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The Role of The CFO

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The Role of The CFO - Scientrix

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The Role of The CFO

  1. 1. The Role of the CFO 2005 – 2015 Scientrix Holdings Ltd. All rights reserved©
  2. 2. This document is the property of Scientrix Holdings Limited (“Scientrix”). It contains confidential and proprietary information and it not to be disclosed outside your organization. Any use or reproduction of this content, in whole or in part, other than for evaluations purposes, is strictly prohibited without a written declaration of consent by Scientrix. The information contained in the document does not constitute a consulting service. CONFIDENTIALITY 2005 – 2015 Scientrix Holdings Ltd. All rights reserved©
  3. 3.  CFO background  Shareholder value  The Scientrix approach using a finance matrix example  The cascading effect  Introducing Scientrix AGENDA 2005 – 2015 Scientrix Holdings Ltd. All rights reserved©
  4. 4. CFO background The role of the CFO has changed in today’s business environment. The CFO is now more of a business partner to the CEO. The CFO is closely involved in designing and overseeing strategy, operations and performance, while he faces an increasingly complex regulatory environment. 2005 – 2015 Scientrix Holdings Ltd. All rights reserved©
  5. 5. CFO background Strategic directions are defined to orientate the finance function toward the creation of shareholder value and compliance with regulatory requirements. The CFO will focus on. • How to create a culture of cost awareness • How to support growth initiatives • How to ensure regulatory compliance • How to monitor and manage risk • How to master simplicity and speed • How to partner with the organization 2005 – 2015 Scientrix Holdings Ltd. All rights reserved©
  6. 6. Shareholder value Shareholder value is maximized over time through a focus on: • Profitability • Liquidity • Growth • Customer Loyalty The organization aligns and balances these four objectives. Shareholder value is also influenced through legal, statutory, risk and social responsibility requirements. Let’s see how the CFO supports the organization in balancing these objectives using the innovative Scientrix matrix XYZ based approach… 2005 – 2015 Scientrix Holdings Ltd. All rights reserved©
  7. 7. The Scientrix approach using a finance matrix example The CFO defines the Finance department’s objectives in line with the organization’s objectives and obligations with the aim to create sustainable value for the organization. He then structures and aligns all his responsibility areas to deliver on these objectives. 2005 – 2015 Scientrix Holdings Ltd. All rights reserved©
  8. 8. The Scientrix approach using a finance matrix example Every functional manager in Finance defines a contribution : • What to do • What to achieve • How to achieve Measurements are agreed to track results that derive from the efforts invested in his or her area. 2005 – 2015 Scientrix Holdings Ltd. All rights reserved©
  9. 9. The cascading effect The matrix structure allows users to cascade the strategy down the organization. This allows for perfect alignment of the strategy. Looking at cash flow optimization, the treasurey management identifies three tasks that are represented in the next matrix: • Cash management • Account receivable • Accounts payable He defines critical success factors that will ensure the successful execution of his responsibilities. 2005 – 2015 Scientrix Holdings Ltd. All rights reserved©
  10. 10. The account receivable identifies tactics for each task that will contribute to the achieveiment of the critical successf factors. The status of the tactics is tracked through performance measurements. 2005 – 2015 Scientrix Holdings Ltd. All rights reserved©
  11. 11. If we drill down further, reduce credit risk breaks up into process steps. Each process step is a knowledge repository that contains a list of best practies, internal controls, flowcharts, suggestions, and all other documentation required for its successful implementation. 2005 – 2015 Scientrix Holdings Ltd. All rights reserved©
  12. 12. The process steps contain controls that will ensure that the process step is carried out with quality. You can monitor compliance with controls through self assessment or internal audit review. 2005 – 2015 Scientrix Holdings Ltd. All rights reserved©
  13. 13. Each process step is linked to a business process cycle that provides its location in a workflow. 2005 – 2015 Scientrix Holdings Ltd. All rights reserved©
  14. 14. Introducing Scientrix Scientrix supports strategy formulation and aligns strategies with structure, performance, knowledge, processes, internal controls and risks, with one single effort. • Business strategies defined • Business structure defined • Balanced scorecard implemented • Knowledge management implemented • Business process designed • Internal controls implemented • Risk management implemented 2005 – 2015 Scientrix Holdings Ltd. All rights reserved©
  15. 15. How does Scientrix support monitoring and evaluation? Social collaboration is key for organizational success. The Scientrix platform is a web 2.0 – based platform that provides each individual with creative space and a set of management tools. It always allows them to connect with others, discuss problems and share information and knowledge. 2005 – 2015 Scientrix Holdings Ltd. All rights reserved© I
  16. 16. What is Scientrix? Scientrix provides a digital solution to strategy execution. The XYZ matrix based concept was developed by Rentia Muell in 2004. This concept embeds the key principles of improved alignment, agility, collaboration and orchestration in organizations. The matrix approach provides a solution to master complex problems and multi-directional relationships in organizations. 2005 – 2015 Scientrix Holdings Ltd. All rights reserved©
  17. 17. Ireland Dublin (HQ) Argentina Buenos Aires Mexico Mexico City UK London Germany Frankfurt South Africa Johannesburg Website www.scientrix.com Email info@scientrix.com [ www.scientrix.com ] CONTACT 2005 – 2015 Scientrix Holdings Ltd. All rights reserved© casandra@scientrix.com

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