China Mobile Group's Centralized Financial Management Implementation Research

Economic Globalization is not only one of the important characteristics of modern world economy, but an important trend of world economic development as well. In order to conform to the trend, China's enterprises have been expanding in the direction of collectivization, and its organizational structure will take on trends of flatting and networking, and its operation mode is being transformed to diversification. Large numbers of cross-sectoral, cross-regional and cross-ownership enterprises have emerged, and gradually dominate Socio-economy. However, these enterprise groups are also faced with a series of large enterprise syndromes such as inefficient management, information barriers and decision delay. So it requires enterprises to build soft power seriously, to strengthen supervision of whole group, and especially to strengthen the financial monitoring. Reliable financial monitoring needs to use advanced financial management concepts and models. Nowadays, international advanced financial management develops towards Strategic Decision Support, Accounting Shared Services and Business Support. One of them, as a powerful mean of financial risks control, Centralized Financial Management Model (CFM Model) is becoming increasingly popular in the world and has become a popular trend.For the above-mentioned reasons, China Mobile Communications Corporation (CMCC) had begun to actively explore CFM Model, and then deployed six pilot provincial level companies, including CMCC Sichuan. I was honored to take part in CFM Project of CMCC Sichuan. During entire life cycle of this project, I participated in the whole process, from earlier propaganda to model selection, and then to implementation, and accumulated some practical experience. This paper is based on the practical experience. The first it analyzed disadvantages of decentralized financial management, and combined with theoretical analysis of necessity feasibility, and then put forward the reasons for implementing CFM. Secondly, it compared different CFM models to explain why CMCC adopted a special model. Again, it described detail content of implementation, with emphasis on organizational architecture, system build and business process design. Finally, it summarized solved problems, added benefits, still existing problems and enlightenments from this project. Therefore it can offer some reference for financial management reform, financial management development and CFM implementation of other enterprises.