I published an article on team PnLs and the distribution of responsibility for business outcomes among team leaders — not only for commercial but also for the company’s service departments.
In my book “The Role of CFO”, which English edition is being prepared now, I devote a key place to motivation and goal-setting. In this regard, for reaching financial results it is very important to delegate to the team level responsibility — besides obviously counting own revenues in the case of income-generating departments and incurred expenses in the case of spending or support teams, but also for the net financial result and return on investment.
For carrying such responsibility, teams must receive tools to control their own revenues and expenses, financial results. Moreover, this toolkit, the dashboard, must be built on a single, common platform for all the company’s teams and a unified methodology. These are team reports on profits and losses based on the company’s common analytical BI system.