- NEW SUCCESS DRIVERS
Many CFOs now realize that business success is no longer driven by physical assets and financial capital but by intellectual assets and human capital. Whereas in the industrial age the primary constraints on growth were access to capital and distribution channels, the primary constraints in the information age are talented people and information systems. To succeed in today’s marketplace, organizations need to respond rapidly to new threats and opportunities. They must attract and keep talented people, produce innovative products and strategies, and continuously improve operational excellence. Furthermore, they must adapt their business models to the rapid pace of technological change and shifting market dynamics. Organizations also need to invest in developing advanced information systems to leverage data effectively. By doing so, they can make more informed decisions, enhance their strategic agility, and maintain a competitive edge. Attracting and retaining the right customers is equally crucial, as their preferences and expectations are evolving. Therefore, companies must be proactive in understanding and meeting these needs to sustain growth and profitability.
- Rethink Resource Allocation
The implications for performance management systems are significant. CFOs need to rethink their planning, resource allocation, and performance measurement systems to enable managers to focus on these new success drivers. Planning what to make and sell twelve to eighteen months in advance just doesn’t make any sense when markets are changing rapidly, and customers can switch loyalties at the click of a mouse. Managers need to know where they are right now, not seven days after the end of the month.