70/30 Model: The Secret to Leveraging Flexible Technology
Introduction:
The power of flexible and adaptable technology is essential in the world of global financial operations, not as a mere accessory, but as a critical catalyst for change.
This blog post will be a deep dive into a narrative where innovation isn't just a buzzword. The 70/30 model steps into the spotlight, offering a nuanced approach to the challenges financial professionals face on a global scale. This model isn't about chasing trends; it's about finding the right balance—70% standardised for a robust foundation and 30% adaptable to cater to the unique demands of different regions and diverse global operations.
When onboarding our Invevo clients, we’ve helped a number of them establish a 70/30 model within their global operations to achieve financial excellence, including throughout global rollouts with onshore and offshore teams.
We’ll be unravelling the complexities of global financial operations in a world where technology serves as a strategic tool reshaping the world of global finance.
Introducing The 70/30 Model
A one-size-fits-all approach may not be conducive to addressing the unique challenges presented by different regions, markets, or specific business scenarios. The strength of the 70/30 model lies in its ability to strike a delicate balance. Standardisation provides stability and a common ground for financial professionals, ensuring that fundamental processes adhere to predefined processes.
Meanwhile, the adaptable 30% empowers users to respond effectively to the dynamic nature of global finance. It is the space where innovation thrives, enabling financial teams to tailor strategies, workflows, and decision-making processes to specific circumstances.
Our recent attendance at the 2023 SSOW London event highlighted a compelling need for broader adoption of this model within the shared service sector. Regrettably, numerous businesses are not harnessing the power of adaptable technology to obtain excellence in both standardisation and customisation.
Adecco’s Success Story
Adecco UK became best in class for DSO using Invevo's platform and wanted to standardise this for their global brands to establish a best practice for their collections processes.
"One of the key things for us was the configurability. Allowing for globalisation whilst still having some standardisation. We wanted to make sure the core system remains the same and it allows us to share the best practice and emulate the UK’s success across the globe. So that configurability was hugely important, it would give us visibility and flexibility for each country and then we could tailor it according to their unique requirements without having to change that core.” - Di Thornett, Adecco UK
To read more about how our valued client, Adecco, transformed their collections process with Invevo’s scalable and flexible tech, read our earlier post here.
Standardised Frameworks for Financial Operations and Risk Management
Standardised frameworks provide the bedrock for consistent and clear operations. In the realm of risk management and compliance, having a centralised hub that adheres to standardised processes is essential.
Standardised processes in global financial operations consists of establishing a unified receivables lifecycle with consistent processes to mitigate financial risks, ensure customer satisfaction and maintain compliance with international financial regulations and country-specific requirements.
More specifically, standardised credit management procedures help assess and monitor credit risk, streamline debt recovery globally and ensure a harmonised collection processes.
Throughout the scenario of a global rollout, the power of standardised frameworks with adaptability is essential. Financial professionals operating in different regions can seamlessly align with a universal set of practices, ensuring consistency in approach and minimising the risk of regulatory non-compliance. It's not just about ticking boxes; it's about creating a robust foundation that withstands the distinctiveness of diverse global operations.
So where does adaptable technology come in to it?
Technology, exemplified by platforms like Invevo, seamlessly integrates with the 70/30 model, offering the tools and capabilities to navigate both the standardised and adaptable components effectively.
Gone are the days of grappling with outdated finance tools, technology like Invevo embodies flexibility and adaptability. By offering zero-cost configuration, Invevo aligns with the adaptable nature of the model, allowing financial professionals to tailor the technology to their unique requirements.
Rolling out a global system is a very complex and costly process, our methodology at Invevo is about delivering a core product across all territories that is coupled with the ability to make customisations through configurations.
The platform's customisable features empower users to fine-tune reporting formats, modify workflow sequences, and integrate specific functionalities, shaping Invevo to suit the different requirements of their financial operations.
We've discovered 3 key applications amongst our clients leveraging this model:
1. Adapting to Change Management with Automation
Automation plays a pivotal role in the 70/30 model, by providing a dynamic and efficient framework for financial operations.
Users should be able to easily configure and customise automated workflows, rules, and parameters to align with the specific requirements of diverse regions, markets, or unique business scenarios. This rapid customisation ensures adaptability without the need for extensive manual intervention. Whether accommodating new regulations or adjusting strategies based on market fluctuations, automation ensures that the financial processes stay responsive and aligned with the adaptable nature of the 70/30 model.
Invevo’s automated communication suite ensures timely, standardised yet customisable interactions with customers according to your target operating model. The suite is adaptable to each region, including language, currency and dialect. Whether it's sending payment reminders or increasing credit limits for customers, the workflow process is set up, with the ability for users around the world to edit based on their region’s preferences. This gives teams the opportunity to communicate with clients in their own way while adhering to your branding guidelines.
2. Adaptability within Dispute Management
In the world of dispute management, the standardised 70% segment has clear protocols and documentation standards, whereas the adaptable 30% of the model acknowledges the complex nature of disputes and allows for tailored approaches including dynamic escalation procedures.
Invevo's workflows seamlessly facilitate the automated transfer of disputes between onshore and offshore teams, irrespective of their geographic locations. This streamlined process ensures minimal disruption to the remaining undisputed transactions on the customer account, which continue to be diligently managed by the offshore team.
Meanwhile, the disputed transactions receive focused attention and are efficiently guided through resolution processes onshore. Invevo can effortlessly segment dispute types and align them with distinct teams based on their complexity in the form of a daisy chain process. This adaption enhances organisational efficiency, allowing for a targeted and nuanced approach to dispute management tailored to the specific requirements of each case.‍
3. Consolidating the User Experience
The standardised 70% of the model ensures a consistent and familiar user experience across different regions and roles. Users benefit from standardised processes, interfaces, and workflows, creating a cohesive and predictable environment. This consistency is especially crucial in financial operations, where adherence to established processes reduces tech-heavy training and the learning curve for users.
The adaptable 30% allows for flexibility to specific user roles across different regions and empowers them to have a tailored experience whilst adhering to the core standardised functionality. This can be highlighted through the user’s workspaces and unique workflows that are in line with your organisation's Target Operating Model.
Conclusion: Navigating the Future of Global Finance
It’s clear that standardised frameworks are key to a unified hub for consistent financial operations. From establishing a uniform receivables lifecycle to harmonising collection processes, standardisation through a 70/30 model proves to be a method of achieving operational clarity for our clients and truly encapsulates the balance required to execute a Target Operating Model. Standardisation ensures stability, while adaptability empowers financial teams to innovate.
We’ve discussed theories behind the 70/30 model, now we want to demonstrate how to implement it through the right technology. That’s where Invevo comes in.
Schedule a call with one of our product experts and discover first-hand how you can drive operational efficiency for your entire back office through Invevo.
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