With the help of Genpact, Cardinal Health is focusing on finance's role as an insight generator
Eric Johnson, VP of Channel Finance at Cardinal Health, shared his organization's journey to evolve the role of finance. Cardinal Health's analysis identified that it had an unsustainable cost structure due to complexities in its processes and systems. It had also not fully integrated many of its acquisitions into Cardinal Health's financial processes or invested substantially in tools and capabilities within the finance function.
The healthcare market was changing quickly, and the business had increasing demands for new insights from the finance team. But the percentage of manual rework and data manipulation Cardinal Health's finance organization had to perform impacted its ability to deliver. Eric's group wanted to free up the team's time to perform more forward-looking analytics, but complex nonstandard processes overburdened them, and they didn't have the tools to execute this effectively.
As Eric said, "We identified our guidelines as transform, optimize, and innovate, allowing us to leapfrog from our current state. This put an emphasis on speed, end-to-end ownership, and a partnership that we believed would keep us on the cutting edge of capabilities now and into the future." It was critical that Cardinal Health created a forum for senior finance leadership to stay fully engaged. The company used Genpact and other outside experts to help drive this alignment, focusing on change management and honest communication.
Cardinal Health's day-one focus was on removing internal complexities by taking a fresh view of its operations and how partnerships could challenge its thinking and provide digital capabilities. Commenting on new approaches to talent, Eric said, "One of the more complex situations we had is 'co-mingled' finance roles. This would include finance employees that are executing financial planning and analysis, order-to-cash, and record-to-report activities. By standardizing these core processes across the segments and businesses, we could centralize and then automate this activity while freeing up our employees' time for more business partnering."
Following these priorities, Cardinal Health has established an automation, analytics, and artificial intelligence (AAA) hub in Columbus, Ohio, for its FPA work and certain analytics capabilities. By transferring many of its FP&A employees to Genpact, Cardinal Health's former employees partnered with data scientists and analytics experts to better utilize AAA capabilities and drive process improvements.
This partnership creates a powerful, mutually beneficial finance and analytics center while minimizing business disruption. As Eric said, "We are early in the journey, but we are very pleased with the initial results… our former employees have embraced the vision and their new employer. They are also energized by 'the art of the possible' and the commitment from both companies to our future success."