The CFO's game plan for tomorrow

Transcription

1 The CFO's game plan for tomorrow Please disable popup blocking software before viewing this webcast April 25, 2017

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4 Our Speakers Srikant Sastry - Moderator National Managing Principal Advisory Services Grant Thornton Bill Hickey Retired Chairman and CEO, and former CFO Sealed Air Corporation Rubin McDougal Former Chief Financial Officer CEVA Logistics Tom Pigott Vice President of Finance and CFO MGP Ingredients, Inc. 4

5 Agenda Grant Thornton's 2017 CFO Survey overview Discuss the CFO's role in: Driving business strategy Corporate growth priorities Technology investments Risk management 5

6 Learning Objectives Identify top business priorities for CFOs under President Trump s administrative agenda Identify top risks impacting CFOs today and how they are aligning their risk programs to their business strategy Evaluate the CFO s investment priorities in key areas, such as operational improvement, technology, M&A and more 6

7 2017 CFO Survey Overview Survey of over 400 CFOs Fielded mid-november 2016 mid-january 2017 Range of industries represented Mostly middle-market respondents Survey explored how today's CFOs are managing priorities in the areas of strategy, investment, technology and risk 7

8 2017 CFO Survey Top Findings Optimism is high among respondents in response to the new administration CFOs are spending increasingly more time driving business strategy M&A is an important growth strategy for middle-market companies, but CFOs face challenges in identifying targets and obtaining accurate valuations CFOs desire more value from technology investments CFOs leverage risk to inform business strategy, but analytics are not aligned to the most important risk areas 8

9 Strategy CFOs play a bigger role in strategy than ever before

10 Polling Question #1 What are your companies top three priorities of 2017? Select the top three answer choices that apply. A. Strategic planning B. Performance management C. Increasing cash flow D. Reducing costs E. Risk management F. Client relationship building G. IT H. M&A 10

11 Business Priorities vs. Finance Department Priorities What do you see as your business's top three priorities in 2017? Strategic planning 52% 40% Performance management 44% 38% Increasing cash flow 39% 45% Reducing costs 32% 41% Risk management 23% 25% Client relationship building 22% 5% Information technology 20% 26% Mergers and divestitures 18% 13% Regulatory compliance 15% 17% Budgeting and account reconciliations Increasing capital expenditure Reducing leverage Other 8% 6% 4% 12% 4% 5% 7% 29% Business as a whole* Finance department* 11 *Top rated, percent of total selections Select up to 3, n=404

12 Investment Investing in operational improvements far outweighs other investment areas for CFOs

13 Polling Question #2 Over the next 12 months, where will your business's priority investment strategy be focused? A. Operational improvement B. Sales and marketing C. Information technology D. Customer experience E. Human resources / culture F. Other G. We don't have an investment strategy 13

14 Top Investment Priorities Over the next 12 months, where will your business's primary investment strategy be focused? (N = 404, multi-select question) 14

15 Technology 50% of CFOs report they are dissatisfied with their technology ROI

16 Polling Question #3 What are your business's greatest technology challenges to support future growth? Select the top three answer choices that apply. A. Managing costs B. Maintenance of legacy systems C. Seamless business integration D. System complexity E. Lack of cohesive IT investment strategy F. Lack of appropriate skills G. Lack of an executive IT owner H. Lack of an appropriate data warehouse I. Other 16

17 Technology Challenges in Support of Future Growth What are your business's greatest technology challenges to support future growth? (multi-select among respondents, N = 404) 51% 41% 40% 38% 32% 30% 14% 12% 3% Managing costs Maintenance of legacy systems Seamless business integration System complexity Lack of cohesive IT investment strategy Lack of appropriate IT skills Lack of an executive IT owner Lack of an appropriate data warehouse Other 17

18 Risk CFOs should leverage analytics to better measure risk and opportunities

19 Polling Question #4 As it pertains to your business, what are the top three areas you see as the greatest need to manage risk? Select the top three answer choices that apply. A. Operation costs B. Workforce management C. Vetting new growth opportunities D. Competitive landscape E. Cyber risks F. Customer demand G. Industry regulations H. Market volatility I. Business disruption 19

20 Risk Management As it pertains to your business, in what areas do you see the greatest need to manage risk? (N = 404, multi-select question) 59% 59% 51% 49% 49% 41% 41% 27% 27% 24% 23% 21% 17% 12% 20

21 Questions?

22 Our Speakers Srikant Sastry - Moderator National Managing Principal Advisory Services Grant Thornton Bill Hickey Retired Chairman and CEO, and former CFO Sealed Air Corporation Rubin McDougal Former Chief Financial Officer CEVA Logistics Tom Pigott Vice President of Finance and CFO MGP Ingredients, Inc. 22

23 Disclaimer This Grant Thornton LLP presentation is not a comprehensive analysis of the subject matters covered and may include proposed guidance that is subject to change before it is issued in final form. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this presentation. The views and interpretations expressed in the presentation are those of the presenters and the presentation is not intended to provide accounting or other advice or guidance with respect to the matters covered. For additional information on matters covered in this presentation, contact your Grant Thornton, LLP adviser. 23

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