The Financial Controller and CFO's Toolkit

The Financial Controller and CFO's Toolkit
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Parmenter David. The Financial Controller and CFO's Toolkit

About the Author

Testimonials

Introduction

THE THIRD VERSION

HOW TO USE THE BOOK

THE PDF TOOLKIT

REPORTING HISTORY OR MAKING IT

Acknowledgments

Part I. Change – Why the Need and How to Lead

Chapter 1. Getting Your Finance Team Future Ready

A BURNING PLATFORM?

REPORTING HISTORY OR MAKING IT

LEAN MOVEMENT

IMPORTANCE OF ABANDONMENT

THE IMPORTANCE OF CHALLENGING THE STATUS QUO

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Chapter 2. Leading and Selling the Change

STEVE ZAFFRON AND DAVE LOGAN

HARRY MILLS

JOHN KOTTER

SELLING TO THE SENIOR MANAGEMENT TEAM

THE POWER OF THE FOCUS GROUP

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Part II. To Be Completed Before the Next Month-End

Chapter 3. Rapid Month-End Reporting: By Working Day Three or Less

RATING SCALE FOR MONTH-END REPORTING

BENEFITS OF QUICK MONTH-END REPORTING

IMPACT OF A QUICK MONTH-END ON THE FINANCE TEAM WORKLOAD

MAJOR STEPS YOU CAN DO BEFORE YOUR NEXT MONTH-END

MAJOR QUALITY ASSURANCE TASKS AFTER DAY 1

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Part III. Technologies to Adopt

Chapter 4. Future-Ready Technologies

BAN SPREADSHEETS FROM CORE FINANCE ROUTINES

SEVEN TECHNOLOGIES TO UNDERSTAND AND EVALUATE

PLANNING AND FORECASTING TOOLS

UPGRADE ACCOUNTS PAYABLE SYSTEMS

USING A REPORTING TOOL

TURBO YOUR G/L WITH A FRIENDLY FRONT END

CONSOLIDATION AND INTERCOMPANY SOFTWARE

COLLABORATIVE DISCLOSURE MANAGEMENT

PAPERLESS BOARD MEETING

MAXIMIZE THE USE OF THE EXISTING G/L

AVOIDING THE HARD SELL TO UPGRADE YOUR G/L

IMPLEMENTING A NEW SYSTEM

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Part IV. Progress You Need to Make within the Next Six Months

Chapter 5. Reduce Accounts Payable Volumes by 60 Percent

REMOVAL OF ALL CHARLES DICKENS PROCESSES

MOVE TO A PAPERLESS ACCOUNTS PAYABLE FUNCTION

GET YOUR ELECTRONIC ORDERING SYSTEM TO WORK

GET A PURCHASING CARD SYSTEM IMPLEMENTED AS SOON AS POSSIBLE

HOW THE PURCHASE CARD WORKS AT MONTH-END

THE BETTER PRACTICES WITH PURCHASE CARDS

CUT OFF ACCOUNTS PAYABLE ON THE LAST WORKING DAY

MOUNT THE LAST SIGNED CHECK ON THE CEO'S WALL

PERFORM FREQUENT DIRECT CREDIT PAYMENT RUNS

IMPROVE BUDGET HOLDERS' COOPERATION

SPEED UP BUDGET HOLDERS' CORRECTION OF OMISSIONS

A WELCOME LETTER TO ALL NEW BUDGET HOLDERS

INTRODUCE “SHAME AND NAME” LISTS

REWARD GOOD BUDGET HOLDER BEHAVIOR

HAVE A CLOSER RELATIONSHIP WITH YOUR MAIN SUPPLIERS

SELF-GENERATED INVOICES (BUYER-CREATED INVOICES)

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Chapter 6. Month-End Reporting Refinements

AVOID LATE TIMESHEETS

MINIMIZE BUDGET HOLDERS' MONTH-END REPORTING

AVOID THE REWRITING OF REPORTS

REPORTING BASED ON 4 OR 5 WEEKS

DELAY CHANGING YOUR ACCOUNTING SYSTEM

REMOVING SPREADSHEETS FROM THE MONTH-END ROUTINES

DAY ONE REPORTING AND VIRTUAL CLOSING

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Chapter 7. Lean Reporting – Informatively and Error Free

THE FOUNDATION STONES OF REPORTING

CONCISE, ONE-PAGE FORMATS

MORE EMPHASIS ON DAILY AND WEEKLY REPORTING

DESIGNING REPORTS AROUND CURRENT TECHNOLOGY

ERROR-FREE REPORTING

USING BEST-PRACTICE GRAPHICS

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Chapter 8. Lean Board Reporting

SELLING CHANGE TO THE BOARD

SCOPING OF THE INFORMATION REQUESTS

AVOIDING REWRITES OF BOARD REPORTS

PAPERLESS BOARD MEETING

INTRODUCE A CHANGE TO THE BOARD MEETING SCHEDULING

MISTAKES TO AVOID WITH THE FINANCE REPORT IN THE BOARD PAPERS

CONTINUALLY PURGING THE BOARD PAPERS

MOVING TO GOVERNANCE INFORMATION

A3 (FANFOLD) ONE-PAGE BOARD DASHBOARD

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Chapter 9. A Lean Annual Planning Process – Ten Working Days or Less!

LEADING AND SELLING THE CHANGE

FOUNDATION STONES OF A LEAN ANNUAL PLANNING PROCESS

EFFICIENT ANNUAL PLANNING PROCESSES

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Chapter 10. Lean and Smarter Work Methods

TECHNIQUES TO ADOPT FROM THE LEAN MOVEMENT

POST-IT REENGINEERING WORKSHOPS

ADOPTING SCRUM STAND-UP MEETINGS

ADOPT KANBAN BOARDS

TOYOTA'S 14 MANAGEMENT PRINCIPLES

GOLDEN RULES WITH EMAILS

THREE BOOKS TO READ

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Chapter 11. Effective Leadership, Growing and Retaining Talent

FOUNDATION STONES FOR LEADERSHIP THAT ATTRACTS

MAKING THE FINANCE TEAM A GREAT PLACE TO WORK

PUTTING THE FINANCE TEAM ON THE MAP

PERFORM AN IN-HOUSE CUSTOMER SATISFACTION SURVEY

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Chapter 12. Quick Annual Reporting: Within 15 Working Days Post Year-End

THE FIVE STAGES FOR A QUICK YEAR-END

SELL THE NEED FOR CHANGE

GET ORGANIZED

USE TECHNOLOGY TO SAVE TIME

MINIMIZE YEAR-END STRESS

CONTROL THE LAST MILE AND MAINTAINING QUALITY

SOME CASE STUDIES

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Chapter 13. Managing Your Accounts Receivable

OPERATIONAL IMPROVEMENTS TO ACCOUNTS RECEIVABLE

REPORTING ON YOUR ACCOUNTS RECEIVABLE

AVOIDING ACCOUNTS RECEIVABLE MONTH-END BOTTLENECKS

INCREASING THE USE OF DIRECT DEBITING CUSTOMERS' ACCOUNTS

DEBTORS' COLLECTION BEFORE YEAR-END

Chapter 14. Attracting and Recruiting Talent

EVER-PRESENT DANGER

THE NEED TO UP-SKILL

LAW OF ATTRACTION

THE RECRUITING MARATHON

DELIVER A GOOD INDUCTION

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Chapter 15. Lean Accounting

STREAMLINING THE CHART OF ACCOUNTS

AVOID MONTHLY COST APPORTIONMENT

VALUE-STREAM ACCOUNTING

ACTIVITY-BASED COSTING IS BROKEN

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Part V. How Finance Teams can Help their Organizations get Future Ready

Chapter 16. Implementing Quarterly Rolling Forecasting and Planning

SELLING AND LEADING THE CHANGE

ANNUAL PLANNING IS A QUESTIONABLE ACTIVITY

MYTHS AROUND ANNUAL PLANNING

QUARTERLY ROLLING FORECASTING AND PLANNING

THE FOUNDATION STONES OF A ROLLING FORECASTING AND PLANNING PROCESS

EFFICIENT FORECASTING AND PLANNING PROCESSES

IMPLEMENTING A QUARTERLY ROLLING FORECASTING AND PLANNING PROCESS

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Chapter 17. Finding Your Organization's Operational Critical Success Factors

BENEFITS OF UNDERSTANDING YOUR ORGANIZATION'S CRITICAL SUCCESS FACTORS

RELATIONSHIP AMONG CSFS, STRATEGY, AND KPIS

OPERATIONAL CRITICAL SUCCESS FACTORS VERSUS EXTERNAL OUTCOMES

FINDING YOUR ORGANIZATION'S CSFS

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Chapter 18. Getting Your KPIs to Work

KPI RESEARCH

THE MYTHS OF PERFORMANCE MEASURES

THE FOUR TYPES OF PERFORMANCE MEASURES

THE 10/80/10 RULE

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Chapter 19. Reporting Performance Measures

REPORTING THE KPIS TO MANAGEMENT AND STAFF

REPORTING OTHER PERFORMANCE MEASURES TO MANAGEMENT

REPORTING PROGRESS TO STAFF

REPORTING KEY RESULT INDICATORS TO THE BOARD

REPORTING TEAM PERFORMANCE MEASURES

HOW THE REPORTING OF PERFORMANCE MEASURES FITS TOGETHER

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Part VI. Areas where Costly Mistakes can be Made

Chapter 20. Performance Bonus Schemes

THE BILLION-DOLLAR GIVEAWAY

FOUNDATION STONES OF PERFORMANCE BONUS SCHEMES

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Chapter 21. Takeovers and Mergers

REASONS FOR A TAKEOVER OR MERGER

SOME BIG FAILURES

HOW TAKEOVERS OR MERGERS GO WRONG

ALTERNATIVES TO A ROTTEN TOM

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Chapter 22. The Hidden Costs of Reorganizations and Downsizing

RAMIFICATIONS AND ASSOCIATED COSTS

AN ADDICTION TO REORGANIZATIONS

TYPICAL REASONS FOR A REORGANIZATION

ALTERNATIVES TO A MAJOR REORGANIZATION

A CHECKLIST TO PUT YOU OFF A REORGANIZATION

HIDDEN COSTS OF DOWNSIZING

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Appendix A. Useful Letters and Memos

Appendix B. Rules for a Bulletproof Presentation

Appendix C. Satisfaction Survey for a Finance Team

FINANCE TEAM USER SATISFACTION QUESTIONNAIRE

Index

WILEY END USER LICENSE AGREEMENT

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David Parmenter is an international writer and speaker who is known for his engaging presentations and practical and informative books. His workshops have created substantial change in many attendees' organizations. David is a leading expert on lean finance team practices, rolling forecasting and planning, and the development of winning key performance indicators (KPIs). His work on KPIs is recognized internationally as a breakthrough in understanding how to make performance measures work. He has delivered interactive workshops in 31 countries over the last 20 years. David has worked for Ernst & Young, BP Oil Ltd., Arthur Andersen, and PricewaterhouseCoopers, and is a fellow of the Institute of Chartered Accountants in England and Wales. He is a regular writer for professional and business journals.

This book is a follow-on from Pareto's 80/20 Rule for Corporate Accountants and Winning CFOs – Implementing and Applying Better Practices. He is also the author of Key Performance Indicators: Developing, Implementing and Using Winning KPIs, Key Performance Indicators for Government and Non Profit Agencies: Implementing Winning KPIs, and The Leading-Edge Manager's Guide to Success (all from Wiley).

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The act of abandonment gives a tremendous sense of relief to the finance team, for it stops the past from haunting the future. It takes courage and conviction from the CFO. Knowing when to abandon and having the courage to do so are important leadership attributes.

I have included in the electronic media a book review of Elizabeth Haas Edersheim's The Definitive Drucker.9 Read the book for more on abandonment and his other great advice. I consider this book one of the top 10 management books I have read. I hope, like me, you will become a follower of the great Peter Drucker.

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