Contents
1 CFOs: Rising to the challenge
of performance management
2 Tough challenges and new
opportunities for CFOs
7 Delivering the on
demand performance
management solution
10 Fusing process, people,
technology and information
11 Conclusion
12 About the author
13 About IBM Business
Consulting Services
CFOs: Rising to the challenge of performance management
The role of the corporate CFO is rapidly expanding. It is extending beyond a
traditional focus on external and regulatory reporting, and “enforcing” of financial
policy and process. CFOs are increasingly being called upon to act as a business
partner to help guide and improve business performance across their organiza-
tions. To this end, in the next three years it is anticipated that we will see a dramatic
and progressive transformation as the finance function expands its emphasis
and resources from transactional activities, which, while necessary to comply
with regulatory requirements, provide limited differentiation for the business. This
represents a fundamental shift in focus for the CFO from efficiently “running the
business” to effectively “managing and optimizing the business.” These resources
will be redirected to decision support and performance management related
activities required to enable an adaptive, on demand business, which is necessary to
compete in an increasingly volatile economy.
Figure 1. Finance’s evolution to an on demand future.
Finance efficiency + Finance effectiveness
Past Current Future: On demand
Business
units
Central
CFO
finance
Decision support
Shared
Specialist finance services services/
Transaction processing outsourcing
Source: IBM Business Consulting Services analysis, 2003.
An on demand business is adaptive in that it has the ability to quickly sense
and respond to change, both internal and external. It does this by aligning and
integrating people, technology and information with the core business processes
across its entire value chain. The on demand business model is focused on
measures of success, responsive to change, variable in its cost structures and
resilient in dynamically managing risk.
1 CFOs: Rising to the challenge of performance management IBM Business Consulting Services