CFO Role Expectations

𝗪𝗵𝘆 𝗧𝗕𝗠 𝗶𝘀 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝘂𝗻𝗱𝗲𝗿𝗿𝗮𝘁𝗲𝗱 𝗰𝗼𝘀𝘁 𝗰𝗼𝗻𝘁𝗿𝗼𝗹 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆? Everyone talks about FinOps when it comes to cloud cost control. But TBM? It’s the only framework that provides a structured way to align IT spending - both digital and non-digital - with business value. Today most IT cost-cutting efforts focus on cloud costs. But what about on-prem data centers, networking, end-user computing, software licensing, IT service management, and physical infrastructure? That’s where TBM shines. Unlike FinOps, which primarily focuses on cloud cost management, TBM covers all IT spend - digital and non-digital. That means: ✓ On-prem data centers (server costs, cooling, power, maintenance) ✓ SaaS and enterprise software (license costs, renewals, shadow IT) ✓ Network infrastructure (bandwidth costs, MPLS, SD-WAN optimizations) ✓ End-user computing (desktops, mobile devices, IT support costs) ✓ IT services & outsourcing (managed services, BPOs, contract negotiations) This is what makes TBM different - it breaks IT costs into layers: ✓ Cost Pools – The raw IT expenses (hardware, software, labor, facilities, etc.). ✓ IT Towers – Logical groupings like compute, storage, network, and applications. ✓ Products & Services – The services IT delivers (e.g., CRM platforms, cloud storage, collaboration tools). ✓ Business Units – The actual consumers of IT resources (sales, marketing, HR, etc.). This multi-layer mapping gives granular visibility into IT spending. This enables CIOs and CFOs optimize across hybrid IT environments. 𝗪𝗵𝘆 𝗜 𝗹𝗼𝘃𝗲 𝗧𝗕𝗠? Most organizations optimize reactively - shutting down workloads, cutting headcount, or delaying upgrades. TBM forces a proactive, data-driven approach by integrating: ✓ Cost transparency – Mapping IT costs to business units, services, and outcomes ✓ Showback/chargeback – Assigning costs directly to business teams for accountability ✓ Unit economics – Measuring IT efficiency per unit of business value (cost per transaction, cost per API call, etc.) ✓ Benchmarking – Comparing internal IT costs with industry standards to identify waste The result? ✓ IT isn’t just seen as a cost center - it becomes a strategic partner. ✓ Cost-cutting doesn’t compromise performance or innovation. ✓ Businesses make smarter investment decisions, balancing cost, quality, and value. Why TBM is still underappreciated? TBM doesn’t promise quick fixes. It requires a mature cost culture, strong leadership, and deep integration into financial planning. And the truth is - many companies don’t want to do the hard work. They’d rather cut budgets blindly than ask the harder question: "Is this IT spend actually driving business value?" The companies that do embrace TBM gain full control over IT costs - cloud, data center, software, infrastructure, services, everything. TBM is about spending right, not spending less. #TBM Technology Business Management (TBM) Council

𝗛𝗲𝗿𝗲 𝗮𝗿𝗲 𝗲𝗶𝗴𝗵𝘁 𝘀𝗶𝗺𝗽𝗹𝗲 𝘀𝘁𝗲𝗽𝘀 𝗳𝗼𝗿 𝗖𝗙𝗢𝘀 𝘁𝗼 𝗺𝗼𝗻𝗶𝘁𝗼𝗿 𝗮𝗻𝗱 𝗮𝗻𝗮𝗹𝘆𝘇𝗲 𝘁𝗵𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹𝘀... You need to know your numbers. No one else will. But how can you best monitor and analyze the financials? First an overview of the eight steps to improve... 1. Establish KPIs 2. Financial reporting 3. Variance analysis 4. Financial ratios 5. Forecasting 6. Financial planning 7. Technology and Analytics 8. Financial reviews ---------- 1️⃣ Establish KPIs Identify and track key financial metrics that are relevant to the organization. These may include revenue growth, profitability margins, cash flow, ROI, and working capital ratios. Establish benchmarks and targets to assess performance. 2️⃣ Financial reporting Implement a robust financial reporting system that provides timely and accurate financial information. Regularly create financial statements, including income, balance sheets, and cash flow statements. 3️⃣ Variance analysis Perform variance analysis to compare financial results against budgets, forecasts, and prior periods. Identify and analyze the reasons for significant variances. Use variance analysis to identify trends, opportunities, and potential risks. 4️⃣ Financial ratios Utilize financial ratios and KPIs to assess financial health and performance. These may include liquidity ratios, profitability ratios, efficiency ratios, and leverage ratios. Monitor changes in these ratios over time and benchmark them. 5️⃣ Forecasting Develop financial forecasting models and conduct scenario analysis to project future financial performance. Assess the impact of different scenarios on financials, like market fluctuations, pricing changes, and legal shifts. 6️⃣ Financial planning Collaborate with the executive team on the development of long-term financial plans, budgeting processes, and resource allocation. Provide financial insights and analysis for strategic initiatives, investment decisions, and growth strategies. 7️⃣ Technology and Analytics Use financial technologies and analytics tools to enhance financial monitoring and analysis. Implement data visualization tools to present financial information. Explore advanced analytics techniques, such as predictive modeling and data mining. 8️⃣ Financial reviews Schedule regular financial reviews with the executive team and relevant stakeholders. Present financial performance reports, discuss key findings and address any questions or concerns. Provide financial insights and highlight risks and opportunities. ---------- I have used these steps many times with success to create tangible results and business leaders are eager for you to step in and get it done. Are you currently following these eight steps? Anything you'd add or change? #finance #cfo #accountingandaccountants #analytics 🎧 Listen to our #FinanceMaster Podcast here: https://bit.ly/3NLSt73 🧑🎓 Learn how we can help your finance team here: https://bit.ly/3prsWXH

𝗔𝗿𝗲 𝘆𝗼𝘂 𝗽𝗿𝗼𝗮𝗰𝘁𝗶𝘃𝗲𝗹𝘆 𝗺𝗮𝗻𝗮𝗴𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗦𝗼𝘂𝗿𝗰𝗲-𝘁𝗼-𝗣𝗮𝘆 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝗰𝗼𝘀𝘁𝘀? If not, why let savings from smart Procurement slip away due to outdated technology or suboptimal use? S2P technology plays a central role in cost management, yet many companies lack a strategic approach to continuously assess and optimise their tech stack. Companies can adopt Bain & Co’s "𝗥𝗲𝗱𝘂𝗰𝗲, 𝗥𝗲𝗽𝗹𝗮𝗰𝗲, 𝗮𝗻𝗱 𝗥𝗲𝘁𝗵𝗶𝗻𝗸" model to continuously evaluate their technology infrastructure and costs, ensuring a more optimised and sustainable cost profile. Here is the model in action for Source to Pay technology cost optimisation: ▪️ 𝗥𝗲𝗱𝘂𝗰𝗲 to recover 10 to 20% of costs through short-term actions such as - adjusting licenses to match actual usage and adoption patterns - discontinuing features or functionalities that add little value - switching off modules where business capabilities have not yet caught up Avoid over-licensing by matching user access to actual needs, ensuring modules align with Procurement’s readiness. ▪️ 𝗥𝗲𝗽𝗹𝗮𝗰𝗲 to yield 20 to 30% of savings by - transitioning to cost-optimal, flexible solutions and getting out of lock-ins - switching subscription models when premium offerings are unnecessary - consolidating overlapping tools that offer similar features For example, merge multiple eSourcing tools into a primary platform and adopt a tender-based pricing for niche auction needs. This helps to adjust the cost profile of your Source to Pay technology with the actual needs. ▪️ 𝗥𝗲𝘁𝗵𝗶𝗻𝗸 to realise up to 40% cost optimisation by: - reimagining the architecture with a modular, composable design - automating and orchestrating processes and integrating new digital tools - reevaluate the mix of best-of-breed solutions vs integrated suites A new Procurement strategy requires a fresh look at the S2P tech stack to ensure it adapts and supports growth cost-effectively, while offering flexibility through additional digital levers like AI and automation. 𝗢𝗽𝘁𝗶𝗺𝗶𝘀𝗶𝗻𝗴 𝗦𝟮𝗣 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝗶𝘀 𝗮 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗼𝘂𝘀 𝗷𝗼𝘂𝗿𝗻𝗲𝘆, 𝗻𝗼𝘁 𝗮 𝗼𝗻𝗲-𝘁𝗶𝗺𝗲 𝗲𝗳𝗳𝗼𝗿𝘁, especially with contractual commitments, sunk costs, and change management challenges. Rather than following IT preferences and standards, it’s about keeping technology fresh and aligned with business needs as they evolve. ❓How do you manage your S2P technology to adapt to changing business needs while maintaining cost efficiency.

Beta of 1.0 with Alpha That Compounds Investment managers live and die by their numbers: Performance, Performance, Performance. Top performers over a short period may feel good at the time, but more critical is consistency, a strong, repeatable process where there is an identifiable pattern of out-performance. Is the manager max-limit long, risk on with respect to duration or concentrated bets? Are the results noise, is beta masquerading as alpha? Measuring Sharpe ratio and Information ratio helps evaluate the quality of alpha that the manager generates against the benchmark. Sharpe Ratio measures the portfolio's excess return over risk-free rate divided by return volatility. Information Ratio measures the portfolio's excess return over benchmark divided by tracking error volatility. Leading capital allocators typically need a minimum of 3-years track record is recommended because any shorter period typically does not capture necessary data points. Savvy institutional clients and consultants ideally require a 5-year track record, whereby daily performance results over a long period of time capture a cycle of risk-on, risk-off, dislocation and recovery. eVestment maintains a great database where asset managers, consultants, and allocators can measure performance, Sharpe ratio, and Information ratio for any specific investment mandate. Transparent peer benchmarking per strategy such as: 1) HY Bonds vs. ICE BofA US High Yield Index 2) EM Credit vs. J.P. Morgan EMBI Global Diversified 3) BSL vs. Morningstar LSTA US Leveraged Loan Index. Go to Nasdaq's eVestment to see how each manager stacks up against the competition. Credit selection, index arbitrage, relative value and active management are critical when managing money that is benchmarked to an index as durable, repeatable alpha is the bright light that stands out.

Treasury Management: Adapting to Global Financial Shifts In the ever-evolving landscape of global finance, treasury management in banks has become increasingly important. The ability to adapt to global financial shifts is not just advantageous, but essential for the sustainability and growth of financial institutions. This post explores the key aspects and strategies involved in adapting treasury management to global financial shifts. The primary function of treasury management is to oversee a bank's investments, manage its liquidity, and mitigate its financial risks. In the context of global financial shifts, this involves understanding and responding to changes in the international economic environment, including fluctuating interest rates, varying exchange rates, and evolving regulatory frameworks. One significant area of focus is foreign exchange risk management. With currency values constantly changing, effective strategies to hedge against these fluctuations are crucial. This might include using financial derivatives, such as forward contracts and swaps, to lock in exchange rates and reduce uncertainty. Interest rate volatility is another critical area. Changes in interest rates can significantly impact a bank's profitability. Treasury managers must therefore be adept at using interest rate derivatives, such as swaps and options, to manage exposure to interest rate movements. In addition to managing financial risks, adapting to global financial shifts requires a proactive approach to regulatory compliance. With regulations varying significantly across different jurisdictions and frequently changing, treasury managers must ensure that their bank’s operations remain compliant while optimising financial performance. Liquidity management also becomes more challenging in the context of global financial shifts. Banks must maintain enough liquidity to meet their short-term obligations, even in times of market stress. This requires careful forecasting and planning, ensuring that the bank has sufficient access to cash and credit. Technological advancements play a pivotal role in adapting to these shifts. The use of advanced analytics, machine learning, and blockchain technology can enhance the efficiency and effectiveness of treasury operations, providing better insights and enabling faster, more informed decision-making. In conclusion, adapting to global financial shifts in treasury management requires a multifaceted approach. It involves managing risks related to foreign exchange and interest rates, complying with international regulations, ensuring adequate liquidity, and leveraging technology to improve operational efficiency. Banks that can adeptly navigate these challenges will be well-positioned to thrive in the global financial landscape.

In a recent roundtable with fellow CXOs, a recurring theme emerged: the staggering costs associated with artificial intelligence (AI) implementation. While AI promises transformative benefits, many organizations find themselves grappling with unexpectedly high Total Cost of Ownership (TCO). Businesses are seeking innovative ways to optimize AI spending without compromising performance. Two pain points stood out in our discussion: module customization and production-readiness costs. AI isn't just about implementation; it's about sustainable integration. The real challenge lies in making AI cost-effective throughout its lifecycle. The real value of AI is not in the model, but in the data and infrastructure that supports it. As AI becomes increasingly essential for competitive advantage, how can businesses optimize costs to make it more accessible? Strategies for AI Cost Optimization 1.Efficient Customization - Leverage low-code/no-code platforms can reduce development time - Utilize pre-trained models and transfer learning to cut down on customization needs 2. Streamlined Production Deployment - Implement MLOps practices for faster time-to-market for AI projects - Adopt containerization and orchestration tools to improve resource utilization 3. Cloud Cost Management -Use spot instances and auto-scaling to reduce cloud costs for non-critical workloads. - Leverage reserved instances For predictable, long-term usage. These savings can reach good dollars compared to on-demand pricing. 4.Hardware Optimization - Implement edge computing to reduce data transfer costs - Invest in specialized AI chips that can offer better performance per watt compared to general-purpose processors. 5.Software Efficiency - Right LLMS for all queries rather than single big LLM is being tried by many - Apply model compression techniques such as Pruning and quantization that can reduce model size without significant accuracy loss. - Adopt efficient training algorithms Techniques like mixed precision training to speed up the process -By streamlining repetitive tasks, organizations can reallocate resources to more strategic initiatives 6.Data Optimization - Focus on data quality since it can reduce training iterations - Utilize synthetic data to supplement expensive real-world data, potentially cutting data acquisition costs. In conclusion, embracing AI-driven strategies for cost optimization is not just a trend; it is a necessity for organizations looking to thrive in today's competitive landscape. By leveraging AI, businesses can not only optimize their costs but also enhance their operational efficiency, paving the way for sustainable growth. What other AI cost optimization strategies have you found effective? Share your insights below! #MachineLearning #DataScience #CostEfficiency #Business #Technology #Innovation #ganitinc #AIOptimization #CostEfficiency #EnterpriseAI #TechInnovation #AITCO

How can you measure the outperformance of private market fund managers accurately and fairly? Not with peer group IRR quartiles! Instead, you can use a PRIVATE market equivalent. We have created infraMetrics & privateMetrics to provide access to hundreds of benchmarks across the infrastructure and private equity asset classes, enabling investors to create the most representative benchmark for the fund they invest in. Computing Direct Alpha and assessing the performance of each fund and manager fairly against a representative benchmark is straightforward and you can determine which manager is over/under-performing the market, or simply monitor the alpha-generating capability of a fund on an ongoing basis. In this example, while both funds appear to have outperformed public markets, only Fund 2 has been able to generate alpha against the representative private market benchmark. - Fund 1 has delivered an IRR of 17.64% but underperformed the market with an alpha of -0.61%. Fund allocation resulted in small positive alpha but was offset by underperforming investments. - Fund 2 has delivered an IRR of 21.37% and outperformed with an alpha of 4.81%. Primarily driven by superior investment selection by the manager. Get a full example in EXCEL here https://lnkd.in/gghDguZp #PE #infrastructure #benchmarking #privatemarkets

How APIs Can Transform Your Treasury Operations Have you ever wondered how to get your treasury systems to work better together? Enter APIs (Application Programming Interfaces)—a simple tool that allows different systems to connect and share data seamlessly. As the diagram shows they act as messengers connecting your system and a website or another system and allowing data and requests to be sent between them. Here’s a practical example: JP Morgan offers a solution where you can automatically download your balances and other key information into a spreadsheet using an API. Instead of logging into different systems, the data comes directly to you, saving time and reducing manual errors. With APIs, you can: • Pull real-time balances from your bank accounts. • Get market rates instantly to make informed decisions. • Automate routine tasks, so your team can focus on strategy. The best part? It works in the background, bringing all the data together without extra effort. You can use apis without needing your TMS to use them, for example through python but some of the best of breed make extensive use of APIs. Great examples would be Treasury4, Palm, Kyriba and on the banking side Necto and FinanceKey Ask your treasury vendors what they can do with APIs. Are they helping you combine and use your data effectively? It’s an exciting time to be in Treasury!

How to Reduce Costs Effectively by Optimizing Resources (5M) and Other Methods In today’s competitive business environment, cost optimization is critical for sustainability and growth. At Akij Resource, we’ve been exploring ways to enhance efficiency and reduce unnecessary expenditures without compromising on quality or productivity. Here are some actionable insights: 1. Optimize the 5Ms The 5Ms—Man, Machine, Material, Method, and Money—are key resources for any operation. Here’s how to streamline them: • Man (Human Resources): Invest in upskilling and cross-training employees to perform multiple roles. This reduces dependency on a larger workforce while keeping morale high. • Machine: Maintain and upgrade equipment to avoid downtime and costly repairs. Use predictive maintenance and energy-efficient tools to cut costs. • Material: Minimize wastage through better inventory management and adopting a “just-in-time” approach. Consider recycling and sourcing sustainable materials. • Method: Simplify processes by adopting lean practices. Eliminate redundancies and focus on automation where feasible. • Money: Audit expenses regularly to identify unnecessary costs. Renegotiate with vendors and suppliers for better terms. 2. Embrace Digital Transformation Adopting digital tools such as ERP systems, business process management (BPM) software, or AI-powered analytics can help identify inefficiencies and optimize resource utilization. 3. Outsource and Collaborate For non-core functions, outsourcing can provide cost advantages. Collaborating with partners can also open opportunities for shared resources and infrastructure. 4. Leverage Data Use analytics to track performance, predict trends, and identify bottlenecks. For example, by analyzing production cycles, you can optimize energy use and reduce costs during peak periods. 5. Adopt Green Practices Energy-efficient lighting, renewable energy sources, and waste reduction initiatives not only lower costs but also enhance brand reputation. 6. Incentivize Cost Awareness Encourage employees to identify areas for cost savings by rewarding innovative ideas. Create a culture where every team member is mindful of operational efficiency. Reducing costs isn’t about cutting corners—it’s about smart allocation and optimization of resources. By focusing on the 5Ms and leveraging technology and collaboration, businesses can ensure long-term sustainability and profitability. What cost optimization strategies have worked best for your organization? Let’s discuss in the comments!

Most people try to build wealth by earning more. Smart investors build wealth by keeping more. 𝗧𝗵𝗲 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝗰𝗲 𝗶𝘀 𝘁𝗮𝘅 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆. Without a plan, taxes quietly take a large share of your growth. With the right strategy, that same money keeps compounding. Here are 7 ways smart tax planning helps build long-term wealth: 1. Maximize tax-advantaged accounts ↳ Reduce taxable income while investments grow. ↳ Contribute yearly limits, use retirement accounts, and never ignore employer matching. 2. Use business expense deductions ↳ Legitimate expenses lower overall taxable income. ↳ Track mileage, travel, equipment, and keep clean records for documentation. 3. Invest in tax-efficient assets ↳ Lower taxes mean more money compounding. ↳ Favor long-term investing, tax-efficient funds, and holding assets longer. 4. Harvest tax losses strategically ↳ Losses can offset gains and reduce taxes owed. ↳ Sell underperforming assets carefully and reinvest with proper timing. 5. Structure income through businesses ↳ Business income opens the door to more deductions. ↳ Separate expenses, plan salary distributions, and use the right structure. 6. Plan charitable contributions wisely ↳ Giving can reduce taxable income legally. ↳ Donate appreciated assets, bundle donations, and document everything. 7. Time income and expenses carefully ↳ When you earn and spend affects how much tax you pay. ↳ Delay income, accelerate deductions, and review timing before deadlines. 8. Work with a tax professional ↳ Expert planning prevents expensive mistakes. ↳ Review strategies yearly and plan ahead before big decisions. The goal isn’t to avoid taxes. It’s to pay what’s required, and not more. Wealth isn’t only built by how much you make. It’s built by how much you keep and compound. Smart tax strategy turns income into lasting wealth. Follow me Marc Henn for more. We want to help you Retire Early, Supercharge Your Cash Flow, and Minimize Taxes. Marc Henn is a licensed Investment Adviser with Harvest Financial Advisors, a registered entity with the U. S. Securities and Exchange Commission.