Post on 15-Jul-2020
Recent challenges of global CFOsSandy Cockrell, Global leader and US national managing partner, CFO Program, Deloitte LLP
March 16, 2017
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• Background
• Business environment
• Business risks and strategies
• The role of the CFO
• Question and answer
Agenda
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Background
CFO Global Signals™ survey
• The surveys conducted are “pulse surveys” intended to provide CFOs with quarterly information regarding their CFO peers’ thinking across a variety of topics.
• Twenty-eight Deloitte CFO surveys covering more than 60 countries, are conducted on a quarterly, biannual or annual basis
CFO Transition LabTM
• Our CFO Transition Lab is a one-day experience based on our extensive research on CFO transitions
• Focuses on use of time, talent and relationships
• Helps CFOs as they create a tangible 180-day work plan
• Over 1,200 Labs completed across our global network
www.deloitte.com/thecfoprogram
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Business environment
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Question
Compared with three months ago, how do you feel about the financial prospects for your company, over the next 12 months?
• More optimistic, primarily due to external factors(e.g., economy, industry and market trends)
• More optimistic, primarily due to internal/company-specific factors (e.g., products/services, operations, financing, assets)
• No notable change
• Less optimistic, primarily due to internal/company-specific factors (e.g., products/services, operations, financing, assets)
• Less optimistic, primarily due to external factors(e.g., economy, industry and market trends)
• Other/Don’t know
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-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
Argentina
NorthAmerica
Americas
CFO sentiment: Net change in optimism (as of Q1 2017)
Source: Deloitte Touche Tohmatsu Limited’s Global CFO Program, Q4 2016 Global CFO Signals survey
Net % of CFOs who are more optimistic about the financial prospects of their company now than three months ago.
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-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
France
Germany
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
Turkey
United Kingdom
Average
Europe
CFO sentiment: Net change in optimism (as of Q4 2016)
Source: Deloitte Touche Tohmatsu Limited’s Global CFO Program, Q4 2016 Global CFO Signals survey
Net % of CFOs who are more optimistic about the financial prospects of their company now than three months ago.
Copyright © 2017 Deloitte Development LLC. All rights reserved. 8Recent challenges of global CFOs
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Australia
China
Japan
Asia Pacific
CFO sentiment: Net change in optimism (as of Q4 2016)
Source: Deloitte Touche Tohmatsu Limited’s Global CFO Program, Q4 2016 Global CFO Signals survey
Net % of CFOs who are more optimistic about the financial prospects of their company now than three months ago.
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North American CFOs’ perceptions of North America’s economy
Assessment of economies (as of Q1 2017)
Source: Deloitte LLP ‘s CFO Program, Q1 2017 North American CFO Signals survey
How do you regard the North American, European, and Chinese economies?
North America
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
Net % good now Net % better in year Economic optimism index
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North American CFOs’ perceptions of Europe’s economy
Assessment of economies (as of Q1 2017)
Source: Deloitte LLP ‘s CFO Program, Q1 2017 North American CFO Signals survey
How do you regard the North American, European, and Chinese economies?
Europe
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
Net % good now Net % better in year Economic optimism index
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North American CFOs’ perceptions of China’s economy
Source: Deloitte LLP ‘s CFO Program, Q1 2017 North American CFO Signals survey
How do you regard the North American, European, and Chinese economies?
China
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
Assessment of economies (as of Q1 2017)
Net % good now Net % better in year Economic optimism index
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Business risks and strategies
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CFOs’ assessments of their company’s prospects
External challenges and business risks
Source: Deloitte LLP ‘s CFO Program, Q1 2017 North American CFO Signals survey and European CFO Survey Q3 2016
Europe (Q3 2016)North America (Q1 2017)
Resources• Skills shortage• Immigration
Geopolitics/Policy/Trade• Effects of Brexit• US presidency
Economic environment• Weaker domestic and foreign demand• Financial markets instability• Deflation and currency depreciation
Resources• Skills shortages
Policy• Tax policy and reform• Regulation• Rising health care costs• Trade policy
Capital/currency markets• Currency shifts (Dollar, Mexican peso)• US equity markets are seen as overvalued• Corporate taxes• Rising and falling interest rates
Other than economic growth challenges, which of the
following external factors have presented obstacles to your
company’s growth over the past 12 months?
Which of the following factors are likely to pose a
significant risk to your business over the next 12
months?
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What is your company’s business focus for the next 12 months?
CFOs’ top strategies (North America as of Q1 2017; Europe as of Q3 2016)
Offensive vs Defensive strategies
Organic growth
• North America
• Switzerland / Russia
Inorganic vs Organic growth
Revenue growth
• North America
New business vs Current business
New offerings or products
• North America
• France / Germany / Italy / Russia / Spain / Sweden / UK
Inorganic growth
• Germany / Italy / Sweden / Turkey / UK
Cost control
• France / Germany / Italy / Spain Switzerland / Russia / Sweden / Turkey / UK
Existing offerings or products
• Not selected
Source: Deloitte LLP ‘s CFO Program, Q1 2017 North American CFO Signals survey and European CFO Survey Q3 2016
Existing geographies
• North America
New geographies
• Germany / Switzerland / Sweden / Turkey
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The role of the CFO
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The four faces of the CFO
Provide financial leadership in determining strategic business direction, M&A, financing , capital market and longer term strategies vital to the future performance of the company
Catalyze behaviors and change across the organization to execute strategic and financial objectives
Protect and preserve the critical assets of the organization and accurately report on financial position and operations to internal and external stakeholders
Balance capabilities, talent, costs and service levels to fulfill the finance organization’s core responsibilities efficiently
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Themes
CFO Transition Lab
Source: Deloitte LLP ‘s CFO Program, CFO Transition Lab, 2010-2016
Financial Planning & Analysis
Develop a function to deliver insights and partner more effectively with the business.
Operational efficiency
Create an efficient Finance operating model which fosters development and scalability to meet business objectives.
Corporate strategy
Establish a platform to become a contributor to corporate strategy.
Information technology
Develop a plan to rationalize IT systems to better support financial fact gathering for the business.
Communications and teaming
Create a comprehensive communication strategy to effectively convey key messages to various consistencies.
Talent
Execute a talent agenda which elevates the skills of Finance and develops people.
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Question and answer
Click here for more information about The CFO Program.
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