CEB Finance Leadership Council Membership Program Overview

Transcription

1 For Midsized Companies CEB Finance Leadership Council Membership Program Overview Who We Are CEB is the leading member-based advisory company. By combining the best practices of thousands of member companies with our advanced research methodologies and human capital analytics, we equip senior leaders and their teams with insight and actionable solutions to transform operations. This distinctive approach, pioneered by CEB, enables executives to harness peer perspectives and tap into breakthrough innovation without costly consulting or reinvention. The CEB member network includes more than 16,000 executives and the majority of top companies globally. 30 Years of Experience 110+ Countries Represented 10,000+ Participating Organizations 240,000+ Business Professionals Finance Human Resources Information Technology Legal, Risk & Compliance Marketing Procurement & Operations Sales All Rights Reserved. FLEX SYN 1

2 Improve Your Function s Performance Against Its Most Critical Priorities Insights, Tools, and Templates on the Activities Midsized Company CFOs Consider Most Critical Dashboards, Metrics, and Operating Reviews Business Partnering and Analytics Growth Strategy M&A Targeting and Integration Cash Efficiency and Credit Access Internal Audit, Controls, and Risk Assessment Back-Office Process Improvement Finance IT Systems Budgeting and Forecasting Finance Organization and Talent 3 Ways We Deliver Value to Transform Your Operations Develop business performance management and growth planning capabilities. Improve and build accounting, back-office, and FP&A processes. Reduce the cost of investments in risk management, finance IT systems, and finance team training. 2

3 A Common Challenge from Our Members How can we improve business performance management? The Root Cause Percentage of Full Potential Achieved as a Result of Existing Performance Management Mechanisms Average of All Respondents Performance management methods underperform because they do not effectively align employee activities to corporate goals. 29% 29% 32% Performance Gap Performance Achieved Misalignment is a major cause of poor strategic execution. What s at Stake? 71% 71% 68% CFOs estimate that 30% of their companies performance potential is lost due to ineffective business performance management processes. Revenue Growth Profit Growth Shareholder Value n = 120 CFOs and heads of Financial Planning and Analysis (FP&A). 3

4 What the Best Companies Do Build an Integrated Business Performance Management Approach Conventional Approach Integrated Business Performance Management Approach Most companies focus on improving performance measurement rather than driving behavior through performance management. Strategic Objective Performance Targets Budgets Forecasts Operating Reviews Capital Reallocation The Better Way Forward Financial Objectives Incentives Management Reports Build an integrated business performance management approach to drive outcomes and action. Select metrics and build dashboards that are linked to value drivers. Targets balance strategic and financial objectives, tracked regularly. Metrics are linked to business value drivers and are aligned throughout the organization. Operating reviews focus on strategic execution, not just financials. 4

5 A Framework for Success Focus on Three Key Activities to Drive Business Performance How to Get There CFOs have the greatest opportunity to improve business performance management by focusing on target-setting, metrics, and operating reviews. Business Impact Set Balanced Targets Set and measure performance against strategic targets along with financial targets. Link Metrics and Dashboards to Value Drivers Focus on the short list of metrics that matter linked to business value drivers, or a north star metric (e.g., ROIC), and design dashboards to measure against them. Look Forward in Operating Reviews Create time for forward-looking strategy in operating reviews and act as a performance coach to assist business leaders versus a performance cop. Integrated business performance management ensures business leaders execute strategy and improve firm value. Rolling Strategic Target Realignment Finance-Led Metrics Screening Strategy-Focused Operating Reviews CFOs can capture up to 30% of lost performance with better business performance management. Strategic Process Tracker Performance Tracking Cascade CFO as Performance Coach 5

6 Best Practice Example Veracode Sets Clear Guardrails for Metric Collection Veracode collects input from the business and other functions but places clear guardrails for metric validity. Finance supplements their internal effort with: Best-in-class industry benchmarking to determine baseline metrics and Investor call analysis to understand what metrics analysts use to measure value. Metric Selection Guide Excerpts, Emphasis Added 1 Articulate the Corporate Strategy of Developing a Performance Management Engine Reflects underlying health of each function and overall business Creates accountability for driving increased functional capabilities resulting in a high-performing organization Reinforces the allocation of capital to drive the highest return to shareholders 2 Define Key Performance Indicators Key Performance Indicators (KPIs) monitor execution against the business strategy. 3 Explain Purpose of KPI Create discussion that will lead to behaviors that drive shareholder value. 4 Clearly Delineate Roles Business/Function Role Identify three to five clearly defined KPIs for your function. Determine the relevant frequency of measurements for each KPI. Provide KPI data and actionable insights to Finance on a timely basis. 5 Set Rules for KPI Selection Characteristics of a Good KPI Aligned to overall corporate strategy Clearly defined Easy to understand Comparable against past performance and external best-in-class benchmarks 6

7 Research Focused on Your Function s Most Critical Priorities Where can we help? Dashboards, Metrics, and Operating Reviews Business Partnering and Analytics Growth Strategy M&A Targeting and Integration Cash Efficiency and Credit Access Select, screen, and streamline metrics. Improve actionorientation in reviews. Improve business partnering skills. Define a process for business analytics. Provide frameworks for strategic tradeoffs. Provide tools to improve execution. Focus target strategy and screening. Build integration capabilities. Improve working capital processes. Benchmark credit costs and access. Internal Audit, Controls, and Risk Assessment Back-Office Process Improvement Finance IT Systems Budgeting and Forecasting Finance Organization and Talent Provide internal control frameworks. Conduct a risk assessment survey. Reduce days to close. Benchmark and improve AP, AR, T&E, and payroll. Benchmark cost, capabilities, and satisfaction. Improve ROI. Benchmark process efficiency. Reduce non-valueadded work to improve impact. Benchmark finance cost and capabilities. Assess and develop finance talent. 7

8 Multichannel Support to Transform Operations How Membership Works Enable Growth Increase Efficiency Transform the Department Reduce Risk Meet with your account manager to: Introduction to membership Generate on-demand access for you and your team and Outline service needs and priorities for the year. Review your FP&A 360 Diagnostic results and recommended best practices with a research director. Learn and discuss innovative operating approaches at a live or virtual CFO-only meeting. Take our FP&A 360 Diagnostic to assess your management reporting and operating review practices. Attend an event on our Business Performance Management research or review findings with a research director. Strengthen team skills through online learning, tools, and templates from our member-only website. 8

9 Membership Features Resources Included for You and Your Team Research and Insights We create unique research and tools throughout the year to help business leaders evaluate new issues and challenges. Proven Best Practices We derive hundreds of tested approaches to solving business challenges from our network of leading companies. Advisory Support Our experts provide executives and their teams with personalized guidance and project support for pending decisions, new tactics, internal presentations, and other needs. Decision and Diagnostic Tools Analysis and support deliver customized, actionable views of the most important performance metrics in your corporate function. Peer Benchmarks Relevant, quantitative data and analysis clarify the most efficient resource allocation and focus areas with the highest impact. Executive Networking Peer interaction through live events and online discussion groups provides regular perspective and validation. Live and Online Learning Events Network and learning opportunities include senior executive only events, staff training, and skill development. 9