“While the benefits of purpose on corporate performance are starting to be recognized by both business leaders and academics, very little evidence exists about how purpose can be effectively and practically embedded into decision making and strategy execution. We suggest that if performance management and measurement systems are well-designed, management accountants can use them as a powerful and positive tool for aligning purpose with sustainable, value-creating strategy and business models. By leading in the design and implementation of comprehensive performance management and measurement systems, management accountants and the whole finance organization can play a vital role in helping their organization embed purpose into action as a business path for achieving positive social impact and sustainable business performance.”
In the era of big data analytics and digital transformation, more companies are realizing the value and importance of data analytics in every area of their business. With that said, many finance leaders find themselves unable to successfully navigate this transformation because they are using outdated tools to try to visualize and analyze their data. There’s nothing inherently wrong with spreadsheets; they’re excellent tools for many different jobs, but data visualization and data communication are not in that category. Having robust analytics practices require an integrated technology platform that enables executives to gain stronger insights into the business.
Analysis paralysis can be a big problem for executives who are not digitally proficient and able to use intelligent technologies to differentiate themselves from competitors. Trying to navigate the digital disruptions affecting every industry, company, and line of business is next to impossible for companies experiencing this paralysis. The cure for such paralysis is a digital transformation, which is fundamentally about creating better outcomes, better visibility, and the ability to be agile and deliver outcomes in a timely fashion. There are three practical tips to follow when turning digital transformation into a practical strategy for driving long-term growth.
“Intelligent drivers” are measurable business activities that directly link strategy to the organization’s short- and long-term goals. Business process goals and operational activities do not always line up with the organizational structure. Some have a one-to-one relationship, but others may go across multiple departments. Defining intelligent drivers may well lead to rethinking the way budgets are set and departmental performance monitored. Consequently, relationships should, where possible, be validated against both past behavior and assessed as to their accuracy in predicting the future. This is not something that will be exact or proven at first, but the point is to keep iteratively refining the measures by challenging management beliefs about organizational drivers, risk, value, and reward, and how your organization can better leverage them to drive success.
Industry leaders are leveraging enterprise technology that enables the business to be more productive, profitable and innovative. The largest firms in the industry are capturing a greater share of the market then they used to, and research links this trend to software. Leveraging proprietary software pairs with other strengths to form competitive advantage is becoming the norm in today’s market. Proprietary software is providing some companies advantage and the full-stack model is dominating the software-vendor model. The result is that large firms are gaining market share and getting ahead of the competition.