Governance

Best Practice Governance

Background

Our client is a leading and very successful UK retailer. Operations include a retail network throughout the UK supported by regional distribution centers and a head office in the south east. The business has grown organically from a startup position to market leader in its sector.
The rapid expansion has created pressure on management’s time and the business finances. The company’s Bankers felt exposed and consequently imposed a dramatic reduction in the financing facilities.

Consulting Assignment

We were asked to review and improve the business and financial governance procedures with a view to securing improved banking terms.

Key Project Activities

Business Governance

Defined the business strategy, business plan and budgets for the board and senior managers review.
Implemented a structured business management process through regular operational management meetings and monthly board meetings
Delineated the organisation structure and created clear roles/responsibilities for the board down to the middle managers.

Financial Governance

Discovered material errors in the audited accounts as result of:- a) revenue recognition,
b) capitalisation policy, c) product costing and, d) stock management.
Recruited a new FD and key finance people. Implemented a new accounting system.
Implemented a new financial reporting & review process.
Developed financial strategy, plans and budgets

Business Management

Implemented supply chain system and associated reporting.
Facilitated the board in the review of product pricing and overhead management

Finance

Managed the re-financing of the business

Client Benefits

The main client benefits were: