Superior decision support Advanced analytics Continuous innovation Enterprise

Superior decision support advanced analytics

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Superior decision support Advanced analytics Continuous innovation Enterprise risk mgmt. Automation Digital enablement (e.g., end-to-end electronic processes) Routine analytics Management reporting Shared services Optimization of key processes Cost reduction Transactional financial management Compliance Value management Planning and analysis Business control Transaction management 01 02 03 04 Processes and risk minimization Sound financial analysis for financial and operating decisions Reporting and compliance functions Integral part of leadership team to support value creation Identifies opportunities and provides information for operating and strategic decisions Stage Focus Key capabilities
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5 McKinsey & Company Most finance officers express a desire to shift more toward value management but are stuck spending time on transaction management U.S. federal CFOs spend the bulk of their time doing transactional work rather than other value add activities Current time spent on each activity by CFOs 32 9 23 10 16 5 14 6 24 5 16 32 4 4 Other Org Transformation Strat Leadership Reporting Specialty finance Budgeting Traditional Finance (e.g., accounting, controls, etc.) Most value add activities according to CFOs Other includes: talent, financial system acquisition, tech trends, system implementation, analytics, performance management U.S. federal CFOs/DCFOs spend 6% of their time on strategic leadership but believe it constitutes 24% of their role’s value 32% of U.S. federal CFO/DCFOs’ time is spent on traditional finance, but they believe it only constitutes 9% of their role’s value
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6 McKinsey & Company To move toward value management, effective CFOs are adopting new technologies, and taking on a new role in shaping strategy and performance Using new digital tools to modernize processes and transactions Employing data and analytics to enhance performance Evolving the finance talent equation for a digital world Automating major finance activities to enable new insight and efficiency Transforming the operating model to be a strategic leader Implementing Robotic Process Automation and process digitization across core financial management processes to reduce time spent on manual tasks and enable strategic analysis Introducing new digital tools like SaaS tools and distributed ledger technology, and taking a citizen perspective to modernize the operating model Using big data, machine learning, artificial intelligence to drive new insights to reduce cost and enable performance Partnering with the business and using insights to drive strategy to position the finance function as a strategic leader Attracting and developing new types of talent to succeed in the digital age 1 2 3 4 5
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7 McKinsey & Company Several technologies allow for automation at scale Robotic process automation Automate routine tasks through existing user interfaces (e.g., data extraction and cleaning) Smart workflows Integrate tasks performed by groups of humans and machines (e.g., month end processes)
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