If we break it down to simple terms: we have a strategy, we plan on how the strategy will be deployed, we report on an actual outcome, we analyse the outcome, and hopefully we further analyse to provide some indications of future outcomes. To enable the CFO to assume an expanded role, most companies will need to strengthen the finance function. 0000590849 00000 n Finally, the fourth role CFOs can play in digital transformation is in transforming their own department. Several situations present opportunities for CFOs to emphasize the importance of performance transparency and demonstrate how the finance function can play a forward-looking role in driving a transformation’s success. The CFO also fostered stakeholder alignment—first by working closely with the executive team and top management and then by communicating the case for change and the improvement initiatives to the broader organization. To facilitate frequent performance reviews and rapid course corrections, the company implemented a governance structure that enabled the CEO, the CFO, and the chief human resources officer to actively manage the improvement portfolio. Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. In one instance, the CFO of a US retail chain determined that the company would need to improve its margins in order to continue enjoying profitable growth. xref In addition, the CFO designs the governance for the transformation, aiming to provide insight into the development and maturity of projects and promote accountability. 0000003778 00000 n BCG was the pioneer in business strategy when it was founded in 1963. In defining the master plan for a global industrial company’s transformation, the CFO collaborated with the CEO to prioritize 50 improvement topics. To provide a fact base, the CFO conducted a systematic appraisal of baseline performance. These critical factors can reverse the odds of success from 30% to 80%, the company pointed out. <> 0000002572 00000 n Employees at all levels of the organization must be ready and willing to convey bad news about performance, and executives should reward them for doing so. 0000598514 00000 n On the basis of our experience working with firms across industries, we believe CFOs have a vital role to play in helping companies establish and achieve a transformation’s objectives for value creation. 0000000015 00000 n By providing a better understanding of the status quo and improvement priorities, the results enabled the CFO to set clear top-down targets. ��� $ G"3D"3D"3D"3D"3DUfUfUfUfUfUfUfUfUfwwww"3D"3D"3D"3D"3D"3D"3D"3D"3DUf"3DUf 0000598317 00000 n 408 0 obj For example, three-quarters of the companies we studied are investing in digital technology, a field in which they are still building the operational and financial expertise required to develop a business case for investments. Today’s CFOs are expanding their roles beyond traditional financial-reporting responsibilities to become proactive custodians of shareholder value. 0000599333 00000 n The results also suggest that CFOs are already playing an active role in transformations. 0000572993 00000 n While continuing to serve as the financial face of their organization, CFOs are evolving to become digital transformation leaders within their companies, leaders that can bring an international perspective, a strong understanding of operations, and the ability to drive value through the use of data and analytics. To ensure transparency into performance, the CFO must collaborate with other company leaders to foster a culture of truthfulness in assessing and reporting on progress. “What the CFO 3.0 research shows is that digital transformation is not a tech issue per se. In addition, the CFO designs the governance for the transformation, aiming to provide insight into the development and maturity of projects and promote accountability. They organized the topics into approximately ten work streams and then sequenced the work streams so that those enabling other improvements were undertaken first, followed by the highest-impact initiatives. The CFO agenda: Digital delivered, episode 3 | Organizational agility This edition takes a deep dive into organizational agility; what it means to be an agile finance organization in the COVID-19-driven new reality and beyond, and what it takes to become one. Recently, a global telecom company launched a large-scale cost improvement program in response to slowing growth. endobj We analyzed the sources of value creation for a sample of more than 700 large public companies in Europe and North America from 2011 through 2016. <>/Outlines 125 0 R>> With/Afterコロナを生き抜くためのCFOアジェンダとDigital Transformation With/Afterコロナ環境下で、CFOが取り組むべき短期的・中長期的な取組み事項と、ニューノーマルの時代に目指すべき財務経理のデジタル化の方向性について解説し 0000599360 00000 n The CFO’s Vital Role in Corporate Transformation. © Boston Consulting Group 2020. CFO transformation Over the past twenty years a significant number of transformation programs have evolved that focus on systems, tools and processes in order to improve business performance. 0000002994 00000 n endstream Furthermore, the assessment results helped the CFO explain the transformation’s objectives to investors during the company’s Capital Markets Day event. Finding the Value. Furthermore, 44 percent of CFO 409 0 obj We advise those that do so to take what we call a “machine-first” approach. 0000572344 00000 n 0000573805 00000 n CFOs may need to consider funding a transformation differently, for … In the past decade, it has become commonplace to see companies launch a transformation—a comprehensive change in strategy, operating model, organization, people, or processes. The CFO’s performance, like all members of the executive team, is measured against the success of these company-wide initiatives and plays a proactive role in driving progress. trailer The need for an activist CFO has become clear as companies increasingly consider transformations to be an essential part of their efforts to adapt to fast-changing markets and outperform their peers. %PDF-1.5 From start-ups to S$30 mil SMEs, you are our focus. The CFO is the second-most-common leader, after the CEO, identified as initiating a transformation. CFO 3.0: Beyond finance To fully understand this shift from CFO 1.0 to CFO 3.0, Sage commissioned a study, CFO 3.0 – Digital transformation beyond financial management, that helped us to identify the opportunities and 0000003104 00000 n To support the plan’s development, the CFO assesses the quality of proposed initiatives and their contribution to value creation. endobj CFO Insights January 2020. 0000560863 00000 n Most recently he was CFO and chief operating officer at Qontigo and previously a CFO at Axioma. 0000018981 00000 n Only 24% of transforming companies experienced greater TSR growth than their industries over both the short term (one year) and the long term (five or more years). These targets not only helped to shift the mindset of company leaders but also enabled the business lines to discuss more aggressive, transformative changes. They also need to define metrics for tracking and evaluating the impact of these changes from the perspective of value creation. 0000599194 00000 n 0000002700 00000 n 0000001361 00000 n To encourage the business lines’ adherence to the planned initiatives and resource allocation, the CFO enforces the consequences (such as loss of funding or staffing) that stakeholders agreed to in the plan and aligns stakeholders around the case for change as well as the transformation’s objectives. The transparency enabled by a culture of truthfulness provides the basis for the forward-looking decisions required to design and execute a successful transformation. コーポレート・ディベロップメント, <> If a transformation is already under way, the CFO should be alert for inflection points that could be opportunities to significantly influence the program’s impact. 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