Improving Communication in Record-to-Report Process
Situation
A global pharmaceutical company's finance and accounting (F&A) function is supported by multiple service delivery centers operated by their outsourcing provider. The organization has a centralized finance function and a local European finance team, with a critical interdependence between the local finance team and the service delivery team.
Because it operates in a highly regulated industry, the company places significant emphasis on financial controls, with a substantial portion of the team (approximately 60 employees) dedicated solely to the reconciliation process.
End-to-end process performance was not meeting expectations, and frustration was growing between the local client and the outsourced service delivery teams.
Key Challenges:
Increasing reconciliation rejection rates
Multiple and sometimes contradictory requirements
Declining team efficiency and morale
Communication breakdowns between teams.
Project
To address the growing communication and process challenges, the service provider engaged JCY Advisors to bring executives and process owners from the client and delivery organizations together in a workshop focused on:
Understanding communication gaps
Exploring perspectives from both teams
Identifying process improvement opportunities.
Based on guidance from the executive sponsors, participants from both organizations were assigned to groups focusing on Account Reconciliation and VAT Declaration processes.
Developed design prompts to address key communication challenges, including:
Improving first-time reconciliation accuracy
Enhancing information sharing about process expectations
Establishing better change management communication.
Results
The workshop revealed significant insights:
Identified cultural differences in communication styles
Uncovered organizational communication barriers
Highlighted challenges in hierarchical communication.
Key Outcomes:
Agreed to establish monthly collaborative meetings
Committed to more transparent process change communications
Developed a shared understanding of each team's perspectives
Planned follow-up workshops to implement generated ideas.
Key Achievements:
Improved interdepartmental understanding
Created a framework for more effective communication
Established a collaborative approach to process improvement
Renewed commitment to mutual success.
The intervention successfully transformed a potentially deteriorating working relationship into an opportunity for collaborative growth and process optimization.