structures also became more transparent. With aligned group hierarchies and a common chart of accounts, every regional submission looked consistent. This was new for many subsidiaries, but once they saw how their numbers flowed directly into SAP, the dependency on spreadsheets was reduced almost overnight. It felt like a big step forward, even though some finance managers admitted they missed the flexibility of Excel.
- The implementation did not stop at consolidation. The CFO wanted planning and forecasting integrated into the same environment. For that reason, the team connected SAP Analytics Cloud (SAC) with the group reporting layer. This opened a new way of working. Rolling forecasts were updated faster, and the CFO finally had dashboards that combined consolidated results with forward-looking scenarios. A finance dashboard that once took weeks to prepare was now available in near real time.
The move also created stronger alignment between operations and finance. Long-term planning cycles became easier to connect with actual performance.
Strategic goals were linked back to regional results without delay. I recall one manager in Africa saying that he could finally see his numbers in the same format as headquarters, which avoided the old debates about definitions.
A few improvements stood out clearly:
Automated eliminations saved time and reduced disputes.
Group hierarchies created consistency across subsidiaries.
SAC dashboards gave the CFO confidence in both actuals and forecasts.
The dependency on Excel for consolidation was cut down significantly.
This combination of SAP S/4HANA Group Reporting and SAP Analytics Cloud planning gave the board and finance team a level of clarity they had struggled to reach for years. It was not perfect, but it was a turning point that shifted the conversation from fixing numbers to using them.
The Outcome: From 15 Days to 5 Days Close
The change became obvious during the first close after go-live. What had taken 15 long days now finished in just 5. On paper that sounds like a number. In practice it felt like a new way of working for the finance team.
1. Faster monthly close
The close cycle dropped by two-thirds. That reduction eased the pressure that used to build up each month. Instead of chasing disconnected spreadsheets, numbers now flowed into a single structure. Financial close acceleration moved from being a goal to becoming the standard rhythm.
2. Finance team freed from late-night Excel work
For the team, this was personal. The late nights spent fixing Excel-driven errors were over. Some admitted they almost missed the drama of those deadlines, though most quietly welcomed the steadier pace. People left the office earlier. The work-life balance was not perfect, but it felt lighter.
3. Audit-ready consolidation
Reports now carried the structure auditors expect. Reviews became quicker, and arguments about version mismatches nearly disappeared. The focus shifted. Instead of repairing mistakes, the team could finally stand behind the numbers with confidence.
4. Scenario planning with SAC
The introduction of SAP Analytics Cloud added another layer. Forecasts tested oil price volatility, foreign exchange shifts, even the implications of entering new markets. Rolling forecasts gave an updated view every time assumptions moved. It was not just about planning anymore, it was about adapting in real time.
5. CFO insights for capital allocation
For the CFO, the win was strategic. Reliable numbers arrived faster, giving the board the visibility it needed for capital allocation. Decisions were no longer delayed by two weeks. They were made when opportunities still mattered.
In the end, this case was not just about going from 15 to 5 days. It was about confidence in the data, time that could be reclaimed, and leadership making choices with clarity they had been missing for years.
Benefits of SAP S/4HANA Reporting and SAP Analytics Cloud Planning
| Area | Key Benefits | Why It Matters |
|---|---|---|
| Financial Consolidation (SAP S/4HANA Group Reporting) |
|
Reduces dependency on spreadsheets and manual adjustments. Creates one version of truth for CFOs and auditors. |
| Regulatory & Compliance Reporting |
|
Reduces reporting risks and builds confidence with regulators, auditors, and stakeholders. |
| Planning & Forecasting (SAP Analytics Cloud) |
|
Improves agility by shifting planning from static annual budgets to continuous forecasting. |
| Decision Support for Executives |
|
CFOs and boards can act on opportunities while they are still relevant, not weeks later. |
| Integration Across Subsidiaries |
|
Drives global visibility and ensures subsidiaries contribute accurate, comparable data into the group view. |
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Lessons for Other Executives
One of the first lessons is that consolidation is not just a compliance job. For this group, it turned into something that helped shape strategy. Once numbers were reliable and available faster, decisions carried more weight. Other executives should look at consolidation not as paperwork, but as a foundation for leadership.
1. Data governance before automation
It is easy to get excited about automation, but if the basics of data are messy, the results fall apart. Putting effort into chart of accounts alignment, group hierarchies, and ownership of data paid off here. It took time, and some found it slow, but it gave stability later.
Clean data makes faster reporting possible.
Consistent rules build trust in the numbers.
2. Keep consolidation and planning separate
The tools have different purposes. SAP S/4HANA Group Reporting handled consolidation. SAP Analytics Cloud was used for planning and rolling forecasts. Mixing them up only creates confusion. Clear roles for each system made life easier for both finance and management.
Consolidation is about accurate and audit-ready numbers.
Planning is about scenarios, forecasting, and decisions.
3. Cultural change takes longer than the software rollout
Moving people away from firefighting in spreadsheets was hard. At first, some staff preferred the old ways because they felt familiar. Over time, most admitted they had more space to focus on analysis. Leaders had to guide this shift carefully.
4. Training and adoption matter
Every subsidiary needed clear training. When teams understood why changes were made, adoption was smoother. Small misunderstandings, when left alone, grew into bigger issues.
The bigger point is that finance modernization depends as much on culture as on technology. Systems can be deployed in months, but habits take longer to change.
Lessons for Other Executives
| Lesson | Why it matters | What to do next |
|---|---|---|
| Start with your processes, not the tool | When the team knows the steps, the system supports real work instead of adding noise. | Map month-end, consolidation, and planning flows. Use those flows to judge any product. |
| Clean data before automation | Bad master data creates rework and slows every close. People lose trust quickly. | Align chart of accounts, calendars, and group hierarchies. Set owners for each list. |
| Keep consolidation and planning separate | Compliance and management forecasts serve different goals. Mixing them confuses teams. | Use S/4HANA Group Reporting for close and SAC for rolling forecasts and scenarios. |
| Invest in training and adoption | Tools help only when people feel confident using them. That confidence takes time. | Plan short, repeated sessions. Give quick wins. Track usage and follow up gently. |
| Set simple ownership rules | Clear owners reduce debate during close and audits. Decisions move faster. | Name data stewards by area. Write down who approves changes and by when. |
| Pilot first, then scale | Small tests reveal gaps without risking the whole timeline or budget. | Run a one-entity pilot for close and planning. Fix issues, then roll out region by region. |
| Measure decisions, not only speed | A fast close helps, but better capital calls and fewer surprises matter more. | Track close days, audit findings, and the time from question to decision in the board pack. |
Conclusion: Finance as a Strategic Partner
Cutting the close from 15 days to 5 wasn’t the finish line — it was the reset button. The finance team stopped being buried in reconciliations and started playing a bigger role in shaping the business.
Faster close cycles meant decisions weren’t made on stale data.
The board got a clearer picture of risks and opportunities.
Finance earned a seat at the strategy table, not just the reporting desk.
Too often, companies fall into the trap of clinging to Excel, even after huge ERP investments — something I’ve broken down in this case on $50 billion ERP failures. This project showed it doesn’t have to be that way. With the right setup in SAP Analytics Cloud, finance doesn’t just close books — it guides growth.
If you’re planning a system change or fighting slow closes, the lesson here is simple: don’t treat finance transformation as “just another IT project.” It’s about giving your CFO and team the tools to make sharper, faster calls. For a roadmap on where to start, see my guide on mastering SAP implementation.
“As Finance Manager in our family group, I rely on SAP to keep budgets clear and spending in check. It gives me numbers I can trust, and the Management of the family can rely on for decisions.”
- Head of Global Financial Reporting
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If you have any questions, or want to discuss a situation you have in your ERP Implementation, please don't hesitate to reach out!
Questions You Might Have...
1. What should the first 90 days focus on so momentum does not fade?
First, set scope, owners, and a repeating close calendar. Then align entities, currencies, and calendars so consolidation rules have a stable home. For a practical kickoff, see Start your SAP project right and the cadence in Project planning and control.
Prioritize record to report.
Publish one page ways of working.
Hold short weekly checkpoints.
2. How do you move from file based consolidation to S/4HANA Group Reporting without chaos?
First, cut over by entity and by dataset, not all at once. Then run Data Monitor checks and intercompany matching before group opens the period. For data hygiene guardrails, scan Why data migration fails.
Load opening and trial balances first.
Turn on validations early.
Reconcile FX and partners every cycle.
3. How should the chart of accounts and group hierarchies be designed for growth?
First, keep a stable group chart and let local charts map in. Then version control changes so audits stay simple. For the people side, see Stakeholder management strategy.
Separate management and statutory views.
Freeze posting levels before UAT.
Log each mapping change with owner and date.
4. What is the clean split between consolidation and planning in SAP?
First, keep consolidation, intercompany elimination, and currency translation inside ERP. Then run driver based plans and rolling forecasts in SAP Analytics Cloud and anchor the ERP work on S/4HANA.
Keep audit ready rules in ERP.
Keep scenarios and versions in SAC.
Keep ownership clear and simple.
5. How can the monthly close be faster without weakening controls?
First, shorten the path, but keep the gates. Then measure a small set of outcomes every week. Use ERP implementation KPIs and pair them with Quality gates.
Time box reconciliations.
Fail fast on validations.
Fix one bottleneck per close.
6. How do you keep intercompany eliminations clean across regions?
First, standardize partner codes and FX sources. Then block period close until breaks are cleared in the monitors, even if it feels strict. Keep the backbone aligned with S/4HANA scope.
Enforce partner mapping by policy.
Use reason codes, not free text.
Review late journals next day.
7. Which KPIs prove value beyond “days to close”?
First, track fewer audit notes and higher forecast accuracy. Then measure decision cycle time from question to board action. A practical set sits here, ERP implementation KPIs.
Publish a small dashboard weekly.
Retire vanity metrics.
Tie trends to decisions taken.
8. How do you keep the core clean while meeting local needs?
First, prefer configuration and side by side extensions. Then review custom items each quarter and remove dead code. Guardrails are in Clean core strategy and platform choices in Integration platforms.
Say no to core edits by default.
Document exceptions with expiry dates.
Reuse patterns across entities.
9. How do you build a five year TCO that a board trusts?
First, include licenses, escalators, environments, integration effort, backfill, and hypercare. Then show low, mid, and high ranges and test volume and FX. Structure it with Cost and budget breakdown and the Cost calculator.
Split one time and run costs.
Add modest contingency.
Prove savings through scope discipline.
10. What is the right response when integration delays threaten the close?
First, run with a minimal viable data load for the first close. Then defer non critical feeds and stage files with checksums and clear cutoffs. Tactics are in Integration Suite delivery delays and cadence ideas in Project planning and control.
Prioritize postings that impact consolidation.
Reconcile FX and intercompany first.
Review failures daily until stable.
