More and more organizations are fleshing out their ambition for 2030. The vision is in place, the direction has been determined, and now it is up to the CFO to translate this ambition into concrete and achievable objectives. A crucial task, because as a CFO you know how complex it is to really connect strategy, performance and decision-making. That starts with answering three fundamental questions:
- To what extent have the strategic objectives from the previous plan been achieved?
- How did the organization perform relative to the market?
- What products and services actually contribute to the new strategy
The answers to these will help make the 2030 goals realistic, substantiated and achievable.
1. Reflection: what have we learned from Ambition 2025?
Looking ahead begins with looking back. This reflection is essential, not to judge, but to learn, adjust and focus the new strategy.
Were the objectives from the previous strategic plan achieved? Where were the successes, where did things stall? Which assumptions proved correct, and which did not?
2. Performance in perspective: how are we doing relative to the market?
Internal insights are valuable, but place them in relation to the market and market trends. Had revenue growth been the same as market growth or did you do much better?
How does your organization relate to competitors, customers and suppliers? What trends, dependencies and risks are emerging?
3. Portfolio & priorities: what deserves its place in your strategy?
Not all products, customers or markets contribute equally to your strategy. It requires sharp choices.
A combination of portfolio analysis and margin insights at the customer and product level helps make informed decisions:
Where can you invest? What can you phase out? And what should you reconsider?
Asking these questions is not difficult; it is more challenging to get unambiguous answers.
Lots of data, little consistency
The availability of data is rarely the problem. How to ensure data consistency. Sales reports growth, finance sees margin pressure, operations points to rising costs. Everyone has data, but each has their own story.
As a CFO, this means you spend a lot of time on reconciliation and alignment, when what you need are clear strategic objectives.
From insight to execution
Knowing what needs to be done is one thing. Actually getting it done is something else. How do you say goodbye to a product that represents 15% of your turnover, but hardly contributes to your profit? How do you say 'no' to a customer who has been loyal for ten years, but structurally loss-making.
Successful CFOs don't get stuck in analysis. They build support and ensure that the right considerations are made based on internal and external factors. They put numbers in context and ensure that the choices to be made are well founded.
Periodic test
Actually, this calls for an annual strategic check-up and not just as a basis for a long-term plan. Good insights with current data, what-if scenarios as part of the integrated management information makes it possible for the management to switch faster and to make well-founded decisions.
We support CFOs in this role with portfolio analysis, market benchmarks and integrated steering models that ensure one version of the truth.
Want to know more about our approach?
Schedule an exploratory meeting with our expert Alwin Dooijeweerd.
