Performance management: CFOs’ priority for 2020
This theme is perfectly in line with the challenges facing companies in terms oftechnological innovation. Today, finance departments are required to provide visibility on the sustainability of financial health to senior management. A study conducted by PwC tells us that CFOs are quite optimistic about the profitability of the year 2020. Although they are aware of the number of challenges to be met, performance management remains the core of their concerns and a permanent challenge.
Strategy FINANCE
Why is performance management a priority for CFOs?
Although significant investments in performance management have already been made in 2019, these will continue in 2020. Indeed, in an increasingly complex and uncertain environment, managing performance remains the core business of the CFO and improving it is a permanent challenge.
To anticipate and facilitate decision-making, performance indicators are essential and must be concrete. For the finance function, this means accurate, fast, and flexible business cases. Performance management excels thanks to new technologies through open and optimized systems that allow for greater agility and flexibility. CFOs can better track and balance costs and expenses with unquestionable reliability of information.
The advantage of a dynamic and positive cash management
The priorities of the finance function are essential to increase the competitiveness of the company. This is why the management of performance indicators is inseparable from cash management. Indeed, cash management is carefully communicated and monitored to better control risks.
To do this, CFOs are leveraging tools put in place through digital transformation to educate the executive team about the cash culture. These tools help identify current and future needs, conduct efficient and skillful cash management, and enhance the reliability of forecasts. This more adapted cash management offers a steering of the indicators closer to the economic reality of the company in the short and medium term
Talent management, a crucial and recurring issue
The issue of skills development is inevitable to meet the needs of digital transformation. In terms of performance management and growth strategy, CFOs are aware that the technical skills of their teams must evolve in relation to the new work tools. In this sense, it is also a question of attracting new talent, versatile profiles capable of managing both technological innovation and cross-functional issues.
To attract these talents, finance departments are opting for operating methods that are increasingly appealing, beyond salary compensation. Connected and more attentive to working conditions, new talents are more sensitive to work-life balance, telecommuting, etc. Thus, the recruitment of new skills forces the finance department to rethink and renew the working methods applied in the company
DOWNLOAD THE FREE WHITE PAPER
YOUR 13 AREAS FOR IMPROVEMENT TO BE IMPLEMENTED AS SOON AS POSSIBLE
Also read in our report on HR – Finance – IT issues and innovations:
- Generation Y is changing the way work is organized: an opportunity for companies!
- Candidate experience: still a central issue for HR departments in 2020
- Corporate training: a transformation in progress?
- Continuous feedback: towards a new management style?
- HR innovation: what can we expect in the coming years?
- Big data and BI: from predictive to prescriptive analysis
- Infrastructure as code: why is it a key IT issue for the future?
- IT containerization is changing application development
- Low code platform: the future of application development?
- SOA and microservices: what are the benefits for an enterprise?
- Performance management: CFOs’ priority for 2020
- The finance department is always at the heart of digital transformation
- Risk management, cash management: what challenges for CFOs in 2020?