The Ledger
Curated content foranalytical business leaders
CFO Priorities for 2021 Includes Digital Transformation
August 6, 2020
“After surviving the initial wave of the pandemic, many organizations obtained a real-world view of how far along they were in their digital transformation journey. In many cases, the verdict was “not nearly as far as we thought we were.” Although most companies have automated processes, fewer have optimized that automation; fewer still have deployed next-generation technology to transform their business models. In fact, our research and experience with organizations worldwide indicates that very few have taken the necessary steps they need to become truly digital. They may have formed a digital veneer around their core capabilities, but being truly digital means changing the organization at its core.”
FP&A Can Help by Asking Better Questions
August 4, 2020
“In addition, the world around us – and in business – is changing rapidly. As decision makers struggle more to make sense of such a world, they need help. Since FP&A is directly supporting business decision making and makers, they can help by asking better questions!”
Aligning FP&A and Accounting Teams for Success
August 2, 2020
“Accounting teams, which are responsible for controls, compliance and reporting — traditionally backwards-looking functions — tend to focus on the balance sheet, while financial planning and analysis (FP&A) teams, which are responsible for forward-looking budgeting and forecasts, tend to focus on the P&L. FP&A teams typically account for a transaction one way — as an investment, for example — while the accounting team accounts for it as an expense.”
Gartner: Build Cost Strategy Around Differentiating Factors, Not Competitive Trends
August 1, 2020
“Our research shows that CFOs are often blown off course by external targets that prioritize growth over profitability. Their targets, because they are externally focused, are routinely disrupted by changes to the macro picture. […] CFOs who model costs on differentiators are much more likely to stay on track with their long-term plans, avoid hasty cost-cutting in response to a change in the macro picture and realize value through principled and focused reinvestments built around their differentiators.”
