Industries today are in a state of flux driven by volatile market forces. Although every company devises a strategy for creating long-term differentiation for goods and services, still various dynamics are emerging.
Across industries, market changes are affecting how Finance needs to operate. Finance must anticipate the implication of these various dynamics and forces evolving in the global economy. These various forces are now pushing the corporation to align its Finance with its Strategy. In effect, an optimal Target Operating Model is created as a result of aligning Corporate Finance and corporate priorities.
Strategy and Finance are strategic priorities that are essential to conquering market volatility in today’s global economy. We are now encountering volatile market forces that are affecting global trends. There is the rising affluence of middle classes in emerging markets, rising risk profiles in individual markets. Market consolidation is being pursued and there is now a dramatic shift in consumption patterns and the emergence of consumer power.
The changing market forces have pushed Finance to strategic directions. In the face of all these global trends, Finance is increasingly being streamlined and is leveraging provider’s technology, investment, and global scale. Finance is evolving from a purely transactional activity to strategic.
Finance organizations are rapidly realigning talent to emerging corporate priorities to improve business partnerships. When Finance simultaneously develops and strengthens new skills and systematically measures, dissects, and resolves operational issues, then true gains are realized.
Finance can strategically respond to changing operational requirements. But an operating model is required that supports the strategic alignment of both Strategy and Finance. This can be done with the application of the 5 key elements of Governance.
Communicating the strategy is often a neglected pillar of the overall plan. The strategy’s vision and pace must be conveyed to all members of the organization. When this is done, it keeps troops aligned thus enabling leadership to focus on other dimensions of the Target Operating Model.
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