Chapter 1: Introduction
Executive Summary
Section A: Context
     The Challenge to Finance
     Research Finding
Section B: Value-adding Finance
     Research Findings
     Elements of Value-adding Finance
Section C: Contributing to Strategy Implementation with the Balanced Scorecard
     The Balanced Scorecard Explained
     Case Report: Coca-Cola Beverages Sweden
     Scorecard Ownership
    'Unbalanced' Scorecards
Section D: An Integrated Management Approach
     Budgeting and Planning Shortcomings
     Case Report: Diageo
     Steps for Linking Strategies to Resource Allocation and Budgeting
     Implications for Finance Professionals
Section E: Becoming a Business Partner
     Case Report: International Truck and Engine Corporation
     Case Report: Royal Bank of Scotland
Section F: Leveraging Technology Throughout the Company
     Web-based Technologies
     The Threats of Information Technology
Section G: Delivering Shareholder Value
     Case Report: Skandia - Shareholder Value and Intellectual Capital
Section H: Delivering World-class Financial Processes
     Shared Services and Outsourcing
Section I: The Finance Scorecard
     Finance Scorecard Examples
Section J: Conclusion
Key Learning Points
Case Study: Diageo

Chapter 2: Transforming Business Performance Management and Measurement
Executive Summary
Section A: Context
     Acceptance by the Business
     An Integrating Framework
Aligning the Budget with Strategic Initiatives: Kaplan's Four-step Process
Section B: Research Findings
     Obstacles to Business Partnering
Section C: Finance as Custodians of New Integrated Management Frameworks
     Key Research Findings
     The Balanced Scorecard and Business Integration
     Case Report: Nationwide Financial Services
Section D: Rethinking the Budgeting Process
     The Strain of the Budget
     Research Findings
     Planning and Performance Measurement Study
     Why a Good Strategy is not Enough
     Case Report: Diageo
     Case Report: SKF
     Case Report: Borealis
     Rolling Forecasts
     Activity-based Budgets
     Budgeting Research Programme
Section E: Barriers to Integration
     Difficulties in Re-engineering the Planning Process
     Re-engineering Success Case Reports
     Case Report: Xilinx
     Case Report: Nationwide Financial Services
Section F: Balanced Scorecard — Critical Success Factors
     Case Study Examples
     Scorecard Success and Failure
     Skills Requirements
Section G: Conclusion
Key Learning Points
Case Study: The Royal Bank of Scotland

Chapter 3: The Finance Scorecard: Exclusive Research
Executive Summary
Section A: Ten Key Findings
Section B: Context
     Comparison with 1997 Findings
Section C: The Role of the Finance Function
     Broader Business Skills
     Customer Feedback
     Benchmarking
Section D: Re-engineering or Radical Restructuring of the Finance Function
Section E: Outsourcing and Shared Services
     Outsourcing
     Shared Services Centres
Section F: Corporate Performance Measurement
     New Performance Measures
     The Finance Scorecard
     Shareholder Value Techniques
     Intellectual Capital Measures
     Integrating Strategic Planning, Budgeting and Performance
     Measurement
Section G: Future of the Finance Function
     Risks to Finance
     Effectiveness of Professional Institutions
     Implications of E-commerce
     Mergers and Acquisitions
Section H: Conclusion
Key Learning Points

Chapter 4: Managing, Implementing and Communicating Shareholder Value
Executive Summary
Section A: Context
     Measures of Shareholder Value
Section B: Explaining EVA®
     Making a Capital Charge
     EVA® Calculation Example
     Accounting Anomalies
Section C: Shareholder Pressure
     The Power of Pension Funds
     Future Directions
     What Investors Look For
Section D: EVA® as Management System
     The Four Ms
     How EVA® can be Considered a Management System
     Case Report:Alltrista
     Case Report: Millennium Chemicals
Section E: Acquisitions and Strategic Disposals
     Acquisitions
     Strategic Disposals
     Strategic Repositioning
     Summary
Section F: EVA® and the Balanced Scorecard
     Understanding the Wider Sources of Value
     Translation Difficulties
     Case Report: MultiCom
     Case Study Examples
     Research Findings
     Summary
Section G: Incentive—Compensation Mechanisms
     An EVA®-based Incentive—Compensation System
     Case Report: Sirona
     EVA®-based versus Traditional Compensation Systems
Section H: Creating the EVA® Mindset
     Internal Communications
     Case Report: Siemens KWU
    Case Report: Tate & Lyle
     Training
     Case Report: Millennium Chemicals
     Overcoming Resistance
Section I: EVA® Shortcomings
     EVA® and Intellectual Capital Measurement
Section J: Communicating Shareholder Value
Section K: Conclusion
Key Learning Points
Case Study: Tate & Lyle
Case Study: Millennium Chemicals

Chapter 5: Driving Excellence in Finance Processes
Executive Summary
Section A: Context
Section B: Activity-based Approaches
     Definitions
Section C: Activity-based Approaches and the Balanced Scorecard
     Case Report: Royal Bank of Scotland
     Case Report: International Truck and Engine Corporation
     Activity-based Approaches and Other Performance Improvement Tools
     Case Report: Sallie Mae
Section D: Activity-based Budgeting
     Definition
    Activity-based Budgeting in Practice
Section E: Implications for Finance Professionals
     A Value Adding Focus
     A Ten-point ABC/ABM Implementation Guide
Section F: Benchmarking
     What is Benchmarking?
     Case Report: BT
     Case Report: Celestica
     Research Findings
     Benchmarking Benefits
Section G: Benchmarking Findings
     Main Processes Benchmarked
     Benchmarking Data
     PriceWaterhouseCoopers' Benchmark
     Ensuring Data Relevance
     Implementing a Benchmarking Programme
     Gunn Partners' Benchmarking Process
     Case Report: IBM
     Benchmarking Conclusion
Section H: Conclusion
Key Learning Points
Case Study: International Truck and Engine Corporation

Chapter 6: Measuring the Effectiveness of Financial Shared Services Centres and Outsourcing
Executive Summary
Section A: Context
Section B: Financial Shared Services Centres and Outsourcing Definitions
     Key Approach Differences
    Approach Fusion
Section C: Benefits of Shared Services
     Achieved Benefits of Shared Services
     Case Report: AlliedSignal
     Shared Services: Research Evidence
Section D: Benefits of Outsourcing
     Research Findings
Section E: Shared Services — Critical Success Factors
     Making the Business Case
     Shared Services — Total Process Costs
     Performance Measures
     Change Management
     Effective HR Management
Section F: Outsourcing — Critical Success Factors
     Culture Fit
     Understanding the True Process Costs
     Continuous Improvement
     Robust Performance Measures
     Staff Involvement
     Vendor Selection — Critical Success Factors
     PriceWaterhouseCoopers Six CSFs
Section G: Performance Measurement
     Hackett BenchmarkingSolutions Shared Services Benchmark
Section H: Balanced Scorecard
     A Shared Services Centre Scorecard
     Case Report:Whirlpool
     Case Report:American Express
     An Outsourcing Scorecard
Section I: Conclusion
Key Learning Points
Case Study: Whirlpool Shared Services Centre
Case Study: Elf Oil UK

Chapter 7: Creating Future Value
Executive Summary
Section A: Context
Section B: Intellectual Capital
     Definition
Section C: Benefits of Measuring and Managing Intellectual Capital
     Research Findings
     Creating Economic Value
     Case Report: Clarica
     Assured Survival
     Improved Investor Understanding
     Improved Internal Understanding
     Improved Profitability of Hidden Resources
     Case Report: Dow Chemical Company
Section D: Intellectual Capital and the Balanced Scorecard
Section E: Knowledge Management
     Knowledge Hierarchy
Section F: The Balanced Scorecard and Knowledge Management
     Research Findings
Section G: Intellectual Capital Metrics
     Measuring Human Capital
     Case Report:Whirlpool Europe Shared Services
     Case Report: Royal Bank of Scotland
     Structural Capital
     Case Report: Coca-Cola Beverages Sweden
     Customer Capital
     Choosing the 'Key' Measures
Section H: Intellectual Capital and the Finance Function
     Case Report: Skandia
     Case Report: Clarica
Section I: E-commerce
     Research Findings
     Definition
     Changing the Shape of Organizations
     The Pressures on Measurement
     Integrating the Customer Supply Chain
Section J: Implications for the Finance Function
     Information Management
    Finance Function Skills Requirements
Section K: Conclusion
     Key Learning Points
Case Study: Skandia
Case Study: Nestlé

Chapter 8: Developing the Finance Scorecard
Executive Summary
Section A: Context
Section B: Benefits of a Finance Scorecard
     Questioning the Value of Finance
     Value Components
     Case Report: Coca-Cola Beverages Sweden
     Research Findings
     Can a Finance Scorecard be Stand-alone?
Section C: Designing and Implementing a Finance Scorecard
     Key Factors
     Functional Vision
     Case Report: Coca-Cola Beverages Sweden
     An Implementation Template
     Case Report: ABB Sweden
     Human Resource Policies
     Choosing Measures
Section D: Finance Scorecard Templates
     The Balanced Scorecard Collaborative
     Melville Template
     Summary
Section E: Skills Requirements
     Overview of Skills Required
     Financial Perspective
     Customer Perspective
     Internal Perspective
     Learning and Growth Perspective
Section F: Conclusion
     The Balanced Scorecard
     A Considerable Challenge
     The Future: Finance in 2005
Key Learning Points
Case Study: Coca-Cola Beverages Sweden

Appendix — Listings
References
Index