Harvard Business Review

NOVEMBER 9, 2018

Take Jim, a front-runner CFO candidate for a leading medical device manufacturer on the verge of an IPO. This is easier said than done, especially as powerful corporate incentive systems often reward achievement of individual targets.

Career 15

Career CFO Sample Execution 15

Harvard Business Review

MARCH 23, 2015

Several years ago, when I was serving as the company’s CFO, one of founders came to me and said, “Joe, I would like to buy a new three-dimensional printer.” When the CFO analyzed it and said “No way,” the owner got another CFO. billion with incentives several years ago. ” Guess what?

Finance 8

Finance NPV CFO ROI 8

Strategy Driven

JANUARY 28, 2011

Sharon Drew explores what happens when he stumbles in the dark trying to bring his fellow managers, the internal tech team (which is responsible for the current site), and the CFO (to whom the tech team reports) on board. She then presents the same situation using Buying Facilitation ®. The result?

Servant Leader 50

Servant Leader Newsletter Resources CFO 50

Harvard Business Review

SEPTEMBER 22, 2011

More and more companies are tying incentive pay to customer metrics. The payoff from linking incentives to customer feedback can be significant. I recently ran into a company that based incentives on scores determined from as few as 11 respondents. Your CFO and finance team can take a leadership role here. Don't do that!

Incentives 10

Incentives Sample Customer Loyalty Metrics 10

Harvard Business Review

MARCH 19, 2012

I listened in this morning as Apple CEO Tim Cook and CFO Peter Oppenheimer explained what they're planning to do with Apple's $98 billion in cash (pay a $2.65 corporations strong incentive to move as much of their earnings as possible to low-tax jurisdictions such as Ireland. quarterly dividend and buy back a lot of shares).

GDP 13

GDP How To Offshoring Incentives 13

Harvard Business Review

JUNE 25, 2015

We believe that CEOs need a partner for innovation inside their companies, someone who will create and defend processes, incentives, and metrics that encourage radical ideas and find new areas for growth. You must defend the culture, processes, incentives, and metrics that are born in this space. Introduce innovation accounting.

Entrepreneur 8

Entrepreneur CTO Business Model CEO 8

Harvard Business Review

DECEMBER 28, 2016

At Wells Fargo, a culture and a warped incentive system created by top executives enabled malfeasance. That didn’t stop CEO John Stumpf from blaming employees who “didn’t get it right,” or CFO John Shrewsberry from blaming “under performers.”

Ethics 9

Ethics CFO Technology Learning-by-Doing 9

Harvard Business Review

NOVEMBER 9, 2012

Differing incentives is one of the biggest barriers to an effective relationship between marketing and IT. Gene Morphis, former CFO of CVS and David's Bridal suggests: "There is an interesting intersection between risk management and innovation that emerges in the CMO-CIO interface." Find Common Ground.

CIO 8

CIO Chief Information Officer Norton Technology 8

Harvard Business Review

AUGUST 30, 2012

Some point to politics in the C-Suite, especially to competition between the COO and CFO. If the COO launched a large, cross-functional improvement program, the CFO would underfund it. Just about everyone in the company agrees the culture is dysfunctional, with various layers to the problems. They blocked each other's progress.

Company 8

Company COO CFO Insurance 8

Harvard Business Review

JUNE 28, 2013

As one CFO told me, the phrase "IT Risk" contains two dirty words. It''s easy to think it''s an incentive problem. But this incentive answer is only partially correct, if at all. Every time my colleagues and I come to the end of the course, we ask people what they considered the most important thing they learned.

Agility 8

Agility How To Incentives CFO 8

Harvard Business Review

DECEMBER 19, 2013

This bias also explains why a CFO may be perceived as cheap by disposition or why a team might attribute its internal conflicts to incompatible personalities instead of resulting from organizational incentives to compete rather than collaborate with one another.

Human Capital 8

Human Capital Constraint Politics Incentives 8

Harvard Business Review

JULY 21, 2016

As one financial services CFO told us, “Our mental models were so rigid that even how we thought about data itself needed to be challenged. Hampered by silos, incentives, and legacy behavior, most companies never approach it.

CEO 8

CEO Competitive Advantage ROI CFO 8

Harvard Business Review

FEBRUARY 16, 2016

Betty’s draft budget is due to the CFO first thing tomorrow morning, so she sends Amit a meeting request to discuss what’s going on. Betty has asked Amit several times for revised numbers that she can include in her budget. Instead of delivering, however, he keeps coming back to her with more questions.

How To 8

How To Budgeting CFO Open-book 8

Harvard Business Review

JANUARY 14, 2015

Bigger payouts will either make it easier for these executives to leave — as in El-Erian’s case — or, for those in less senior roles, create incentives to “hang on” in a state of passive disaffection. Ten years later, he was the global CFO of his firm. More money won’t cut it.

CIO 8

CIO CFO Crisis Execution 8

Harvard Business Review

MAY 1, 2011

Incentives encourage faculty to conform to this behavior as administrators naturally prefer more tuition revenue to less. I credit that human capital bump for a wide-ranging and successful business career, one that included stints as CFO, GM, entrepreneur, and consultant.

Education 15

Education Human Capital Class CFO 15

Harvard Business Review

SEPTEMBER 9, 2014

We’ve spent an awful lot of money on technology, but I still see people working in the old way,” complained the CFO of a large hospitality company. Many retailers, for instance, have had to align their online and in-store sales incentives to avoid channel conflicts. Why does this happen?

Technology 8

Technology Metrics Budgeting CIO 8

Chart Your Course

SEPTEMBER 6, 2017

Why Your CEO and CFO Should Care About Employee Engagement TLNT, 2013. Keep On Engaging Incentive Magazine, December 2010. Three Ways to Actually Engage Your Employees HBR Blog Network, June 2014. Thirteen Signs of a Disengaged Employee (Infographic) Entrepreneur, June 2014. Want Economic Recovery?

Article 100

Article CFO Magazine Library 100

Harvard Business Review

SEPTEMBER 12, 2013

Since the cost of a bad hire is widely estimated to be at least one year’s pay, there are huge incentives for organizations to get hiring right. When used correctly, cognitive and personality tests can increase the chances that new employees will succeed.

Pre-Employment Screening 8

Pre-Employment Screening Human Resources How To CFO 8

Harvard Business Review

SEPTEMBER 12, 2013

Since the cost of a bad hire is widely estimated to be at least one year''s pay, there are huge incentives for organizations to get hiring right. When used correctly, cognitive and personality tests can increase the chances that new employees will succeed.

Pre-Employment Screening 8

Pre-Employment Screening Human Resources How To CFO 8

Harvard Business Review

OCTOBER 11, 2013

Densmor, Terranola’s CFO, saw those words on Twitter about one minute after Hughes had uttered them. As CFO, A.J. Beyond the intangibles of poor publicity and anxious employees, a sinking share price wreaked havoc with the company’s compensation structure, which relied on stock options as incentives.

Case Study 8

Case Study CFO Hedge PR 8

Harvard Business Review

JULY 14, 2017

The CHRO can be working on networking employees and locations; the CMO on networking customers and partners; the CFO on networking funding and payments; the CIO on software and data; and the COO on products and services. Then change what you measure to align incentives and track your progress.

Intellectual Capital 8

Intellectual Capital Strategy Supply Chain Business Model 8

Harvard Business Review

JANUARY 28, 2015

For any change to stick, the CMO and COO need to have joint accountability and create incentives that reward collaboration. This as approach helps both CMO and COO become invested in the successful implementation of the plan. Consider how Dutch energy company Essent is redesigning the customer experience.

COO 8

COO Planning Metrics Call Center 8

Harvard Business Review

JULY 21, 2016

Though that may sound like perverse logic, or perhaps a reaction to a poorly thought-out incentive system, research has found they’re not alone. One year, the CFO noticed that there was a miscalculation that resulted in a shortage of a few million euros.

How To 8

How To Ethics Supply Chain Learning-by-Doing 8

Harvard Business Review

AUGUST 31, 2015

A seasoned CFO with a sharp mind and an abrasive style, Arthur had lost his job over a disagreement with his company’s new CEO. To answer that question, I believe, we need to look beyond personal ambitions and corporate incentives and norms, and look at our relationships with work itself. I (Over) Work Therefore I Am.

Long-term 8

Long-term Loyalty Uncertainty Banking 8

Harvard Business Review

JULY 27, 2015

If you’re getting breached, there’s an incentive to talk about it as being an attack as opposed to a mistake. government isn’t safe from attack, and second, the hedge fund’s CFO was able to be fooled into giving away information over the phone.

Health Care 8

Health Care Hedge Banking Training 8

Harvard Business Review

APRIL 20, 2016

Incentives have a place, but they can’t single handedly drive long-term lifestyle change. Any CFO knows that businesses invest in many things to improve workplace environments without justifying these costs with an ROI study. Savings like these are not unrealistic for a 2,000-employee company. Employee buy-in is key.

ROI 8

ROI Health Care Company Competitive Advantage 8

Harvard Business Review

APRIL 22, 2011

Between the inner and outer doors of Circale Corporation's headquarters building, human resources VP Nils Ekdahl crossed paths with CFO Anita Fierst as he was leaving for lunch. "We The CFO was right: Milanese was indeed a perfectionist. But even the best-designed system can't force people to be honest without an incentive.

Case Study 12

Case Study P&L Performance Review Review 12