Impact of emergency changes in health The role of the chief financial officerFacing a major challenge that requires planning a new financial strategy.
As the company has stepped up its preparation and handling of the response to the Covid-19 crisis, the chief financial officer has actively intervened to ensure that his organization can withstand direct economic shocks. Experts believe that this impact will have a major impact on the production system at the end of the crisis.The incidence of global GDP is between 8% and 13%.
Today, financial managers can play an important role.Indeed, they not only have the opportunity to lead crisis management, but also help them establish a crisis Plan to escape recession, Find talented people to run the company, and communicate with the board of directors, investors and their teams more frequently and transparently.
Today, the new priority for CFOs is to ensure elasticity Used for key business operations.The key way to ensure safety Business continuityQuickly and effectively utilize e-commerce and digital operation scale. Digital transformation and automation have become important tools for managing risk and compliance, achieving cost reduction and expense management.
At the same time, the task of attracting the CFO is to plan Back to the employee’s workplace Given that smart work is playing an increasingly important role in company dynamics, it can ensure their safety and health, and can also provide the best digital experience anywhere.
Chief Financial Officer, three strategic priorities
The guiding task is to allow the transition from definition to implementation of these strategies Current service, Is committed to building a digital path to support correct planning, development, business operations and the best interoperability between work teams, Development and operation, cloud E artificial intelligence.
The company is modeling a study that was developed by McKinsey Analyze this situation and outline the main requirements for CFO today; the same as what the ServiceNow philosophy refers to.
“The ongoing crisis puts new pressure on CFOs, enabling them to play a vital leadership role in the executive team -statement Ethan Seth, The head of American strategy and corporate finance business and the head of McKinsey’s financial services business -. Such managers must help the organization overcome the crisis in multiple directions: help stabilize the company in the short term, create the right conditions for growth and get rid of the crisis, and build the company’s required flexibility. Overcome the next step”.
so I Three series of actions that CFOs need to pay attention to today.McKinsey’s first vision is solve. These are management measures taken to stabilize the organization, including the re-formulation of communication strategies with stakeholders, especially with the board of directors and investors, and the determination of the company’s liquidity position to ensure stability. ” Conservation of liquidity Is an important factor in many fields,Cash war room” -Seth points out-, We think this is the key element.It is also important to model different potential Covid-19 scenarios to have different perspectives, why We believe that the wait-and-see approach is not the right approach“.
The second field of view is identified as Flexibility and return, That is, stabilizing business when entering the new normal, or “The next normal”. The considerations here are based on the study of the following behaviors: 1,500 listed companies in the U.S. and Europe They exited during the first phase of the recession. In particular, the importance of adopting a vision of the action implementation cycle to support performance and increase productivity. Among the factors to be considered, Portfolio revaluation with Strengthen the budget. “Many companies have invested heavily in capital, technology or platforms at different times and backgrounds. Seth continues-. We have noticed how many companies are beginning to evaluate key tasks and where they can re-evaluate ROI in the current environment.Many things can be done in the short term, but Financial planning and analysis must be strengthened“.
Kapil Chandra The level of financial transformation that McKinsey’s partners and the banking industry export to Europe regard resilience as a basic skill in today’s competition. He declared: “Resilient companies take immediate action Reduce operating costs, and in fact can maintain and increase business continuity increments over time. These companies are committed to reducing costs byOperational efficiency, Protect growth and sales capacity. The speed shown in terms of cost is combined with budget improvement measures. Ultimately, resilient companies can manage leverage more quickly, thus providing firepower for recovery.
The third horizon is Reshape and reform, The elements involved Positioning of the company in the post-crisis period. In this reshaping phase, CFOs are urged to consider three factors. The first is to start the team in the plan. “The era of single time horizon planning is over, At least for the next few years, Chandra explained-. Nowadays The pre-planning team must ensure that the company has various initiatives and the right tools to intervene in each situation. ” The second action involves Act boldly through mergers and acquisitions and sales strategies, look forward toIntegration wave And portfolio changes in most industries. In fact, the facts show that the people who performed well in the last crisis were those who were very active in mergers and acquisitions. At last, Accelerate digitization Supporting normalization is the next key step. “Most of us cannot imagine the level of remote functionality and digital interaction we are experiencing today. This crisis has provided financial institutions with an unprecedented catalyst for functional digitization., Chandra announced.
Cutting-edge technology
of Digital technology with Connectivity They play a vital role in helping us overcome the current crisis, but CFOs need to seize this opportunity to bring opportunities to their functions and organizations.
He emphasized Ankur Agrawal, The head of McKinsey’s North American Financial Services Department pointed out: “Digital technology, redundant considerations, the business case of digital acquisitions, and the channels companies use to contact customers are all at the forefront of business management discussions. In this recession, companies that use digital technologies through infrastructure cloud, Internet of Things Or other digital channels to get closer to customers, have tried to ensure business continuity, thereby bypassing competition.”
In the past three to four years, we have seen a lot of investment in digital technology, but many companies have been insisting on pilot projects and experiments. “I hope to encourage the management team to carefully consider the areas where digital technology will change the business model itself”, get conclusion livestock
What he is involved in is the transformation of the business model ServiceNow. Its diversified proposition can indeed ensure the flexibility of key business operations (GRC/BCM, ITOM, ITBM, SecOps) To quickly and effectively expand the scale of operations digitally (CSM Pro, FSM, ITSM Pro, ITOM, ESC, mobile) To reduce software and cloud expenditures, the so-called technical debt (SAM, Cloud Insights, APM) Provide the right digital experience for company employees from anywhere (HRSD Pro, EO&T, ESC, mobile, safe workplace, CSM, VA, FSM).
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