Smart and speedy response to change
High performers are quick to respond to change and make better decisions by balancing risk and with opportunity. They rapidly adapt to fast-changing circumstances by deploying technology, devolving decision-making and ensuring they always have the capacity and resources to execute fast.
What this means for Finance: Improved monitoring to detect the first signs of changes in both the external and internal environments with faster analytics that give decision makers faster insight coupled with fast and flexible planning and budgeting.
High performers understand what drives their end-to-end costs as well as what drives value for their customers. They focus on efficiency rather than simply cutting costs or reducing headcount and are more confident about increasing prices.
What this means for Finance: Improved product and customer profitability reporting that reliably reflects indirect costs.
External and Internal Stakeholder confidence
High performers engage more with stakeholders by making the value they create visible to their external stakeholders through more transparent and more frequent reporting, while motivating staff by devolving decision-making and paying for performance.
What this means for Finance: Improved integrated reporting and disclosure to external stakeholders and cascaded communication of strategy and monitoring of performance for managers and staff.
The writers of the report acknowledge that we are still in what is already one of the longest periods of economic retrenchment in [recent] history and note that even the high performers see difficult times ahead with faltering demand in some of the rapid-growth markets. But what is clear from this E&Y report is that sitting and waiting for the global economy to recover is not an option while high-performing peers have developed capabilities that will allow them to sustain their momentum and increase their lead for a while yet. There is work to be done and for Finance most of it revolves around enterprise performance management and analytics.Comments