[#BusinessManagement] #Startup, #Authorization, #Budgeting,
#Forecasting, #InternalControl, #Project, #Change, #Integration (4/5)
7.
Share: 1 form that must be used in integrating the work
processes.
1) Integration, starting from work
organization.
To be short:[In companies of a group (it
means legal entities, rather than a work department)], they integrated
their work organization, they integrated most part of their overall work
processes!
Do you believe this?! What’s your idea?
Take Taiwan environment as the example,
if a company or a (non) profit business unit is legally registered in Taiwan,
the Government would issue a [Tax Number] for tax purpose, in another aspect,
if it is a [company], it will receive another [Uniform Number(Business ID
Number)]. [Uniform Number] is used in below explanation.
General and reminder, examples:
HQ= headquarter
S= subsidiary
E=Executive
VP= Vice
President
There are many overseas subsidiaries of a Group HQ, CEO of a subsidiary
is named as [S+ country code +CEO].Today, HQ assigns a HQ[manager person](named
as: HQManager) to be the CEO of country T (work title: STCEO) responsible for
overall business work outcome in T, exercising all the rights and obligation on
behalf of this company; HQManager, in HQ, his/her direct manager ( job title
is also the name) including HQDirector, HQVP, HQEVP, and HQEVP’s manager : HQCEO
and HQChairman.
Please answer: HQCEO would like to hold a Group CEO meeting, and HQCEO’s
assistant will send email invitation to all the CEOs, including STCEO. Does
these meeting invitation recipients need to include HQDirector, HQVP and HQEVP?!
Why?!
Please refer to the tab [Organization Integration Chart] of the
file and see below explanation; and if
you would like to adjust the content of the integration chart, please
consider below wording in pink
first, and revise all related color and the columns accordingly:
In management policies in HQ, there are
some rules,
i.
All the CEOs in this Group = are authorized as the legal
representative of the company of each uniform number.
ii.
Manager and above work level persons are allowed to sign contracts and make
effective, they can exercise the rights and take obligation on behalf of the
company externally.
iii.
In all the companies in this Group, it must be Manager and above work level persons to
sign contracts on behalf of the companies with external parties, work in the
role as a member of the Board of
Directors of HQ or subsidiaries.
iv.
All the work unit in this Group, its [cash flow], [inventory flow], [data flow], their work
objectives need to follow and make alignment with the objective under the uniform number.
Emily’s
response to those questions and work practices: [Manager work level persons] is
not appropriate, and it is not work capability issue, it is a problem of work
level and work organization; because, usually in HQ, they want STCEO to report to at least
HQDirector, HQVP, or, STCEO needs to get specific work approval by some kind of
department under this Group before they act, HQ didn’t really authorize work
power to STCEO to take the overall work rights and obligation in T. HQ needs to clearly define actual work
processes and written work policies alignment, the reporting
lines of subsidiaries managers before formally
answer this question.
2) To integrate [work behavior], and please answer you would like to
integrate the [needs], or, the [supplying]? This kind of idea is able to help
to clarify what kind of work effects or efficiency the company hope to get.
However, in below cases, you will find there are two sides in one thing when
defining work integration and the needs and supplying:
i. Integrating the needs:
-
Above shared the [Central Procurement] is an example.
-
To integrate [financing needs] and [foreign currency
needs ] of the companies in this Group, and to centralize and enlarge the
negotiation power striving for preferential terms from Bank and for
standardizing work procedures.
-
Subsidiaries employees purchase/invest parent company’s
stock work procedures.
These are things I’ve experienced and
things I know for your reference.
ii. Integrating the supplying:
-
In above integrated needs, hence, the supplying must be
integrated in order to obtain the work efficiency or work effectiveness from
those integrated needs, what do you think?! For example:
a.Banks: usually, the HQ would like to
work with their local bank who has already had subsidiaries worldwide to
support its Group’s subsidiaries needs globally; thus, besides above mentioned
financing and exchanging rate, the HQ company would like to request for bank
service about internal controlling in their e-Banking payment and cash
receiving, it can centralize its Group internal needs in order to talk to Bank’s
HQ directly. Because, if this Group works with banks of overseas’ subsidiaries’
location, those banks may need to request for approval from their HQ bank for
system support and there is waiting time.
b. Law firms, accountants firms, office
agents or human resources service firms etc. Besides HQ centralizes the
arrangement of those professional service providers, it is also advised HQ
could define the required service qualities or terms and allow subsidiaries to
propose potential service providers for HQ consideration.
c. Centralizing accounting works, I’ve
already shared my opinion in [ReadersSay],
I suggested not doing it. The most suitable way for your Group, please consider
those opinion of work owners (=your Accounting Department) and users(other
employees who frequently need to interact with accountants). For reference: in order to prevent from
finance statement numbers manipulation, there are companies decided to
centralize their accounting work.
d. Actual cases: because the specific work
volume is big, in some companies, they centralize those specific internal
service works from all the subsidiaries and to establish an independent
professional service work company, or, they just build up another company to
provide the service to the Group and also to
external companies. For example: an account receivables collecting
company, a software firm, a recruiting firm and a logistic service company etc.
e.There is something you know and I love
to watch 👉 A multinational brand launches a
new product and has a TV commercial to provide its subsidiaries in various
countries and play at a specific time in local TV channels.
What kind of work integration does your
Group need?!
What is the purpose?!
8.
Because money is very important, use [internal control] in finance and
accounting work operations to explain the internal control issues when
establishing subsidiaries/business expansion. (Please answer first: In addition
to morality and conscience, why should the CFO of the subsidiary need to obey
the finance and accounting work instructions from HQ?!)
About the [dotted line], I’m not the creator, it is a kind of
professional knowledge with kinds of description, please search what
you need on internet, I call it: 911/119 urgent reporting ilne, a
reporting line for [CFO] reporting to [Finance Director of Board of
Director] regularly, a line
for requesting for approval or approver line for Group bookkeeping/entry
adjustment, the purpose is to ensure finance and accounting work independently.
I would like to share with you about
things happened to me, I’m not
teasing, I’m just describing a situation seriously for your considering:
one of my former employer hired a HR external consultant (her work background
is CHRO of a US listed firm, TW listed firm)coaching me HR related work
affairs, I learned this dotted line knowledge in work organization accordingly;
however, after I changing jobs, there were no HR colleagues know this dotted
line things. Some think I was creating troubles, some agreed and added the
dotted line in the chart only, nothing changed in our management work
environment or none been put into discussion about it, in the work environment,
only I know this dotted line can support the finance and accounting work
independently and directly reporting to the Board of Directors and its importance.
We usually found a Group defines its subsidiaries’ CFOs report to those
subsidiaries’ [General Managers] which are defined as sales [job type], thus,
these kind of accounting and finance works are not independent, it results in I
encountered related work fraud/fake finance statement number things; will it
happen in your Group?!
If you agree above description in
purple with yellow and plan to include it into your formal work procedure,
please remember to inform your new-hired
CFO of the Group/company their reporting line through your new-hired orientation in order to avoid possible missing
information due to people changes; in my work experience, it was me the new
hired CFO+ internal control mechanism was not strong in that Group, and its
finance work instruction was always help up by the General Manager, the General
Manager issued fake information and said it was I doing it 👉there was lack of
attainable internal control in finance and accounting work organization and
caused fraud, this kind of situation do exist.
Topic of this paragraph: a procedure for requesting for approval or approver work
procedure for Group bookkeeping/entry adjustment – take managing a subsidiary as an example -
(1) Work affiliation between the subsidiary
CFO and subsidiary CEO: there are some Groups define their CFO report to CEO,
there are also Groups define these two managers as work partners, just like its
HQ sales manager and finance manager being assigned to work together at its
subsidiary. For your reference.
(2) The CEO of the subsidiary surely can/must know the whole
information of their finance statements show because CEO needs to be
responsible for its overall operating work results; thus, even if HQ suddenly
gives work instruction of accounting entry adjustment regardless the work
procedure, the CFO of the subsidiary
needs to ensure this CEO knows it.
(3)
Regarding accounting entries adjustment due to the difference between GAAP and IFRS, or, because of
any kind of reasons, there are persons want to adjust accounting entries,
however, it doesn’t follow related
accounting principles…etc., they need to prepare written request for approval (regardless the requesters), and
the approver should be HQCFO or responsible work department( this role is
listed in Level of Authorization and announced).
Besides above using work organization
to ensure the work independence of accounting work procedures and enhance the
transparency of finance information, there are also companies dealing with
these issues by designing related salaries structure, that is the CFO’s salary
and benefits, all or part of it is paid by the company the CFO is working for,
or, some use Group expense allocation rule to manage finance and accounting
work expense to ensure their work independently and will not be challenged and
affect its independency; for your reference.
Relatively, there is HQ or subsidiary
CEOs say, though, they agree the purpose and the way of above CFO’s dotted line
reporting line management, however, obviously, [subsidiary CEOs are not
respected, they are doubted, it is like they lose the rights of managing the
CFOs] 👈 this
kind of situation happened before, how to deal with it?!👈(1)Please be advised
to ask this kind of subsidiary CEO to share another way to ensure the work
independency of subsidiary finance and accounting works + achieving finance
information transparency purpose at the same time (2)this kind of subsidiary
CEO is considering their own personal management rights rather than overall work organization management
purpose, I suggest your Group to ignore this kind of need or provide
this kind of employees with related work training of management awareness, or….seeking
for some other work candidates whose management idea is aligned with the Group’s
work spirit. What’s your idea?!
Regarding
dotted line reporting line, my learning and work experience:
When
we feel the way others dealing with thing is weird, maybe, it is because our
own experience is not enough, so we feel it is weird, the problem is ourselves
rather than others!
Vice
versa!
The
person who asks [why?] is the learner, not the teacher.
Do
you agree?!
9.
Only companies that need an e- approval platform and need
[approval records] and [approval efficiency] should read this.
This is a reminder I would like to
raise for companies that would like to establish their Request for Approval
eWorkFlow to consider below issues:
1) To encourage your employees to do oral communication with each other
before, using this e approval, it
will increase approval work efficiency and avoid the possibilities of
their misunderstanding each other causing from using this e-platform.
2) Though, there is Level Of Authorization
for your defining the system approval work flow, however, in the system, if it
allows those direct managers of the requester are able to cancel or define
carbon copy recipients, or, to define a higher required approver, it can
increase its work feasibility.
3) Due to 2), once 2) is confirmed and
approved in the platform, I suggest it can be defined an auto early notice to inform all
involved recipients to choose
for their reviewing the request content in
advance or not and having an early
discussion or not.
1.
What is Project,
what is Risk?! Who can serve as the project manager?! Does Risk mean Danger?
2. How the founders can authorize hired managers appropriately so that the managers will not overstep their authority without approval?!
P01-P02 https://whatsyouridea1996.blogspot.com/2024/03/startups-plan-control-integrate-eng.html
3. What is the connection among the operating plan (business plan and financial model), budget, forecast and business analysis?! Are they just putting the same number in different places, right?!
P03 https://adv1996.blogspot.com/2024/05/startups-plan-control-integrate-eng03.html
4.
According to
3., what information does the Business Analysis (BA) provide for the [Business Review
Meeting] (BRM)?! (suggestions including 4 charts: Achievement and Trend Report,
Cash Flow Control Chart and Sales Analysis, [Early Warning, Opportunity and
Action Progress Summary])
5.
Change and integration are also project-based work; please
define OO first. What do you think OO is?!
6.
For example: to change corporate work culture, the difficulty
may come from people who have management power= people who want to change the
work culture, it is possible.(This may differ from your company's corporate
culture or environmental perception)
P04-P06 https://whatsyouridea1996.blogspot.com/2024/05/startups-plan-control-integrate-eng04.html
7.
Share: 1 form that must be used in integrating the work
processes.
8.
Because money is very important, use [internal control] in finance and
accounting work operations to explain the internal control issues when
establishing subsidiaries/business expansion. (Please answer first: In addition
to morality and conscience, why should the CFO of the subsidiary need to obey
the finance and accounting work instructions from HQ?!)
9.
Only companies that need an e- approval platform and need
[approval records] and [approval efficiency] should read this.
P07-P09 https://whatsyouridea1996.blogspot.com/2024/05/startups-plan-control-integrate-eng07.html
10.
Summary: Internal control, something about business
management.
P10 https://adv1996.blogspot.com/2024/05/startups-plan-control-integrate-eng10.html
