Unpredictable geopolitical events and financial regulation failures weaken national economies, and global interconnections amplify recessions. We help corporations improve their profit margins and face the scrutiny of the financial markets.
The fast pace of today’s business environment and the volatility of the capital markets have raised investors’ expectations. As a result, the CFO role has shifted from traditional accounting to supporting strategy and managing for shareholder value.
And yet:
Strategic planning is often still a futile exercise, either detached from operational reality or lost in budgeting details.
Performance management reports proliferate, and KPIs are not linked with economic profit, and their definitions are inconsistent.
Most management and finance resources are consumed generating and deciphering ever-increasing data rather than analysing and creating value.
Investment in expensive finance systems is made without prior definition of requirements.
Risk management is remote from day-to-day operations and is technical rather than practical.
The finance function should be more strategic. Shareholder value management and risk management principles should be ingrained in the organisation culture, as well as applied to strategic and operational planning and capital allocation. Strategy formulation should be dynamic and linked with execution. Decision-making and performance management should be supported with relevant value metrics and systems. Also, ‘big data’, data analytics and visualisation, as well as AI, automation, and IoT, should be used to collect and analyse both operational and financial data in real-time, and strategically predict forecasts. Additional hard competences (analytics, statistics, IT) and soft skills (communication, interrelationship, creativity) should be developed or acquired.
We assist our clients in the following areas:
Performance Measurement and Management
We identify relevant KPIs and agree on consistent definitions across the business units, and we create a corporate dashboard with the most crucial leading and lagging, as well as external and internal indicators.
We develop methodologies and processes to assess and monitor performance, and we integrate management reporting throughout the organisation.
Strategic Planning and Managing
We build their business planning governance, process, and capabilities.
We coach their management team and align their organisation to the corporate strategy and value-based management policies.
We create their strategic plan using strategic customer research, develop several scenarios and contingency actions, and check assumptions and consistencies across business units.
We set value driver targets top-down, assess progress against strategic goals and external benchmarks, and flexibly adjust the strategy according to the evolution of the business environment.
Value-Based Management
Working alongside accountants and investor relationship experts, we:
Select and define the metrics of shareholder value, such as TSR and EVA, which will help define the corporate and portfolio strategies, and assess the value creation of business units and acquisitions.
Develop value management tools, systems, and processes which help link operating decisions with shareholder value.
Design the governance, the organisation, and the change programme which will establish the corporate culture focused on enterprise value.
Develop a value-based remuneration scheme, which will reward value creation results and motivate employees.
Implement value-based financial reporting and investor relationship, which will help determine shareholders expectations, identify value gaps, and communicate value creation results.
CxO and Finance Talent Management
We coach Chief Officers in shareholder value management and deliver financial training courses to finance teams and operations managers.
Finance Organisation Design and Transformation
Working alongside finance function specialists and financial system providers, we help CFOs:
Redesign the budgeting process, so that it starts with a top-down and fast approach followed by a bottom-up exercise, and that it fosters dialogue across departments and uncovers insights into operational challenges
Change the operating model to improve productivity
Make the best use of new technologies (big data, real-time analytics)
TMT Sector
Algerian mobile operator, review of the budget process and tooling
Indian wireless and wireline telecoms operator, corporate planning
Global telecommunications service operator, management report creation
TV broadcaster, programme budgeting
European IT Services Provider, financial control and reporting
Other Sectors
Investment Bank, Management Information System
Dutch distribution group, Value Based Management
UK engineering group, value-based remuneration
Finance & Planning Excellence
