Creating Value in a Regulated World
CFO Perspectives
1. Edition October 2006
396 Pages, Hardcover
Practical Approach Book
Short Description
This book breaks from the traditional valuation model to provide a coherent, integrated financial management philosophy based on shareholder value that incorporates both intangible and tangible assets. Moving beyond financial theory, it proposes a structured, practical model for calculating real value. Based on case studies and interviews, Creating Value in a Regulated World presents a valuation methodology that will lead to more transparency and shareholder value, as well as better corporate decision making based on real assets.
"There is life beyond regulation! CFOs have to encourage their organizations not only to work within regulatory frameworks, but also to think 'out-of-the-box', towards a positive and beneficial outcome."
--Santiago Fernandez-Valbuena, CFO, Telefonica
"The benefits of our SOX 404 project: a single control function and simplified, standardized business processes. The SOX 302 attestation process has clarified responsibility--accountability no longer rests with committees but with individuals."
--Iain Macdonald, Group Controller, BP
"Innovation is particularly important in an industry where less than 1% of ideas are ultimately successful. We constantly measure the performance of our R&D investment, rigorously applying value-based management techniques."
--Dr Kurt Bock, CFO, BASF
"Innovative Business Partnering is at the very heart of the future role of finance, providing the capabilities and processes for maximizing value creation. Our Finance Academy helps embed best practices across the company, promote new initiatives, and share learning."
--Paul Baumann, VP Finance Academy, Unilever
Two factors are reshaping the CFO's role today. Vigorous expansion: Companies have survived the dot-com bust and weathered major reputation scandals. They are enjoying strong profits, investing heavily in innovation, and looking outward to vibrant new markets like India and China. On the other hand, Regulatory burdens have increased exponentially, both internationally and in-country. The intensity of these two converging forces is unprecedented.
Each chapter of Creating Value in a Regulated World contains interviews with leading CFOs. The author provides an invaluable guide to how top companies are coping with this dilemma through case studies, action plans, and executive insight.
Riding the two-headed monster.
Getting "back in the saddle".
Coping with governance and reporting.
Creating value and growth.
Shaping the new agenda.
Straight from the CFO.
2. Reshaping Finance.
Centralization: where to draw the line?
The quest for standardization.
The new fi nancial management model.
Process optimization and reporting.
Streamlining corporate structure.
Lessons from private equity.
Straight from the CFO.
3. Making Change Happen.
Change, in a hurry.
Champions of change.
Transforming the public sector.
Pulling all change levers.
From CFO to COO.
Talent for the future.
Straight from the CFO.
4. Releasing Intangible Value.
Execution not valuation.
The goodwill dilemma.
Value centers.
Managing intellectual property.
Selecting valuation techniques.
Brands: the missing half of the balance sheet!
Treating customers as assets.
Value tiering.
Moving from back offi ce to the front.
Structural and human capital.
Straight from the CFO.
5. Driving Growth and Innovation.
Sustainable advantage.
Decision support takes center stage.
New ways of working.
In-market innovation.
From the outside, in.
Innovation centers: a "win-win".
Straight from the CFO.
6. Looking Forward, Not Backward.
Expect the unexpected.
Closing the strategy gap in pharmaceuticals.
Optimizing value through integration.
Rolling forecasts.
Monitoring reality.
Connecting the dots through systems.
Straight from the CFO.
7. Innovative Business Partnering.
Finance of the future.
Working in partnership.
Effective investment in brands.
Decision making under uncertainty.
Finance and innovation.
Dynamic performance management.
The finance academy.
Conclusion.
Straight from the CFO.
8. Promoting Global Connectivity.
Building global partnerships.
Integrating shared services by region.
Creating a worldwide center.
Seamless support: near-shore or off-shore?
Connectivity through technology.
Straight from the CFO.
9. Leveraging Risk and Regulation.
The misery of regulation.
Leveraging Sarbanes-Oxley.
Multiple listings, multiple standards.
Implementation overload.
The case for dual accounting.
Enterprise-wide risk management.
The role of Chief Risk Offi cer (CRO).
Straight from the CFO.
10. Becoming a Sustainable Corporation.
Case for corporate responsibility.
Investor perspective.
Ethics and value creation.
A multi-stakeholder approach.
Best practices: corporate reporting.
Triple bottom line.
Reality check.
Becoming the good corporation!
Straight from the CFO.
Index.
Cedric Read served as a senior partner and consultant for PricewaterhouseCoopers (PwC) for 25 years. In his position as Global Leader of PwC's Financial Management Consultancy, he wrote two books, CFO: Architect of the Corporation's Future and eCFO: Sustaining Value in the New Corporation.
Subsequently, with SAP AG, Cedric wrote the book The CFO as Business Integrator, and High Performance through Finance Business Process Outsourcing.
