Standing up a new finance organization

($4 Billion Division of a Global Biopharmaceutical Company)
Challenge:
  • A global Pharmaceutical Company (Former Parent) had spun off one of its businesses creating an $18 Billion Biopharmaceutical Company (New Company).
  • The Former Parent had agreed to provide support services (e.g., HR, Finance, IT, etc.) to offset the limited infrastructure of the New Company post-spinoff.
  • As the Former Parent was committed to providing only temporary support, the New Company had to create its organization swiftly.
  • Our mandate was to stand up a finance organization for a $4 billion International Division including 30 countries.
Highlights:
  • Developed a new business operating model by which some activities remained local and the rest were transferred to a Shared Service Center (SSC) and an Outsourcer’s Site.
  • Documented activities and procedures.
  • Outsourced tax compliance.
  • Stood up a Shared Service Center in Costa Rica.
  • Planned and executed transition of work from 30 countries to a Shared Service Center and an Outsourcer’s Site.
  • Streamlined processes for all countries in scope.
  • Shortened Accounting Closing from 6 to 2 days.

Outcome:

  • Stood up the new Finance Organization within a 12-month timeframe.
  • Project executed with minimal disruption to the business.
  • Reduced the cost of the finance organization by 20% via efficiency gains and labor arbitrage.
  • Freed up time to Country Management so that they could devote more time to grow the top and bottom line.
  • Ended support from the Former Parent ahead of time allowing seven-digit figure savings.

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ECM Consulting Group | United States