The Renewed Finance Function - Extending Performance Management Beyond Finance

The Renewed Finance
Function-Extending
Performance Management
Beyond Finance
A report prepared by CFO Research Services in collaboration with SAPThe Renewed Finance
Function-Extending
Performance Management
Beyond Finance
A report prepared by CFO Research Services in collaboration with SAPThe Renewed Finance Function-Extending Performance Management Beyond Finance is published by CFO Publishing Corp.,253 Summer Street, Boston, MA 02210. Please direct inquiries to Jane Coulter at 617-345-9700, ext. 211 orjanecoulter@cfo.com. At CFO Research Services, Elaine Appleton Grant conducted the interview program and wrote thereport. Sam Knox directed the research and managed the project.
CFO Research Services is the sponsored research group within CFO Publishing Corporation, which produces CFO magazine in the United States, Europe, Asia, and China. CFO Publishing is part of The Economist Group.
November 2007
Copyright © 2007 CFO Publishing Corp., which is solely responsible for its content. All rights reserved. No part of this report may be reproduced, stored in a retrieval system, or transmitted in any form, by any means, without written permission.1
Contents
About this Report 2
Executive Summary 3
Chapter 1: The Strategic CFO 5
Chapter 2: The New Role: A Holistic Leader 11and Partner-Not Merely a Technician
Chapter 3: Standardizing and Streamlining 17
Chapter 4: Conclusion 24
Sponsor's Perspective 252 The Renewed Finance Function-
This report presents the findings of our online survey ofAbout this Report 255 senior finance executives and in-depth interviewsIn August 2007, CFO Research Services (a unit of CFO with executives at the following companies: Publishing Corp.) launched a research program toexplore the ways in which the role of the finance team . ABB has changed in recent years due to increased oversight . Bank of Montrealfrom regulators, more active investors, and company- . CB Richard Ellis Group, Inc.specific changes in business operations. . Cengage Learning (formerly Thomson Learning). Cleveland-Cliffs, Inc. We wanted to better understand the internal and exter- . CMA CGM (America) Inc. nal forces that are causing these transformations and the . Cox Communications, Inc. steps that companies and their finance teams are taking . Levi Strauss & Co.to respond to these forces. This research program- . MGM Mirage which includes an electronic survey and a series of inter- . Silgan Plastics Corp.views among senior finance executives-finds that the . Turbocamfinance team is indeed under new pressure from more . Verigy Ltd.demanding external stakeholders. This pressure, espe- . Wyndham Worldwide Corporationcially from regulators, has prompted finance teams to . Executives at several other companies in North Amer-document and often repair core finance and operating ica, Europe, and Asia thatactivities. asked not to be cited by name in this report
CFO Research Services and SAP developed the hypothesesPressure from more demanding for this research jointly. SAP funded the research andexternal stakeholders has prompted finance publication of our findings, and we would like toacknowledge Erin Halfnight, Barbara Dischner, and Jimteams to document and often repair core D'Addario for their contributions and support. At CFOfinance and operating activities. Research Services, Elaine Appleton Grant conducted theinterview program and wrote the report. Sam Knoxdirected the research and managed the project.
But companies aren't in business just to comply with regulations. They are in the business of making valuableproducts, rendering high-quality services, serving customers, and generating value for shareholders. Amida marked increase in investors' expectations from com-panies and their finance teams, executives in this studyshow new enthusiasm for closer collaboration with business unit management in an effort to improve business performance and lessen risk. By doing so, theywill contribute to the core business activities that satisfy customers and shareholders-as well as stake-holders such as regulators, business unit managers, andemployees at large.
NOVEMBER 2007 © 2007 CFO PUB... [download for more]