Benchmarking causes a loss of focus
Thus chief financial officer John Maguire's comment in this week's Interview (page 13) that a world-class finance function should cost less than 1 per cent of turnover is an illustration of how iconic numbers are beginning to influence corporate strategy.
Maguire was referring to a figure produced last year by US-based benchmarking consultancy Hackett Group, which said that 'world class' finance departments operate at costs less than 0.75 per cent of their company's revenue.
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The Bottom Line:If Mr Cable has his way...
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