We align the financial management with the business model specific to the company. We support companies in the following areas in relation to the further development of financial management:
The board of directors and management need to consider regularly whether value has been created for the company and therefore for the shareholders and whether the financial management instruments are strictly focused on value creation. Sustainable financial value creation has to take place – based on first-class management know how corresponding high requirements on CEO and CFO – through the three value levers of growth, cost efficiency and capital efficiency. Our value focused management approach provides the basis for this.
Financial policy essentially includes the areas liquidity, capital structure, investment and risk policy. A holistic and company specific presentation of these areas within financial policy lays the basis for the financial management of the company.
Various challenges arise within the planning and budgeting processes. There is not infrequently a lack of clear and inherently logical targets, well structured processes, clearly defined responsibilities or consistent data. It would thus be advisable for many companies, to test existing budgetary processes regularly. In addition to the level of detail, consideration of different management levels and other qualitative aspects, it is also necessary to question traditional budgetary models. We recommend reducing the intensity of budgeting in favour of flexible planning and target setting processes by placing key performance indicators at the centre with decentralised planning that is updated continuously. In our experience, this significantly improves efficiency and the quality of planning and budgeting.
The information value of reporting has a significant impact on the quality of strategic and operational corporate management and represents an important cornerstone for companies’ internal and external communication. Experience shows that reporting is often not sufficiently focused on financial value drivers, is far too broad sweeping and consequently not sufficiently effective for corporate management. Effective reporting has primarily to represent the main value and cost drivers, the conformation of which must in any case be focused on the target audience.