Evolving Role of the CFO - LEAPROS · The importance of the CFO role: CFOs rank second only to CEOs...

© 2014 IBM Corporation

The Evolving Role of the CFO Naomi Hill Vice President of Finance & CFO IBM UK and Ireland

Contact: [email protected]

© 2014 IBM Corporation 2 Source: The Customer-activated Enterprise; IBM Institute for Business Value

CxOs vary in their views about which external pressures are most significant, but unite in ranking technology in the top three

Technology factors

Market factors

Macro-economic factors

People skills

Regulatory concerns

Socio-economic factors

Globalisation

Environmental issues

Geopolitical factors

CEO CFO CHRO CIO CMO CSCO

External forces impacting the enterprise (3–5 Years)

© 2014 IBM Corporation 3

Social Mobile

Big Data Cloud

Technology is transforming business and society


CEOs consider technology the single most important external force shaping their organisation’s future

CEO Studies 2004–2013

2004 2006 2008 2010 2012 2013

Technology factors

Market factors

Macro-economic factors

People skills

Regulatory concerns

Socio-economic factors

Globalisation

Environmental issues

Geopolitical factors


The importance of the CFO role: CFOs rank second only to CEOs in collaborative influence

Source: The Customer-activated Enterprise; IBM Institute for Business Value


CFOs report that almost all aspects of their role have increased in importance over the past 3 years


Importance 2010

50% 100%

Areas of importance

Importance 2013

Measure/monitor business performance

Provide inputs into enterprise strategy

Develop talent in the finance organisation

Optimize planning, budgeting and forecasting

Drive enterprise cost reduction

Support/manage/mitigate enterprise risk

Drive integration of information across the enterprise

Execute continuous finance process improvements

Strengthen compliance programs/internal controls

Manage investor/stakeholder relations

Process transactions

90% 80% 70% 60%


The Global CFO Study identified 4 Finance profiles, with one group, Value Integrators, outperforming the rest


Finance Efficiency

Value Integrator Performance optimisation

Predictive insights Enterprise risk management Business decision making

Disciplined Operator Finance operations focused

Information provision Performance interpretation

Constrained Advisor Analytics focused

Sub - optimal execution Fragmented data

Scorekeeper Data recording Controllership

Multiple versions of the “truth”

Business Insight

Finance efficiency and business insight

© 2014 IBM Corporation

Value Integrators are now pushing the boundaries of efficiency and insight – evolving into Performance Accelerators


Finance Efficiency

Business Insight

Performance Accelerator • Links strategy and execution • Instills innovation to spur

profitable growth • Focuses on enterprise

transformation and business model innovation

• Drives analyses and provides predictive insight

• Captures higher value by turning insights into action

• Encourages smart risk taking • Optimizes resource allocation

8

Pushing beyond current boundaries

on efficiency

Harnessing new analytical capabilities unavailable

just a few years ago


Today, three imperatives guide the most effective CFOs

CFOs design integrated operating models and

processes that are the foundation of

a globally integrated enterprise that

proactively adapts and continually

positions for the future.

CFOs are guiding the evolution

of the organisation’s value creation engine

with profit opportunities to create the future.

New analytics and data sources enable CFOs to

offer predictive and prescriptive insights

and drive a forward-looking culture

that permeates the organization and

better shape the future.

Help the business make better decisions by

anticipating the future and not just analysing the past

Drive enterprise agility through

enterprise integration

Lead business model innovation through new

discipline of performance


Driving Enterprise Agility Through Enterprise Integration

Replicated and inflexible operations

Decentralized management

Business process complexity

Lack of consistent data world-wide

Common world-wide processes and applications

Right skills, right place, right cost

Innovate and radically simplify processes

Enable growth and productivity

Replicate

Multinational Globally Integrated

Connect

Replicated and inflexible operations

Decentralised management

Business process complexity

Lack of consistent data world-wide

Common world-wide processes and applications

Right skills, right place, right cost

Innovate and radically simplify processes

Enable growth and productivity

20th Century

21st Century


Help the business make better decisions by anticipating the future, not just analysing the past

Predict potential threats and opportunities Spot and analyze

trends and anomalies

Assemble and interact with

relevant information

Compare “what-if” scenarios

Understand customer sentiment and behavior

Plan, budget and forecast resources

Assess & manage

risk

Measure and monitor behavior

Turn insight into action, optimizing

results

Align strategic and operational decisions

Business Insight

Manage Risk

Operational Efficiency

Business Analytics


Lead business model innovation through new discipline of performance

Analytics around the correlation between key attributes and deal performance validate our acquisition strategy and improve our selection process

Likelihood of a deal achieving objectives Exhibits attribute

Does not exhibit attribute

Analytical views


CFO Priorities

Drive Enterprise Agility Through Enterprise Integration

Make Better Decisions by Anticipating the Future Lead Business Model Innovation Through a New Discipline of Performance

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Evolving Role of the CFO - LEAPROS · The importance of the CFO role: CFOs rank second only to CEOs...

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