Finance functions have to take on a demanding new role and become strategic partners in order to help organizations stay ahead of the competition and fulfill their missions. BCG works with chief financial officers (CFOs) and their teams to reach finance function excellence.
Macroeconomic instability, radically new business models, and fast-changing consumer demand are just some of the forces reshaping the corporate landscape. The role of the finance function can no longer focus solely on forecasting and preparing financial reports and analyses. It must broaden its reach to extract valuable data insights that can inform business decisions and then collaborate with leaders throughout the organization to translate those insights into action.
To become a best-in-class finance function, helping companies become more agile and better equipped to thrive in a volatile environment, CFOs and their teams must:
The new imperatives for the finance function require a tricky balance. CFOs must drive transformation within the finance organization, developing new structures, mindsets, and ways of working. But they will continue to feel pressure to meet the short-term goals of producing quarterly reports, attending weekly budget meetings, and staying on top of shifts in regulations—all of which take time away from the task of achieving broader financial excellence.
Global Banking Giant
A bank with roughly 9,000 employees in its finance department was undertaking a large-scale transformation program to enhance process efficiency. BCG helped the bank redesign its finance function operating model and organizational structure to enable world-class business partnering.
International Sportswear Company
Aided by BCG, a large sportswear organization optimized its finance function and skills through role chartering, value stream mapping, and improvements in management routines. The company saw impressive results from its continuous-improvement efforts, including a 30% increase in efficiency.
Industrial Goods Manufacturer
Working closely with the finance function of a global industrial goods manufacturer, BCG helped design an integrated KPI system to improve steering and transform the company into a modern organization with business unit and functional structures integrated across legal entities.
Global Beverage Corporation
BCG helped a beverage company determine how to allocate commercial investments more systematically than it had in the past. We helped the team adopt a profit mindset and figure out the appropriate speed with which to shift allocation of capital to different segments and brands.
Professionals and academics must do more to establish enabling relationships, technologies, ways of working, and competencies.
A CFO must set unique near-term ambitions that are bold enough to motivate employees to achieve their full potential.
By combining technology and human capabilities, a finance function can orchestrate the work of other departments and help the company achieve its strategic objectives.
Only a few CFOs lead finance functions that truly outperform in both efficiency and effectiveness. Here’s what sets them apart.
Armed with foresight into how conditions will change, a company can take actions to preempt unfavorable outcomes and promote competitive advantage.
