Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You and Your Team.

Learn More →

Identifying the characteristics of a high-performance finance function

Identifying the characteristics of a high-performance finance function The concept of the high-performance organization (HPO) receives much attention nowadays. To create and sustain an HPO, all parts of the organization must contribute, especially the finance function, whose relations with every part of the organization mean that it can be regarded as the spider in the organizational web. The paper aims to discuss this issue.Design/methodology/approachThis study develops the high-performance finance function (HPFF) framework based on the HPO framework, a scientifically developed and validated approach to transforming organizations into HPOs. Based on an extensive literature review, potential characteristics of an HPFF were identified and subsequently linked to factors in the HPO framework. Subsequently, using a questionnaire and statistical analysis, these potential characteristics were clustered into five HPFF factors that showed a significant positive relation with the finance function’s performance.FindingsThe five HPFF factors are: Finance Function Improvement, IT Focus, People Development (of financial professionals working in the function), Role Clarity (for each of the various types of role in the function) and Strategic Role (of the finance function in the organization, especially in supporting management).Originality/valueThe HPFF framework is a practical improvement framework based on a solid scientific foundation. It also fills the current gap in the academic literature on how to develop HPFFs, thus giving the frameworks described in practitioner literature a robust scientific grounding. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Advances in Management Research Emerald Publishing

Identifying the characteristics of a high-performance finance function

Loading next page...
 
/lp/emerald-publishing/identifying-the-characteristics-of-a-high-performance-finance-function-i5Xtk6lIsu
Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0972-7981
DOI
10.1108/jamr-08-2018-0066
Publisher site
See Article on Publisher Site

Abstract

The concept of the high-performance organization (HPO) receives much attention nowadays. To create and sustain an HPO, all parts of the organization must contribute, especially the finance function, whose relations with every part of the organization mean that it can be regarded as the spider in the organizational web. The paper aims to discuss this issue.Design/methodology/approachThis study develops the high-performance finance function (HPFF) framework based on the HPO framework, a scientifically developed and validated approach to transforming organizations into HPOs. Based on an extensive literature review, potential characteristics of an HPFF were identified and subsequently linked to factors in the HPO framework. Subsequently, using a questionnaire and statistical analysis, these potential characteristics were clustered into five HPFF factors that showed a significant positive relation with the finance function’s performance.FindingsThe five HPFF factors are: Finance Function Improvement, IT Focus, People Development (of financial professionals working in the function), Role Clarity (for each of the various types of role in the function) and Strategic Role (of the finance function in the organization, especially in supporting management).Originality/valueThe HPFF framework is a practical improvement framework based on a solid scientific foundation. It also fills the current gap in the academic literature on how to develop HPFFs, thus giving the frameworks described in practitioner literature a robust scientific grounding.

Journal

Journal of Advances in Management ResearchEmerald Publishing

Published: Jul 11, 2019

Keywords: Organizational performance; HPO; High performance; Finance function; HPFF

References