This measure calculates the percentage of total finance function full-time equivalent employees (FTEs) allocated to developing and evaluating a framework for the internal and external business environment by qualifying the resources and investment costs in relation to profitability expectations for the current and anticipated market, customers, and product portfolios. It is part of a set of Supplemental Information measures that help companies evaluate additional variables not covered elsewhere for the "evaluate and manage financial performance" process.
(Number of FTEs who perform the process "evaluate and manage financial performance" / Number of FTEs who perform the function "manage financial resources") * 100
FTE - (full-time equivalent employee)
To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.
For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:
20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting
20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting
Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.