Enterprise Learning: Warren Dodge, Accenture Consumer Goods & Services

In today's difficult economic environment, the capabilities of a company's finance organization are more important than ever. The way in which finance decisions are made can have a profound effect on how well a business performs, particularly in these challenging times.

A Good Example

PepsiCo has long understood these challenges and, teaming with Accenture, launched an innovative initiative for its finance function in May 2009 that can serve as a valuable learning model for companies in any industry. Called the PepsiCo Finance University, the initiative has provided a broader and more in-depth understanding of the company's core financial skills to nearly 2,000 of its mid-level finance associates around the globe through e-learning, self-study materials and case studies.            

As a result, the University has created a common foundation of skills within the finance function, enabling its participants to make better decisions, think more holistically about the business, and optimize finance practices to drive greater impact in the marketplace. Organized into 10 colleges, each representing a specific finance function -- sales finance, supply chain finance, strategy, IT finance, control, business planning, treasury, external reporting, audit and tax -- the University has already produced significant results.

For example, cash flow as a critical value generator was needed consistently across the company in 2009. In response, the University developed a cash flow management course to drive best practices. Three months after course completion, the following results were achieved:

• More than half (60 percent) of the participants reported some change in cash flow management behavior, and more than half (51 percent) of their managers also reported this change in behavior.
• Nearly half (48 percent) of participants cited improvement in cash flow accuracy.
• Associates and their managers too reported specific actions they took to improve cash flow that were a direct result of skills developed in the course.
• More than 50 examples of these actions were offered that included identifying techniques to reduce operating expenses and accounts receivable time.
  

The University was designed with the goal of developing a cost-effective, reusable learning model, which after successful implementation, can be replicated for other functions throughout the company. The approach is an example of how PepsiCo is transforming itself into a more agile company -- one with the capabilities to develop world-class talent faster, more effectively and for less cost, to achieve differentiation in the global market.

A Blueprint for Other Companies

Companies will need to evaluate their particular situation and determine if a University approach is right for them. If it is, there are several key elements that should be part of its development to create a successful model.

First, truly transforming the capability of the finance function will require the full support of visionary C-level leadership that is committed to driving new skills and behaviors across the organization. The determination of PepsiCo's top management to reinvent the way its finance talent is developed, engaged and retained, clearly played a pivotal role in the success of the University. 

Next, it will be important that a University offers a unique approach to course design, enriching courses with robust business content, leveraged from subject-matter experts and thought leaders throughout the organization.

Third, success will require executive sponsorship at the highest levels. Course topics should be defined by global leadership, aligned with business imperatives and targeted to particular skill and knowledge gaps.

Then, an ongoing assessment of finance learning needs and adjusting the curriculum to meet those needs will be a must. This should be the responsibility of college deans and some form of advisory council.

Lastly, to build upon and reinforce the value such an approach can offer an organization, company finance managers should continually engage their respective workforces in University offerings.