Fit for purpose

Building organisational strength, productivity and strategic focus

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With the prospect of uncertain economic conditions for years to come, it’s time to focus on organisational ‘fitness’. Just because an organisation or department is no longer carrying much fat, doesn’t mean it’s agile, efficient or capable of growth.

The danger is that the pressure to do more with less — and sometimes less with less – is leading organisations to employ short-term tactics that destroy value.

This report examines specific opportunities for CFOs to add value to their organisations, while still keeping costs under control. It asks: In negative or low-growth markets, how can we deliver better value to our customers and shareholders by building organisational strength, productivity and strategic focus?

The report suggests practical ways that CFOs can turn cost cutting into cost effectiveness by:

  • Seeking out self-imposed overheads
  • Challenging their business model
  • Changing their compliance mindset
  • Measuring and improving productivity

It also looks at opportunities to work assets harder to drive value by:

  • Focusing on the sustainable efficiency of IT
  • Growing margins with supply chain efficiency
  • Making sure the organisation’s portfolio supports strategic growth

An opportunity for CFOs

Cost cutting is high on the agenda and CFOs are being pushed to drive greater value through their business and investments. Against this backdrop it’s more important than ever for CFOs to play a leadership role in developing, enabling and executing strategy, through the competencies shown in the wheel below.

By leading the way in driving value right across the enterprise, CFOs can demonstrate the strategic importance of their role and that of the finance function.

The DNA of the CFO