With rapidly changing market conditions it has become more than ever critical to have full financial transparency. As a CEO to be able to run your operations efficiently and achieve added share value at the end of the day, means that you must have all financial data at your fingertips.
Not only is total financial transparency critical, it is actually much easier, quicker and cheaper to realize than one would think …
The CEO and executives should be able to see financial impacts resulting from operational change and key variances as they happen, and not just at quarter or year end. With this information a process can be put in place where corrective action is initiated immediately or costs and earnings guidances are re-forecast for board and market reporting. There is nothing worse for your share price than to announce missing an earnings or production guidance, the market certainly doesn’t like nasty surprises and will punish your share price in response.
In today’s market, it is critical organizations not only streamline the budget process but take it to the next level and embed an efficient and rigorous continuous forecasting process involving cost owners across the entire organization. This creates a very high level of immediate and accurate decision making information, your CEO will be able to keep his finger on the pulse of the organisation.
With cost responsibility and accountability pushed back to cost owners, sustainable cost reduction solutions can be implemented as operational change occurs, driving costs down and share price up!
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