CHAPTER ONE 1.

1 BACKGROUND OF THE STUDY In the mid 80s, prior to the introduction of Structural Adjustment Program (SAP), Nigerian political economic environment was stable for local and international investors for the establishment of various type of industries. Significant portion of foreign direct investment in Africa was channeled to Nigeria economy in the mid 80s to the end of 1990. During this period of near stability, investing in Nigeria economy doesnt require too much feasibility study and closed monitoring performance. Nearly all newly establish industries do break-even within the first three years of their operations, this indicates a growing economy with substantial level- playing field for every investor. The consequence of this scenario was that, the economy operates as a seller- market without any impact of competition. (Jim Patt, 1998) During this era, the role of finance division in measuring, advising on company performance was very limited and most often it is to satisfy statutory regulators agencies and unsophisticated stakeholders. This situation does not create an effective or prominent role for finance division in companies to really measure the performance of business vis--vis competition and developed growth-strategy for future expansion as the economy improves (Barrings Bottling Report, 1993). With the decline in the world economy, its snow-ball effect on the 3rd world economy particularly, the Organisation Petroleum Exporting Countries (OPEC), Nigeria economy begins to show signs of discomfort through persistent balance of payment deficit various dislocation of resources which inadvertently lead to the invitation of International Monetary Fund (IMF) to diagnose Nigerian economy. All international economic indicators used, clearly shows the economy is in dire need of surgical prescriptions, while all the signs clearly indicates serious economy problems looming in the very near future. Majority of industries in all sectors of the economy that used to be buoyant and had ignored necessary performance scenario- building-model suddenly awaken, from their, it is a seller-market syndrome that all thing being equal, the company can sell whatever is produced without any serious threat from competitors. Consequent upon
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government official pronouncement of stringent economy policies and the introduction of internationally induced Structural Adjustment Program on the premised of turning Nigeria economy round was announced. (Beverage World International, 1996) The SAP introduction, unexpected nails the coffin of many industries that had been under the myopic illusion of being an efficient-company. The concept of SAP revolves around the following which signpost the need for the economy and the key industry players to rediagnose and re-structure their companies for the keen competition that SAP intend to bring: 1. Liberalization of trade 2. Determination/floating of Nigeria currency through the establishment of foreign exchange market- where naira exchange rate to key major international currencies could be determined via inter play of demand/supply. 3. Privatization/conclusion of key government parastatals. 4. Removal of subsidy form petroleum related products i.e. petrol and fertilizer, introduction of tight fiscal and monetary policies guidelines in consonance with the spirit of freeenterprise. The significant impact of SAP greatly enlightened major and serious minded investors that the key to survive in Nigeria economy of today is to have an efficient and effective professionally man finance division that is dynamic, very proactive within the corporate mission/vision of the company business goal. (Barrings Bottling Report, 1993) The fundamental changes that occurred as analyzed above between 80s till now have made many known and potential investors to show adequate interest and developed appropriate tools of measuring company operating performance within their industrygroup and their economic environment. (7up Company Report, 1997) 7up Bottling Company, in the mid 80s managed the fortunes of their business empire through crude accounting/financial model that fails to highlight key performance indicators vis--vis their competitors and other known and unknown external variables.

With the introduction of floating exchange, the basic tools of managing industry was introduced i.e. Financial Planning Model (F.P.M), Budgeting and budgetary controls model, management operating systems model, inventory/production schedules model and financial investment model were all introduced. Also recruitment of quality staff in all aspect of company operations, complement the various professional tools of business management tools of trade/ marketing logic concept that can match competition innovation in the market place were introduced. (Jim Patt, 1998) 7up Bottling Company engaged the services of a renowned world consulting firm to fully diagnosed and re-organize/re-structure all aspect of the business with the sole aim the objectives, mission and vision of making the Bottler re-aligned its focus for the challenges and competition that the company face the years to come. It is obvious that for a competitive advantage in today ever changing business environment, the role of finance division in company operating performance management can not be over emphasized.

1.2 STATEMENT OF THE PROBLEM While emphasis are placed on profitability and growth of the necessary apparatus that will consistently serve as a watchdog on investment strategy growth potential strategy and performance management strategy, the 2008 global financial crisis has changed how we judge market trends, how we look at companies results and how much we trust the leaders of many enterprises. (Accenture, 2008) It also affects how certain business functions are regarded. Although finance and accounting has been evolving continuously through its history, however, it is difficult to claim that the traditional finance function is at its utmost strengths and reputation today at least challenges is growing and many people claim if proper financial control were in place the crisis might have not been so severe or long. (James deSantis, 1999) In essence, the importance of finance division is of top most priority as play vital role of the organizations decision making, in tough times, finance executives of all ranks (controllers, assistant treasurers, chief financial officers etc) are primarily regarded as cost cutters and administrators of financial controls rules and regulations. (Slang, 2006)
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Top executive have expanded their skill sets in many ways that are valuable now and in the subsequent economic recovery. These new qualities make for a more high performance finance executive who is heavily influencing the direction of many companies.

1.3 RESEARCH QUESTIONS Every research concerns a problem demanding appropriate solution. (Olu Ojo, 2005). The finance department of any organization is surrounded with so many questions some of these questions are listed below Questions in personal finance revolve around: 1. What role will finance play in the performance of a company and how? 2. Can finance play a strategic role in achieving company performance? 3. How can an organization plan for a secure financial future in an environment of economic instability? 4. How much money will be needed by an organization and when?

1.4 RESEARCH OBJCETIVES This study is aimed at examining how finance division play key role in the decision making of the organization and how this decision affect the corporate performance of an organization. To meet this objective this study will focus on the following specified objectives: 1. To determine the role of finance in the performance of a company. 2. To see if really finance division/department plays a strategic role in company performance. 3. To know how organization plan their financial future in an environment of instability.

1.5 RESEACH HYPOTHESES Hypotheses 1 Ho: There is no correlation between the role of finance and company performance management. H1: There is correlation between the role of finance and company performance management. Hypotheses 2 Ho: Finance department does not play greater strategic role in company performance management. H1: Finance department plays a greater strategic role in company performance management. 1.6 SIGNIFICANCE OF THE STUDY All companies know that they need a finance function to support their operations. However, not many companies know how much they should invest (including payroll, training, office space and computers) in this function. As a general rule, the amount to invest corresponds with the role of the finance function in supporting your companys success. (R.G Voorhees, 2007). In many companies, the major role of the finance function relates to the handling of cash receipts and payments, and the maintenance of accounting records for compliance with financial reporting and tax requirements. (Keith Ward, 1992) While these are important, the finance function could play a more active role (including custody of assets, budgeting, working capital management, monitoring financial performance) to support your companys strategies and operations. To determine the role of your companys finance function, an easy starting point is to review the factors that will make your companys strategies and operations successful and then list those factors to which the finance function can contribute. The next step is to compare the requirements for the finance function to its current operation. If the current
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operation falls short / needs to be revised, a plan needs to be revised a plan will then be set up to enhance the finance function. With this approach, you will ensure that your investment in the finance function is well justified and will provide a satisfactory return.

1.7 SCOPE AND DELIMITATION OF STUDY The project is centered on the role of finance in company performance management. Various activities expected of a finance department in an organisation were x-rayed to the responsibilities currently carrying-out within the overall mission and vision of the company under review. Sequent to the fact that critical area of operation where their performance falls short of desired expectation is further investigated. Further emphasis was centered on the pro-active nature of the role of finance division in ensuring the company overall goal within the available resources is achieved at minimum cost of operation. The areas of investigation is limited to the essential role a dynamic finance division is expected to play in a very competitive industry in which 7up operates. Also, the project is restricted to finance division, a unique sub-system within the organization. In the course of this it was realized that substantial input to the critical role of finance division is to play, flow from operations department of the company. The activities of these department i.e. production, planning, scheduling and control, sales, marketing and distribution, administration has a direct impact on the activities of finance division. Some of the limitations of the study include the limited time that was given to carry out this project, inadequate resources which made it impossible for researcher to cover other companies, sample size which is small compared to the total number of workers in the company. Another limitation is unwilling attitude of the respondent to supply information and fill questionnaires as well as problem of retrieving questionnaires.

1.8 OPERATIONAL DEFINITIONS OF TERMS

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Finance: Finance is the science of funds management. Finance includes saving money and often includes lending money. The field of finance deals with the concepts of time, money and risk and how they are interrelated. It also deals with how money is spent and budgeted. Accountants: Someone who maintains and audits business accounts. Budgeting: A summary of intended expenditures along with proposals for how to meet them. Inventory: The value of a firms current assets including raw materials and work in progress and finished goods. Inventory control: Supervision of the supply and storage and accessibility of items in order to insure an adequate supply without excessive oversupply. Profitability: The quality of affording gain or benefit or profit. Investor: Someone who commits capital in order to gain financial returns.

CHAPTER TWO LITERATURE REVIEW 2.1 HISTORICAL BACKGROUND OF THE SUBJECT MATTER
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Contemporary literature had come up on various concept of performance management in almost every facet of business environment. Financial positions are demanding and rewarding as well. Finance executives have to maintain a balance between control and creativity. A control orientation is essential in order to establish accountability. Even companies with strong product/service offerings and dynamic marketing organizations require accountability to achieve their potential. Yet, it is almost impossible for a company to succeed simply because they have strong controls. High performing organizations flow seamlessly from one activity to the next because they focus on the business, which, in turn, drives every aspect of the company, including controls, creativity, etc. These companies generate the energy and resources for growth as well as financial strength. Finance executives can lead and model creativity, energy and resourcefulness by the way they do their jobs. As with other modern professions, it is difficult to track back precisely when and where finance and the accounting profession were born or who were their first civilization, key to important phases of history, among the most important professions in economic and business, and fascinating. Accountants participated in the development of cities, trade, and the concepts of wealth and numbers. Furthermore, James deSantis (1999) writes that evidence of accounting records can be found in the Babylonian Empire (4500 B.C), in pharaohs Egypt and in the Code of Hammurabi (2250 B.C). Eventually, with the advert of taxation, record keeping became a necessity for governments to sustain social orders. Although the first accountants seems to have been around since humans have started to use money in their transaction, the first person whose name we can find in the history books is Luca Pacioli (1447-1517), who is regarded as the father of accountancy. His groundbreaking work of Summa de Arithmetical, Geometria, Propotioni et Proportionalita was published in 1494 in the renaissance Italy. Although Paciolis Summa has dedicated only few chapters to finance his concepts created the foundation of modern finance. Pacioli described the basis concept of double entry bookkeeping with making references to memorandum books, journals and ledger. Furthermore, he suggested that all entries to be translated to a single monetary unit- which in the context of 15th century is quite remarkable. Also governance structures in the middle- age were different of today, as the CFO website puts that once upon a time, business bankruptcies resulted in jail time (if you were lucky), treasurers defend their funds with a sword and financial planning was tested by plagues and fire. Key virtues of the finance person at that age were to be known for his honesty
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strength, courage, martial experience, suspicious mind, and self- restraint. (R.G. Voorhees, 2007). 2.2. FINANCE AT THE END OF 20TH CENTURY After the short travel in history, we come back to modern day finance. Using the definition of Riahi- Belkaoui (1995) Today accounting is generally regarded as being the systematic development and analysis of information about the economic affairs of an organization. In fact, one of the most important purpose of accounting is to communicate relevant information between and among producers and users of such information. Accordingly, a key enabler of modern they finance was the standardization of accounting systems. International Accounting Standards Board (IASB) defines the ultimate aim as to provide the world integrating capital markets with a common language for financial reporting. This has been achieved by the creation of reporting standards to provide a functional framework for the finance function. Therefore, by the dawn of the 21th century we need to acknowledge that finance and accounting has become a truly international or moreover global function. The traditional finance roles existing in most organization are (Pike & Neale 1993): Financial accounting, concerned with recording the financial transaction and reporting to the stakeholder of the company. Corporate finance focusing on fund raising for the business. Management accountings priority is the decision support for the management via monitoring of controls. Even if these roles seem cover the full spectrum of the business, unfortunately all of them are internally oriented and focused at the past. In the rapidly changing environment external focus and the use of benchmarking techniques are essential as much as orientation towards the future to aid strategic business planning. Studies show (Slang, 2001) that many finance managers still consider their main task to be transactional processing and spend considerably less time for reporting and even less on internal controls. With the advert of technology, globalization is having a substantial impact on the finance organization, the finance organizations overall performance is lagging, lack of alignment between finance and the business impedes progress, use of benchmarking is not widespread, and change is needed in how enterprises manage risk. 2.2.1 THE 21TH CENTURY FINANCE FUNCTION
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While there were hundreds of books on financial methods, accounting standard there were relatively few studies made in the area of how finance could be able to help business grow further in the current challenging environment. The concepts proposed in this article and the forthcoming international study is showing an alternative scenario to tackle these issues. The study which is being carried out currently is comparing UK, French and Hungarian financial management practices. Acknowledging the complexity of international research we will use anchoring vignettes (G. King, 2004) to facilitate cross cultural comparability. One of the criticisms of traditional finance function is that it spends too much time on analyzing the past instead of looking into the future. While learning from the past is also important, however, supporting strategic planning without looking into the future is hardly possible. Similar problem is the orientation of focus, which in most cases inward looking. Finding finance people who are outward focusing and using benchmarking techniques are still very rare nowadays. The traditional inward and past focused orientation limits finance capabilities to help the enterprise gain competitive advantage by closely monitoring completion via benchmarking or to gain further market trust by providing accurate forecasting. In the last decades a new concept has arise suggesting the need of orientation change. Strategic management accounting is normally regarded as an integrated management approach drawing together all individual elements involved in planning, implementing and controlling a business strategy. Thus it clearly requires an understanding of the long-term goals and objectives of the organization. There must also be a comprehensive analysis of the environment in which the business both is and will be operating. (K.Ward, 1992) When we look at how finance could be more competitive in the long term there are 6 key areas suggested to be in focus:
Information Systems: In todays changing world speed of reaction is past of competitive

advantage, therefore obtaining the right information at the right time and making it available to the right people is the key in order to succeed.
Forecasting: Finance is one of the functions where reputation does matter so foreseeing

the results with great accuracy- make a difference in the eyes of the shareholders and financial markets.
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 Outsourcing: Outsourcing allows the enterprise to focus on its strategic agenda by

freeing up resources from non- core activities. The efficiency gains would drive down the costs and increase profitability which would allow funds to be invested again in innovation activities. The future expectation is that outsourcing trends will continue and the energy that finance will spend on transactional or control measures would reduce significantly.
Use of Benchmarking: Inward focus is not enough anymore; the organizations must be

looking outside and compare themselves to competition. Without proper benchmarking, CFOs may be driving their enterprise, but they are driving it without a road map. (Accenture, 2008).
Risk Management and Control: Enterprise are taking risks everyday at each decision

that they make, however, the related exposure and the mitigating actions could make the difference of achieving competitive advantage or losing the profits.
Business Partnering: Change of mindset is crucial. Ultimately finance is a service

department so it needs change the way it counteracts with the clients, active decision support and close involvement into strategy formulation is key. Another emerging concept is the Integrated Finance Organization, which operates with single set of facts, using a common EPR system and is governed by information standards throughout the organization. A major benefit is ability to provide information faster and more efficiently than currently dispersed systems. Once it has been setup it could provide major savings. However, initial investments and the need of extensive change management program are key obstacles of implementation. 2.3 THEORETICAL FRAMEWORK There are three management literature reviewed that revolves round the above quotations, which are essentially the 'base-case of performance management. One of the articles describes the use of performance management and the principle of programming management to avoid undetected signal of company failure. The key issues covered centered on the following important KPIs:12

Programme management: is essentially about the cascade of corporate goals slidedown into specific activities, then followed with a well proven theoretical framework to achieve the desired goals.

Goals: These are qualitative aims for the company, whose purpose is to set direction by providing criteria against which to take corrective decisions. For example, a decision on the appropriate level of expansion strategy in new product development would be affected by whether the corporate goal was to excel as a leader over archrival.

Objectives: These are quite specific and need to be smart - specific, measurable, achievable, relevant and time-bound. Strategy: Within the context of performance management is the "how to achieve our objective," namely the identification of opportunities between a company and its environment for "value-creation."

Plans: Once the 'how to' has been defined the next stage is the 'what to. The hierarchy of measures outlined above points to the approach conceptually developed for performance measurement, namely vision (expanded into goals and objectives) to strategy and hence to critical success factors (CSF) and the Key Performance Indicators.

The relationship between the two is shown in Fig. 1, to indicate the links between the role of programme management and its relationship to the management of the ongoing business. Further, it is futile to have a strategy without a programme to implement it. A programme without strategy context is like a ship without a compass. All large investment should be evaluated as programmed and also assessed their contribution to the organizations CSF and performance measure within the KPI framework. It will matter little if a programme is performing well on the internal cost, time, and quality criteria, (the operation was a success), if the KPIs are heading south (the patient died). This article reviewed summarizes the critical linkages between corporate goal, objectives and strategy that must be monitored through KPI, critical success factors etc. PERFROMANCE MEASUREMENT PROGRAMME
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Fig 1 Another Literature reviewed under performance management concept is the benefits model concept by Malcom Smith - Management Accounting Journal (1998). The key focus of this model is to improve the fortunes of the business at critical stages of its operations i.e. A definition of the 'Base-case' for KPIs. The tolerance limit trend the Base-case would follow under the do 'nothing option' with carefully defined initial assumptions. How the programme-benefit model is 'intended to improve the company KPIs above the standard Base-case trend.

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Consequent upon these initiatives and initial assumptions, the next steps is to compare 'forecast-benefit' with the actual measure performance for corrective action.

Also, Kaplan and Norton (1992) demonstrate that performance measures are important in most management control systems by establishing targets in a performance measurement system, actual results can be compared against target to enable feedback, which is at the care of most management-control. Managers often use a range of financial and non-financial performance measures. The concept of "Balance Score Card" is one relatively recent example of this combination of financial and non-financial.

Another interesting ref:- Fitzgerald (1991-1996) in his empirical research into performance management in real sector of the economy. Fitzgerald & Monry 1996, pp. 106-107 make the following performance measure system recommendations. Know what you are trying to do Draft a range of measures Extract comparative measures to assess performance outcome. Report results regularly Drive the system down from the top. Also, a lot of information was generated from the company records, Annual Reports and Financial highlights as it relates to finance function. 2.3.1 CHARACTERISTICS OF FINANCE DIVISION This is the heart-beat of any organisation be it for profit or non-profit activities. Both corporate goals, strategy, plans, actions and operational strategy will be coordinated and translated to investment plan. All business decisions end in finance division, providing the necessary funds. As the heartbeat of the company it must be professionally managed. Every finance and accounting staff must have pre-requisite qualifications comparable to their level of competence and assigned responsibilities within the overall goal of finance division.

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 Within the historical antecedent of Seven-Up Bottling Company, finance division is structured as follows: Financial controller Chief Accountant Management Accountant Treasury Manager Chief Internal Auditor Legal Officer Insurance Officer

2.3.2 DUTIES & ROLES OF FINANCE DIVISION IN COMPANY PERFORMANCE MANAGEMENT

KEY FINANCE STAFF-TITLES Head of Finance

JOB CLASSIFICATION Coordinating all activities related to finance and accounting and also provided adequate financial resources to meet operational needs of the organisation. Handles all statutory related accounting matters. Handles all aspect of management information i.e. Strategic Performance Management Focus, KPIs, CSF, Budget and Budgetary Control, Costing Systems etc. Coordinating and investigating systems and control procedures. Handles funding activities cum cash flow and disbursement of cheques to creditors. Handles all aspect of business transactions - legal implication with third party.
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Central Accounts Management Accounts

Internal Audit Treasury Legal Services

Insurance Services

Handles all aspect of business related to Insurance implication with third party.

2.3.3 WHAT IS PERFORMANCE MANAGEMENT? This is a modern day concept developed through various approaches tested with the objectives of assisting business managers, accountants and other business executives, acquire a broader-based view of business and appreciate why this improved approaches are becoming an increasingly critical business imperative. Also, it is a combination of business measurement techniques that are of particular relevance to manufacturing and service sector of the economy. It emphasis that companies must adopt a more enlightened approach to assessing and managing company performance vis-a-vis internal and external environment variables. If they do not embrace this concept, they will have increasing difficulty in coping with the challenges they face and achieving the goals they set themselves. Where they adopt it, they will be starting to focus on what is really important, be able to manage resources more effectively, measure and control progress towards their goals. This will also create capability for a performance-enhancing and continuous improvement culture to fl WHO NEEDS PERFORMANCE MANAGEMENT? Essentially, various approaches i.e. Theory of Constraints... TOC, Activity Base-Costing... ABC, Throughput-Accounting, Balance-Score-Card, 'Process-Maturing-Model'... PMM; 'Benchmarking Model' and other strategic management tools were developed to assist various sectors of economy with the sole aim of signaling early warnings of business-failure and/or necessary bottlenecks against business success. In line with the case study, management of Seven-Up Bottling Company from very top - down must attuned their business imperatives to performance management in order to constantly scan, through various 'relevant business model' for signal that can derail the business-goals. Particular of importance is the finance division whose main focus in the light of historical evidences to play more substantive role by, for example.

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Making more of a contribution to strategy development of the business. Acting as change agent Becoming more involved in integrating non-financial with financial information amongst others.

2.3.4

HOW

DO

YOU

MEASURE

ORGANISATION

PERFORMANCE

EFFECTIVENESS? Within the context of finance functional role... the financial performance of a company as a whole is not sufficient to gauge the health of the business. The formulation of strategic goals and the monitoring of their achievement is a complex exercise for an organisation. Often times, setting appropriate standard measurement, do lead to disagreement as to it effectiveness and how they are to be weighted to provide an indicator of overall effectiveness. Strategic performance management should be developed within the context of how the company is performing across a whole series of dimensions i.e. financial and non-financial measurement. Financial measures should encompass traditional cost accounting and modern-day strategic management accounting tools as earlier mentioned -Emphasis should be focused on setting standard of performance and benchmark against actual and variation monitor for continuous actions. Any evaluation of organizational performance effectiveness must include an evaluation of relative performance compared from two perspectives - aligned with internal standards and competition - by linking performance measures with critical success factors, finance division can then assume a key role. However, the critical factors for organisations success may be dependent on many variables, some of which are neither easily measured nor quantifiable, like financial-information. Rather than base the 'horizon' of measuring organizational performance effectiveness on financial report, it is of interest to venture away from purely financial measures to include a non-financial influence, the main focus here is the concept of "3 Es" framework commonly used in management information reporting.
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'Efficiency' - concerned with utilization of equipment and the efficiency of the workforce. 'Economy' - concerned with optimum use of resources. 'Effectiveness' - concerned with the achievement of outcome. The drawback of this model is as follows:It does not help in the measurement of qualitative non-financial to a logic pointslevel. It provides no indication of the variables weighting which would allow an integrated overall measure to be formulated. Its focus is undeniably internal, in circumstances where we require a measure which also reflects competitiveness and external conditions.

Another model to this is the 'balanced-scorecard' which provides an alternative which might offer improvements that establish a multi-variety approach which demands that the business be perceived both internally and externally. 'Financial' - how do we look to shareholders? 'Customers' - how do they see us? 'Innovation and Learning' - how do we continue to improve and create value?

A number of performance measures are generated to reflect each of these four perspectives. Financial Cashflow, Sales Growth, Market Share, Profit & Lost & Balance Sheet, Internal Product - Costing etc. Customer Sales from new products, on time delivery; cooperative partnership with advertising agencies etc. Internal Technological ranking, cycle time, unit-cost, yield, productivity, breakages, glass replacement cycle.

Innovation

Time to develop - new accounting packages for better

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Management information reporting, 'time to market;' process-time, product focus, brand management, change management process, business process re-engineering. In summary, performance measurement must, more closely reflect a customer orientation, in order to encourage motivation and commitment among the workforce. In consequence research in "management interactive," see satisfied customer and motivated employees, as the true asset of the company. 2.3.5 WHAT ARE THE FUTURE ROLES OF FINANCE DIVISION? Given the scenarios painted above and in the case study, finance division in any modern manufacturing environment must respond to the new challenges, and position their function to take an informed view using experience and knowledge; rather than rigidly insisting on traditional systems which are not of value in getting information to general and top management. More so, the key to success for finance function must be to facilitate cross-team performance measurement in both a more holistic management approach and a more productive way of operation. In doing this, pro-active management will then trigger danger signals for intervention if performance deviates significantly from target without adequate explanation or planned correction. In Seven-Up Bottling Company, management has established key performance indicators (KPIs) - which each operating group i.e. Production Engineering, Sales and Marketing, Human Resources, and Feet Maintenance must fulfill. This are based on research and experience of the past, on the level of performance the company must achieve to remain efficient and continuously win "repeat business" from their dealers and consumers. In order to fit into this new phenomenon of business performance model, finance division must be flexible in approach and ready to work as team with operation staff, in the introduction of increasingly sophisticated computer system or information technology package which is helping radically to alter the finance function in many organisations. This terminology allows "financefunction" time to work with management team in developing change-processes, assessing customer profitability, and making a broad range of data/information more widely available.
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Given the different skills required for the new role, it should recognizes that other profession in the organisation may be better placed to exploit the need for improved performance measurement if they do not move quickly and be on top of it. In consideration of the challenges finance division aspire to, and seek to develop a new role, it is important they have total business-knowledge of the environment (internal & external), industry analysis, in order to consider whole range of pressures in the business. There is clearly a big gap to be filled and many challenges to be overcome in this new crusade. 2.3.6 WHAT ARE THE ATTRIBUTES OF A SUCCESSFUL COMPANY? One must not forget the classical case of many finance-houses, 4th generation banks and host of textile industry that collapsed as a result of these key indicators

Finance and Banking Sector- Financial collapse Textile Industries - Unrecognized risk of external competition World IBM Computers - Lack of recognition of market changes.

Failed to realize that more rounded measure of performance are required. Profit should not be the main focus of measuring how successful a company is. A key attribute of a successful company must therefore be to have performance measures, which amongst other things advise and guide executive decision effectively. In addition, KPIs can play an essential part in developing a widespread understanding of how the various parts of the business operate together. For this, to be meaningful, experience of the past had shown that management must 'buy-in' to the 'KPI structure.' With associated improvement goals, improves communication rand understanding, thus established a common vocabulary of improvement across the company. In order, to trigger successful improvement actions, information about business performance needs to be predictive and to focus on the causative factors of performance. Responsible line and top managers want an early indication of opportunities or to spot trouble ahead. For this to be achieved, they need a better approach to information management in order that they and their staff can take well-informed decisions which can move the organisation towards its vision for the future and strategic objectives.
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Financial information alone will not help a company to evolve rapidly, better knowledge is required if the company is performing across a whole series of dimensions. While financial measures cannot be used as the sole basis for business performance management, they will continue to play a vital role. Profit to many investors is still seen as a key measure of success and is still required. The inadequacy of financial measure is further explained:

They do not cover the broad balance of factors which influence and are affected by the company's activities. They fail to recognize the build-up of enterprise value or to record its decline. Another factor which must be recognized is the important role of culture of an organisation critically plays and influences its economic performance.

2.3.7 WHICH APPROACHES TO ADOPT FOR PERFORMANCE MANAGEMENT TO WORK? In view of scenarios already painted, how can finance division fulfill this emerging role in modern-day business-management? Exploit the new IT packages capabilities and help create a performance enhancing culture. This approach will be discussed under Implementing quality information system Balancing the change agenda Ensuring effective customer focus Aligning teams to achieve process maturity.

Quality Information Systems: For finance division to be very proactive and probably on top of modern day performance measure model and respond to the Kaplan and Drucker challenges, it must embrace systems of developing on information rich approach to management information and will obviously require significant information technology support.

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While research by Robert and Kaplan believe that today's systems are largely independent to meet the need for fully integrated reporting, development part is clear..... By year 2000, management reports and control systems will be fully integrated, with a common set of information, entered once and accessible to all, supporting both internal and external reporting. With the parameters of quality information describe above, the management systems will provide performance management information for operational and strategic control and accurate measurement of product and customers profitability. This is a vision finance division must subscribe to and perhaps, it must include organizational knowledge - a relatively new and rapidly developing concept. Systems must be developed that gives executives capability to question for instance, the quality of budget assumptions. Consequently, internal information is needed to inform and direct tactics, but for a wealth creation strategy in performance management, organized information about the environment, about market, about customers and non-customers, technology, and changing world economy are essentials. While emphasis is on this, finance division can assist the process of moving on from today's emphasis on financial data integrity towards the long-term goal of quality information linked to systems and database - graphical demonstration of the above process is shown below.

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Fig 2 Change process - information systems passing through the four stages. Balancing The Change Agenda: One method of ensuring that attention is given to the "critical a strategic driver of success is to form a broader set of performance measures into a "balancedscore-card." Fig. 3 below is a conceptual framework of "balance-scorecard" ... Seven-Up Bottling Company currently pursuing this ahead of company vision 2010.

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Customer Focus: In the current competitive and tough environment, in which most companies in Nigeria operates, it has become obvious that all organisations must focus on meeting the actual and potential requirements of their customers, providing services that "Add-value" and enhance performance. The dilemma facing organisations in creating value for customers is how to increase services and lower costs without risking product quality - this is currently the focus in Seven-Up Bottling Company. The first hurdle involves capturing customer or dealers needs. Balancing a flexible and responsive focus on customer needs with the old concept of "hard-targets" - (ref. John Hawkes - Chief Marketing Officer of Macdonald's Restaurant) of traditional performance measures can be difficult. As one of the useful criteria of performance measurement, in food and beverages industry i.e. Barring Bottling Company. Every one in the company needs to feel they are helping to market the company. If all employees are focused on the dealers/customers and are marketing the company every day, then its workforce becomes a formidable force. However, there is danger, in a solely customer-dealer approach because performance management concept is a "totalitymodel" where customers needs require balancing against those of other stakeholders, especially the financial requirement of shareholders. Consequently, finance division, have a key role to play in providing a second element which is an operational understanding of the profitability of customers relationship.

2.3.8 MANAGEMENT TEAM-BASED ALIGNMENT - LEADING TO PROCESS MATURITY Currently, Seven-Up Bottling Company had engaged the services of Arthur Andersen Consultant to carry out comprehensive review of its entire-business operation under the concept tag: "Enterprise transformation Project as a significantly important and powerful measurement/approach its required to succeed in its vision 2010 - therefore, achieving success require Seven-Up to align the performance of different department across the organisation with the overall strategic vision and more importantly customer requirement.
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An effective method of feedback needs to be developed to keep everyone together. Also, in order to enable team and cross functional working, there is need to have a clear and common understanding of the share - processes, without this, it is very difficult to set process performance measures to achieve the required process-result emanating from Annual Budget Exercise, Budgetary Controls, Product Standard Costing and Variance Analysis etc. A strong 'management-team' orientation towards business processes would be encouraged through the benefits of business process re-engineering or redesign. As part of the company on-going redesign of its business processes. It is evidently clear that the entire process views of the business need to become fully defined and then optimized over-time in order to achieve the goal of continuous improvement. A model of the development process maturity is given below; - A guide from Seven-Up Bottling Company.

What is a Balanced-Score-Card? - This is a technique that recognizes that companies need measures which view the organisation from a variety of stand points, including, for example, the needs of key stakeholders. In particular, more externally focused measures are required as well as those covering the key area of organizational development for the future. The Score-card concept provides the cornerstone of a strategic management system. Business executives are forced to clarify their thinking by reviewing the simultaneous impact of their actions from each of these perspectives. One of the key benefits of the approach is its ability to identify strategic conflict and to communicate strategies within the organisation.

26

Fig 3

27

Fig 4 Finally, various business performance improvement techniques approaches and concept widely used have been mentioned, clearly it is not exhaustive. However, the 'key' to success is not only determining which approaches are most relevant in a particular manufacturing or service sector of an economy, but also making the approaches work together. An integrated approach is the secret to leveraging dramatic and sustainable performance improvement. Performance management is being adopted by most companies in response to operational business priorities and not just an accounting agenda. Performance measurement provides an on-going, self sustainable approach to these key business issues rather than the current un-aligned ad-hoc initiatives. Finance division in an organisation must act fast to identify and implement performance management concept.
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2.4 CURRENT TERND IN THINKING The finance function consists of the people, technology, processes, and policies that dictate tasks and decisions related to financial resources of a company. Depending on the organization and the industry in which it operates, this function may be simple or complex. Some finance functions are overstaffed that is, they rely on individuals to perform both advanced and simple tasks while others are highly automated relying on people for decision making and policy setting exclusively. Regardless of the ratio of people to technology, the goal of the finance function is to serve the organizations financial /accounting needs while laying a platform for the future. This means handling clerical tasks, providing information to the organization and setting financial policies and strategies that will serve the company in the future. To succeed in these three broad areas, the small and emerging business must be prepared to develop a finance function that both suits its needs and can adapt to the growth and changes of the business. The first step is to develop an adequate finance function. To do this, it is important to understand the component parts. 2.4.1 COMPONENT PARTS The finance function consists of two basic component types: (1) concrete components and (2) soft components. Concrete components include all aspects of infrastructure including technology, software applications, and processes, as well as the people who manage them. Soft components include the standards, strategies, models, and vision that drive the finance/accounting aspect of the business. Each component stands on its own to an extent; however, ultimately all components must be woven together in a way that serves the overall organization objectives. It is not enough that all component parts exist; rather they must exist in harmony with one another, yielding synergies that serve the company's needs today and provide for the future.

Concrete Components
29

The term infrastructure, in this context, refers to all relevant concrete components of the finance function. These components may already exist in the organization in some fashion, although they are not thought of as infrastructure. Regardless of how they were classified, these components were assessed for their usefulness and either purchased or developed. In order for certain tasks to be undertaken on a regular basis, tools and processes must be put in place to manage them. Items of infrastructure can be classified into three major categories: (1) finance organization, (2) information systems, and (3) processes. Finance organization: This refers to the people responsible for conceptualizing, implementing, and following through with all finance and accounting related tasks and initiatives, as well as the technological tools they employ. The finance function works best when people with the right qualifications are matched with the right tasks. When the proper technological tools are put in the mix, the finance organization will excel and serve the needs of the organization. Staffing: Enlisting the right people for the job is a challenge in any business. When certain aspects of the finance organization (namely infrastructure) are lacking, it is easy for employers to lose sight of essential employee skill needs. For example, the position of Director of Budget and Forecasting may require Information Systems (IS) skills because no IS organization exists. Finding a Director of Budget and Forecasting may be difficult enough, but finding one with advanced IS skills may be impossible. Finance personnel typically rely on technological tools to do their jobs; however, they may not be so knowledgeable at maintaining the technology. If substandard tools are provided to professionals, they may have to fend for themselves when it comes to managing the secondary demands of the job (making their computer work or administering software) rather than focus on their primary objective (managing the budget and forecasting process). This human element of the finance organization can be a powerful resource for the organization if the right people are a part of the team and if they are allowed to generate and implement new ideas. Expecting people to not only perform their tasks but also to optimize the way their function fits in with the business will provide value to the organization and provide meaningful career development for employees. Personnel should be allowed to isolate all business needs and drivers, determine the impact of these
30

on the organization, and are rewarded for the business strategy/planning that results in achieving organizations goals. Technology: Nothing is more important than providing people with the right tools for the job. This means appropriately configured computers, communication devices, and planning tools. Simply buying the best technology may not always be the answer. A mistake repeated every day by executives and business owners is falling prey to a vendors claim that if the smartest or best machine is purchased, the users objectives will be met. The nature of the tasks to be performed must be taken into account before staffs are outfitted with technology. Will desktop computers suffice or will staff need laptops instead? Will finance staff need cell phones or other types of communication linkage? How about planning devices do staffs need personal digital assistants or other wireless devices to share documents and information remotely? Knowing whether staff will be performing tasks in one central location or performing tasks on the road will drive decisions for technology. Information Systems: refers to the backbone technology servers, switches, operating systems, protocols, and software applications that will drive the finance function. Distinguished from technology defined earlier, information systems have a broader impact on the entire platform of the organizations technological capability. This term is used more on a macro-level as opposed to the term technology. Information systems give organizations the ability to gather data in the business environment and translate it to knowledge. They also provide the ability to communicate information and data within and outside the organization. Information systems provide a basis for evaluating customers while allowing them to provide feedback to the organization. This aspect of infrastructure also allows the organization to link with information systems of customers and companies in the same industry to achieve synergies in buying, forecasting, billing, and collecting customer payments. Processes: These are the protocols and procedures that envelop information systems. They leverage the impact of information systems and bridge the gap between raw systems capability and company specific needs. Processes cannot be generic but must be customized and suited for a particular organizations needs. To develop processes, the business owner/manager must have an acute knowledge of the organization and what it is trying to accomplish. To succeed in
31

process development, knowledge of employee capability, thresholds of technology, and limits of systems also must be firmly grasped. Soft Components Soft components of the finance function are the more advanced considerations of the function itself. Policies, standards, strategies, and analysis paradigms are examples of soft components. These components cannot be bought or replicated necessarily from an outside source; rather they are developed internally. It is managements responsibility to develop the soft components of the finance function and maintain them as the company grows and adapts to its environment. The existence and relevance of soft components are good litmus tests for the strength of management. Companies that are lacking in this area put the organization at risk and leave development of the finance area to chance. Allowing the finance function to evolve on its own without a vision driven by strategies and formed with standards could create more problems than it solves. Developing finance strategies, standards, and policies may be a luxury for the small and emerging business owner when compared to the day-to-day necessities of keeping the organization running. It is important to note, however, that most soft components of the finance function are not developed overnight. In fact, rarely are they complete or relevant for very long. Soft components are always developing and changing as the business organization changes. Developing them should be embraced as an aspect of organizational culture. Although an organization may be able to enjoy success in its early years without attending to these components of the finance function, eventually issues in the business itself or business environment will demand them. For example, infrastructure may suit a small and emerging business in the short run, but increasing demands for information and new ways to serve customers may necessitate change in this area. Absent the vision for development or the strategy for addressing future data needs, the finance function always will be a step behind, which will result in perpetual short-term decision mode. This may be costly in the long run as managers purchase unsalable technology to solve an immediate need, only to find themselves repurchasing more technology a short time later to accommodate evolving needs.

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Well-thought-out soft components will make development of all aspects of the finance function second nature. For example, developing financial analysis paradigms that are relevant to the organizations business fundamentals will drive IS needs. These paradigms will in turn drive the level of qualifications of personnel. Strategies then can be developed that implement relevant software applications, technological tools, communication devices, and so on. This web of impact illustrates how all aspects of the finance function cascade off the soft components. Practically speaking, the small and emerging business owner may not be focused on the mid- and long-term time horizon. Therefore, codifying areas of vision, strategy, and policy in the finance area may not be practical. It is important to note, however, that being aware of developing soft components at the early stage of the organization will greatly benefit the business owner/ manager as the business matures. The high rate of change in the business in its early years may render soft components irrelevant overnight. Laying a foundation of thought and intent to develop this aspect of the finance function will become that much easier as the business owner/manager matures with the business and becomes savvier in developing strategy.

CHAPTER THREE RESEARCH METHODOLOGY 3.1 INTRODUCTION

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This chapter presents an insight to the historical background of the case study, a restatement of research hypotheses, research design, and population of the study and sampling as well as data specification. It also explains method used in carrying out this research. But for the purpose of this study we adopt the method of questionnaire with regards to the survey method, which deals with the basic information in which questions relevant to the research would be obtained from the respondents. Furthermore, this chapter discloses the population of the area being investigated, including the types of data, sources of data, the method used in presenting the data collected and how they are analyzed. 3.2. RESTATEMENT OF RESEARCH HYPOTHESES The research hypotheses formulated for testing in this study are: Hypotheses 1 Ho: There is no correlation between the role of finance and company performance management. H1: There is correlation between the role of finance and company performance management. Hypotheses 2 Ho: Finance department does not play greater strategic role in company performance management. H1: Finance department plays a greater strategic role in company performance management. 3.3 POPULATION OF STUDY The population of the research is made up of the staff of 7up Bottling Company PLC. They consist of individuals of different cultures, sex, educational qualifications, background and perception. With a population of about 1,500 staff the information obtained from this population would be used to test the hypothesis earlier stated. 3.4 SAMPLES AND SAMPLING TECHNIQUES

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Given the large size of the workforce of 7up Bottling Company PLC the company that consist of about 1,500 staff, it would be necessary to obtain a sample for the study consisting of elements that are representatives of the entire population. Thus, a convenient sample of one hundred (100) staff would be selected from employees at various positions of 7up Bottling Company PLC in Lagos. The sample consists of staff from office level to top management level in the organization. A cluster sampling technique was adopted in order that all elements in the population would be given an equal chance of being included in the sample and also avoids engaging the subjective judgments of the researcher. 3.5 DATA COLLECTION INSTRUMENT The data required for this study would be obtained from primary and sources. The primary data would be obtained via questionnaires administered to staff of various departments of the organization. 3.6 METHOD OF DATA ANALYSIS The research would make use of table to present the collected data. The method of simple percentage would be used to analyze the data generated from the study while the correlation method was adopted in testing the hypotheses.

3.7 LIMITATION OF THE METHOD No matter how experience and knowledgeable a researcher might be no matter how much effort he may put into the statement of his methodology, some imperfection are likely to occur. This is so because every research work has some extraneous circumstances beyond the control of the researcher that can serve as clog in the conduct of a research project. Here, the methodology is limited to responses received from respondents of this case study. CHAPTER FOUR PRESENTATION OF DATA, ANALYSIS AND DISCUSSION
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4.1

DATA PRESENTATION This chapter is designed to present the data collated from the field into a descriptive and

analytical form. Hundred questionnaires were distributed to the staff of 7up Bottling Company Plc, Lagos State. However all the hundred questionnaires administered on the sampled population were found usable. SECTION A Socio-demographic characteristics of respondents in the questionnaire survey: 4.1.1: Gender Table 4.1: Sex distribution of respondents. Frequency Male Female Total Source: Field Survey, 2010 From the frequency distribution above, it is observed that 47(47.0%) of the respondents are male while 53(53.0%) of the respondents are female. 58 42 100 Percent 58.0 42.0 100.0

4.1.2: Age Table 4.2: Age distribution of respondents. Age Frequency

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Percentage

18-25 years 26-40 years 41 & above Total Source: Field Survey, 2010

66 30 4 100

66.0 30.0 4.0 100.0

From the frequency distribution above it is observed that 66(66%) of the respondents are within the 18-25years age bracket, 30(30%) are within 26-40 years age bracket while 2(4%) of the respondents are within 41 and above age bracket. This indicates that the majority of the staff strength is made up of young men and women. 4.1.3 Academic Qualification Table 4.3: Distribution of respondents according to academic qualification. Qualification OND HND B.sc Masters and its equivalent Total Source: Field Survey, 2010 More than half of the population which represents 55% is graduates, 5% are OND holders, and 15% are HND holders while only 25% of the respondents have postgraduate qualifications. 4.1.4 Religion Table 4.4: Distribution of respondents according to religion Religion Christianity Islam Frequency 60 40
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Frequency 5 15 55 25 100

Percentage 5.0 15.0 55.0 25.0 100

Percentage 60.0 40.0

Others Total Source: Field Survey, 2010

100

100.0

From the frequency distribution above 60% of the respondents are Christians while 40% of the respondents are Muslims. SECTION B This section is tied to the usefulness importance and relevance of finance division in measuring performance management. 4.1.5 How many years of experience in finance division? Table 4.5: Distribution of respondents according to years of experience. Years 2-5 years 6-10 years 11-20 years 20 & above Total Source: Field Survey, 2010 From the frequency distribution above, 20% of the respondents had 2-5 years experience, 45% of the respondents had 6-10 years experience, and 25% of the respondents had 11-20 years experience while 10% of the respondents 20 & above years of experience. 4.1.6: Is finance division responsive to management information requirement of the company? Table 4.6: Distribution of respondents on is finance division to management information requirement of the company? Frequency 20 45 25 10 100 Percentage 20.0 45.0 25.0 10.0 100.0

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Frequency Yes No Not Sure Total Source: Field Survey, 2010 73 20 7 100

Percentage 73.0 20.0 7.0 100.0

From the frequency distribution above, 73% of the respondents ticked yes, and 20% of the respondents disagree while 7% of the respondents are not sure. 4.1.7: Is finance division proactive to event happening within the company? Table 4.7: Distribution of respondents on is finance division proactive to event happening within the company.

Frequency Yes No Not Sure Total Source: Field Survey, 2010 70 25 5 100

Percent 70.0 25.0 5.0 100.0

From the frequency above, 70% of the respondents agree about this view, 25% of the respondents said No, while 5% of the respondents are not sure. 4.1.8: Do finance division play unique role during plants/depots expansion strategy? Table 4.8: Distribution of respondents on unique role of finance during plants/depots expansion strategy? Frequently Yes 96
39

Percent 96.0

No Not Sure Total Source: Field Survey, 2010

3 1 100

3.0 1.0 100.0

From the frequency distribution above, 96% of the respondents feel that finance play unique role during plant/depots expansion and 3% of the respondents do not think finance play any role while 1% of the respondent are not sure, 4.1.9: What is the quality of staff in terms of skill and knowledge? Table 4.9: Distribution of respondents on quality of staff in terms of skill and knowledge? Frequency Good Average Fair Poor Total Source: Field Survey, 2010 From the above distribution, 85% of the respondents agree that the quality of their staff in terms of skill and knowledge is good, and 15% of the respondents are of opinion that the staff is average. SECTION C This section is related to the role of Finance Division in the organization. 4.10: Performance of an organization is a function of the Finance Division. Table 4.1.10: Distribution of respondents on whether the performance of an organization is a function of Finance Division.
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Percentage 85.0 15.0 _ _ 100.0

85 15 _ _ 100

Frequency Strongly Agree Agree Undecided Disagree Strongly Disagree Total Source: Field Survey, 2010 47 44 6 3 _ 100

Percentage 47.0 44.0 6.0 3.0 _ 100.0

From the table above it can be concluded that 45% of the respondents strongly agreed that the performance of an organization is a function of the Finance Division, 44% of the respondents agree, 6% of the respondents were undecided, while 3% of the respondent disagreed about this. This shows that most of the correspondents believe that performance of an organization is a function of the Finance Division. 4.1.11: The effectiveness can enhance growth and profitability of the company. Table 4.11: Distribution of respondents on whether the effectiveness of finance division can enhance growth and profitability of the company. Frequency Strongly Agree Agree Undecided Disagree Strongly Disagree Total Source: Field Survey, 2010 From the frequency distribution above, 75% of the respondents strongly agree that the effectiveness of Finance Division can enhance growth and profitability of the company. 15%
41

Percentage 75.0 15.0 8.0 2.0 _ 100.0

75 15 8 2 _ 100

also agree with the other 75%, while 8% of the respondents are undecided 2% of the respondents disagree.

4.1.12: The role of Finance Division if proactive can signal danger before it occurs. Table 4.12: Distribution of respondents on role of Finance Division if proactive can signal danger before it occurs. Frequency Strongly Agree Agree Undecided Disagree Strongly Disagree Total Source: Field Survey, 2010 From the frequency distribution above 25% of the respondents strongly agree, 65% of the respondents agree while 2% of the respondents are undecided, 3% of the respondents disagree and 5% of the respondents strongly disagree. 4.1.13 Finance Division play crucial role in managing overall operation of the company. Table 4.13: Distribution of respondents on the crucial role of finance division in managing overall operation of the company. Frequency Strongly Agree Agree Undecided Disagree 30 20 10 25
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Percentage 25.0 65.0 2.0 3.0 5.0 100.0

25 65 2 3 5 100

Percent 2.0 8.0 6.0 46.0

Strongly Disagree Total Source: Field Survey, 2010

15 100

38.0 100.0

From the distribution above, only 25% of the respondents disagreed with this point, 10%of them are undecided while 15% of the respondents strongly disagree, 30% of the respondents strongly agree while 20% of the respondents agree that finance division play crucial role in managing overall operation of the company. 4.1.14: Finance Division serves as an invaluable source of management information in an organization. Table 4.14: Distribution of respondents on Finance Division serves as an invaluable source of management information in an organization. Frequency Strongly Agree Agree Undecided Disagree Strongly Disagree Total Source: Field Survey, 2010 From the above distribution, it can be seen that 18% of the respondents strongly agree with this opinion, 62% of them agree to it, 8% of the respondents are undecided also 8% of the respondents disagrees while the remaining 4% of the respondents strongly disagrees.. It can therefore be said that majority of the respondents are of the view Finance Division serves as an invaluable source of management information in an organization. 4.1.15: Finance Division has the comprehension of business knowledge of the organization. 18 62 8 8 4 100 Percent 18.0 62.0 8.0 8.0 4.0 100.0

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Table 4.15 Distribution of respondents on Finance Division has the comprehension of business knowledge of the organization. Frequency Strongly Agree Agree Undecided Disagree Strongly Disagree Total Source: Field Survey, 2010 From the above distribution, only 4% of the respondents strongly agree, 2% of the respondents agree while 6% of the respondents are undecided, 42% of the respondents disagreed while the remaining 46% of the respondents strongly disagree. From this, it is clear that the respondents strongly disagrees that Finance Division has the comprehension of business knowledge of the organization. 4.2 Analysis on Hypothesis Data Data on hypothesis were analyzed in respect to the information provided by the respondents on the administered questionnaire. 4 2 6 42 46 100 Percent 4.0 2.0 6.0 42.0 46.0 100.0

4.2.1 Hypothesis Testing Hypothesis 1 Ho: There is no correlation between the role of finance and company performance management. H1: There is correlation between the role of finance and company performance management.

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The table below show that the p value = 0.012 and since it is less than 0.05 at 95% level of significance, we will reject the null hypothesis which states there is no correlation between the role of finance and company performance management and accept the alternative hypothesis which says that there is correlation between the role of finance and company performance management. This information is shown in the table below. Correlations
THE EFFECTIVENESS DIVISION GROWTH OF OF CAN AND THE THERE IS A POSITIVE RELATION BETWEEN FINANCE THE AND ROLE OF COMPANY

FINANCE ENHANCE COMPANY THE EFFECTIVENESS OF FINANCE DIVISION CAN ENHANCE GROWTH AND PROFITABILITY OF THE COMPANY THERE IS A POSITIVE RELATIONSHIP BETWEEN THE ROLE OF FINANCE AND COMPANY PERFOMANCE MANAGEMENT Pearson Correlation Sig. (2-tailed) N Pearson correlation sig. (2-tailed) N

PROFITABILTY

PERFORMANCE MANAGEMENT

.251 .012

100

100

.251 .012

100

100

Source: Field Survey, 2010 Hypothesis 2 Ho: Finance department does not play greater strategic role in company performance management. H1: Finance department plays a greater strategic role in company performance management.

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The table below shows that the p value = 0.018 and since it is less than 0.05 at 95% level of significance, we will reject the null hypothesis which states that finance department does not play greater strategic role in company performance management and accept the alternative hypothesis which states that finance plays a greater strategic role in company performance management. This information is shown in the table below. Correlations
THE ROLE OF FINANCE DIVISION IF PROACTIVE CAN SIGNAL DANGER BEFORE IT OCCURS THE ROLE OF FINANCE DIVISION IF PROACTIVE CAN SIGNAL DANGER BEFORE IT OCCURS FINANCE PLAYS A GREATER STRATEGIC ROLE IN COMPANY PERFORMANCE N Pearson Correlation Sig. (2-tailed) N .236 .018 100 100 1 Pearson Correlation Sig. (2-tailed) 100 1 FINANCE GREATER ROLE IN PLAYS A

STRATEGIC COMPANY

PERFORMANCE .236 .018 100

Source: Field Survey, 2010

CHAPTER FIVE SUMMARY AND RECOMMENDATION Summary of the research/conclusion drawn: - The concept of performance management is relatively new in the company despite been in existence for over four decade.

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The traditional role of finance division as the keeper of the number is declining. The financial numbers are seen as less central to business management and improved systems are making production easier. It is therefore believe or could be deduced from the case study of Seven-Up Bottling company and various happenings within the external environment that finance functions can seize a wider role on change enabler and catalyst: This is the new challenge. However, one also wonder how many accountants with finance related activities will actually seize the opportunity that performance management offers to enable more effective business transformation capability. Those, who do grasp the opportunity, will considerably increase their own capacity to survey and subsequently thrive by helping their organisation achieve change rapidly. Some employees between Heads of Functions and operations staff who responded to the survey want improvement in management information systems for decision-making. Within the systems and approaches now exist; what is at question is the continuing role of the independent finance function. Many companies require greater insight into the competitive market place and also they desperately need more knowledge about he costs and value of satisfying that market demand. Finance division with the right focus and also aspired to drive the business towards its goals, must be prepared to work with others to develop a performance management approach and hence drive forward the development of the business in which they work. Further, the role of a cross-tea, performance facilitator is emerging as someone who is able dramatically to leverage the power of information. Finance division should think carefully about whether this is a role they want to play and the consequences for them of not becoming involved. In furtherance of this, the introduction of more formal and integrated performance management approach should itself be seen as an overall change in management style.

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The system should allow senior management to demonstrate that high performance does matter and is awarded. This will foster an environment within which opportunity exists to mobilize and multiply the talents and creativity of the workforce. RECOMMENDATION AND SUGGESTION FEEDBACK TO MANAGEMENT Various problems since revitalization program commenced were carefully studied and also procedures established for decision-making were highlighted in the course of the interview. They have been exhaustively listed in an earlier section. The following changes/processes for aligning performance measures are suggested to overcome multi various business problems. It is obvious that some of this changes/process involves expenditure and capital investment, but the management can take these up in a phased and planned manner as and when visible. Comprehensive accounting software package that capture quantitative and qualitative data of a total business. Monitoring of brand equity Trade support services that enhance customer performance and image building campaign. Refurbishing and continuous overhauling of fleet of trucks to cut down on cost of operation per fleet route trucks, thus boost contribution-margin. Build a conducive working environment Develop a comprehensive performance measurement model that encompasses total business concept. Continuous improvement and innovation through staff training and development of skills. Develop through finance function systems for tracking variances and corrective. REFERENCES Accenture (2008): The Changing Role of the Finance Organization in a Multi-Polar World High Performance Finance Study. Barring Bottling- Monthly Regional Operating Performance Report, 1993. Keith Ward (1992) Strategic Management Accounting. Butterworth-Heinemann
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ISBN0750601108 Pike Neale (1993) Corporate Finance & Investment, Pearson ISBN978-0-273-69561-5 David Slang (2006) The Changing Role of Finance. Finance, Management and Accounting. Business Partnering, Finance Role/KPA/KPI James deSantis (1999): A brief history of accounting, Research Paper, Ensign Articles January 1999 20-26. Kaplan R.S. & Norton D.P (1992): The Balance Score Card- Measures that Drives Performance. Harvard Business Review. Jan-Feb.1992 71-79. Peter Drucker (1995): The Information Executives Truly Need. Harvard Business Review. Math & Smith (1998): Benchmarking Finance Function. CAB Review. Riahi-Belkaoui (1995) Evaluating Capital Projects, Quorum Books 2000, ISBN1567203574 IASB (2001) International Accounting Standards Board, www.iasb.com IBM (2008), Balancing Risk and Performance with an Integrated Finance Organization The Global CFO Study 2008. Miller, L., U. Rajan, and P. Shimpi (1989c), Funding SPDA liabilities: An application of realized return optimization, Chapter 8 in Fixed-Income Portfolio Strategies, Fabozzi, F.J. (Ed.), Cambridge, MA, Ballinger Publishing. Minton, B.A., and C. Schrand (1999), The impact of cash flow volatility on discretionary investment and the costs of debt and equity financing, Journal of Financial Economics, Vol. 54, pp. 423460. Van der Meer, R., and M. Smink (1993), Strategies and techniques for asset-liability management: An overview, The Geneva Papers on Risk and Insurance, No. 67, April, pp. RESEARCH QUESTIONNAIRE Am an MBA student of the Department of Management and Accounting, Obafemi Awolowo University (OAU), Ile-Ife Nigeria investigating the role of finance function in company performance management. Kindly assist in the completion of this questionnaire to the best of your knowledge and ability. Information supplied will be used for academic purpose only.
49

SECTION A: SOCIO/DEMOGRAPHIC CHARACTERISTICS Please indicate your answer marking (x) in the relevant box provided for each option. PERSONAL DATA 1. Sex
2. Age

Male [ 20-25yrs[ ] 26-30yrs [

Female [

] ] 41& above [ ]

] 31-35yrs [

] 36-40yrs [

3. Educational Background OND [ ] HND [ ] B.sc [

] Masters and its equivalent [ ] ]

4. Religion SECTION B

Christianity [

Islam[

Others [

This section is tied to the usefulness importance and relevance of finance division in measuring performance management.
1. How many years of experience in finance division

A = 2-5years [ ]

B = 5-10years [ ]

C = 11-20years [ ]

D = 20-25years [ ]

2. Is finance division responsive to management information requirement of the company? Yes [ ] No [ ] Not Sure [ ]

3. Is finance department proactive to event happening within the company?

Yes [ 4. Do

No [ division No [

Not Sure [ unique role ]

] during plants/depots expansion

finance Yes [ ]

played ]

strategy? Not Sure [

5. What is the quality of staff in terms of skills and knowledge? Good [ SECTION C
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Average [

Fair [

Poor [

DIRECTION: Below are items developed to survey your opinion or feeling about the role of Finance Division in this organisation. For each item chose the response that best reflect your opinion. There are five responses as follows: Strongly Agree =SA Agree =A Undecided= U Disagree = D Strongly Disagree = SD

Your responses will be of immense assistance in improving the role of Finance staff in company performance management. Your responses will be kept highly confidential. ITEM Importance of Finance Division Performance of an organisation is a function of the Finance Division The effectiveness can enhance growth and profitability of the Company. The role of Finance Division if proactive can signal danger before it occurs. Finance Division play crucial role in managing overall operation of the company. Source of Information Finance Division serves as an invaluable source of management information in an organisation. Finance Division has the comprehension of business transaction knowledge of the organisation. Finance Division interprets policy of an organisation in the course of business transaction process.
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SA

SD

52