Tendencias y mejores prácticas del Financial Performance Management

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En el área de Finanzas existen dos roles fundamentales que son más necesarios equilibrar. En el primero debe de enfocarse en realizar una serie de controles y verificaciones. En el segundo aprovechar su amplia experiencia sobre el conocimiento de los recursos necesarios que generan un determinado nivel de ingresos.

La forma en que Finanzas encuentra este equilibrio (y muchos otros) determina en gran parte el éxito o el fracaso de la empresa.

Lo invitamos a ver nuestra presentación: “Mejores prácticas del Financial Performance Management”, donde le mostraremos de que manera encontrar el equilibrio para el éxito de la corporación alineando procesos y controles, y al mismo tiempo asesorando al negocio sobre direcciones futuras.

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Tendencias y mejores prácticas del Financial Performance Management

  1. 1.  Welcome & Introduction  Results from 2010 Global CFO Survey  Trends and Best Practices  Q & A
  2. 2.  Aureliano Rivera  CEO@Nexolution  20 years working as consultant in Business Analytics and Performance Management  aureliano.rivera@nexolution.com We help our customers to understand their past, monitor and communicate their present and foresee their future Performance Management Risk Analytics Predictive Analytics Business Intelligence
  3. 3. 2003 CFO Studies 20102005 2008
  4. 4. Geography SectorEnterprise Size Title Scope of Role CFO Study 2010 Firmographics Source: 2010 IBM Global CFO study Asia Pacific, 27% EMEA, 42% Americas, 31% Public, 13% Communications, 13% Industrial, 25% Distribution, 28% Financial Services, 20% BU / Program Area, 5% Country, 27% Enterprise / Global, 57% Others, 8%SVP / Controller / Treasurer, 14% CFO / Deputy CFO / Director, 78% <$500MM, 25% $501MM to $1B, 15% >$1B to $5B, 28% >$5B to $10B, 11% >$20B, 14% >$10B to $20B, 7% Others, 1%
  5. 5. Leading Finance organizations are evolving to become Value Integrators and thereby more effective executing on their core Finance activities, monitoring business performance, driving the integration of information across the organization and managing enterprise risk. There are two capabilities that Value Integrators have focused on to improve their Finance effectiveness and contribute to enterprise outperformance. Finance execution excellence matters more than ever. CFOs that have more efficient Finance organizations are more successful at driving operational excellence. Finance organizations must also deliver value through analytics and business insight. Those that have strong business insight are helping drive greater value across their enterprises. By doing both well – executing core Finance activities efficiently and providing the insight their businesses need – Value Integrators are helping their enterprises make smarter decisions. Source: IBM Institute for Business Value, The Global CFO Study 2010
  6. 6. Source: IBM Institute for Business Value, The Global CFO Study 2010 The impact of the New Economic Environment on the CFO’s role What can CFOs do to enable timely and informed decision-making? How can the CFO help the enterprise anticipate and shape its environment? ! ? ? What Finance model achieves the optimal mix of capabilities needed to outperform?? CFO Study 2010 Provocative Topics
  7. 7. Advisor (e.g., analysis and insight) Decision Maker (e.g., create a plan) Enterprise cost reduction management Selection of key performance indicators Capital asset management Risk management Prioritization of resource allocation Strategic revenue planning Business model innovation/ reshaping Information management strategy Elevated Role of Finance Role of Finance in Driving Decisions Across the Enterprise 45% 47% 34% 41% 53% 54% 59% 39% 44% 41% 50% 42% 26% 24% 19% 33% Over 70% of CFOs believe they have an advisory or decision making role on the Enterprise agenda. Source: 2010 IBM Global CFO study
  8. 8. 34% 28% 26% 21% 16% 9% 28% 35% 23% Core Finance Enterprise Focused CFO Agenda: Importance vs. Effectiveness 2 GAP 1 3 Importance Effectiveness Driving integration of information across the enterprise Providing inputs into enterprise strategy Supporting / managing / mitigating enterprise risk Driving enterprise cost reduction Strengthening compliance programs and internal controls Driving Finance function cost reduction Executing continuous Finance process improvements Developing your people in the Finance organization Measuring / monitoring business performance 0% 20% 40% 60% 80% 100% Source: 2010 IBM Global CFO study
  9. 9. Addressing the Broader Enterprise Focused Role of Finance Source: IBM Institute for Business Value, The Global CFO Study 2010 Finance Efficiency Business Insight Demands on Finance Help drive enterprise cost reduction Support risk management Partner in strategy and value creation Improve access to and reduce cost of capital Provide performance insight and anticipate Finance Capabilities Needed
  10. 10. Finance Efficiency and Business Insight Enablers Low High Corporate philosophy on information standards Common Finance data definitions and data governance Standard Financial chart of accounts Standard / common Finance processes Do not see any value in enterprise-wide standards Enterprise-wide standards mandated for all business units and enforced Not adopted Enterprise-wide > 75% Not adopted Enterprise-wide > 75% Not adopted Enterprise-wide > 75% Enabler Analytical capability (operational planning and forecasting)1 People / talent (effectiveness of developing people in Finance) Technology (deployment of a common planning platform) Not deployed Satisfactory analytical capability Ineffective Effective people / talent Not deployed Deployed to a large extent FinanceEfficiencyBusinessInsight 1 Also analyzed Scenario Planning, Predictive Analytics Source: IBM Institute for Business Value, The Global CFO Study 2010
  11. 11. Finance Efficiency Business Insight Low High Low High 23% 12% 32% 33% Finance Efficiency and Business Insight Corporate philosophy of information standards Standard Chart of Accounts Standard processes Standard data definitions Operational planning and forecasting capability Finance talent development Common planning platform Source: IBM Institute for Business Value, The Global CFO Study 2010
  12. 12. Efficiency + Business Insight Contributes to Outperformance Source: IBM Institute for Business Value, The Global CFO Study 2010 Value Integrators also have an almost 20% better operating efficiency ratio than all other companies examined.. 11.3% 14.0% 12.1% 0.5% 9.4% 9.3% EBITDA Revenue ROIC >20 x more 49% more 30% more 5-year CAGR, 2004-2008 5-year CAGR, 2004-2008 5-year average, 2004-2008 Value Integrators All other companies
  13. 13. Delivering efficiency through standards matters more than ever Providing business insight drives performance improvement beyond Finance The greatest rewards come from doing both well Source: IBM Institute for Business Value, The Global CFO Study 2010 “We will constantly focus on the priorities of an enterprise-wide standard mandated for all business units.” CFO, German Bank “Driving consistent standards is a very high priority for Finance since it drives process simplicity and it aligns everyone operationally in a procedurally-focused environment.” CFO, United States Bank
  14. 14. Efficiency Challenges Source: 2010 IBM Global CFO study Finance continues to spend nearly 50% of time on transactional activities Over 25% lack the necessary common data definitions and processes Nearly 40% of enterprises produce financial metrics manually Over 35% lack a common reporting platform
  15. 15. Integrated Finance Organizations and the Finance Profiles Efficiency Business Insight Low High Low High Source: IBM Institute for Business Value, The Global CFO Study 2010 Integrated Finance Organizations • Corporate philosophy on Information standards - mandated and enforced • Strict adherence to common Finance data definitions and data governance – enterprise-wide • Implemented a standard Financial chart of accounts – enterprise-wide • Use of standard / common Finance processes - enterprise-wide
  16. 16. Delivering efficiency through standards matters more than ever Providing business insight drives performance improvement beyond Finance The greatest rewards come from doing both well Source: IBM Institute for Business Value, The Global CFO Study 2010 “For multinational companies, regulatory and political changes can happen arbitrarily at any time, significantly impacting the execution of strategy. As a result, planning must be much more scenario-based with the ability to rapidly adapt.” Markus Kistler CFO - North Asia and China, ABB ““Business analytics is one of our most critical Finance initiatives. We need to have the right people and tools and stay very close to the business.” Mike Newman CFO, Office Depot
  17. 17. Business Insight Challenges Source: 2010 IBM Global CFO study 44% are poor to average at anticipating external forces Over 50% manually producing operational metrics Nearly 50% lack a common planning platform 55% not satisfied with their operational planning and forecasting analytical capability
  18. 18. Rear View Forward-Looking View Source: IBM Institute for Business Value, The Global CFO Study 2010 Business Insight • What happened? • How many, how often? • Where exactly is the problem? • Why is this happening? • What actions are needed? • What will happen next? • What if these trends continue? • What are the risks or opportunities? Key Business Questions Examples of Business Insight Current View • Balance sheet, profit and loss, and cash flow statements • Revenue and cost variance analysis • Customer, product and market profitability • Spend optimization • Working capital analysis • Market, customer and channel pricing • Sales and supply chain effectiveness • Cash forecasting • Scenario-based planning and forecasting • Strategic investment decision support • Volatility and risk-based predictive and behavioral modeling
  19. 19. Delivering efficiency through standards matters more than ever Providing business insight drives performance improvement beyond Finance The greatest rewards come from doing both well Source: IBM Institute for Business Value, The Global CFO Study 2010 “What makes companies stand out from one another is the ability to use analytics across the end-to-end business model. Greater transparency from one end of the business to the other is key.” Dennis Hickey VP - Corporate Controller, Colgate Palmolive “Our job is to focus the enterprise on making timely, risk-based decisions by providing access to the right business-relevant information and insight-driven analytics.” Mark Buthman CFO, Kimberly Clark Corporation
  20. 20. Percent more effective than baseline Effectiveness Across the Full CFO Agenda Value Integrators Constrained Advisors Disciplined Operators Scorekeepers Driving integration of information across the enterprise Providing inputs into enterprise strategy Supporting / managing / mitigating enterprise risk Driving enterprise cost reduction Strengthening compliance programs and internal controls Driving Finance function cost reduction Executing continuous Finance process improvements Developing your people in the Finance organization Measuring / monitoring business performance 140%100%80%60%0% 20% 40% Disciplined Operators 19% Better Constrained Advisors 33% Better Value Integrators 59% Better Scorekeepers (Baseline) 0% 120% Source: 2010 IBM Global CFO study
  21. 21. Source: IBM Institute for Business Value, The Global CFO Study 2010 People: Imperatives for Building the Finance Team • #1 Attract and retain the right talent • #2 Provide business analytics and insights training • #3 Develop leadership skills “Performance management will be more effective if the competencies of Finance staff will be strengthened by more communication and advisory skills… growth in decision support by developing the competencies of staff.” CFO, Netherlands Bank “Talent management is a big factor for us. Ensuring that talent can grow with the business. Learning capabilities are needed to be sure to advance the organization.” CFO, Jamaica Bank “In our transformation of Finance, we find talent management the most critical item.” CFO, Canadian Bank
  22. 22. What Do Value Integrators Do Differently? Source: IBM Institute for Business Value, The Global CFO Study 2010 Data and Analytics Process Technology • Improve information delivery • Drive data integrity • Use different approaches to help the enterprise make decisions • Focus on next tier process improvements • Rationalize and standardize analytical technologies People • Drive risk management through CFO direct reports of Controls and Risk Management
  23. 23. Efficiency + Business Insight Contributes to Outperformance Value Integrators also have an almost 20% better operating efficiency ratio than all other companies examined. Return on Invested Capital 5-year average, 2004-2008 Revenue Growth 5-year CAGR, 2004-2008 EBITDA 5-year CAGR, 2004-2008 FinanceEfficiency Business Insight Business Insight Source: 2010 IBM Global CFO study Value Integrators Constrained Advisors Disciplined Operators Scorekeepers 14.0% 11.3% 12.1%
  24. 24. Technology: Applications Rationalization Source: 2010 IBM Global CFO study 85% 79% 65% 46% 65% 65% 46% 27% Common reporting platform Common planning platform Value Integrator Disciplined Operator Constrained Advisor Scorekeeper
  25. 25. Sense and respond Instinct and intuition Automated Skilled analytics experts Back office Predict and act Real-time, fact-driven Optimized Everyone Point of impact
  26. 26. • 27 Performance Decision Making Trusted Information Data Automate performance monitoring Deliver fast & reliable reporting Connect enterprise plans Improve operational insight Manage Risk
  27. 27.  Automate production of metrics  Connect financial & operational KPIs  Link to corporate objectives  Cascade to all departments and stakeholders  Enable collaborative reviews
  28. 28.  Access timely, reliable and relevant information  Deliver an enterprise-wide, consistent view of the business  Leverage existing infrastructure and adapt to changes  Cost-effectively scale as user communities grow  Drive information & data standardization
  29. 29.  Connect entire organization to planning  Incorporate financial & operational drivers  Increase cycles, decrease latency  Set multiple time horizons (7,30, 90, 180 days)  Develop What-If Scenarios  Measure results
  30. 30.  Build dimensional views of the business: Division, Region, Product, Customer  Model business outcomes & perform sensitivity analysis  Identify operational improvements  Evaluate financial impact  Model risk adjusted views of the business
  31. 31.  Expand reporting and planning metrics to include Risk Variables  Actively capture operational risk items  Extend operational risk analysis to strategic customers/suppliers  Model external risk factors into forecasts  Leverage performance management to automate internal controls
  32. 32. Revenue Expense & Capital Workforce Financial Financial Performance Management Analytic Applications Operations Workforce Supplier / Procurement Customer / Sales SALES MARKETING HR FINANCE CUSTOMER SERVICE OPERATIONS PRODUCT DEVELOPMENT
  33. 33.  2010 IBM Global CFO Study  2010 IBM Global CFO Study Assessment  Innovation Center for Performance Management  Send email to: cynthya.garza@nexolution.com aureliano.rivera@nexolution.com
  34. 34. Q&A

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