New CFO of a High Growth Enterprise SaaS (“Software as a Service”) Company Needed Support with Development of New Budget and Improved Visibility into Key Performance Metrics.
A leading growth equity fund recently acquired a rapidly growing workforce management SaaS business ($70mm in revenue). Historically, the company’s budget had been developed with minimal input from the various business units. Additionally, there was limited visibility into the key metrics and goals of the various departments and how they impacted the larger corporate strategic goals. The newly hired CFO required support with developing a more robust budgeting process and implementing a KPI reporting program to track and manage the rapid growth of the business. Accordion was engaged to drive these initiatives.
Rapid Development of New Budget Model and KPI Reporting Process
Accordion drove rapid implementation of a new budget process and model, which the CFO used to validate, run sensitivity analyses and present a revised budget to the Board of Directors. Key work streams included:
- Conducted management interviews in order to develop key budget model revenue and expense assumptions
- Gathered and analyzed historical data from disparate systems in order to further validate department level assumptions
- Re-built the foundation of the company’s budget model by department and by region and also developed a number of supporting schedules to provide more granular detail for all key business drivers
- Developed budgeting process and departmental templates which could be easily integrated into the company’s existing financial systems
Accordion defined, developed and implemented a monthly KPI reporting package which would provide Senior Management and the Board with better visibility into the performance of the business and tracking relative to corporate goals:
- Worked with key department heads including Sales, Marketing, Alliances, Professional Services, Product Development, Finance and Human Resources to assess data sources, data availability and develop an efficient update process
- Developed custom models to calculate and track the Lifetime Value of a Customer and Customer Acquisition Cost for the enterprise SaaS customer
Accordion trained company staff on the new budget process and KPI reporting model and efficiently transitioned both tools to the staff.
An Improved Platform and Process for Budgeting & Planning and Increased Visibility into Financial and Operational Performance
The Board and Senior Management team realized meaningful benefits from Accordion’s work including:
- A well refined, granular and validated Budget developed with the input of the various business units was used for Board approval
- Implementation of a KPI reporting culture with Increased visibility into: 1) areas of operational complexity (e.g., professional services, product development), 2) quality of the Sales, Marketing and Alliance pipelines and how to best allocate capital across a mix of geographies and channels, 3) alignment of Senior Management and Board level KPIs with corporate strategic goals