1. The document discusses how finance can maximize value by moving beyond core activities like planning, forecasting, controllership, and compliance to become a strategic partner. This involves providing clarity on strategy, shedding light on key dynamics, and connecting operational and financial issues. 2. To enable this, finance needs to free up time and resources by simplifying processes, leveraging technology, establishing centers of excellence, and eliminating waste. This allows the focus to shift to key outcomes and building the right team structure aligned with outcomes and competencies. 3. The right team structure is based on outcomes like products/services rather than regional structures, and utilizes centers of excellence for specialized activities to gain scale efficiencies. Empower

1. 1
GE Title or job number
28/01/2015
Maximizing Value through Finance
Axel Grippo
CFO Publishing Summit
NY, Jan 28-29, 2015

2. “Create value”: helping the business win
in the marketplace, in a compliant way
Value Creation
Strategic
partnership
Core
Activities
Change
agent
Key
outcomes
Right team
structure
Empower
the team
How to
create
How to
maximize

3. ü Planning & forecasting
Before talking strategic partnership,
Finance needs to deliver on core
activities:
ü Controllership & compliance
ü Reporting

4. What is the strategic partnership?
1) Clarity to break down strategy in its levers and
hold people accountable
2) Constant shedding of light on key dynamics
others don’t see / don’t want to discuss
3) Ability to connect the dots and translate
Finance into Operations and vice versa
4) Understand the context:
ü Products & technology
ü External market
ü Customers
ü Internal operations

5. Finance needs to be a change agent
GE Beliefs
ü Customer focus
ü Speed
ü Learn & adapt
ü Empower & inspire
ü Deliver results Jeff Immelt:
“Look at all you
do, question it if
doesn’t tie to the
GE Beliefs”

6. With all the requirements, how can
Finance maximize value?
=
Free up time &
resources
Focus on key
outcomes
Build right
team structure
Empower
the team

7. How do we free up time & resources?
Simplify
Centers of
Excellence
(COE)
Leverage
Technology
ü ERP reduction
ü Solid Business Intelligence tools
ü One single book of truth
ü Foster a system-driven data mentality
ü Reduction of closing cycle from 15 days to 3
ü Reduction of account reconciliations
ü Consolidation of legal entities
ü Consolidation of rooftops, plants and offices
ü Approval by one person instead of many
ü Push back on non-added value requests
=
Kill waste &
bureaucracy
ü For all specialized activities
ü Best with scale
ü Not easy but powerful

8. COEs … complex to build but very
powerful
Examples
• Collections
• Payments
• Accounting
• Intercompany
• Supply Chain
• Taxes
Lessons learnt
• Really strong linked between
COE & business
• Clear Roles & Responsibilities
• Work together to lean
processes at COE & business
• Need thoughtful, strong people
at COE
• Career perspective to COE
employees

9. So once we free up resources, what is
the right team structure?
ü Always start with outcomes
ü Link outcomes with competencies
• Product / Service
• Commercial finance
• Supply Chain
• Controllership
• FP&A
• Specialized functions (Tax & Treasury)
• Finance IT or Process Improvement Black Belts
ü Right span and layers
ü Staff with right people

10. Some examples of mistakes in team
structures
Problem:
• Sub-region structure
• Same people doing same
activities in their countries
• Multiplication of structures
Fix:
• Org based on outcomes
• One central team for
common activities (COE)
• Finance cost â 30%
HQ
Forecast?
Region: $200M Prod Line: $150M
Sales force
structurestructure
• Duplicating structures
• Waste in forecast reconciliations
“Extreme” matrix

11. “Create value”: helping the business win
in the marketplace in a compliant way
Value Creation
Strategic
partnership
Core
Activities
Change
agent
ü Influence levers
ü Shed light
ü Connect dots
ü Controllership
ü Compliance &
reporting
ü Planning
GE Beliefs
ü Leverage scale via COE
ü Leverage technology
ü Simplify
ü Building teams based on
outcomes & competencies
Key
outcomes
Right team
structure
Empower
the team
ü Outcomes
ü Competencies

12. Q&A