the role of the cfo

The Role of the CFO

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CFO background

Shareholder value

The Scientrix approach using a finance matrix example

The cascading effect

Introducing Scientrix

AGENDA


CFO background

The role of the CFO has changed in today’s business environment. The CFO is now more of a business partner to the CEO. The CFO is closely involved in designing and overseeing strategy, operations and performance, while he faces an increasingly complex regulatory environment.


CFO background

Strategic directions are defined to orientate the finance function toward the creation of shareholder value and compliance with regulatory requirements. The CFO will focus on.

• How to create a culture of cost awareness• How to support growth initiatives• How to ensure regulatory compliance• How to monitor and manage risk• How to master simplicity and speed• How to partner with the organization


Shareholder value

Shareholder value is maximized over time through a focus on:• Profitability• Liquidity• Growth• Customer Loyalty

The organization aligns and balances these four objectives. Shareholder value is also influenced through legal, statutory, risk and social responsibility requirements.

Let’s see how the CFO supports the organization in balancing these objectives using the innovative Scientrix matrix XYZ based approach…



The CFO defines the Finance department’s objectives in line with the organization’s objectives and obligations with the aim to create sustainable value for the organization. He then structures and aligns all his responsibility areas to deliver on these objectives.



Every functional manager in Finance defines a contribution :• What to do• What to achieve • How to achieve

Measurements are agreed to track results that derive from the efforts invested in his or her area.


The cascading effect

The matrix structure allows users to cascade the strategy down the organization. This allows for perfect alignment of the strategy.

Looking at cash flow optimization, the treasurey management identifies three tasks that are represented in the next matrix:• Cash management• Account receivable• Accounts payableHe defines critical success factors that will ensure the successful execution of his responsibilities.


The account receivable identifies tactics for each task that will contribute to the achieveiment of the critical successf factors. The status of the tactics is tracked through performance measurements.


If we drill down further, reduce credit risk breaks up into process steps. Each process step is a knowledge repository that contains a list of best practies, internal controls, flowcharts, suggestions, and all other documentation required for its successful implementation.


The process steps contain controls that will ensure that the process step is carried out with quality. You can monitor compliance with controls through self assessment or internal audit review.


Each process step is linked to a business process cycle that provides its location in a workflow.


Introducing Scientrix

Scientrix supports strategy formulation and aligns strategies with structure, performance, knowledge, processes, internal controls and risks, with one single effort.

• Business strategies defined• Business structure defined• Balanced scorecard implemented• Knowledge management implemented• Business process designed• Internal controls implemented• Risk management implemented


How does Scientrix support monitoring and evaluation?

Social collaboration is key for organizational success. The Scientrix

platform is a web 2.0 – based platform that provides each individual

with creative space and a set of management tools. It always allows

them to connect with others, discuss problems and share information

and knowledge.


What is Scientrix?

Scientrix provides a digital solution

to strategy execution. The XYZ

matrix based concept was

developed by Rentia Muell in

2004. This concept embeds the

key principles of improved

alignment, agility, collaboration

and orchestration in organizations.

The matrix approach provides a

solution to master complex

problems and multi-directional

relationships in organizations.


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the role of the cfo

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finance matrix example

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