Finance Transformation: How CFOs Prepare Their Finance Organization for the Challenges of the Future

You are exploring a webpage on http://www.juergendaum.com/

Trend Report – September 19, 2005

Juergen Daum’s Best Practice service

Finance Transformation: How CFOs Prepare Their Finance Organization for the Challenges of the Future

News categories: The New Economy Economics, the new role of finance, Finance and Accounting, Performance Management and Controlling, Investor and Stakeholder Relations

The role of the chief financial officer in an enterprise has been undergoing a radical change for some time now. What do today’s CEOs expect from their CFOs? How does this impact on the role of CFOs and the finance organization? What “finance transformation” strategies do they apply to enable finance to meet the challenges of the future?

While it was previously enough to have funds, internal figures for management, and the annual financial statement under control, the demands made on today’s chief financial officers (CFOs) has undergone a huge change. Instead of working in the background, CFOs now find themselves in the thick of the action. Many new demands put the CFO under increasing tension between two key functions that he or she has to fulfill. On the one hand, the CFO is the guardian of internal and external governance and compliance and ensures professional risk management, thereby securing the enterprise’s reputation on the financial markets, among regulatory authorities and other important stakeholders. On the other hand, the CFO is a service and sparring partner for management and the business units. He or she supports this by helping to manage and control business and in decision-making, and shares responsibility for the outcome. How are CFOs tackling the transformation of their function?... read the full article

Additional Resources:

J.H.D.’s Best Practice Channel – Finance

J.H.D.’s Beyond Budgeting Info Center

Juergen H. Daum's book on: Intangible Assets and Value Creation, Wiley 2003

Related Trend Reports:

Finance Transformation: The evolving role of the CFO and the need for a new corporate financial infrastructure

Panel discussion with representatives from Borealis, Nestlé, SAP and Unilever: Beyond Budgeting – breaking free from the annual fixed budget

Interview with Lennart Francke: Managing without budgets at Svenska Handelsbanken

The book of the month: “Building Public Trust: The Future of Corporate Reporting” by Samuel A. DiPiazza Jr. and Robert G. Eccles

Intangible Assets: a central topic at the mySAP Financials conference in Strasbourg

Performance Management Beyond Budgeting: Why you should consider it, How it works, and Who should contribute to make it happen

Corporate Performance Management: Managing profitability and growth in the new environment

Leveraging e-Business Opportunities for Finance – Q&A with Juergen Daum

The new FASB rules for reporting on Intangible Asset - The U.S. versus the European way

How accounting gets more radical in measuring what really matters to investors

The book of the month (May / June): “The Value Reporting Revolution” by Robert G. Eccles, et al.

The Internet is supposed to transform business processes – but what about finance?

eXtensible Business Reporting Language (XBRL) is moving forward

From Management Accounting to Business Support: “Beyond Budgeting” at Boots/BHI. An Interview with Matthias Steinke, CFO BHI Germany

Interview with Patrick M. Georges: How can executives improve their personal productivity?

The Management Cockpit “War Room” at Iglo-Ola (Unilever Belgium): An Interview with Iglo-Ola’s Financial Controller Ghislain Malcorps

Performance Management Beyond Budgeting: Why you should consider it, How it works, and Who should contribute to make it happen

Interview with David P. Norton: "Intangible Assets and the Balanced Scorecard"

Other Trend Reports:

Vector-Based Performance Measurement: Linking the Subjective and Objective Dimension into One System of Performance Measurement

Interview with Jeremy Hope: The Origins of Beyond Budgeting and of the Beyond Budgeting Round Table (BBRT)

Beyond Budgeting on the move: report from the First Annual Beyond Budgeting Summit in London

Why companies need new management systems to achieve sustained profitability - especially in difficult economic times

Approaching the next level of shareholder value management – the art of corporate performance management (part 2)

Approaching the next level of shareholder value management – basics (part 1)

The book of the month: “Good to Great: Why some companies make the leap…and others don’t” by Jim Collins

How to create value with Real Options based innovation management

The book of the month: “Ownership and Value Creation – Strategic Corporate Governance in the New Economy” by Rolf H. Carlsson

Interview with Leif Edvinsson: Intellectual Capital: the new wealth of corporations

How Systems Thinking / Systems Dynamics helps to identify limits to growth to boost innovation value

How scenario planning can significantly reduce strategic risks and boost value in the innovation chain

Beyond Budgeting: How to become an adaptive sense-and-respond organization

“The Mind of the C.E.O” by Jeffrey E. Garten

The book of the month: “The Innovator’s Dilemma” by Clayton M. Christensen

The Book of the Month: “The Strategy-Focused Organization” by Robert Kaplan and David Norton

More about Enterprise Management Best Practice and related topics will be continued in Juergen Daum’ Trend Reports. To subscribe for Juergen Daum’s free-of-charge e-mail newsletter (a regular summary of the recent reports) click here.

… feedback

Back

You are exploring a webpage on http://www.juergendaum.com/