CFO 4.0
In accordance with Industry 4.0 we have to develop further the self-conception of a CFO. The requirements are growing and the competencies have to grow even faster.
- Industry 4.0 requires an advanced alignment of the whole company. This includes also all areas of Finance, e.g. accounting, controlling, treasury. Active participation instead of just following
- Realizing additional opportunities to increase profitability and efficiency instead of just cost cutting
- Contemporary controlling
- Reporting 4.0 – purified, relevant for decision, user-friendly and analyzing within the context
Discovering additional Profit and Efficiency Opportunities
Contemporary controlling means proactive thinking. A deep understanding of the value drivers of your business enables you to provide valuable suggestions. It is a holistic approach. Advanced tools and methods are providing new insights to increase profit and efficiency. This is more than just cost cutting.
- Operational processes will be systematically analyzed. Fields to improve efficieny and profitability will be identified.
- Proposals to modify existing processes and structures
- Challenging of procurement, production, sales, marketing and product management
Restructuring
A strong basis is required to get reliable information to derive adjustments and improvments in processes and work flows. It is about deciding whether profitability can be achieved again or specific activities have to be terminated. Action plans, mile stones and trigger points will be defined very clear.
- Defining and forecasting different scenarios of restructuring
- Definition of trigger points
- Preparation and implementation; where applicable readjustment
Releasing Cash
Releasing cash gives you more opportunities to act and is lowering cost.
- liquidity planning
- liquidity monitoring
- optimizing working capital
- management of accounts receivables
- optimizing cash-to-cash cycle
- managing interco relations
Treasury
Treasury includes planing, forecasting, managing and monitoring of cash and bank facilities. In additon Treasury is managing specific financial risks, e.g. liquidity risk, solvency risk, interest rate risk, currency risk.
- liquidity planning and monitoring
- cash pooling
- payment processing
- management of bank facilities
- currency risk management
- monitoring of all other financial risks
Decision-oriented Reporting
Reports have no value per se. A report makes only sense, if he is the basis for a decision. An assessment of all reports, which are created on a regular basis, is necessary. If a report is not mandatory for a decision he is of no value anymore. "This is good to know" does not justify the work and time (= cost) of creating this report in future.
- critical assessment of all information requirements
- tight reorganisation of all required reports - No data.graveyards
- Implementation of "talking" reports, which are user-friendly designed
Adjusting Structures in Finance according to the Growth of the Company
- A growing company needs a lot of attention in procurement, production, sales, marketing and product management. It is common that an adjustment of appropriate structures in Finance and Administration gets neglected.
- Automizing processes and implementing advanced service levels
- improved timing (faster)
- enrichment of reports; concentrating on relevant facts for deciding faster and better