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CFO Barometer 2011
A TIME OFOPPORTUNITIES?
CSC
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Copyriht CSC 2011. All rihts reserved.
Opinions expressed by contribtors are their own.
Reprodction in whole or in part withot written permission is strictly prohibited
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CSC IN TOUCH WITH CURRENT TRENDS
Within the ramework o its I.D.E.A.S. programme (Inspiration, Debate, Exective
Annal Srveys), CSC carries ot a nmber o barometers every year to analyse
the trends and otlook or key roles within the boardroom (hman resorces, nance,IT, procrement, etc.) at the Eropean level. Each o these stdies, carried ot in
cooperation with independent market research instittes (IFOP and TNS Sores),
involves the participation o hndreds o managers rom the largest bsinesses and
pblic administrationsinErope.Thereslts othesestdies arepresentedat high level
events, organised in varios Eropean cities (Paris, Madrid, Barcelona, Milan, Brssels,
Lisbon, etc.), and are also pblished by partners in the media sector (Les chos, La
Tribne, Challenges, LExpansion, Liaisons Sociales, Il Sole 24 ORE, and others) and
in academia (niversities and leading instittes or higher edcation).
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CFO Barometer 2011
A TIME OFOPPORTUNITIES?
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CONTENTS
11SUMMARY
PAGE 9
26. ALEJANDRO ARANDA. Finance Manager, Spain - Weber Shandwick Spain
28. DANIEL BACquEROET. Assistant General Manager, Finance and Administration - Brink's France.
30. MICHAEL BERAHA. General Manager - BNY Mellon France
32. GIuLIO DELL'AMICO. Partner - McKinsey & Company
34. VINCENzO MARAGLIANO. Chie Financial Ocer - Elica
36. JEAN-PIERRE MELLEN. Chie Financial Ocer - Recticel
38. TATIANA SIMONELLI. Finance Director - Bristol-Myers Squibb Italy
40. FABIO TOMASSINI. Chie Financial Ocer - Nuovo Trasporto Viaiatori
42. HERV VARILLON. Finance, IT and Organisational Manager - Crdit Aricole Leasin and Factorin
46. MARC BENSOuSSAN. Chie Operating Ocer, Soth and West Erope - CSC
PAGE 15RESULTS12
13PAGE 25
TESTIMONIALS
14 PAGE 45ANALYSIS
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THECFOBAROMETER IS A SURVEY THATHASBEEN CARRIED OUT FOR THE 4TH CONSECUTIVE
YEARBYCSC, IN CONJUNCTIONWITH TNSSOFRES.IT IS BASED ON A QUANTITATIVE ANALYSISOF THE TRENDS AND OUTLOOK FOR FINANCEMANAGERS FROM A SAMPLE GROUP OF LARGE
EUROPEAN COMPANIES.
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PROCEDURE AND METHODOLOgY
Thisorth edition othe CFO Barometer was prodcedin conjnction
with the leading market research institte TNS Sores, based on a
srvey carried ot among a sample o nance leaders rom Eropean
companies with over 1,000 employees. They were estioned abot
market position, concerns, reslts, the role o the nance department
and inormation systems.
INTERVIEW METHOD
The srvey was carried ot by TNS Sores sing the CATI method
(Compter Assisted Telephone Interview) between December 2010
and Janary 2011.
TARgET AND SAMPLINg
Private and semi-pblic companies
With a minimm o 1,000 employees Located in France, Germany, the united Kingdom, Italy, Spain,
Belgim and Portgal.
80 managers were estioned (no detailed criteria were applied
regarding activity sector or company sie).These managers represent
the ollowing target positions:
Chie nancial ocer / nance director / nance manager.The sample was adjsted in order to ensre that it was an accrate
representation o Eropean companies rom within the target activity
sectors with at least 1,000 employees.
CFO BAROMETERA EUROPEAN STUDYA TIME OF OPPORTUNITIES?
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1A TIME OFOPPORTUNITIES?
CFO BAROMETER 2011
SUMMARY
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Trends and Outlook forfinance departmentsFINANCE DEPARTMENTS MUST NOW DEVELOP THEIR VISION FOR THE FUTURE, ACTINg AS A gUIDE FORgENERAL MANAgEMENT IN MAKINg LONg-TERM STRATEgIC DECISIONS, IN ADDITION TO ENSURINgPROFITABILITY AND ADEQUATE RISK MANAgEMENT. THIS CAN BE SEEN FROM THE LATEST CFO BAROMETER,
A SURVEY OF FINANCE MANAgERS FROM 80 LARgE EUROPEAN COMPANIES.
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SUMMARY
CFO BAROMETERLARGE EuROPEAN COMPANIES HAVE RECOVERED BOTH BY CuTTINGINVESTMENTS AND BY DRASTICALLY REDuCING THEIR COSTS AND WORKINGCAPITAL REquIREMENTS. THIS RECOVERY HAS BROuGHT PROFITS CLOSE TOTHEIR HISTORICAL LEVELS AGAIN, AND GENERATED COMFORTABLE CASHRESERVES.2011
IN CERTAIN SECTORS, ORDER BOOKS ARE ONLY FILLED FOR TWO OR THREE MONTHSCOMPARED TO SIX TO TWELVE BEFORE THE CRISIS. CORPORATE CYCLES (R&D, PRODUCTION,SALES, ETC.) HAVE SHORTENED, AND TODAY IT IS THE SHORT TERM THAT DOMINATES THEDECISION MAKINg PROCESS.
Anewworldhasarisenromthedisorderothepresentandthepast.
This lobal upheaval has not been caused by the crisis, however it
served only to reveal and accelerate it. Firstly, we should salute the
lobal economy's tremendous resilience and emerin markets'
enormous ability to recover. Havin one up by 4.8% in 2010, the
increase in lobal gDP is expected to reach 4.2% in 2011, even i thisrowth remains unevenly distributed.
The change that we are experiencing is characterised by two main
pheavals. The rst shock is the psrge in digital living and lie
sciences, which changes hman behavior and reveals radical
changes to working, manactring and trading methods. The
second shock is the transer o global economic growth rom the
Atlantic area (uS and Erope) towards the Pacic area (China and
India) and the emergence o China as a major power. The infence
o emerging markets in the global economy has gone rom 25%
in 2000 to approximately 40% in 2010 and cold represent 60%
in 2030.
Not enogh has been done, however, to ndamentally correct the
imbalances at the sorce o the crisis in 2008. Economic revival
policies certainly avoided a worst case scenario. Nevertheless,
China's recrrent srplses still create a global overspply problem.
The expansionist monetary policy o the united States contines
to spport commercial imbalances. And the global monetary base
has shot p since 2007. This sitation means we are conronted by
two main challenges. The rst challenge concerns the redction o
pblic debt in developed contries.
The second challenge relates to restoring growth in developed
contries. We mst devise new sectors o activity, new ranges
o goods and services and new areas o technological progress.
BUSINESSES
In almost all sectors o activity, the crisis is being sed as a driver or
speeding pthenecessarytransormation, lowering prodctioncosts
andreviewingolddogmas.In2009,aterthesharpeconomicslowdown,
bsinessesdrasticallyredcedtheircosts,workingcapitalreirements
andinvestments,withlargercompaniestakingadvantageoavorable
loanconditionslinkedtolowinterestrates. In2010,thebsinessactivity
o large Eropean grops has improved overall, with prots coming
closer to their historical levels. Cash reserves testiy to the speed with
which bsinesses have adapted to a worsened environment.
This cash has not yet been reinvested, mainly on accont o a lack o
visibility as regards the economic ptrn. Going orward, companies
will have to implement a policy o active investment in order to
maintain their position in the new competitive landscape, particlarly
inemergingcontrieswherethereisgrowth.In thebackgrondbehind
the perormance o large bsinesses, however, many SMEs have not
yet rebilt their prots and are still experiencing diclties. In France,savingsonlynancetwothirdsocompanyinvestmentsaverylowlevel.
FINANCE DEPARTMENTS
Financemanagerswereprevioslyresponsibleorensringprotability,
managing risk and monitoring the administrative processes o the
companies they work in. From now on, nance managers mst not
only ensre the company's continity, bt they mst also garantee
its reptation. They are increasingly involved more in orecasting than
in reporting. They project themselves into the tre so that they can
present a broader vision to general management. Three arters o
nance managers claim to spend hal o their time or more on the
strategic aspects o their role.
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CFOs are expected tobe able to respond torequests for information
in real time. Theyhave to rethink theirmanagement andforecasting processesin order to increase theirown responsiveness andmake up for the lack ofvisibility.
THE ACCELERATION OF TIME
The short term dominates or decision making processes, be they
economic, nancial or political. This clt o the immediate keeps on
shortening the time we have or refection and is accompanied by
collective memory loss. Both nance and the company as a whole are
eeling the impact o this diktat o the short term.
Thecrisisplayeda role inacceleratingtimelinesinallsectorsobsiness
activity.Corporatecycles(R&D,prodction,sales,marketing,etc.)have
becomeevenshorter.Thetimelineischangingthewayexectivesmake
decisions. Companies mst be able to react at any point in time and
be capable o immediately reviewing the allocation o their resorces.
Risksandopportnitiesonathree-monthhorionmstbereassessed
on a continos basis in the same way as those over three years.
The crisis has conrmed the act that managing on the basis o costs
and margins alone remains inadeate. While the priority or nance
departments in 2009 was to manage company cash fows and to
srvive, their objective going orward is to project themselves beyondthe crisis and take advantage o the pheavals in progress. They mst
respond to accelerated cycles by more eective management over
theshort term andbygettingmoreinvolvedinthe long-termstrategy.
How can the short term be managed while still seiing opportnities
overthelongterm?Exectivesseadalreerenceasregardsthe time
horion in order to manage a company. There are two management
methods adapted to the dierent company cycles that need to exist
in parallel:
In the short term, reactive management aimed at keeping aneye on risks (which most oten appear to be npredictable) and
ensring that the reslts are achieved;
Proactive management in the medim to long term aimed atidentiying new opportnities and steering the bsiness whiletaking operational and nancial actors into accont.
MANAgINg THE SHORT TERM
The crisis has reinorced the changes that companies are conronted
with.Visibilityhasbeen sharply redced. Order books in some sectors
are only lled or two to three months compared with six to twelve
months beore the crisis. Atomotive manactrers, whose bsiness
model was or a long time based on long cycles with low volatility,mstadaptthemselvestoshort cycle timeswith severefctationsin
demand and high volatilityin the prices o raw materials. In cosmetics,
the accelerated rate o new prodct lanches is allowing revenes to
growmoreickly.Biodermathsscceededindobling itsrevenes
since 2004 by increasing the nmber o new prodct ranges.
In order to ace this challenge, CFOs mst be capable o responding
toreests orinormationin realtime.They havetorethinkandadapt
their management and orecasting processes in order to increase
responsiveness and make p or the lack o visibility. They need to
gain control over all the parameters that are likely to have an impact
on planning so they can provide bsiness leaders with the elements
reired or decision making.
The crisis has orced companies to improve the ality o their
management processes and orecasting abilities. Improving the
reliability o orecasts is a priority or improvement or 56% o nance
managers. Achieving protability objectives remains a major concern
or64% othem,while66%oCFOsconsiderthatmanagementcontrol
and reporting plays an ever more important part in their daily role.
Finance managers need to have management tools that enable
them to make strategic decisions in a very short time period.
Organisation 2.0 is a response to the isse o organisational
management. It enables inormation gathering and reporting
applications and tools to be connected to collaborative portals,
while still meeting the demand or increased analysis, compliancewith standards and key perormance indicators.
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MANAgINg THE LONg TERM
The natre o risk and the reglatory ramework have been sbject to
continoschangeor thelasttwoyears. Increasedcrrencyvolatility,
skyrocketing raw materials prices, mistrst o banks, diclties in
analysing hedging operations, the emergence o new environmental
risks all o these actors make planning and orecasting activitiesall the more diclt. A predictive approach is essential to providing
tre direction or the bsiness going orward.
One o the challenges linked to the economic ptrn is the ability
to redene development and investment plans. Finance managers
are taking part in strategic decisions and negotiations related to
investments, acisitions, divestments, etc. They have to be highly
selective when choosing projects while still ensring the retrn on
capital employed.
They are now spporting operational personnel and helping them
make growth opportnities a reality. They are implementing more
decentralised organisations with operational personnel being givenmore responsibilities. Rhodia is ths giving more responsibility to the
managers o its bsiness nits.
Gaining control over the time horion in orecasting activities is a
priority or 72% o nance directors. They need to take into accont
both short-term risks and long-term opportnities. Now more than
ever, general management needs clarication on the tre and
needs to havealternative scenarios available. There is still demand or
highly detailed reporting, bt this is now accompanied by a search
or orecasting tools that will provide a more strategic vision or the
company. Socit Gnrale, Biomriex and Valo have all revealed
strategic 5-year plans. Lastly, some companies are considering
implementing processes to identiy and monitor risk overall, with
simlations that allow developments in nancial areas to be orecastin accordance with the associated risks.
IN ADDITION TO MANAgINg OVER THE SHORTTERM, MANAgEMENT FORECASTINg NEEDS TOALLOW CFOs TO IDENTIFY NEW OPPORTUNITIES SOTHAT THEY ARE ABLE TO SUPPORT THE COMPANY SSTRATEgIC DECISION MAKINg AND NEgOTIATIONSRELATED TO INVESTMENTS, ACQUISITIONS,DIVESTMENTS, ETC., BY BEINg HIgHLY SELECTIVEWHEN CHOOSINg PROJECTS, WHILE STILLENSURINg THE RETURN ON CAPITAL EMPLOYED.
AND TOMORROW
Actal growth is not achieved by way o excessive pblic debt
bt rather throgh innovation, trade and prot, which remain the
only ways o ensring or development. The global economy has
otstanding drivers at its disposal. The entry into the modern
world o the middle classes in emerging markets, an increase oalmost 3 billion in global poplation in a ew decades, and a wave
o exceptional innovation that has only jst started to nrl all
mark the beginnings o a cycle o strong growth or a long period.
Someobserversnotethatsince2000, theworldhasbeenat thecentre
o a new economic "sper cycle". A sper cycle is characterised by
increased global growth or at least one generation, strong growth
in international trade, rapid rbanisation and investments driven by
technological innovation. Global GDP has dobled in ten years and
cold triple by 2030.
Large Western companies wish to gain access to the middle class
markets in emerging markets, whereas companies in these contriesare interested in the matre markets o Erope and America.
According to experts, the major corporations o emerging markets
shold have collective revenes o uSD 8 trillion by 2020 compared
to uSD 1.3 trillion in 2009. The battle will be over access to resorces:
raw materials, energy, capital and technology. The rivalry between
Western powers and China will intensiy in all these areas.
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2A TIME OFOPPORTUNITIES?
CFO BAROMETER 2011
RESULTS
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THE ROLE OF THE CFO
CHANgES IN THE ROLE OF THE FINANCE DEPARTMENT
The crrent period is marked by the end o an nprecedented nancial crisis dring which nance departments were sbjectedto major pressres. The CFO Barometer 2011 shows that the role o the nance department has contined to develop comparedto 2010. This year, the role o the nance department seems to revolve arond compliance with standards and reglations (58%).A total o 54% o respondents also attach more importance to making strategic decisions, while in 2010 the CFO's role consistedmainly o enhancing the spread o a nancial mindset among operational personnel.
33 %
2010
2011
36 %
58 %
42 %
54 %
47 %
51 %
49 %50 %
Respect des normes Prise de dcisions Amlioration de Diffusion de la culture
et rglementations stratgiques la rentabilit de financire auprsCompliance with Making strategic Improving Spreading a
l'entreprise des oprationnelsstandards and decisions company inancial mindsetreglations proitability among operational
personnel
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CFO BAROMETER
CONCERNS OF FINANCE DEPARTMENTS
PRIORITY IMPROVEMENT ACTIONS
This year, 94% o CFOs have made improvements in orecasting a priority, in terms o better control o the time horion.This was already one o the most important actors in 2010, bt in 2011, it is positioned above all other improvement actions.Following the crisis that demonstrated the limits o crrent management modes, CFOs have concentrated on the relevanceo the time horions being examined, and the relevance o inormation, in order to cope with companies' lack o visibility andeective orecasting.
85 %
94 %
86 %
93 %
84 %
88 %
81 %81 %
Matriser lhorizon
temps dans les
exercices de
prvision
(budget, BP, PMT)
Amliorer la
pertinence des
informations des
fins danalyse et
de contrle
des risques
Gagner en agilit
pour rpondre
efficacement aux
questions des
dirigeants
Simplifier les
mthodes
danalyses
et de pilotage
68 %
ner en
nomie
ncire
Control thetime horionin orecastingactivities(bdget,
Improve therelevance oinormationsed oranalysis
Increase agilityto respondeectively toestions rommanagement
Simpliymethodso analysisandspervision
NAIncreaseinancialatonomy
NA
2010
2011
orecast,medim-termplan)
and riskmanagementprposes
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CONTROL
IMPROVEMENTS IN DASHBOARDS EXPECTED
According to the majority o CFOs in Erope (59%), dashboards mst concentrate more on managing protability. The relevanceo time horions in management tools is also estioned: 45% o nance managers intend to review the time horion in orderto improve management control.
59 %
Measre o proitabilityMesure de la rentabilit
54 %
Cot du financementFinancing costs
45 %
Time horionHorizon de temps
44 %
Pilotage des marges de main d'uvreManaging operational margins op 2 (5+4)
5- Trs important
TTop 2 (5+4)
5- Very important
4- Important4- Important
3- Moyennement important3- Medim importance
43% 2- Peu important2- Low importance
1- Pas du tout important1- Not at all important
Cot du risqueCost o risk
INTEREST IN THE DIFFERENT TIME HORIZONS BEINg CONTROLLED
Jst like last year, CFOs are showing strong interest in having greater medim and long-term visibility. In act, hal o theCFOs estioned are more interested in a 3-year horion, and 56% o them attach greater importance to a 1-year horion. Theshort-term horion (1 to 3 months) on the other hand is considered to be more important by only 37% o those interviewed,while this gre was 49% in 2010.
18
51 %
56 % 55 %
50 %49 %
37 %36 %
29 %
27 %
23 %
Budget
1 an
Plan
3 ans
Court terme
(1 3 mois)
Cycle conomique
propre
lentreprise
Exercice
fiscal1-year bdget 3-year plan Short term(1 to 3 months)
Company'sowneconomiccycle
Financial year
2010
2011
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CFO BAROMETER
GOVERNANCE
SIgNIFICANCE OF RISK
Since the crisis, CFOs have kept their important roles in the areas o governance and risk management. The risks associatedwith IT secrity (82%) and with reglations (87%) remain the most signicant concerns or CFOs in 2011. The risks that have atendency to srace dring crises, i.e. the risk o cstomer dealt and the risk associated with the nancial markets, no longergre among CFOs' major concerns in 2011.
88 %
Risk associated with reglations 93 %Risque li la rglementation 91 %
87 %
88 %
Risk associated with IT secrity 96 %Risque li la scurit informatique 82 %
82 %
85 %
85 %
Risque oprationnel et fraudesOperating risk and rad82 %
73 %
NA
NA 2008Risque li au march financier 78 % 2009Risk associated with the inancial markets
201068 %
2011
47 %
Risk o cstomer dealt 76 %Risque de dfaillance client 74 %
61 %
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Attirer de nouveaux investisseurs
Satisfaire les exigences des investisseurs
Renforcer la visibilit de la stratgie
Asseoir la crdibilit du management
Amliorer l'image institutionnelle de l'entreprise
COMMUNICATION
SIgNIFICANCE OF FINANCIAL COMMUNICATION OBJECTIVES
According to Eropean CFOs, nancial commnication mainly serves to establish management credibility (90%) and toimprove the company's corporate image (93%). Financial commnication is becoming more and more comprehensive andintegrated into corporate commnications. Above and beyond the acconting aspects, it is becoming more concerned witheconomic and strategic topics, and increasingly resembles nancial marketing. Attracting new investors, which was a lowpriority in previos years, is even less important in 2011 according to the CFOs estioned.
78 %
87 %
Improving the company's corporate image 87 %
93 %
87 %
92 %Establishing management credibility 89 %
90 %
83 %
Increasing visibility o the strategy91 %
95 %
83 %
71 %
Satisying demands rom investors 81 %
65 %
59 %
2008
35 % 2009
Attracting new investors 45 % 2010
46 %2011
26 %
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CFO BAROMETER
PERFORMANCE OF FINANCIAL MANAGEMENT
PRIORITY gIVEN TO PROJECTS RATHER THAN PROCESS IMPROVEMENT
Redcing lead times is still the priority or nance managers. However, more emphasis is placed on prodcing bdgets (94%)than on drawing p nancial statements (80%). This again conrms the priority given to bdget orecasts rather than tohistorical acconting data. Eciency in stattory reporting is o increased importance compared with last year or 89% oCFOs compliance with standards and reglations is still an important point or CFOs in 2011 in this area. Process improvementis also possible thanks to process optimisation initiatives sch as Lean Six Sigma. Even i these types o projects are not apriority, their importance is increasing year on year.
Rduire le temps
dlaboration
budgtaire
Gagner en efficacit
dans la production
rglementaire
Diminuer les
dlais de
production
des comptes
Mettre en place une
dmarche doptimisation
des processus de type
Lean Six Sigma
69%
86 %
56 %
87 %
83%
89 % 89 %
94 %
53 %
79 %
80 %
61 %
Redcingtime neededto prodcebdgets
Increasingeiciencyin stattoryreporting
Redcinglead timesor drawingp inancialstatements
Implementingprocessoptimisationinitiatives sch asLean Six Sigma
2009
2010
2011
DEVELOPMENT OF SSC FUNCTIONS
There have been some developments in the centralisation o varios activities within the acconting and nance roles. Accordingto the CFO Barometer 2011, general acconting (34%) and the prodction o stattory, scal and reglatory reporting (32%)are the nctions that will develop the most in shared service centres in the short term. Yet, ewer nancial managers want tocentralise nctions sch as IT operations and maintenance and bank acconting than in 2010.
33 %
21
28 %
34 %
24 %
32 %
34 %
30 %
27 %26 %
28 %
24 %23 %
23 %
Comptabilit
gnrale(production
des donnes
comptables)
Production
des reportingde type
rglementaire,
statutaire et
fiscal
Exploitation
etmaintenance
des SI
Comptabilit
fournisseur
Comptabilit
bancaire(rapprochement
bancaire)
Comptabilit
clientGeneralacconting(prodctionoaccontingdata)
Prodctionoreglatory,stattory,and iscalreporting
Operationandmaintenanceo IT systems
Bankacconting(bankreconciliation)
Spplieracconting
Cstomeracconting
2010
2011
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FOCUS ON IT SYSTEMS
PRIORITY OF IT ISSUES
The most signicant IT systems isses according to the nance managers estioned are integrity (93%), secrity (90%)and data accessibility (90%).
93 %
49 %Integrity44 %
Intgrit 4 %
1 %
1 %
90 %
59 %
31 %Secrity
Scurit6 %
2 %
1 %
90 %
45 %
44 %Data accessibility
Accessibilit aux donnes 9 %0 %
Top 2 (5+4)Top 2 (5+4)1 %
5- Trs important5- Very important
4- Important4- Important
78 % 3- Moyennement important3- Medim importance29% 2- Low importance2- Peu important
49%1- Not at all importantStattory developments 1- Pas du tout importantEvolutions rglementaires 17%
5 %
1 %
PRIORITY PROJECTS FOR IMPLEMENTINg NEW IT SYSTEMS
The investment projects or implementing new IT systems in 2011 are aimed mainly at the ality and relevance o inormationrom data warehoses or 92% o nance managers. The next priority relates to the development o decision spporttools. The aim o these projects is to acilitate the decision making process or management and to manage perormance.
33 %
83 %
92 %
80 %
83 %
73 %
82 %
74 %
2010
2011
NA
Qualit et
pertinence des
informations des
entreptsde donnes
Dvelopper des
outils daide
la dcision
Refonte de
lorganisation
des structures
des donnes(rfrentiels)
Mettre en place
des outils de pilotage
ouvert accessible
lensemble descollaborateurs
qality andrelevance o
inormationrom datawarehoses
Developingdecision
spport tools
Overhal o thedata strctre
organisation(databases)
Implementingopen
managementtoolsaccessible to allemployees
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CFO BAROMETER
HR ASPECTS
PROFILES AND SKILLS IN gREATEST DEMAND WITHIN FINANCE DEPARTMENTS
Expert proles are increasingly in demand within nance departments (according to 45% o CFOs): this is the reslt oa desire on the part o CFOs to concentrate on high vale added roles. Expert proles that are capable o responding toast environmental changes contribte the most to vale creation and perormance improvement. At the same time, theimportance o so-called operational roles remains stable.
Increased importanceImportance accrue
Stable importanceImportance stable
Importance rduiteRedced importance
Experts
(trsoriers, analystesfinanciers, experts mtiers)
Productifs
(analystes quantitatifs,comptables)
Chargs de missions
(recruts pour mener bien des projets et/ou
coordonner des fonctions)
45 %
48 %
4 %
21 %20 %
67 %
54 %
11 %
22 %
Experts (cashmanagers, inancialanalysts, expert roles,etc.)
Operational sta(antitative analysts,accontants, etc.)
Project managers(recrited to manageprojects and/orcoordinate nctions)(antitative analysts,accontants, etc.)
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3A TIME OFOPPORTUNITIES?
CFO BAROMETER 2011
TESTIMONIALS
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"OUR CHALLENGES REMAINTHE SAME: GETTING ACCESSTO FINANCING AND MANAGINGTHE PRESSURE ON LIQUIDITY."
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TESTIMONIALS
ALEJANDRO ARANDAFINANCE MANAGERWEBER SHANDWICK SPAIN
WHAT CHALLENGES WILL THERE BE AND WHAT STRATEGIES WILL COMPANIES IMPLEMENT TO IMPROVE THEIR
GROWTH AND STRENGTHEN THEIR MARKET POSITION? INTERVIEW WITH ALEJANDRO ARANDA, FINANCE MANAGER
AT THE SPANISH SUBSIDIARY OF ONE OF THE WORLD'S LARGEST PUBLIC RELATIONS COMPANIES.
HOW DO YOU SAFEgUARD THE CONTINUITY OFYOUR ACTIVITIES OVER THE LONg TERM WHILE STILLMANAgINg THE SHORT TERM?
Considering the economic slowdown, which is not condcive to risk
taking,Ibelievethatwemstremainattentivetoshort-termopportnities
whilestilldrawinglessonsromtheworkcarriedotdringtheserecent
yearso the crisis.AtWeberShandwick, wehavetriedto optimiseand
maximise available resorces so as to garantee a healthy economic
and nancial balance. We have also worked on minimising the impact
o this nstable economic sitation on or bsiness activities and
have dened the company strategy or the long term. Today we ndorselves conronted with a doble strategic challenge: on the one
hand, we have to review or approach to activities by creating new
departments and prodct lines and by involving new proessional
experts; on the other hand, we need to adapt to new consmption
habits, a direct conseence o globalisation and new technologies,
so as to meet the new needs o or clients and reisitioners. While
we do not intend to abandon or deensive strategies, we still need to
recognise that the leaders o tomorrow will be those who have made
their balance sheets healthier and have dened coherent growth
strategies that allow them to ace new market realities more nimbly
and fexibly. An ability to adapt to change will ths be a key actor or
sccess in an economic environment marked by strong competition
and major instability.
HOW CAN COMPANIES PROTECT THEMSELVES FROMFUTURE CRISES AND STILL gUARANTEE THEIRFINANCIAL INDEPENDENCE?
Severalarticlesspportthetheorythatthemainreasonsortheeconomic
recession were a nancial sector that has rn ot o steam pls a lack
o responsiveness on the part o the nancial reglators in taking
appropriate corrective measres. At present, or challenges remain
the same: getting access to nancing and managing the pressre on
liidity.Financialconditionscontinetoberestrictiveandcompanies
nd that they have excessive debt, which orces them to resort to
divestment o assets in order to generate liidity. It seems clear that
reormotheSpanishnancialsystemisessential; it isnotinsignicant
that savings banks in this contry are restrctring to become private
entities,allowingthemtoremainotsidethesphereoinfenceothe
pblicathorities.Wemst drawlessons romthis trblentperiodso
that we can know clearly where and how loans are granted.
STAgNATION OF WESTERN MARKETS VERSUS STRONggROWTH IN EMERgINg MARKETS: HOW SHOULDCOMPANIES REACT WHEN FACED WITH THIS NEW
ECONOMIC SITUATION?
Overthelastewdecades,emergingmarketshavegradallyincreased
theirshareotheglobalmarkettothedetrimento developedcontries.
It is logical that the arrival o new, more competitive economies on
the market means that we are conronted with greater sector-based
specialisation. Nevertheless, withot this representing a threat, the
rapid growth o emerging markets creates increased prchasing
power there, which improves per capita revene and will also reslt
in increased internal demand or goods and services. This represents
a real opportnity or growth or many companies that wish to adopt
a policy o international expansion. Weber Shandwick's presence
grows stronger rom year to year in these markets, particlarly in
the Asia-Pacic region and Latin America, and crrently represents
10% o the total volme o or global activities.
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"TOWARDS ANENTREPRENEURIALATTITUDE."
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TESTIMONIALS
DANIEL BACQUEROETASSISTANT GENERAL MANAGER, FINANCE AND ADMINISTRATIONBRINK'S FRANCEPRESIDENTASSOCIATION OF FINANCE MANAGERS ANDMANAGEMENT CONTROL (DFCG)
AT BRINK'S, THE FINANCE DEPARTMENT IS NOT SATISFIED WITH JUST SUPPORTING STRATEGY IN THE SHORT AND LONG TERM.
IT MUST ALSO CULTIVATE AN ENTREPRENEURIAL SPIRIT IN ORDER TO CONTRIBUTE TO THE DEVELOPMENT OF THE BUSINESS.
HOW IS YOUR BUSINESS EMERgINg FROM THERECENT TURBULENT PERIOD?
We have the advantage o operating in a niche market: managing the
monetary chain or banks and large retailers. For or varios lines o
bsiness - cash transportation, conting, management o ATMs and
also remote srveillance and airport secrity the ndamentals have
remained good overall. We have however recorded a slight drop inrevene as contract renegotiations have become togher.
HOW HAVE YOU REACTED TO THESE NEWCONDITIONS?
Faced with the pressre on volme and prices, we have adopted a
new pricing approach and have developed new prodcts. Or goal
is to ensre end-to-end management o cstomer needs rather than
one-o services. It's a matter o placing orselves as ar pstream as
possible in the vale chain and getting closer to the cstomer, to the
point o processing crrency on the cstomer's premises. So weve
pt in place a tre integration strategy.
AND HOW DO YOU SUPPORT THAT STRATEgY?
Wemodelthescenariosorthelanchingonewactivities.Thatenables
s to anticipate market reactions and to better assess the acconting
and nancial impact o new prodcts on both s and or clients. In
doing so, we gain a better nderstanding o the activities themselves
andincreaseor proximitytooperationalsta.Forexample,wespply
them with operational indicators that enable them to evalate their
perormance in respect to their goals (revene, cstomer satisaction,
etc.) and to take corrective actions.
HOW ARE YOU RESPONDINg TO THE ACCELERATIONOF DECISION MAKINg CYCLES?
Inordertobeveryresponsive inoractionplans,weneedtobe ableto
project trends on the basis o an analysis o the past. Or concernis to
improveperormancemeasrement,byreinorcingcostmonitoringand
byimplementinginstantindicators.Toachievethat,wehaveintensied
inormation gathering in real time (volmes prodced, hors worked,etc.) in order to be able to generate projections even beore this data
is taken p as gres in the income statement.
HAVE THE EXPECTATIONS OF TOP MANAgEMENTCHANgED?
The major expectation concerns not only constant improvement o
the perormance measrement tools, bt also a proven ability to be a
sorce o ideas to spport the development o the company.
That is achieved rst o all by even closer control o nancial and
operational fows, by the reinorcing o or internal control processes,
andby way oincreasinglyrenedanalysis.At thesametime,weneed
to develop an entreprenerial attitde which implies ghting against
or natral rigor and cation in order to develop other skills sch asboldness, creativity and vision.
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"UNDERSTANDINGCUSTOMER NEEDS."
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TESTIMONIALS
MICHAEL BERAHAGENERAL MANAGERBNY MELLON FRANCE
COMING OUT OF THE CRISIS, THE BANK OF NEW YORK MELLON IS SHOWING POSITIVE RESULTS. MICHAEL BERAHA,
THE GENERAL MANAGER OF BNY MELLON FRANCE, EXPLAINS THE BANK'S STRATEGY AND BREAKS DOWN THE
ROLE OF THE FINANCE MANAGER.
HOW DO WE RETURN TO gROWTH?
Thecstomerhastobeatthecentreoorstrategy.Wedidn'tsertoo
mchromthecrisis:withuSD25 trilliono assetsndermanagement
oradministrationBNYMellon istheworldnmberone inthisarea,and
is 8th or 9th in the world or assets nder management with uSD 1.1
trillion (as at December 31, 2010), and or revenes are split 3/4 - 1/4
between these two areas o operations. In the united States, we have
a triple A nancial rating. Today, we're concentrating on the location
o or bsiness activities so as to be closer to or cstomers, and on
nderstandingtheir needs.Or regionsor development arerstoall
in Erope, then in Asia and Latin America. Seventy-ve percent o or
revene comes rom the united States: we are aiming or a balance
between this and the rest o the world.
HOW CAN THE COMPANY BETTER PREPARE FORMARKET FLUCTUATIONS?
The market sitation is an intrinsic part o or strategy. The more
marketsfctate,themoreweprot:we likevolatilityandvolme.Their
increase is integrated into or bsiness model. I the global nancial
market does not take o again this year, then we will be able to take
advantage o the sitation. We have liidity we can invest wherever
seemsrelevanttos:inEropein2010,weaciredInsightInvestment,
BhF Asset Servicing GmbH and PNC GIS. Each o these transactions
allowed s to expand or expertise and get closer to cstomer needs.
These are or gide and knowing where we want to go allows s to
benet rom the crisis.
WHAT ARE THE PRIORITIES FOR FINANCEDEPARTMENTS IN THIS UNUSUAL PERIOD?
It's all abot showing that there will be a retrn on investment, and
ensring that nancing secred will be sed wisely. An important
indicator is positive operating leverage: revene growth mst be
higher than any growth in costs, even thogh or operations reire
mch investment; each year a large part o or revenes are spent on
IT investment. In addition, the rising cost o capital is something we
monitor very closely.
WHAT IS THE ROLE OF THE FINANCE MANAgER?
Apart rom their traditional remits(rigor, nancial control, reglation,
etc.),theydirectcashintoinvestmentsthataregoingtogeneratethebest
positive operating leverage. BNY Mellon's image is a highly reassring
one: the market players who choose s know its sae to work with
s. Or balance sheet has grown dring the crisis becase they have
investedtheirliidassetswiths.TheCFO'sroleis centralinselecting
the investments that will be made. Were not too adventros, and
its precisely that which makes s dierent and makes s sccessl.
HOW ARE COMPANIES REACTINg TO THE STAgNATIONOF WESTERN ECONOMIES AND STRONg EMERgINg
MARKET gROWTH?
For s, Erope is a growth region: it is a market that remains highly
ragmented, bt is forishing thanks to strctral and reglatory
changes. We want to contine setting p activities there, knowing
that I already have roghly 10,000 colleages in Erope, and that
together we have managed Eropean cstomers or over a centry!
Asia interests s in the longer term: it's a gamble, whilst Erope is a
strategy which is at the centre o or hopes and desires, and is where
we see new opportnities in the short term.
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"NOWADAYS, THE CFO MUST PLAY THEROLE OF A PEER IN MAKING STRATEGICDECISIONS, WITH AN ABILITY NOT ONLYTO INTERPRET THE WEAK SIGNALSCOMING FROM THE MARKET BUT ALSOTO REACT PROMPTLY TO EXTERNALAND INTERNAL FACTORS."
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TESTIMONIALS
GIULIO DELL'AMICOPARTNERMcKINSEY & COMPANY
THE ROLE OF THE CFO IS UNDERGOING RADICAL CHANGE TO BECOME A FIGURE THAT CAN COMBINE PLANNING AND ANALYSIS,
BUT ALSO ONE THAT IS INCREASINGLY INVOLVED IN STRATEGIC DECISIONS AND ABLE TO CONTRIBUTE DECISIVELY TO THE VALUE
CREATION PROCESS OF THE COMPANY.
WHAT CAN THE CFO DO NOWADAYS TO ENSUREBOTH BUSINESS CONTINUITY AND gROWTH? WHATMEASURES HAVE BEEN TAKEN BY YOUR COMPANY TOgET THROUgH THIS DIFFICULT PERIOD?
Whatis ndamentalistheprogressiveevoltionotheroleotheCFO.
From being a process manager who carelly controls the bsiness,
he is trning into a bsiness partner who ocses on planning and
analysis, isdeeplyinvolved inbsinessdecisionmakingand whotakes
a orward-looking approach in order to become a vale partner who
bringsdistinctivecompetenciestocompany.Nowadays,the CFOmst
play the role o a peer in making strategic decisions, with an ability
to interpret the weak signals coming rom the market and to react
promptly to external and internal actors.
In addition to the normal nctions o the CFO, he/she plays a key role
as a vale partner regarding:
Active management o the company's asset portolio: decisionsrelated to the managing the companys presence, in terms o
geographic location, prodct range and distribtion channels
- the determining actors or growing the bsiness. In the last
10 years, the expansion o market presence together with
M&A activity represented 95% o the growth generated by
a sample o 720 large companies;
Investor relations and commnication, which reires a goodnderstanding o the natre o the company's investors and
the management o adeate commnication with them;
Measrement and perormance management at a highlevel o granlarity (every single element o perormance),
which links the metrics o the prot and loss accont and
cash fow to the allocation o capital employed and ths
the creation o vale.
WHAT CAN THE CFO DO TO PROTECT THE BUSINESSFROM POSSIBLE FUTURE CRISES AND, AT THESAME TIME, ENSURE THE COMPANYS FINANCIALINDEPENDENCE?
Inadditiontotheactionsalreadymentioned,nowadaysitisndamentalto
haveaproactiveapproachtoriskmanagement,throghtheidentication
and the prioritisation o key bsiness risks, the measrement thereo,
and the adoption o appropriate measres or mitigating or covering
criticalevents.Onemstnotneglectthe importanceo strategicplanning
that takes into accont alternative scenarios derived rom the trends
associated with varios macroeconomic variables that are relevant
or the bsiness, and identiying or each scenario the varios actions
to take. Last bt not least, it is important to think o and implement
stress tests that take into accont not only possible changes in the
key drivers o the bsiness, bt also the occrrence o critical events.
HOW ARE YOU REACTINg TO THE NEW ECONOMICSITUATION, CHARACTERISED BY THE STAgNATION OFWESTERN MARKETS AND STRONg EMERgINg MARKETgROWTH?
It is important to seek and to achieve growth by leveraging ones own
distinct competences and identiying at a granlar level (in terms o
geography,prodctor channel)theopportnitiesorgrowththatexist
in Western markets. It is also necessary to invest in those high growth
markets that prove to be more compatible with the presence and thecharacteristicsothecompany,andintowhich itcanmoreeasilyexport
its own distinct competences.
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"THE CFO PLAYS A KEY ROLEIN SPREADING A MINDSET OFPERFORMANCE MEASUREMENT,WHILE AT THE SAME TIMEMAINTAINING RIGOROUS COSTCONTROL THROUGHOUT THEBUSINESS."
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TESTIMONIALS
VINCENZOMARAGLIANOCHIEF FINANCIAL OFFICERELICA
IN ORDER TO CONTINUE TO GROW IN A MATURE MARKET, ELICA LEVERAGES ITS CAPABILITIES IN PRODUCT AND
PROCESS INNOVATION TO SUPPORT A STRATEGY OF INTERNATIONAL EXPANSION AND HIGHLY SELECTIVE M&A,
FURTHER REINFORCING ITS TOP OF THE RANGE POSITIONING.
WHAT CAN A CFO DO TO ENSURE BOTH BUSINESSCONTINUITY AND gROWTH?
Personally, I believe that there can be no sstainable bsiness growth
withot increased attention to asset strength and nancial fexibility.
In this regard, the CFO plays a key role in spreading a mindset o
perormance measrement and rigoros cost control. Moreover, the
CFO hasto steer investmentsin the core bsiness, whilesaegarding
nancialfexibilityandselectingthebestopportnitiesintheM&Amarket.
To overcome the crisis, Elica took nmeros governance measres
in terms o both the bsiness and nance. In particlar, Elica prsed
processandprodctinnovations,thsincreasingmarketshare inevery
market segment in which we operate. In addition to this, we achieved
very good reslts interms o cost management, capex rationalisation,working capital optimisation and nancial risk management.
WHAT CAN THE CFO DO TO PROTECT HIS BUSINESSFROM POSSIBLE FUTURE CRISES?
In a matre sector like ors, either the bsiness has the strength and
capabilitiesnecessarytogrowinasstainablemanner,oritisinexorably
destined to old.
HOW ARE YOU REACTINg TO THE NEW ECONOMICSITUATION, CHARACTERISED BY THE STAgNATION OFWESTERN MARKETS AND STRONg EMERgINg MARKETgROWTH?
Since2006,Elicahasprsedapathointernationalisationbyopeninga
bsinessnitinMexico,aimedatservingAmericanmarkets(bothNorth
and Soth) and by opening a actory in Poland near the prodction
plants o or main OEM clients and Eastern Eropean markets. This
trendacceleratedoverthelasttwoyears,dringwhichElicacompleted
an acisition in the very high-end segment o kitchen hoods in
Germany in 2008, and one in China in September 2010. In May 2010,
Elica also signed a joint ventre agreement in India. In Germany, the
acisition had as primary goal the development o the sales o Elicabrands in the German-speaking markets. The operations carried ot
in Asia will promote or expansion in markets with the astest growth
rates in the world.
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"EVOLVING TO AN OPTIMALCAPITAL STRUCTURE, SO WECAN TAKE ADVANTAGE OFSTRUCTURAL MEGATRENDS."
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TESTIMONIALS
JEAN-PIERRE MELLENCHIEF FINANCIAL OFFICERRECTICEL
IN RECENT YEARS RECTICEL, WHICH MANUFACTURES VARIOUS POLYURETHANE BASED PRODUCTS, HAS FOCUSED PRIMARILY ON
THE AUTOMOTIVE SECTOR. IN THE WAKE OF THE ECONOMIC CRISIS AND LOWER MARGINS IN THE SECTOR, THE COMPANY IS NOW
CHANGING COURSE. AS OF NOW THE EMPHASIS WILL BE ON NON-CYCLICAL SECTORS WITH STRUCTURAL GROWTH TRENDS,
AND NEW NICHE PRODUCTS TAILORED TO CUSTOMER REqUIREMENTS. THE TASK OF CFO JEAN-PIERRE MELLEN IS TO ENSURE
THAT THE CAPITAL STRUCTURE AND INTERNAL ALLOCATION OF FINANCIAL RESOURCES SUPPORTS THIS NEW STRATEGY. CASH
FLOW OPTIMISATION AND SYNERGIES WILL PLAY A KEY ROLE IN THIS.
HOW IS RECTICEL PLANNINg TO gROW FURTHER INTHE CURRENT ECONOMIC CONTEXT?
In 2010 Recticel changed its strategic direction, moving away rom
or overdependence on the atomotive sector. In tre we will ocs
on or growth areas in which we can take advantage o strctral
megatrends, thanks to or knowhow and technological capabilities.
The rst is energy saving. Recticels inslation prodcts are an ideal
response to the growing awareness o the need to redce energy
consmption. Or bedding activity capitalises pon the trend toward
wellnessandcomortdringsleep.Themarketorwaterconservation
is also very promising. Water absorbent polyrethane oam is ideally
sited or agricltral applications in contries where water is scarce.
And lastly, even the atomotive sector is a growth area, althogh one
whichdoesntreireinvestmentin additionalcapacity.Orpolyrethane
lmsoramongothers dashboardcoatings t perectlyinthecontext
o continosly redcing the weight o cars and ths also their el
consmption. We intend to geographically diversiy the inslation
and bedding activities, also by way o acisitions. In addition, well
ocs on China, which represents signicant growth potential or all
or activities, and where Recticel has already been present or many
years, albeit on a limited scale.
WHAT ROLE DOES THE CFO PLAY IN THESE PLANS?
Fromthebeginning,asCFOI wasdeeplyinvolvedinthedevelopmento
thisstrategy.Itssccessdependsonrigorosperormancemanagement.
The strong emphasis on cash perormance was a necessary evoltion
or Recticel, given or traditionally high debt ratio in the past. Today
we examine every investment to determine i it ts with the strategy
andoersscientnancialretrn.Riskmanagementisalsoessential.
Recticel isdrivenbyaverystrongentreprenerialcltre,btthe rge
to take on new challenges shold be accompanied by a thorogh
nderstanding and management o risk. As CFO I rely on a well
developed internal control system to manage these things.
SO YOUR FUNCTION IS PRIMARILY ONE OF CONTROL?
Absoltely not! I see mysel in the rst place as a challenger, a
catalyst. As CFO I have the considerable advantage o being above
the divisions. And its rom that perspective that I can stimlate the
bsiness managers or example, to seek synergies which is also
one o the pillars o perormance management. When an investment
is being considered, its also the role o the CFO to ask the right
critical estions.
WHAT ARE THE MAIN CHALLENgES FOR RECTICEL INTHE NEARBY FUTURE?
First o all, to cope with continosly increasing raw materials prices,
among others by way o synergies, so that we can make the most
o economies o scale. In addition, we need to roll ot or projects in
the area o prodct development as ickly as possible. The water
absorbent oam is a nice example o this. In tre we intend to oer
evenmoretailorednichesoltionsto orindstrialcstomers,btthat
will only be easible i we can generate enogh volme in the more
traditional sectors.
AND MORE SPECIFICALLY, IN FINANCIAL TERMS?
My most important objective is the rther optimisation o or capital
strctre, partially thanks to a less volatile and stronger cash fow.
Recticelsnewstrategyisocsedongrowth.Nowthatwe haveclearly
dened or areas o activity, we need to have the necessary nancial
room to manoevre so we can seie growth opportnities!
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"A CFO CAN AND MUSTBE THE CEO'S BUSINESSPARTNER, HELPING HIMIN THE DEVELOPMENTOF STRATEGIES."
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TESTIMONIALS
TATIANA SIMONELLIFINANCE DIRECTORBRISTOL-MYERS SQUIBB ITALY
BRINGING TOGETHER PHARMA AND BIOTECH BUSINESS SINCE 2007, BRISTOL-MYERS SqUIBB HAS FOCUSED ON A STRONG M&A
STRATEGY AND ON A THOROUGH RATIONALISATION OF ITS PRODUCTION NETWORK, BECOMING THE PHARMACEUTICAL COMPANY
WITH THE MOST INNOVATIVE PIPELINE, AS RECOGNISED IN THE R&D DIRECTIONS REPORT.
WHAT CAN THE CFO DO NOWADAYS TO ENSUREBOTH BUSINESS CONTINUITY AND gROWTH? WHATMEASURES HAVE BEEN TAKEN BY YOUR COMPANY TOgET THROUgH THIS DIFFICULT PERIOD?
In my opinion, bsiness continity and growth are not in confict with
each other, bt rather mst be part o a single holistic strategy.
Analysis o the pharmacetical sector, and specically the Italian one,
showsthatitiscrrentlycharacterisedbya all ingrowthratesandlower
margins,orreasonsthatarenotentirelyattribtabletotheglobalcrisis.In
ordertomeetexternalmarketreirementsandcreateaondationor
tresccess,at theendo2007,BristolMyersSibb(BMS)decided
to transorm itsel into a biopharmacetical company, by combining
thebesto thetraditionalpharmamodel(strongcompetenceinclinical
trialsandtheapprovalprocess,nancialsolidity,geographicscopeand
penetration) with the best o the biotech model (innovative research,
agileandentreprenerialcltre).Sincethen,BMShasalwaysoperated
in acoherentmanner, ocsingon prescriptiondrgs(leavingasideall
theothersecondarybsinessesthat itwasprevioslyengagedin)and
concentrating on the development o innovative molecles or cring
seriosdiseaseswithastrongsocial impact.Thepipelinehascontined
toevolve and,asnancial analystshave conrmed,ithasbecomeone
othemostpromisinginthesector, inthevetherapeticareasinwhich
it competes. In addition, we have prsed a very innovative approach
by integrating internal research with a selective acisition strategy
called String o Pearls, which has led to ten important acisitions in
lessthanthreeyears.Inaddition,the decisiontoenterintopartnerships
has allowed the company to redce the risk o clinical trials and, at thesametime,tosharethecostodevelopmentandmarketing, leveraging
the competencies acired rom each partner. In short, its a win-win
approachthatoptimises retrnorpartnersbyavoidingextraordinary
nancialoperations(mergersand/oracisitions),whichdonotgenerate
immediate vale or shareholders, as has been widely demonstrated
in varios cross-sector analyses.
BMS has also reported excellent inancial reslts thanks to the
implementation o initiatives aimed at increasing prodctivity, by
rationalising the prodction network, ocsing on core competences
and otsorcing those activities which specialised players can do
better than in-hose organisations.
WHAT CAN CFOS DO TO PROTECT THEIR BUSINESSESFROM POSSIBLE FUTURE CRISES AND, AT THE SAMETIME, SAFEgUARD THE COMPANY'S FINANCIALINDEPENDENCE?
There is no panacea, bt one can, and indeed mst, prepare or the
tre in the best possible way, making the most o not only prodcts
and services, bt also o the bsiness and management models.The
analysis o sccess stories illstrates the importance o thinking and
actingonamedim-termbasis, strikingabalancebetweenimmediate
andtreinvestments,orecastingdevelopmentsinreerencemarkets.
O corse, we dont have a crystal ball, bt there are varios types o
what-ianalysesthatcanbe sedtoidentiy possible tre scenarios.
Occasionally some otcomes may seem absrd and disastros, bt it
is necessary to make an eort to nderstand the nderlying rationale.
Ocorse, ailreispossible;orthisreason, itisndamentaltomeasre
and monitor risk, to have alternative plans, and to have the corage
to stop new projects whenever they prove to be inadeate.Throgh
long-termnancialorecasts, riskadjstedmodels,choicemanagement
andthedevelopmento alternativeplans,theCFOcanandmstbethe
CEO's bsiness partner, helping him in developing strategies. Added
valeiscreatedbyathoroghknowledgeo thebsiness,thecompany's
operational bsiness context and its bsiness partners. Regarding
nancial independence, there is denitely no garantee o avoiding
possibleacisitionbyanothercompany. Itisalsotrethatcompanies
that are capable o planning their own tre and o lly exploiting
their potential enjoy good ratings not only rom nancial analysts, bt
also rom investors. ultimately, I dont think one shold be scared oacisitions, as they are oten nothing more than the recognition o
the companys vale, and invariably whoever is bying will integrate
the best parts o the acired company: prodcts, bsiness models,
and sta. Excellence is a winning card even in this case!
HOW IS YOUR COMPANY REACTINg TO THE NEWECONOMIC SITUATION, CHARACTERISED BY THESTAgNATION OF WESTERN MARKETS AND STRONgEMERgINg MARKET gROWTH?
Innovation and excellence are always rewarded. One shold not give
pwhenconrontedbyannavorablemacroeconomiccontext.Ata
globallevel,evenBMSis lookingcarellyat marketswithhighgrowth
rates(weoperateinChina, Indiaand Brail),developingstrategiesand
deploying adeate resorces. In addition, I mst insist on the act
that notwithstanding the stagnation o or domestic market, Italy still
oers many opportnities!
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"CFOs HAVE A LARGE RANGE OFPRIORITIES. CERTAINLY, THEY MUSTBE ABLE TO MAINTAIN A CONSTANTFOCUS ON THE GROWTH DRIVERSOF THE BUSINESS."
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TESTIMONIALS
FABIO TOMASSINICHIEF FINANCIAL OFFICERNUOVO TRASPORTO VIAggIATORI
NTV IS THE LEADING ITALIAN PRIVATE OPERATOR ON THE ITALIAN HIGH-SPEED RAIL NETWORK. IT IS ALSO THE
FIRST PLAYER TO OPERATE IN A SECTOR OPEN TO COMPETITION. NTV IS A COMPANY BORN OUT OF THE DRIVE TO
INNOVATE, IN WHICH STRATEGIC PLANNING IS CONSIDERED TO BE A FUNDAMENTAL COMPANY ASSET.
WHAT CAN THE CFO DO NOWADAYS TO ENSURE BOTHBUSINESS CONTINUITY AND gROWTH?
A great deal o ncertainty srronds the traditional markets, which
are characterised by increased competition and the evoltion o
major macroeconomic actors, in trn increasingly infenced by new
internationalpoliticalbalancesandthesteadyriseoemergingmarkets.
Inthiscontext,CFOshavetojgglenmerospriorities.Certainly, they
mst be able to maintain a constant ocs on the growth drivers that
enablethebsinesstogenerateprotandthsensreitsexistence inthe
marketplace.Atthesametime,theCFOmstparticipatein ormlating
corporate strategy, by helping identiy bsiness opportnities. Lastly,
the CFO mst saegard the long-term continity o the bsiness bymonitoringtheconditionsinwhichitoperates,andmakingsreneither
internal nor external actors change those conditions in a manner
that threatens the companys existence. The crrent crisis has had a
signicant impact on the nmber o players in the market, and has
rewardedtheleadingcompaniesabletoensretheircontinity.These
bsinesses have also been able to capitalise on the opportnities or
growth linked to market consolidation. Another signicant eect o
thecrisiswastoheightenawarenessotheneedtocloselymonitorthe
evoltion o risk actors. This implies being able to develop alternative
scenarios that enable the rapid implementation o measres reired
to saegard the companys resorces.
WHAT ABOUT NTV?
Novo Trasporto Viaggiatori (NTV) is the leading private Italian
high-speed rail network. It has several distinctive eatres, as it is the
rst player to operate in a sector that is open to competition, in which
the liberalisation process is still nderway, and it is there thanks to the
strong commitmento itsshareholdersandbankswhohaveprovided
signicant amontso capital andcredit. Inthiscontext, the priorityo
the nance department was to dene an ecient nancial planning
processtoensretheavailabilityo theresorcesneededtodevelopthe
bsiness, and toptin placeamanagementcontrolmodelthat wold
enable ick corrective action to be taken.The choice o ocsing on
planningactivities impliestwomajorelements:awidespreadawareness
within the companyo the keyoperational driversothebsiness,and
the spport o top management to ensre the implementation o astrctred and objective nancial planning process.
WHAT CAN THE CFO DO TO PROTECT HIS BUSINESSFROM POSSIBLE FUTURE CRISES?
Financialresorcesareincreasinglyconsideredtobearealprodction
actor and the corresponding sppliers demand in addition to an
adeate compensation or the risk associated with the project or
company acertainstability andcontinityo thebsiness.Toensre
bsiness continity and proper remneration or risk, it is crcial
or the company to ocs on prsing long-term objectives while
maintaining scient fexibility to enable it to seie opportnities
or growth and to withstand volatility and trblence in the short to
medim term. The CFO can help top management dene a method
to measre vale creation in order to reconcile two reirements:rstly, to garantee the implementation o the right strategic plan in
order to achieve long-term goals; and secondly, to be able to react
to nexpected events.
HOW ARE YOU REACTINg TO THE NEW ECONOMICSITUATION, CHARACTERISED BY THE STAgNATION OFWESTERN MARKETS AND STRONg EMERgINg MARKETgROWTH?
NTV is crrently operating in a national market and, given the specic
natreoitsbsiness,itsspplymarketsarenot locatedintheemerging
markets sch as those collectively called the BRIC contries. I believe
thatthestagnationoEropeanmarketscanonlybeovercomethrogh
strctral measres at the Eu level.
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"SECURING THE MEANSTO SUPPORT OURDEVELOPMENT."
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TESTIMONIALS
HERV VARILLONFINANCE, IT AND ORGANISATIONAL MANAGERCRDIT AgRICOLE LEASINg AND FACTORINg
CRDIT AGRICOLE LEASING AND FACTORING IS STRENGTHENING ITS RISK MANAGEMENT AND MANAGEMENT CONTROL PROCESSES
TO SUPPORT BUSINESS GROWTH
IS A RETURN TO gROWTH AN ADEQUATE INDICATOROF THE COMPANY'S DURABILITY?
Inortwolinesobsiness,leasingandactoring,therecentperiodhas
not reslted in a slowdown in activities despite the diclt economic
climate and the increasedcost onance. Inact, periodso economic
stress are avorable or specialised nancing. To manage their short
termcash fow,companiessetechniesschas assigningacconts
receivable,likeactoring,andtrntoleasingtonancetheir investments.
For banks, these two prodcts provide greater secrity in periods o
increased risk (credit secred by actoring and ownership o leased
goods). As the French leader in these two lines o bsiness we have
taken advantage o this economic context and recorded 10% growth
in or exposre in 2009. So or s, the estion does not apply in
ite the same way.
WHAT IS YOUR MAIN CONCERN?
Given the above, or nmber one problem is not recovery ater the
crisis, bt rather contining to grow, and ths spporting companies
in a time o economic recovery. Or main challenge is ths obtaining
theliidityreiredtollorroleas anancierotherealeconomy
and o investment and working capital reirements o bsinesses
at a reasonable cost. Natrally, we benet rom the strength o the
Crdit Agricole grop in this area, bt the constraints are becoming
increasinglysevere,particlarlyinthecontexto BaselIII,bothinterms
o the availability and cost o this liidity (which has tripled between
the end o 2007 and the end o 2010). Or objective is ths to se orresorces as best we can. In other words, to optimise the protability
o or investments and o or prodcts.
WHAT IS YOUR STRATEgY FOR ACHIEVINg THIS?
Weareprioritisingdynamicmanagementandgreaterselectivityoor
assets and o or resorces, capital and liidity. We do this by way o
more detailed analysis o the protability and nancial perormance
o or lines o bsiness, by territory and by activity so throgh ever
more ecient management control. We are also strengthening or
orecasting and controlling capabilities to ensre or ability to secre
renancing over shorter or longer time horions. This will enable s to
improve or risk management and better prepare orselves to meet
the reirements o Basel III.
WHAT WILL THE RESULT OF THIS BE IN PRACTICE?
Inordertobemorevigilantandresponsive,wehavertherdeveloped
or processes and tools, and will contine to do so with the aim o
increasing prodctivity bt above all o improving the ality o or
service.IntermsoITsystems,thisoccrsmainlythroghmanagement
in real time, interaces with external data (databases, web clients, etc.)
and enhancements to or data warehoses in order to improve the
depth o the databases and the ality o or orecasting. In addition,
we have also reinorced or nancial commnication toward or
cstomers, in cooperation with similar eorts at grop level.
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4A TIME OFOPPORTUNITIES?
CFO BAROMETER 2011
ANALYSIS
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"BUSINESSES AREFACED WITH THEACCELERATION OFTIMELINES."
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ANALYSIS
MARC BENSOUSSANCHIEF OPERATING OFFICER, SOuTH AND WEST EuROPECSC
Thenewworldthatweseeunoldineachdaywasnotcausedbythe
crisis. The crisis only served to reveal and accelerate it. Businesses
are in the vanuard o the chanes which characterise this new
world. The frst shock sustained concerns the emerence o diitaltechnoloiesandliesciences, whichheraldproounddisruptions in
ourwaysoworkin,producinandinteractin.Thesecondshockis
related to the shit o the enine or lobal rowth rom the Atlantic
areatowardsthePacifcand theemerenceo Chinaasaneconomic
superpower.Inalmostallbusinesssectors,thecrisishasbeenusedby
businesses in a very relevant manner to accelerate transormations,
lower production costs and to re-examine a certain number o old
domas rom every anle.
CONTROLLINg THE TIME HORIZON
In 2009, ater the brtal downtrn in the global economy, bsinesses
madedrasticredctionsintheircosts,workingcapitalreirementsand
investments. Larger companies beneted rom avorable borrowing
conditions with low interest rates. Their priority was to manage their
cash fow and to srvive. In 2010, the perormance o large Eropean
grops improved overall. Their prots are close to historical levels and
demonstrateanabilitytorapidlyadapttoadeterioratedenvironment.
Forthemostpart, theircashreserveshavenotbeenreinvestedbecase
o lack o visibility as regards the economic ptrn. However, in the
backgrond behind the perormance o large bsinesses, many SMEs
havenotyetrebilttheirprotsandcontinetoexperiencediclties.
We know that short term considerations drive the decision making
o or companies, be they political, economic or nancial. For a long
time already, the operations o bsinesses have been impacted bya clt o the immediate, which never ceases to redce or thoght
horion. The last CFO Barometer srvey condcted by CSC among
Eropean nance managers shows that the crisis has contribted to
the acceleration o timelines in every bsiness sector. Bsiness cycles,
sch as those in R&D, prodction, marketing, sales, etc., have again
been shortened. This shiting timeline is also changing the way in
which managers make decisions. Bsinesses mst be able to react
at any time, to immediately revise the allocation o their resorces,
to constantly re-evalate risks and opportnities over a three-month
horion as well as those over a three-year time span. 72%oEropean
nancemanagersconsidermasteringthetimehoriontobeapriority.
The estion all managers ask themselves is: how best to manage the
short term while seiing opportnities in the medim and long term?
MANAgEMENT MODES ADAPTED TO DIFFERENTCYCLES
In order to steer their bsinesses, managers se a dal reerence asregards the time horion. Two management modes mst coexist,
adapted to the dierent cycles o the bsiness. For the short term, a
reactivemanagementmodeintendedtomonitorriskandensrereslts
areachieved.Forthemedimandlongterm,a predictivemanagement
modeto identitynewopportnitiesandsteerthebsinesswhile taking
operationaland nancialelementsintoaccont.Fromnowon, thegoal
o CFOs is to project themselves beyond the crisis and to be involved
inthechangesnderway.Bsinessesmstrespondto theacceleration
o cycles with more eective short-term management and deeper
involvement in long-term strategy. They mst improve the ality o
their steering and their ability to anticipate. Firstly, visibility is greatly
redced. In certain sectors, order books are only lled or two to three
months compared with six to twelve months in the past. Managers
ths need tools that enable them to make strategic decisions in a
very short time period. Secondly, the natre o risk and the reglatory
rameworkareconstantlychanging.Planningandorecastingareths
evenmorediclt.Yet,anapproachbasedon managementorecasting
is indispensable in order to give the bsiness a direction or the tre.
Tre growth cannot be achieved by way o excessive pblic debt bt
ratherbywayo innovation,investment,tradeandprot,whichremain
the only means o saegarding or rther development. The global
economy has otstanding growth drivers at its disposal. The entry
into the modern world o the middle classes in emerging markets; an
increase o 3 billion in global poplation in a ew decades; and a wave
o exceptional innovation that has only jst started to nrl. All mark
the beginnings o a cycle o strong growth or a long period. Oneo the challenges linked to the ptrn is the ability o bsinesses to
redenetheirdevelopmentplans. Inorder to maintaintheirpositionin
thenewcompetitivelandscape,they willneed toimplement anactive
investment policy, especially where there is growth. Their expansion
and sccess are vital or or society.
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CFO Barometer 2011
A TIME OFOPPORTUNITIES?
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CSC
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About CSC
The mission o CSC is to be a global leader in providing technology-enabled bsiness soltions and services.
With the broadest range o capabilities, CSC oers clients the soltions they need to manage complexity, ocs on core bsinesses,
collaborate with partners and clients and improve operations CSC makes a special point o nderstanding its clients and provides
experts with real-world experience to work with them. CSC is vendor independent, delivering soltions that best meet each clients
nie reirements.
For 50 years, clients in indstries and governments worldwide have trsted CSC with their bsiness process and inormation
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