Australia

Details

  • Service: Advisory, Management Consulting, Business Performance Services
  • Type: Business and industry issue
  • Date: 9/07/2012

CFO Insights

CFO Insights
This series provides a perspective into financial management, and assists the finance function to create measurable value for their business.

CFO Insights 4: From short-term insight to long-term success 

Conventional financial reporting has been likened to driving a car using the rear view mirror alone – you will get a good view of where you have just come from, what just happened there and if there is anyone creeping up from behind. But it doesn't necessarily help you get to where you want to be, or allow you to see bumps in the road ahead, or short cuts to your destination.

By changing the emphasis from reporting on historical backwards-looking data to identifying underlying and emerging trends – and potential financial and economic tipping points – allows ‘what if’ analysis to be performed. The result is that decision makers can be alerted to potential future risks and pitfalls to enable better decision making.

 

Key insights

  • Formulating business strategies – be realistic and recognise the limitation of forecasting techniques.
  • Understand the nature of timeliness.
  • Use good data to develop potential scenarios and sensitivity analyses to support business decision making.
 

Business Performance Services

KPMG's Business Performance Services can assist clients with business effectiveness, financial, people and change management, and strategic planning.