Less than 3% of companies have any innovation performance metrics and reporting systems in place and, those that do, are in the top 5% of top performers in their sectors. A coincidence maybe? Are you mad?
The Word cloud below illustrates some of the key considerations and serves as a memory jogger for senior management when they are not just giving lip service into their annual company report or sales blurb that they are being 'innovative'. Most really haven't a clue what that really means. Although they would all like to be like Apple. Mmmm!
Or, you can simply carry on as you are, and watch as your competitors harness their innovation and creative talent and burst out of the recession first, leaving you trailing in their wake. Like a dinosaur looking up at that big round thing in the sky wondering why it's getting bigger.
In many companies, being the CFO means being the gatekeeper of cash and in charge of controls. Innovation is typically not the CFOs mandate.
ReplyDeleteShould innovation be the CFOs mandate? Well, as much as the CFO is a leader in the company, the CFO takes his or her marching orders from the CEO and the Board.
Can the CFO be an innovation leader in a company? Certainly. However, in the competition for limited time and resources, innovation must be a company priority for the CFO to be able to make it a priority for him/her and the entire team.
Samuel Dergel
Senior Partner & Practice Leader, CFO Search
CFO2Grow
Web: www.cfo2grow.com
Twitter: @cfo2grow
Blog: www.thefinancialstatement.com
Absolutely @Samuel.
ReplyDeleteIf a CFO knows what is happening and can look at the impact and progress and present this with clarity to his peers then everybody benefits.
Having clear milestones and gateways based on clear definitions and performance makes life easier for everyone to understand the pragmatic approach and deliver an effective Innovation Management strategy.
innovation = change and uncertainty. Some people are more adept at handling this than others. Sure the CFO may act as a gate keeper and for sure Snr Mgmt have more visibility and pulling power, but I am the firm believer that its the responsibility of everyone to make a difference. This post reminded me of a quote:
ReplyDelete"The only sustainable advantage is the ability to learn faster than the competition" (Arie de Geus).
regards David
Hiya barry, the stas u mention, have a got a source for that coz i wold love to use it in a presentation im doing?
ReplyDeleteCFOs should be Innovating in a number of ways, one make financial info more consumable by their end users (ie make it visual), adopt XBRL which slashes cost, cycle times and errors: develop different processes for funding innovation based on low cost rapid prototyping and iterative development or use tools like Alex Van Putten's Opportunity Engineering. Clay Christensen is about to release some new stuff on the topic of funding innovation. (I am a driver of Innovation at Deloitte Australia and our annual ROI in in the 100's of % my background is a Chartered Accountant turned web guy)
ReplyDelete