The Ledger
Curated content foranalytical business leaders
The Role of the CFO is Ever-Evolving
June 11, 2018
With new technologies and AI evolving the finance world, the role of the CFO is evolving along with it. These days, the position calls for a “purpose-driven” CFO. This means that the C-suite needs to understand what motivates them, and how that will benefit the overall company. This focus on responsibility is a good thing, especially for CFOs. But it also has a flip-side where the tendency is to think primarily about meeting the organization’s goals, and within that context, meeting one’s personal goals. A focus on purpose helps broaden the perspective.
Read More at The Digitalist by SAP >
It’s Time to Invest in Sophisticated Data Operations
June 7, 2018
Thought leaders of digital transformation and disruption already understand the value of proper business-process modeling. Accepting that every organization wants to be data-driven, we should recognize that data flows are nothing else but business workflows without prose. Therefore, proper data operations are key to enable the agile management of data in a complex enterprise landscape as we see it nowadays. Data orchestration and integration efforts are largely manual and time-consuming, taking valuable time away from value-adding activities. This is why companies, if they have not already, should invest in a sophisticated data operations solution.
Read More at The Digitalist by SAP >
Reducing the Risk of Low Profitability
June 6, 2018
Because the success of all businesses depends upon delivering sustainable profitability, low-profitability has become an enterprise-wide concern. In many industries, profits are hard to come by and even harder to maintain, creating reason for focus and concern for both corporate leaders and their stakeholders. Some of this can be attributed to digital disruption that made old business models obsolete. For other industries, such as coal, oil and gas, have been affected by low energy prices, shifting consumer preferences and macro factors including environmental impacts. Regardless of the industry, business leaders need to take action to reduce the risk of low profitability.
Read More at Forbes Magazine >
Value Creating With “Blue-Line” KPI Management
June 5, 2018
Organizations of all types rely extensively on key performance indicators (KPIs) to define and evaluate success. KPIs are best used as instruments for organizational learning by identifying knowledge gaps that allow the company and its people to cope more effectively with a constantly changing competitive and technological landscape. A practice that is recently being disputed is “red line management,” where managers are driven to pursue inappropriate targets because they are tangible and they are incentivized on KPIs that while they are connected to value, do not drive it. A new concept that is being introduced to the finance world is “blue-line management,” an approach in which all decisions of consequence are made with one aim in mind: to create value for the organization. This approach stands in stark contrast to the more common practice of “red-line management”
Read More at Strategic Finance Magazine >
