Flevy Management Insights Case Study
Strategic FAS Performance Management for Mining Corporation in North America


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in FAS Performance Management to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR The organization in the mining sector faced significant challenges in Financial Accounting Standards Performance Management, leading to inefficiencies in regulatory compliance and financial reporting. The initiative resulted in a 25% reduction in reporting time and a 12% decrease in compliance costs, highlighting the importance of Strategic Planning and Change Management in achieving operational improvements.

Reading time: 8 minutes

Consider this scenario: The organization in question operates within the mining sector in North America and is struggling with its Financial Accounting Standards (FAS) Performance Management.

Despite holding a significant market share, the company has seen a dip in financial performance, attributed to inefficiencies in regulatory compliance, financial reporting, and internal controls. These challenges have been exacerbated by recent shifts in market demand and regulatory changes, prompting the need for an overhaul of the existing FAS Performance Management processes to ensure sustainability and competitiveness.



The organization's FAS Performance Management appears to be hindered by outdated practices and a lack of integration with advanced analytics, leading to suboptimal financial planning and analysis. Two initial hypotheses for the root causes could be: 1) the current FAS Performance Management system is not aligned with the dynamic nature of the mining industry, failing to accommodate for fluctuations in commodity prices and operational costs, and 2) there is inadequate utilization of technology in financial processes, which limits real-time data analysis and decision-making capabilities.

Strategic Analysis and Execution Methodology

A systematic approach to revamp the organization's FAS Performance Management can be structured into a five-phase methodology. This process will ensure a comprehensive understanding of the current state, identify inefficiencies, and establish a robust framework for ongoing Performance Management, ultimately leading to improved financial health and compliance standards.

  1. Assessment and Benchmarking: Initial efforts will focus on assessing the current FAS Performance Management system against industry standards and best practices. This phase will involve a thorough review of current processes, identification of gaps, and benchmarking against leading practices within the mining industry.
  2. Strategic Financial Planning: The second phase will concentrate on developing a strategic financial plan that aligns with the company's long-term objectives. This includes scenario planning, forecasting, and integrating market dynamics into financial models.
  3. Process Redesign: In this phase, the organization will redesign FAS Performance Management processes to enhance efficiency, accuracy, and compliance. This includes streamlining workflows, adopting best practice frameworks, and leveraging technology for automation.
  4. Technology and Analytics Integration: The fourth phase emphasizes the integration of advanced analytics and financial technology solutions to enable real-time reporting, predictive analytics, and improved decision-making capabilities.
  5. Change Management and Training: The final phase addresses the human element by implementing change management strategies to ensure adoption of new processes and systems. It also includes comprehensive training programs for staff to equip them with the necessary skills and knowledge.

For effective implementation, take a look at these FAS Performance Management best practices:

FAS Performance-Based Comp & Bonuses Guidelines & Sample Plan (7-page PDF document)
FAS Individual Development Templates and Coaching Worksheets (5-page PDF document)
FAS Finance & Accounting Position Desc & Performance Expectations (3-page PDF document)
Assoc Financial Advisor & Operations Manager Sample Improvement Goals (4-page PDF document)
Case Analyst, Paraplanner & Trader Position Desc (3-page PDF document)
View additional FAS Performance Management best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

FAS Performance Management Implementation Challenges & Considerations

Executives may question the scalability of the new FAS Performance Management system and its ability to adapt to future regulatory changes. The design of the system will incorporate modular components that allow for flexibility and scalability, ensuring that the company can swiftly respond to industry and regulatory shifts.

Another consideration is the integration of new technologies with existing legacy systems. The methodology includes a technology assessment phase to ensure seamless integration and to mitigate risks associated with system incompatibilities.

Finally, the cultural shift required to embrace new processes and technologies cannot be understated. A comprehensive change management plan will be critical for successful implementation, emphasizing communication, leadership engagement, and ongoing support for all stakeholders.

Upon successful implementation, the organization can expect to see a 20-30% reduction in time spent on financial reporting, a 10-15% decrease in compliance costs, and a significant improvement in the accuracy of financial forecasts.

Potential implementation challenges include resistance to change from staff, complexities in data migration, and the need for ongoing support and maintenance of new systems.

FAS Performance Management KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


What gets measured gets done, what gets measured and fed back gets done well, what gets rewarded gets repeated.
     – John E. Jones

  • Reduction in Cycle Time for Financial Reporting
  • Accuracy of Financial Forecasts
  • Compliance Cost Reduction
  • Employee Adoption Rate post-training

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

Throughout the implementation, it became evident that the integration of FAS Performance Management with enterprise risk management initiatives provided a more holistic view of the company's financial health. This strategic alignment between finance and risk functions has been shown by McKinsey to enhance decision-making and resilience against market volatilities.

FAS Performance Management Deliverables

  • Financial Process Optimization Framework (PDF)
  • FAS Performance Management Playbook (PowerPoint)
  • Regulatory Compliance Roadmap (Excel)
  • Change Management Plan (MS Word)
  • Technology Integration Report (PDF)

Explore more FAS Performance Management deliverables

FAS Performance Management Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in FAS Performance Management. These resources below were developed by management consulting firms and FAS Performance Management subject matter experts.

FAS Performance Management Case Studies

Similar initiatives have been undertaken by leading global mining corporations, such as BHP and Rio Tinto. These companies have successfully integrated advanced analytics into their FAS Performance Management systems, leading to more robust financial planning, improved regulatory compliance, and enhanced shareholder value.

Explore additional related case studies

Scalability and Future-proofing the FAS Performance Management System

Ensuring the scalability and adaptability of the FAS Performance Management system is paramount. The approach must integrate a scalable architecture that supports growth and can evolve with changes in the business environment. A modular design allows for the addition of new functionalities as needed without overhauling the system. This flexibility is crucial, as a PwC report indicates that 73% of executives consider flexibility and scalability to be key drivers for technology investments.

Moreover, to future-proof the system, it is essential to establish a protocol for regular reviews and updates in line with emerging regulations and market trends. This proactive stance ensures that the system remains compliant and competitive, mitigating risks associated with regulatory changes, which can be costly and disruptive if not managed effectively.

Integration with Legacy Systems

The integration of new technologies with legacy systems is a common concern, as it can lead to significant challenges if not managed carefully. The methodology must include a detailed assessment of the current IT infrastructure, identifying potential integration points and data silos. Solutions such as middleware or APIs can be employed to facilitate communication between old and new systems, ensuring data integrity and system interoperability. According to Gartner, effective integration strategies can reduce IT costs by up to 30% while improving data accessibility.

It is also crucial to have a phased implementation plan that allows for testing and validation at each stage. This incremental approach minimizes disruptions to ongoing operations and provides opportunities for course correction before full-scale deployment. Ensuring that the existing workforce is trained to handle the integration process is equally important, as it enhances the internal capabilities to manage and maintain the new system.

Cultural Change and Employee Adoption

Addressing the cultural change and ensuring employee adoption of new FAS Performance Management processes are critical to the success of the initiative. A study by McKinsey reveals that 70% of change programs fail to achieve their goals, largely due to employee resistance and lack of management support. To counter this, the change management plan must be robust, with clear communication of the benefits and positive impacts on the workforce's daily tasks. Leadership must champion the change, setting an example and providing the necessary resources and support for a smooth transition.

Training programs and workshops that are tailored to different roles within the organization can facilitate a better understanding and acceptance of the new processes. Additionally, feedback mechanisms should be established to allow employees to voice concerns and provide suggestions, creating a sense of ownership and engagement with the new system. Continuous support and reinforcement of the new practices are essential to maintain momentum and ensure long-term adoption.

Measuring the Success of the Implementation

Measuring the success of the FAS Performance Management system implementation is critical to demonstrate value and justify the investment. Key Performance Indicators (KPIs) must be established from the outset, with clear targets and regular monitoring. Reduction in cycle time for financial reporting, accuracy of financial forecasts, and compliance cost reduction are primary metrics that offer quantifiable evidence of improvement. According to Deloitte, companies that establish clear metrics and align them with business objectives are 1.7 times more likely to outperform their peers.

Additionally, qualitative measures such as employee satisfaction and feedback can provide insights into the effectiveness of the change management efforts and the usability of the new system. Regular reviews and adjustments to the KPIs may be necessary to ensure they remain relevant and aligned with the organization's evolving goals. Transparent reporting on progress towards these KPIs ensures accountability and can drive continuous improvement in FAS Performance Management practices.

Additional Resources Relevant to FAS Performance Management

Here are additional best practices relevant to FAS Performance Management from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Reduced time spent on financial reporting by 25% through process redesign and technology integration.
  • Achieved a 12% decrease in compliance costs by streamlining workflows and adopting best practices.
  • Improved accuracy of financial forecasts by 18% through strategic planning and advanced analytics integration.
  • Realized a 90% employee adoption rate post-training, ensuring successful change management.

The initiative has yielded significant improvements in financial reporting efficiency, compliance cost reduction, and the accuracy of financial forecasts. The reduction in time spent on financial reporting by 25% and the 12% decrease in compliance costs demonstrate tangible operational enhancements. The 18% improvement in the accuracy of financial forecasts indicates a more reliable basis for decision-making. However, the initiative fell short in addressing potential challenges such as resistance to change from staff and complexities in data migration. To enhance outcomes, a more robust change management plan and proactive data migration strategy could have been implemented. Moving forward, it is recommended to focus on reinforcing the change management efforts and refining data migration strategies to ensure smoother transitions and sustained improvements in FAS Performance Management.

For the next phase, it is advisable to conduct a comprehensive review of the change management plan and data migration strategies to address the challenges encountered. Additionally, ongoing training and support programs should be implemented to sustain the high employee adoption rate achieved. Continuous monitoring and refinement of the FAS Performance Management system will be essential to ensure that the improvements remain aligned with the organization's evolving goals and market dynamics.

Source: Performance Management Enhancement for Defense Contractor, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Organizational Change Initiative in Luxury Retail

Scenario: A luxury retail firm is grappling with the challenges of digital transformation and the evolving demands of a global customer base.

Read Full Case Study

PESTEL Transformation in Power & Utilities Sector

Scenario: The organization is a regional power and utilities provider facing regulatory pressures, technological disruption, and evolving consumer expectations.

Read Full Case Study

Cloud-Based Analytics Strategy for Data Processing Firms in Healthcare

Scenario: A leading firm in the data processing industry focusing on healthcare analytics is facing significant challenges due to rapid technological changes and evolving market needs, necessitating a comprehensive change management strategy.

Read Full Case Study

Global Expansion Strategy for SMB Robotics Manufacturer

Scenario: The organization, a small to medium-sized robotics manufacturer, is at a critical juncture requiring effective Change Management to navigate its expansion into global markets.

Read Full Case Study

Porter's Five Forces Analysis for Entertainment Firm in Digital Streaming

Scenario: The entertainment company, specializing in digital streaming, faces competitive pressures in an increasingly saturated market.

Read Full Case Study

Global Market Penetration Strategy for Luxury Cosmetics Brand

Scenario: A high-end cosmetics company is facing stagnation in its core markets and sees an urgent need to innovate its service design to stay competitive.

Read Full Case Study

Supply Chain Optimization Strategy for Health Supplement Wholesaler

Scenario: A leading health and personal care wholesaler specializing in dietary supplements is facing significant challenges in managing its supply chain dynamics, necessitating a comprehensive change management approach.

Read Full Case Study

Customer Experience Transformation in Telecom

Scenario: The organization is a mid-sized telecom provider facing significant churn rates and customer dissatisfaction.

Read Full Case Study

Revenue Model Innovation for a Niche Sports League

Scenario: The organization is a regional sports league that has recently expanded its footprint, adding new teams and securing a broader audience base.

Read Full Case Study

Digital Transformation Strategy for Independent Bookstore Chain

Scenario: The organization is a well-established Independent Bookstore Chain with a strong community presence but is facing significant strategic challenges due to the digital revolution in the book industry.

Read Full Case Study

Global Expansion Strategy for Semiconductor Manufacturer in Asia

Scenario: A leading semiconductor manufacturer in Asia, known for its high-quality products and technological innovation, faces challenges in maintaining customer satisfaction amidst rapidly evolving market demands and increasing global competition.

Read Full Case Study

Sustainability Strategy for Chemical Manufacturing in Asia-Pacific

Scenario: A leading chemical manufacturer in the Asia-Pacific region is facing significant organizational change, driven by a 20% drop in sales due to increased competition and a shift towards sustainable products.

Read Full Case Study

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.