Are CFOs becoming the new chief data officer?

non prescription Orlistat 120 mg Non-financial KPIs have become the key to a more accurate, long-term view of a business but tracking these creates new challenges for finance teams.

köp Viagra 120 mg på nätet Finance teams today are faced with data challenges that are fundamentally changing their roles. Where traditionally they focused on pure financial data, such as revenue, cash flow and profitability, finance teams are now increasingly faced with incorporating non-financial data – from employee retention to customer satisfaction – into their planning, forecasting, and reporting. With this broader set of data, and the corresponding metrics, they can provide a more accurate, long-term view of their organisation’s future. And while the majority (76 per cent) of CFOs are measuring non-financial KPIs today, according to a recent survey, the types, volume and sources of data present both opportunities and challenges for the office of finance.

buy Seroquel toronto Based on the results of Adaptive Insights’ CFO Indicator Report in November 2016, CFOs reported that non-financial KPIs comprise up to 20 per cent on average of the total KPIs they are reviewing. Looking ahead two years, nearly half (46 per cent) of CFOs anticipate that to increase, with non-financial KPIs expected to comprise up to 30 per cent on average of the total KPIs tracked.

iq option yahoo It’s clear that non-financial data is creeping into the finance team’s domain and they must be able to review, track and report on it. By doing so, finance can help business leaders across the organisation identify trends early, which helps mitigate risk or take advantage of opportunities, or both. But assimilating operational and financial data rapidly into a single source of truth that can be used for reporting and planning can be a daunting task. It also places increasing responsibility on finance teams for the integration and governance of data.

lee min ho dating boracay It’s no surprise then that nearly half (48 per cent) of the CFOs surveyed for the Adaptive Insights report identified themselves as the chief data officer in their organisations. This reflects the shift in data ownership being felt across organisations of all sizes and all industries. And, as CFOs take on this responsibility, they must align their teams to support the new responsibility.

binäre optionen rendite vergleich Maximising insights from non-financial KPIs

There are three key changes finance teams must make today to support the increased data responsibility and accommodate the rise in non-financial data tracking.

  1. Leverage new technology to get faster and more efficient access to data

Charged with gathering data from across the organisation – including human resources, sales and productivity data – it is not surprising that the number of source systems finance teams leverage is on the rise. In fact, 12 per cent of CFOs are managing 10 or more source systems, up from just 8 per cent a year ago.

Finance teams will need to evaluate their tools to ensure they can keep up with rising volumes of data, expanded non-financial KPI measurement and more source systems. They will also need to gain better and faster access to data across the organisation. And finally, they will need tools that enable them to rapidly analyse and visualise that data, gleaning the insights needed to create a solid, long-term plan.

trading e sicuro        2. trading binario molina Expanding knowledge beyond just finance

CFOs have reported that business understanding is one of the top skills missing from their teams today, and they intend to develop their teams through greater collaboration and integration with other parts of the business. The best finance teams are no longer just experts in their function, they are experts in understanding their business, which also means understanding the drivers behind the data.

  1. Collaborate. Collaborate. Collaborate

This is easier said than done. While CFOs realise they can and should collaborate with other parts of the business, they have also reported that a lack of time prevents them from collaborating and engaging in strategic tasks, and that more efficient business processes and technology will be used to overcome this challenge. As CFOs seek to define and track more non-financial KPIs, their access to and management of non-financial data will increase. To efficiently gather and accurately track that data, organisations will need to break through existing data silos and collaborate more closely with other parts of the business. When they do, they are likely to feel even more confident with how they track their performance and deliver increased value to their organisation.

Finance teams will continue to be faced with increasing amounts of data in terms of volume, sources and types. To ensure their organisations are analysing the right metrics, CFOs and their teams will need to act as objective and strategic decision-makers, carefully balancing the views of all key stakeholders and rallying them to drive towards common performance goals.

Beyond that, finance teams will need to fundamentally change key business processes, including data gathering and analysis, cross-functional collaboration and training. With the right mix of technologies that free up time and enable deep visualisation and analysis of metrics, finance teams can lead the complex effort of adding the non-financial KPIs that lead to greater accuracy in forecasting an organisation’s future.

Rob Hull, founder and chairman, Adaptive Insights


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