FP&ASenior ExecutiveThe NeuGroup Insights Interview
October 6, 2022

FP&A’s Role in Making Finance an Indispensable Business Partner

General Mills CFO Kofi Bruce’s vision of FP&A and finance: NeuGroup’s Strategic Finance Lab podcast, episode 8. In a world with growing volatility, uncertainty, complexity and ambiguity, also known as VUCA, so grows the importance of finance organizations that can accurately see what’s coming down the pipeline, understand how that will impact the company and how to adjust. And the skills FP&A brings to the table are critical to succeeding in that mission. In the latest Strategic Finance Lab podcast episode,…
Risk ManagementSenior Executive
October 6, 2022

Internal Audit Debate: Keep Reporting to CFO or Switch to CEO?

An IA expert says reporting to the CFO may divert IA resources disproportionally to finance vs other areas. More than three-quarters of US publicly traded companies’ internal audit (IA) functions report administratively to the CFO, although a similar percentage of IA professionals see reporting to the CEO as ideal. Presenting to a meeting of NeuGroup for Internal Audit Executives, Richard Chambers, a former head of the Institute of Internal Auditors (IIA) and a longtime IA practitioner, noted that seeming disconnect as one of several…
FXSenior Executive
September 20, 2022

Answering the CFO’s Call

A soaring dollar is threatening earnings; get ready for more CFO questions. The dollar’s ascent is causing a lot of heartburn for CFOs and boards. A stronger greenback reduces the value of FX-denominated income. For many US companies, foreign income comprises a large chunk of total revenue; thus, the hit to earnings can be substantial. In recent NeuGroup peer group sessions, the topic of containing the impact of a stronger dollar on financial results has been prevalent and reached far…
FP&ASenior Executive
August 11, 2022

Business Partnering Must Be a Full-Time Job

To prepare for increasing demand for business decision-making support, FP&A needs to review its business partnering model. When the business landscape is foggy, FP&A shines. Facing a period of economic and market volatility, FP&A leaders are preparing to provide more hands-on support to the business: A recent survey of NeuGroup’s Mega-Cap and Large-Cap FP&A peer groups showed that 100% of members anticipate (or are already sensing) a rise in demand for help from business leaders. Operational leaders are going to ask a lot more…
Senior ExecutiveTreasury Management
June 30, 2022

How Treasury Steps into the Strategic Limelight

Rising rates and a looming recession provide treasury with an opportunity to elevate its profile and and become a leader in board-level conversations. Tough economic conditions have historically highlighted the critical role treasury plays as the champion of corporate liquidity. This happened during 2008-09 and will likely happen again if credit and cash flows begin to contract. This is not new territory for treasurers, many of whom have already evolved to serve new and broader constituents, becoming more strategic, consultative…
Senior ExecutiveTechnology
May 19, 2022

Stories and Foresight Built on Data: What a CFO Wants From Treasury

A seasoned CFO shares thoughts on automation and how treasury can elevate itself to become a strategic partner.The path of treasurers who are determined to walk the walk of becoming strategic business partners by devoting more time to value-adding activities and less to tactical tasks runs through automation that frees up bandwidth for intense data analysis. In making that point at a recent meeting of NeuGroup for Mid-Cap Treasurers sponsored by HighRadius, Jeff Martini, interim CFO of Bishop Lifting Products,…
FXSenior Executive
May 5, 2022

Sharpen the Focus: Fostering More Productive FX Meetings

Approaches to more productive meetings include highlighting world events, more detailed program updates and updating dashboards. After a recent quarterly risk meeting, a senior leader gave this advice to one FX risk manager to improve the productivity of future meetings: Highlight only new developments and events, come with any specific asks and leave anything else to pre-meeting reading materials. Up to this point, much of the two-hour meetings consisted of a comprehensive update on everything the FX team had done…
Senior ExecutiveTechnology
April 21, 2022

AI-Enabled Analytics Drives Faster, Better Decision-Making

Author Larry Maisel says advanced analytics fueled by AI helps finance teams explain why something happened, what may happen next and what action to take to prepare for it.NeuGroup managing director Nilly Essaides recently interviewed Larry Maisel, an analytics expert and president of DecisionVu, about his recently published book, AI-Enabled Analytics: A Roadmap for Becoming an Analytics Powerhouse. The book, co-authored with Robert J. Zwerling and Jesper H. Sorensen, focuses on how to leverage advanced analytics to drive unbiased and…
FXSenior Executive
March 24, 2022

Turn Down the Volume: Cutting Through ‘Noise’ in FX Hedging

NeuGroup members share their common sources of unexpected volatility in cash flow and balance sheet hedging programs.One goal of a foreign exchange hedging program, one FX risk manager said at a recent NeuGroup meeting, is to minimize the risk that senior executives will face questions during quarterly earnings calls about the impact of currency on results. But uncertainty sparked by global issues like the war in Ukraine, inflation and fallout from the pandemic means this isn’t always possible. Those issues…
Cash & Working CapitalSenior Executive
May 27, 2021

No Walk in the Park: Overcoming Resistance To Embrace a Cash Culture

One treasurer’s rocky quest to shift his company’s focus from P&L to cash.When one NeuGroup member saw an opportunity to elevate treasury’s role within the company while focusing its overall view of cash, he took it—but the journey was no walk in the park. He encountered some resistance from leadership and the FP&A team, but was able to work with them to reconcile two methods for cash flow forecasting and take a more active approach to cash management.The member, the treasurer at…