Reinventing the CFO

The CFO as Freedom fighter

• Devolution
• Risk Approach based on Value : Manage by Exception
• Simplify Accounting Process. Be skeptical of IT and Outsourcing
• Rough Budgeting
• 18 months budgeting
• do not dig into the detail

The CFO => Financial Change Leader

The CFO as Analyst and Adviser

• Recruit ing the right people: look for people with communications skills
• Be a skeptic, not a cynic: ensure you understand the business

1. The CFO as Architect of Adaptive Management

• See performance accountability in terms of relative improvement compared with prior years
• Sence-and-Respond; rather than Predict-and-Control / PDSA Cycle
• Making Simple Rolling Forecasts <1. only a few months ahead / 2.12 -18 months> 
• Focus performance evaluation on teams rather than individuals

2. The CFO as Warrior Against Waste

• 20 to 40 percent of costs related to no-value activities
• Budgets protect wastes
• Lean thinking based on System

3. The CFO as Master of Measurement

• Use only a few key measures (less than 6 or 7)
• Open up the information system
• Use a range of measures to inform a discussion about management performance

4. The CFO as Regulator of Risk

• Respond to the spirit rather than just the letter of the law