By Ernie Humphrey, Treasury Thought Leader, Webinar Guru, Engaging Speaker
The CEO walks into the CFO’s office and says, “You need to take more ownership of the customer experience and the professional development within and beyond your team.”
Even a few years’ ago many CFOs would have thought, and some still might think, is that the beginning of a joke? CFOs are not known for superior soft skills or effective collaboration beyond the walls of Finance. However, the challenges and opportunities facing companies are ever evolving and complex, and as such the role of the CFO need to evolve in step for a company to deliver innovation and realize sustainable growth.
Framing is how situations are presented to people. How situations are presented affect the decisions that people make. Framing has a role in the work of FP&A practitioners.
FP&A practitioners can work through narrow frames. Narrow frames can appear on income statements through revenues from specific products, executive salaries, and equipment depreciation. Narrow frames can appear on balance sheets through work in process inventory, interest payable, and common stock. Narrow frames provide an opportunity for FP&A practitioners to employ a bottom-up approach to their work. Employing this approach improves the ability to be precise in areas like financial plans.
By Rob Trippe, MBA, Financial Modelling Veteran
Financial model definitions can be tricky. Financial models are often dependent upon numerous functional areas and academic disciplines, such as accounting, finance and statistics. These disciplines may have differing uses of the same terminology. Model risk management has also drawn on numerous disciplines in its evolution. The result can be communicating at cross purposes.
No one academic discipline may lay claim to how a financial model’s terminology is defined. Financial model's output is often either a corporate finance concept or an accounting concept, while a driving calculation process may be statistical. Therefore, terminology should be defined among developers, owners and users as early as possible.
By Michael Huthwaite, Founder and CEO at FinanceSeer LLC
The long-standing narrative of Enterprise Performance Management (EPM/CPM) has been squarely focused on the effort to steer organizations away from spreadsheets by embracing Enterprise Performance Management suites (i.e. platforms).
Yet, the dirty secret that is rarely spoken about is that most organizations continue to remain heavily reliant on spreadsheets even after spending huge sums of money on EPM solutions.
So, why are so many organizations still deeply dependent on spreadsheets? The answer to this question lies at the Edge.
By James Myers, Global Finance Executive and Finance Transformation Consultant
It’s the middle of the year and it’s time to take charge of your “data destiny” before the budgeting and planning season starts. What exactly is your data destiny? No, it’s not the new Netrunner card game where the objective is to control all the data in the Universe.
It’s understanding how you can leverage all your internal and external financial and operational data to give you a strategic advantage. Relevant data is the key to understanding it all, but too often this is disbursed throughout your organization.