You've just become a CFO and now need to set the direction for the finance team.
How do you do it?
Here are 8 steps to follow for CFOs to set clear goals and objectives for their finance function ๐งต
How do you do it?
Here are 8 steps to follow for CFOs to set clear goals and objectives for their finance function ๐งต
First an overview of the 8 steps...
1. Company Strategy
2. Align CFO Goals with Organizational Goals
3. Identify Key Focus Areas
4. Define SMART Goals
5. Involve Key Stakeholders
6. Communicate and Cascade Goals
7. Monitor Progress and Provide Feedback
8. Continuous Improvement
1. Company Strategy
2. Align CFO Goals with Organizational Goals
3. Identify Key Focus Areas
4. Define SMART Goals
5. Involve Key Stakeholders
6. Communicate and Cascade Goals
7. Monitor Progress and Provide Feedback
8. Continuous Improvement
1/8 Company Strategy
Engage with the CEO, executive team, and key stakeholders to understand their expectations for the finance function.
Identify how the finance department can support the organization's goals and add value through its activities.
Engage with the CEO, executive team, and key stakeholders to understand their expectations for the finance function.
Identify how the finance department can support the organization's goals and add value through its activities.
2/8 Align CFO Goals with Organizational Goals
Break down the organization's objectives into finance goals that contribute to the larger picture.
For example, if the organization aims to increase market share, the finance function's goal might be to optimize pricing strategies.
Break down the organization's objectives into finance goals that contribute to the larger picture.
For example, if the organization aims to increase market share, the finance function's goal might be to optimize pricing strategies.
3/8 Identify Key Focus Areas
Identify the key areas where the finance function can make the most impact.
This could include financial planning and analysis, cost optimization, risk management, etc.
Prioritize these areas based on their importance to the organization's success.
Identify the key areas where the finance function can make the most impact.
This could include financial planning and analysis, cost optimization, risk management, etc.
Prioritize these areas based on their importance to the organization's success.
4/8 Define SMART Goals
Define goals that are specific, measurable, achievable, relevant, and time-bound.
For example, a SMART goal for the finance function could be to reduce operating costs by 10% within the next fiscal year by implementing process efficiencies.
Define goals that are specific, measurable, achievable, relevant, and time-bound.
For example, a SMART goal for the finance function could be to reduce operating costs by 10% within the next fiscal year by implementing process efficiencies.
5/8 Involve Key Stakeholders
Engage with key stakeholders, including the executive team and finance team members, to gather their input.
Seek feedback on the proposed objectives and goals to ensure they are aligned and realistic.
Engage with key stakeholders, including the executive team and finance team members, to gather their input.
Seek feedback on the proposed objectives and goals to ensure they are aligned and realistic.
6/8 Communicate and Cascade Goals
Ensure each team member understands their role in achieving these goals and how their individual efforts contribute to the overall finance function's success.
Cascade the goals down to the team and individual levels.
Ensure each team member understands their role in achieving these goals and how their individual efforts contribute to the overall finance function's success.
Cascade the goals down to the team and individual levels.
7/8 Monitor Progress and Provide Feedback
Implement a performance management system to enable ongoing feedback and evaluations.
Provide timely feedback to team members, acknowledging achievements and addressing areas for improvement.
Adjust goals or strategies as needed.
Implement a performance management system to enable ongoing feedback and evaluations.
Provide timely feedback to team members, acknowledging achievements and addressing areas for improvement.
Adjust goals or strategies as needed.
8/8 Continuous Improvement
Promote innovation, collaboration, and knowledge sharing among team members.
Encourage the exploration of new tools, technologies, and best practices to enhance the efficiency and effectiveness of finance operations.
Promote innovation, collaboration, and knowledge sharing among team members.
Encourage the exploration of new tools, technologies, and best practices to enhance the efficiency and effectiveness of finance operations.
How does this 8-step process sound like to you?
Any steps you'd add or remove?
Let's help all the CFOs out there make the best plan for creating a value-adding finance function!
Any steps you'd add or remove?
Let's help all the CFOs out there make the best plan for creating a value-adding finance function!
That's a wrap!
If you enjoyed this thread:
1. Follow me @LiuLindberg for more of these
2. RT this tweet to help others learn how to create a value-adding finance function.
If you enjoyed this thread:
1. Follow me @LiuLindberg for more of these
2. RT this tweet to help others learn how to create a value-adding finance function.
Check out how we help finance teams elevate the influence they have in their company at bpidk.org.
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