Evolving the Office of the CFO

KPMG’s 2015 Global CEO Survey provides some great insight on what will make a CFO successful.  In it they report that 85 percent of CEOs indicate applying financial data to achieve profitable growth is the greatest strategic value a CFO can bring to an organization.  And is one of the attributes of a high performing CFO.

A CEO expects their CFOs to take the initiative to apply financial data analysis to explore new products, markets and channels on behalf of the organization.  One of the keys in being able to do this effectively is to strengthen the alignment between financial planning and corporate strategy.  Interestingly, one in three CEO’s don’t think their CFO is up for the challenge.  A high performing CFO must be able to stay ahead of technology and master the complexities of data analysis in order to deliver strategic value to the company.

In his report “How nimble resource allocation can double your company’s value,” author Yuval Atsmon of McKinsey shows how dynamic resource reallocation, the shifting money, talent, and management attention to where they will deliver the highest value back the company, actually delivers, on average, a 10% return to shareholders, versus 6% for a sluggish reallocator.  Over a 20-year period the company, the dynamic reallocator will be worth twice as much as their less agile counterpart.  Mr. Atsmon goes on to postulate that digital disruptions in the market today and growing geopolitical uncertainty will boost the importance of nimble reallocation.

Digital disruption creates a wealth of information every second.  The opportunity and the challenge is, what do you do with all this information?  How do curate it so you can connect the dots effecting your business and align them to strategies which will optimize your company’s growth?  And,  how do you do so with the speed and agility needed to gain true competitive advantage.   In most cases you have multiple systems giving you financial and operational data all of which need a significant amount of overhead to provide the perspective needed to make informed investment decisions.

You must be able to get to a level of granularity that enables you to make the right investment decisions in the right market segments.  To be truly agile with your business you need to have one system which gives you the ability to see all of your financial data in one place.  This includes actuals, budgets, forecasts, reporting & analytics, people, capex and cash planning.  Your systems also need to be purpose built to optimize the compute power available in the cloud.  Traditional Corporate Performance Management (CPM) solutions, being a series of applications silos, which are difficult to configure, maintain and upgrade, do not provide todays’ CFO with the agility they need to perform at the highest levels.

OneStream Software, delivers CPM 2.0 the FIRST truly unified platform for Corporate Performance Management to address the concerns of the offices of finance around risk management, efficiency and reporting. OneStream XF’s revolutionary Extensible Dimensionality® delivers a unified corporate data structure along with business unit operational independence. You can get to the level of granularity you need, quickly, to make the best decisions for your company.  They are changing the game in Corporate Performance Management by allowing business units to extended detail and dimensions including accounts, products, regions, channels, departments, etc., without compromising the integrity of the corporate data structure.  In doing so they give a CFO the tools they need to use financial data to achieve profitable growth.

Acknowledgments

  • The view from the top; CEO’s see a powerful future for their CFOs. Are CFOs ready for the challenge?  – 17 March 2016
  • How nimble resource allocation can double your company’s value – Yuval Atsmon, McKinsey Company August 2016

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s