Financial Directors

Jeremy Hope explains in its book how to re-invent the functions of the financial director, to add value to its company. The author makes a question very direct: Add you value to your company or she calculates simply it? Jeremy Hope pleads to harness the paper of the financial directors, releasing them of many processes that as soon as they contribute value, to adopt functions of support to the main directorate and other areas of the company, extending its functions to something more than simply numbers. This way, it defends the work of a financial director almost comparing it to the one of the management, since it understands must have an analytical ability of high level and a global understanding of the business, besides scattering the financial knowledge by all the company. Also very it would be related to the area of the computer science systems, the responsible being to design the processes so that to eliminate those that are irrelevant and to automate the routinists, so that the time who are used to elaborate the information is smaller, and it is dedicated to analyze it and to interpret it more. This way, in addition, not only one better understanding of the business is obtained, since more time is dedicated to understand it, but the opportunities and threats can be analyzed the tendencies, be perceived the changes and be reacted quickly before. Also it proposes that the financial directors dare to being promotional of the change in the company. It proposes a formula of management of the change according to which: I x V x P > R where I = Dissatisfaction, V = Vision, P = first measures and R= Resistance to the change That is to say, that stops to overcome the resistance to the change, must have a dissatisfaction with respect to the present situation, a Vision than it is wanted to change and how, and to take First measures that allow to show some short term success that allows to overcome the possible reluctance or fears with respect to the change.

Jeremy Hope is in agreement with having a system of indicators, but not everything a framework of hundreds of indicators that often take more to the confusion, but a series of valuations on essential aspects. In this sense, it mentions to one of gurs of the quality systems, W. Edwards Deming, who indicated that the managers tend to dedicate more of 97% of the time to analyze indicators less than and 3% to which really matters, the invaluable thing. And he is that as indicates Hope, the managers usually concentrate in aspects that represent only 5% of the improvement opportunities (it soles and activities), instead of to concentrate in 95%, the improvement of the processes. In each chapter, the author illustrates his theories with multitude of examples and at the end of the same ready of verification proposes one in which it summarizes the lines of action. A very useful and recommendable book as much for financial directors as for managers is from company. Original author and source of the article.