Taking Measure of Finance
turbotodd 100000388Y Visits (2565)
Well, I'm back in the Big Apple, and last evening had the opportunity to have dinner with the president and CFO of an important business partner to IBM.
I don't have the chance to meet with CFOs all that often, so it was an enlightening and yet terrifying conversation.
The conversation (inevitably?) turned to Enron and some of the other more prominent accounting scandals, and my associate explained how difficult it can be to effectively analyze and manage the finances of a corporation, particularly with large organizations having innumerable lines of business.
Hey, I can barely balance my checkbook, you don't have to tell me.
Of course, I've always been a word guy myself, but I did get an MBA and I did take finance, and so I absolutely appreciate the importance of numbers to business.
It's how we count, how we keep score, how we make (hopefully) informed and intelligent business decisions.
Apparently all the numbers are adding up, because just this morning I saw that we had announced a new financial transformation tool that was developed by IBM Research in partnership with our Global Business Services team.
The Finance Transformation Workbench tool uses advanced patented and service methodologies to help Chief Financial Officers and other senior finance executives to better identify underperforming finance functions, as well as to identify new opportunities to transform and improve the finance function.
Apparently, it's well needed.
According to our recent Global CFO Study, one-third of CFOs and senior finance executives stated they are ineffective at measuring and monitoring business performance.
The study of 1,200 CFOs also suggested that current financial management models lack the effectiveness and flexibility to accommodate the needs of global enterprises.
The Financial Transformation Workbench tool has been designed to address the CFO agenda and help improve effectiveness of the finance function.