Creating Value In A Regulated World

This book is about championing a move away from simply evaluating physical assets to understanding and evaluating the intangible value of an entity. It means moving beyond economic theory to reprioritise and change the organisation so that further value can be created via processes, systems, measures, skills, knowledge and strategy. "There is life beyond regulation! CFOs have to encourage their organizations not only to work within regulatory frameworks, but also to think 'out-of-the-box', towards a positive and beneficial outcome." —Santiago Fernandez-Valbuena, CFO, Telefonica "The benefits of our SOX 404 project: a single control function and simplified, standardized business processes. The SOX 302 attestation process has clarified responsibility—accountability no longer rests with committees but with individuals." —Iain Macdonald, Group Controller, BP "Innovation is particularly important in an industry where less than 1% of ideas are ultimately successful. We constantly measure the performance of our R&D investment, rigorously applying value-based management techniques." —Dr Kurt Bock, CFO, BASF "Innovative Business Partnering is at the very heart of the future role of finance, providing the capabilities and processes for maximizing value creation. Our Finance Academy helps embed best practices across the company, promote new initiatives, and share learning." —Paul Baumann, VP Finance Academy, Unilever Two factors are reshaping the CFO’s role today. Vigorous expansion: Companies have survived the dot-com bust and weathered major reputation scandals. They are enjoying strong profits, investing heavily in innovation, and looking outward to vibrant new markets like India and China. On the other hand, Regulatory burdens have increased exponentially, both internationally and in-country. The intensity of these two converging forces is unprecedented. Each chapter of Creating Value in a Regulated World contains interviews with leading CFOs. The author provides an invaluable guide to how top companies are coping with this dilemma through case studies, action plans, and executive insight. This book is about championing a move away from simply evaluating physical assets to understanding and evaluating the intangible value of an entity. It means moving beyond economic theory to reprioritise and change the organisation so that further value can be created via processes, systems, measures, skills, knowledge and strategy. It is also about mapping the intangible value chain. The book looks at value networks and, using real-life projects asks questions such as: What do company value networks look like How are they used to create value How can one ‘value’ the value chain What lessons can be learnt from companies with high value networks as opposed to companies with low value networks What is the impact on finance disciplines, processes, measures, systems and skills. These answers to these questions as provided by the case studies and interviews with CFOs from the companies involved will help to improve focus, improve shareholder value, improve transparency – both internally and externally – cut waste in the current decision support structure and prevent inadequate decision making and lost opportunity.