HVAC & Plumbing Leader Enables $2M in Annual Savings and 30% Faster Month-End Close through Finance Function Redesign
A $600M industry leader in HVAC, plumbing, and controls, comprised of 15+ acquired operating companies (OpCos) and serving customers across multiple states.
$2M
Direct Cost Savings
$3.3M
Projected Annual Cost Avoidance
Context
The client wanted to define a clear vision for their future finance organization and ensure they had the right structure, processes, and capacity to support long-term growth. They engaged us to design a scalable operating model with clearly defined roles, responsibilities, and supporting processes. We also developed a practical set of next steps to implement the new organizational delivery model and partnered with the client to execute those steps.
What We Discovered
Through detailed process mapping, in-depth interviews, and data analysis, we identified the following key insights:
- Variation Across Operating Companies: Different entities were using separate technology instances and following varied processes, which created inconsistencies and limited corporate finance’s ability to operate efficiently.
- Process Inefficiencies: Current-state processes contained bottlenecks and manual steps, contributing to an average month-end close of 23–27 days.
- Accounts Receivable and Cash Flow Delays: Challenges with A/R management contributed to delayed vendor payments and cash flow constraints.
- Data Reliability and System Integration Issues: Sync errors and insufficient controls across new and legacy platforms created data integrity gaps and frequent reporting discrepancies.
- Operational Mistrust: These operational and process inefficiencies made it harder for the organization to have full confidence in reported financial information.
Results and Impact
- Realized $2M in cost savings while laying a foundation for $3.8M in additional cost avoidance as the client scales.
- Achieved a 30% reduction in the month-end close timeline, supporting greater agility and reliability in reporting.
- Enhanced employee retention, improved morale, and strengthened the organization’s ability to manage finance operations at scale for ongoing and future growth.
What We Did
Our comprehensive approach and implementation support included these key initiatives:
- Finance Organization Redesign: Developed a future-state, hybrid finance structure to clarify roles, optimize staffing, and support the centralization of finance activities. We also implemented there design, preparing affected finance leaders and coordinating with HR and Legal to operationalize the new structure.
- Process Optimization: Mapped and redesigned over 50 core processes, prioritizing key areas such as Procure-to-Pay, Order-to-Cash, and Record-to-Report.
- Standardization & SOPs: Documented and updated 20+ Standard Operating Procedures (SOPs) to unify workflows, embed best practices, and safeguard institutional knowledge following organizational changes.
- Technology & Integration: Assessed the system architecture, mapped all relevant data flows, and outlined automation solutions, including AP/AR auto-matching, invoice exception workflows, and enhanced reconciliation between finance and operational platforms.
- Performance Measurement: Established and rolled out clear KPIs, close calendars, and performance dashboards across Treasury, FP&A, and Accounting functions to enhance transparency and accountability.
- Change Management & Training: Implemented structured communication strategies, “train the trainer” programs, and organization-specific change management plans. Supported the organization through the week of Go-Live, ensuring smooth adoption of new practices and preparing finance leaders to manage transitions effectively across all entities.
