An annual publication from Montgomery Research
In this volume of The CFO Project, we explore the way CFOs are managing this tricky balancing
act between serving as internal “traffic cop” and forward-thinking business leader. We also present
expertise on corporate governance, risk management, achieving compliance and transparency,
business planning, executive compensation and more. Given the sensitive and evolving nature of
the CFO function, the knowledge contained here should be top of the agenda for finance executives
looking out for the health of their organizations and their careers.
Chapter 1:
Strategies for Success
CFOs have a lot on their plates these days. More than mere number
crunchers, CFOs are expected to be agents of change throughout
the entire organization. Change rarely comes easily, however. The
CFO must both respond to and anticipate new developments impacting
the enterprise, whether internal or external, while simultaneously
being a proactive driver of change. So how does a successful
CFO pull it all off?
Chapter 2:
Improving Performance
The reign of the humble spreadsheet is over. Technologies for BPM,
ERM, BI and other tools for aggregating and consolidating the numbers
have evolved over the years to help CFOs turn mountains of
financial data into actionable information that they can use to support
compliance efforts, enhance planning and budgeting, and,
perhaps most important, better manage risk. Furthermore, establishing
a performance management framework for finance will set
an example that extends to operations as well.
Chapter 3:
Governance, Risk and Compliance
The buzzword nowadays is “transparency,” as in, being open, honest
and accurate in disclosing financials to the market. In an effort
to avoid more black eyes like Enron, the SEC and other regulatory
bodies have made transparency a top priority, but the road to compliance
is a rocky one. New regulations appear; old ones get modified. One bright spot on the compliance landscape is XBRL, a new
technology standard being actively pushed by the SEC. This open
reporting language delivers major advantages for the preparation,
analysis and exchange of business information. This means better,
more accurate reporting to shareholders, which, in turn, equals
greater transparency.
Chapter 4:
HR and Employee Benefits
Corporations aren’t just raising eyebrows by mismanaging financial
data, they are also generating ire among stockholders and the
general public over the massive compensation packages some top
executives receive – even when they have one foot out the door. So
what’s a company to do if it wants to attract and retain senior management
talent? There are ways to undo the perceived abuses in
the area of executive compensation, but, like everything important,
it requires careful consideration, planning and management.
Chapter 5:
Treasury and Cash Strategies
Shareholders are arguably the CFO’s most important constituents.
Make the investors unhappy, and heads will roll. CFOs must consider
the long-term value when planning strategy without undermining
short-term returns. Integrated financial systems can help manage assets
and risk across the enterprise so that what seems like a smart
investment today doesn’t go sour later on. Companies can also consider
insuring themselves against certain types of risk.
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