Скачать или смотреть CIMA E1 - 07 Structure and shape of the finance function

Mastering the Structure and Shape of the Finance Function | CIMA E1 Managing Finance in a Digital World
Welcome to this in-depth exploration of Chapter 7 of the CIMA E1 syllabus. In this video, we examine how organizations structure themselves and, more importantly, how the finance function has evolved from a traditional "score-keeper" to a strategic "score-maker". Understanding these structural shifts is essential for navigating the contemporary business environment.
What You Will Learn:
1. The Transformation of the Finance Function Historically, the traditional role of finance was to generate information, such as financial reports and accounts. In the digital era, this has transformed into a role that focuses on creating insights that add value and effectively communicating those insights to support decision-makers.
2. Organizational Configurations (Mintzberg & More) We break down Henry Mintzberg’s five components of an organization: the Strategic apex, Technostructure, Operating core, Middle line, and Support staff. We also explore various configurations such as:
• Traditional Structures: Functional, Geographic/Divisional, and Matrix structures.
• Contemporary Structures: Boundaryless organizations (virtual, modular, and hollow) and the Shamrock organization, which relies on a professional core supported by outside contractors and part-time help.
• Scalar Chain & Span of Control: The difference between "Tall" and "Flat" organizations and the impact of delayering.
3. The Impact of Automation on Finance’s Shape One of the most critical topics for the E1 exam is the shift in the "shape" of the finance function:
• The Hierarchical Triangle: Traditionally, finance had a broad base of many staff performing routine roles to generate information.
• The Segregated Structure: As technology developed, routine lower-level operations moved to shared service centres (SSCs), separating them from analytical and strategic roles.
• The Digital Age (Pentagon/Diamond): Automation has eroded the triangular base. The modern shape features a central bulge of high-value technical specialists and a flat top of collaborative strategic leadership.
4. The Four Levels of the Digital Finance Function We detail the attributes of the modern finance function across four levels:
• Level 1 (Leadership): Focuses on governance, oversight, and enabling value.
• Level 2 (Value Partnering): Focuses on engagement, foresight, and shaping value.
• Level 3 (Insight Generation): Focuses on interpretation and narrating value.
• Level 4 (Data Extraction): Focuses on recording, efficiency, and gathering information.
5. Strategic Developments: Reconfiguration and Outsourcing Learn how modern finance functions are reconfigured to improve processes and decision-making. We cover:
• Shared Service Centres (SSCs): Centralizing routine operations to achieve cost savings and standardized processes.
• Outsourcing & Offshoring: Sub-contracting activities to external providers or migrating them to other countries to take advantage of expertise or reduced costs.
• Business Process Re-engineering (BPR): Transforming and redesigning business processes from the ground up to achieve dramatic improvements in cost and quality.
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Key Takeaways for Your Exam:
• Contemporary vs. Traditional: Remember that the modern accountant acts as a business partner, providing challenge and guidance rather than just isolated reporting.
• Shared Services: SSCs "industrialise" the provision of routine management and accounting services.
• Automation Paradox: While technology removes routine roles, it creates new roles that add value to the information generated.
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#CIMA #E1 #FinanceFunction #OrganizationalStructure #DigitalTransformation #BusinessPartnering #SharedServices #Outsourcing #ManagementAccounting #Mintzberg #ValueCreation
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Analogy for Understanding: Think of the finance function’s evolution like the transformation of a post office. In the Traditional Triangle, hundreds of workers manually sorted every letter by hand (routine data assembly). In the Segregated Phase, the sorting was moved to a giant central warehouse (Shared Service Centre). Today, in the Digital Diamond, machines do the sorting, and the "workers" are now logistics experts who use data to predict delivery patterns and advise businesses on how to ship goods faster and cheaper (Insight and Strategy).