(CLP) Programs

Appleton Greene corporate training programs are all process-driven. They are used as vehicles to implement tangible business processes within clients’ organizations, together with training, support and facilitation during the use of these processes. Corporate training programs are therefore implemented over a sustainable period of time, that is to say, between 1 year (incorporating 12 monthly workshops), and 4 years (incorporating 48 monthly workshops). Your program information guide will specify how long each program takes to complete. Each monthly workshop takes 6 hours to implement and can be undertaken either on the client’s premises, an Appleton Greene serviced office, or online via the internet. This enables clients to implement each part of their business process, before moving onto the next stage of the program and enables employees to plan their study time around their current work commitments. The result is far greater program benefit, over a more sustainable period of time and a significantly improved return on investment.

Appleton Greene uses standard and bespoke corporate training programs as vessels to transfer business process improvement knowledge into the heart of our clients’ organizations. Each individual program focuses upon the implementation of a specific business process, which enables clients to easily quantify their return on investment. There are hundreds of established Appleton Greene corporate training products now available to clients within customer services, e-business, finance, globalization, human resources, information technology, legal, management, marketing and production. It does not matter whether a client’s employees are located within one office, or an unlimited number of international offices, we can still bring them together to learn and implement specific business processes collectively. Our approach to global localization enables us to provide clients with a truly international service with that all important personal touch. Appleton Greene corporate training programs can be provided virtually or locally and they are all unique in that they individually focus upon a specific business function. All (CLP) programs are implemented over a sustainable period of time, usually between 1-4 years, incorporating 12-48 monthly workshops and professional support is consistently provided during this time by qualified learning providers and where appropriate, by Accredited Consultants.

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Executive summary

Financial Leadership

The average tenure of a CFO has dropped from five to three years in the last five years. There are two significant reasons for the shorter tenure of CFOs. First, the tenure for CEOs has also shortened and frequently a new CEO will look to a CFO of their choosing. A second factor is the companies looking for a certain CFO type based on their business situation. When the situation changes, there is a desire to change the CFO to meet the new situation. If the strategy is growth, you need a growth strategy, if you need to contain cost, you need a cost cutting CFO.

The change in financial leadership is disruptive to the organization. A new CFO will need to develop an understanding of the organization and build relationships with key employees and stakeholders. The change also has consequences for the finance team. Will other key financial roles see changes? Will the team be asked to take on new responsibilities or see changes in their role? The new CFO will need to manage the changes and clearly communicate expectations if he/she is to be successful.

The challenge is to build a finance team that has the resiliency to adapt to the changing business environment. This starts with financial leaders that are capable of a full range of financial skills and leadership traits. A CFO is only as good as the team supporting him / her. A team possessing a full range of skills will allow the CFO to pivot and adapt as the needs of the business change.

The financial leadership also needs to recruit finance team members that have the competencies to be successful. The days of having accounts that just process transactions in accordance with policy is fading quickly. Employees in finance are expected to demonstrate to have a broader understanding of their impact on the company and how they fit into the larger organization. While the role of finance continues to evolve, we will continue to see technology automate low value tasks. Roles will shift from producing data to managing exceptions and interpreting data. This program has developed to help build effective and resilient financial leadership along with a strong supporting team.

Financial Leadership will introduce 4 essential competencies that all finance team members must have to be successful. The first competency is Catalyst, the ability to see what and how it needs to be done to meet the company’s goals. The second competency is Reporting, which is reporting on the activities of the organization while preserving the assets with control. The third competency is Balance, the ability to balance different activities and requirements to fulfill the needs of customers. The final competency is The Curve. The Curve is the ability to use the company objectives to navigate uncertainty.

Having a basic mastery of all 4 traits allows the members of the finance team to adapt to the changing requirements place on the finance team. These traits allow an employee to go beyond the standard transactional compliance that is too often associated with finance. Employees that have these competencies are capable of success in the changing world we live in. They have the ability to learn and adapt as the need arises.

We will take each competency and develop performance criteria for level in the organization. Based on the performance criteria we establish we will conduct an assessment of all existing employees. The assessment will provide a baseline of the team’s overall ability and resiliency. We will discuss how to integrate the four competencies into the company performance management system.

Next, we will want to utilize the data from the employee assessments to build an employee profile that can be used to aid in the recruitment and selection of new employees. Having example of employees that demonstrate the desired competencies will help to set a benchmark for the recruiting process and prove the need to have the critical competencies.

After the introduction of the 4 competencies, the next phase will be the leadership traits that need to be developed in the financial leadership team. There are 4 leadership traits that provide the tools for financial leaders to effectively lead. These traits will not only help them effectively lead the finance team through changing business needs and conditions, but will also allow the financial leadership of the organization to maintain the confidence of the CEO, their peers, and the Board.

The first leadership trait is Servant Leadership. We will define this as a leadership style that cares about the wellbeing of employees, communicates in an honest and transparent manner. Individuals with this trait seek to employer employees to grow with the company and express ideas, status in the organization is irrelevant. The second leadership trait is being a Connector. A connector has the ability to connect people, processes and events together to enable execution of the company strategy. Further, a connector can distill complexity and communicate simplicity. The third leadership trait is Challenger. An effective Challenger is a leader that is willing to start the tough conversations, anticipates objections, challenges the status quo focusing on the process and data. A Challenger has the ability to work cross functionally to achieve buy in on change (not consensus) and seeks methods to measure success. A Challenger will do this with well-grounded confidence, conviction, and composure. The last leadership trait is Business Advocate. A business advocate is a results driven leader that drives accountability by numerating the strategic goals of the company and works to drive accountability by measuring performance of the business strategies. A Business Advocate works cross functionally to ensure strategies vital to the organization’s long term success are being implemented.

The ability to pivot and use different elements of the traits and tactics discussed as this is essential to building resilient financial leadership. We will also look at each leadership trait and develop different levels of mastery so we can properly assess the current leadership and look for development opportunities. Strategies to use the 4 leadership traits in vetting internal employees for promotion and recruiting employees will also be discussed.

This program deals with a process that is focused on the employees and people of a company. In order to be successful at implementing change involving human processes there is a need for open communication, transparency and the ability to adjust to human elements. The program will discuss strategies to measure and monitor progress, communication strategies and tools.

The program will help to develop processes and tools to measure and monitor the progress of the implementation. The first set of tools that will be developed will be quantitative and qualitative tools to manage the process. Qualitative tools will allow the company to monitor progress in implementing the program and will allow for adjustments to be made as time progresses. The quantitative tools will be numerically driven KPIs to keep score of the progress. While these are processes and changes involving people, numerical driven data will be important to in communicating the progress. Numerical data will allow for employees and stakeholders to understand that there is a score, and that progress is being made. A numerical KPI will allow for the improvement and progress to be measured in a tangible manner and not subject to mere commentary that things are ‘moving in the right direction’.

Tools to aid in the communication will also be discussed and developed. One of the most important communication tools will be the matrix of expectations that will be developed in the first module. The matrix will aid in the communication to employees and even show how expectations change as your role progresses in company. Integrating the competencies and leadership traits into the existing corporate processes are also critical. The matrix and integration into company people management processes will provide a framework for self-development. For many employees, especially those that are earlier in their career, having a roadmap of skills that need to be developed to advance is important.

Once the tools are in place, we will discuss implementation strategy. The program will recommend a cascading implementation where the leadership of the finance team is evaluated and works with competencies and leadership traits. Successful implementation will require the financial leaders of the company to feel confident with the program and have the ability to implement it within their teams. If the company does not have the right leadership in place, the program will struggle to find success until the right leadership is in place.

The cascading implementation also allows for the refinement of the documents (mainly the matrix) and the integration into the existing processes. It also allows for the company to integrate into their recruiting process by using the desired traits as a basis for creating the right employee profile for screening candidates.

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Curriculum

Financial Leadership – Part 1- Year 1

1. Part 1 Month 1 Model Overview
2. Part 1 Month 2 Catalyst
3. Part 1 Month 3 Reporting
4. Part 1 Month 4 Balance
5. Part 1 Month 5 The Curve
6. Part 1 Month 6 Competency Assessment
7. Part 1 Month 7 Servant Leadership
8. Part 1 Month 8 Connector
9. Part 1 Month 9 Challenger
10. Part 1 Month 10 Business Advocate
11. Part 1 Month 11 Leadership Assessment
12. Part 1 Month 12 Implementation Strategies

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Program Objectives

The following list represents the Key Program Objectives (KPO) for the Appleton Greene Financial Leadership corporate training program.

Financial Leadership – Part 1- Year 1

1. Part 1 Month 1 Model Overview – Module 1 is designed for the leadership of the organization to prepare and plan for the implementation of the Financial Leadership Program. It should be attended by the Business Leader / Owner and the CFO / Financial Leader for the business. In larger organizations, the head of human resources and possibly a few of the key financial leaders that report into the CFO. The preparation part of the module will include developing a basic understanding of the model. Once there is an understanding of the basics of the model and review the current finance team. It will be important to calibrate expectations on where the current team is today. Depending on the dynamics and size of the organization, a survey can also be sent to stakeholders. We will discuss how to identify any possible integration or people issues that will require further discussion in the more detailed modules. The planning part of the module will look to build the matrix of competency for the four competencies and the four leadership traits. This will be used to set expectations. We will also discuss the details around who should attend which modules and make sure the key resources have sufficient bandwidth to participate. Finally, we will review the existing corporate processes. This will include a review of the performance management systems, corporate values and recruiting processes. We will be looking for possibly integration issues as the Financial Leadership program requires integration and support from these processes. We will look for any possible integration issues that we will be looking for the team to resolve in future modules.
2. Part 1 Month 2 Catalyst – Module 2 should be attended by the CFO / Financial leader and the key financial managers / leaders that are a part of his / her team. The participants in the module will be discussed as part Module 1 to make sure the correct team is in the room and the group dynamics are what is needed. The financial competencies in the Financial Leadership Model are relevant to all employees working in finance. It is important that all financial managers and supervisors have a firm grasp of the competency prior to implementation to the full team. The module has three primary goals. The first goal is to develop an understanding of the competency and its importance to the finance function. We will discuss the building blocks of Catalyst. There are three building blocks of Catalyst are Curiosity, Influence, and Initiative. We will discuss each of the building blocks and how they relate to the overall competency. The second goal was is to understand and review the competency requirements for different levels in the organization and finalize a matrix to communicate the competency through the finance team. The matrix will show the expectations regarding this competency for different roles in the company. We will validate the matrix for the Catalyst competency. Finally, we will discuss the process for using the matrix to assess employees in the competency. The goal will be for the participants to become comfortable recognizing the competency. This will give the participants to opportunity to prepare for the assessment in Module 6.
3. Part 1 Month 3 Reporting – Module 3 should be attended by the CFO / Financial leader and the key financial managers / leaders that are a part of his / her team. The participants in the module will be discussed as part Module 1 to make sure the correct team is in the room and the group dynamics are what is needed. The financial competencies in the Financial Leadership Model are relevant to all employees working in finance. It is important that all financial managers and supervisors have a firm grasp of the competency prior to implementation to the full team. The module has three primary goals. The first goal is to develop an understanding of the competency and its importance to the finance function. We will discuss the building blocks of Reporting. There are three building blocks of Reporting are Accuracy, Stewardship and Understanding the Audience. We will discuss each of the building blocks and how they relate to the overall competency. The second goal was is to understand and review the competency requirements for different levels in the organization and finalize a matrix to communicate the competency through the finance team. The matrix will show the expectations regarding this competency for different roles in the company. We will validate the matrix for the Reporting competency. Finally, we will discuss the process for using the matrix to assess employees in the competency. The goal will be for the participants to become comfortable recognizing the competency. This will give the participants to opportunity to prepare for the assessment in Module 6.
4. Part 1 Month 4 Balance – Module 4 should be attended by the CFO / Financial leader and the key financial managers / leaders that are a part of his / her team. The participants in the module will be discussed as part Module 1 to make sure the correct team is in the room and the group dynamics are what is needed. The financial competencies in the Financial Leadership Model are relevant to all employees working in finance. It is important that all financial managers and supervisors have a firm grasp of the competency prior to implementation to the full team. The module has three primary goals. The first goal is to develop an understanding of the competency and its importance to the finance function. We will discuss the building blocks of Balance. There are three building blocks of Balance are Flexibility, Courage and Awareness. We will discuss each of the building blocks and how they relate to the overall competency. The second goal was is to understand and review the competency requirements for different levels in the organization and finalize a matrix to communicate the competency through the finance team. The matrix will show the expectations regarding this competency for different roles in the company. We will validate the matrix for the Balance competency. Finally, we will discuss the process for using the matrix to assess employees in the competency. The goal will be for the participants to become comfortable recognizing the competency. This will give the participants to opportunity to prepare for the assessment in Module 6.
5. Part 1 Month 5 The Curve – Module 5 should be attended by the CFO / Financial leader and the key financial managers / leaders that are a part of his / her team. The participants in the module will be discussed as part Module 1 to make sure the correct team is in the room and the group dynamics are what is needed. The financial competencies in the Financial Leadership Model are relevant to all employees working in finance. It is important that all financial managers and supervisors have a firm grasp of the competency prior to implementation to the full team. The module has three primary goals. The first goal is to develop an understanding of the competency and its importance to the finance function. We will discuss the building blocks of The Curve. There are three building blocks of The Curve are Influence vs Ownership, Understanding Why, and Anticipation. We will discuss each of the building blocks and how they relate to the overall competency. The second goal was is to understand and review the competency requirements for different levels in the organization and finalize a matrix to communicate the competency through the finance team. The matrix will show the expectations regarding this competency for different roles in the company. We will validate the matrix for The Curve competency. Finally, we will discuss the process for using the matrix to assess employees in the competency. The goal will be for the participants to become comfortable recognizing the competency. This will give the participants to opportunity to prepare for the assessment in Module 6.
6. Part 1 Month 6 Competency Assessment – Module 6 should be attended by the CFO / Financial leader and the key financial managers / leaders that are a part of his / her team. It is also recommended that the CEO / Business Leader also attend this session. The participants in the module will be discussed as part Module 1 to make sure the correct team is in the room and the group dynamics are what is needed. Now that all of the financial competencies have been discussed, the participants will conduct an evaluation of the existing team and It is important that all financial managers and supervisors have a firm grasp of the competencies and action plan prior to implementation to the full team. The module has 4 goals for the team to accomplish. The first goal will be to assess the performance of each employee on each competency based on the performance criteria developed in each module. Once the initial assessment has been completed by each of the participants, the second goal will be calibration on the assessment. The purpose of the calibration exercise is to reach agreement on each employee’s performance. It is critical for the successful implementation that there is alignment among the financial managers in the business. Goal 3 will be to discuss and determine what actions need to be done after analysis of the data from the assessment and calibration. Finally, the team will create timeline for improvements to be made. The improvements will include addresses issues with the current staff and creating a plan to incorporate screening for the competencies in the recruitment for any new roles on the team.
7. Part 1 Month 7 Servant Leadership – Module 7 should be attended by the CFO / Financial leader and the CEO / Business Leader. Depending on the size of the organization other participants may be necessary. The participants in the module will be discussed as part Module 1 to make sure the correct team is in the room and the group dynamics are what is needed. While the financial competencies we have been discussing are relevant to all employees working in finance, the leadership traits only apply to those in leadership roles or aspiring to be in a leadership role. For current leaders, these traits are key to their long-term success and for aspiring leaders they are traits that need to be developed. The financial leadership traits follow a cycle of Understand, Evaluate, Act and Verify. Using this process is the primary goal of the module. The Understand phase is to understand the leadership trait and how the trait helps the financial leader add value to the business. The Evaluate phase is for the financial leader to evaluate their own performance and seek feedback from others regarding their use of trait in leadership situations. During the Act phase we will discuss ways to strengthen the leadership trait. Finally, we will discuss Verify. As with any change, it is critical to look for feedback. Sometimes there will be formal feedback and sometimes the feedback is informal or subtle. We will identify was to seek formal feedback and how to recognize the subtle, informal feedback.
8. Part 1 Month 8 Connector – Module 8 should be attended by the CFO / Financial leader and the CEO / Business Leader. Depending on the size of the organization other participants may be necessary. The participants in the module will be discussed as part Module 1 to make sure the correct team is in the room and the group dynamics are what is needed. While the financial competencies we have been discussing are relevant to all employees working in finance, the leadership traits only apply to those in leadership roles or aspiring to be in a leadership role. For current leaders, these traits are key to their long-term success and for aspiring leaders they are traits that need to be developed. The financial leadership traits follow a cycle of Understand, Evaluate, Act and Verify. Using this process is the primary goal of the module. The Understand phase is to understand the leadership trait and how the trait helps the financial leader add value to the business. The Evaluate phase is for the financial leader to evaluate their own performance and seek feedback from others regarding their use of trait in leadership situations. During the Act phase we will discuss ways to strengthen the leadership trait. Finally, we will discuss Verify. As with any change, it is critical to look for feedback. Sometimes there will be formal feedback and sometimes the feedback is informal or subtle. We will identify was to seek formal feedback and how to recognize the subtle, informal feedback.
9. Part 1 Month 9 Challenger – Module 9 should be attended by the CFO / Financial leader and the CEO / Business Leader. Depending on the size of the organization other participants may be necessary. The participants in the module will be discussed as part Module 1 to make sure the correct team is in the room and the group dynamics are what is needed. While the financial competencies we have been discussing are relevant to all employees working in finance, the leadership traits only apply to those in leadership roles or aspiring to be in a leadership role. For current leaders, these traits are key to their long-term success and for aspiring leaders they are traits that need to be developed. The financial leadership traits follow a cycle of Understand, Evaluate, Act and Verify. Using this process is the primary goal of the module. The Understand phase is to understand the leadership trait and how the trait helps the financial leader add value to the business. The Evaluate phase is for the financial leader to evaluate their own performance and seek feedback from others regarding their use of trait in leadership situations. During the Act phase we will discuss ways to strengthen the leadership trait. Finally, we will discuss Verify. As with any change, it is critical to look for feedback. Sometimes there will be formal feedback and sometimes the feedback is informal or subtle. We will identify was to seek formal feedback and how to recognize the subtle, informal feedback.
10. Part 1 Month 10 Business Advocate – Module 10 should be attended by the CFO / Financial leader and the CEO / Business Leader. Depending on the size of the organization other participants may be necessary. The participants in the module will be discussed as part Module 1 to make sure the correct team is in the room and the group dynamics are what is needed. While the financial competencies we have been discussing are relevant to all employees working in finance, the leadership traits only apply to those in leadership roles or aspiring to be in a leadership role. For current leaders, these traits are key to their long-term success and for aspiring leaders they are traits that need to be developed. The financial leadership traits follow a cycle of Understand, Evaluate, Act and Verify. Using this process is the primary goal of the module. The Understand phase is to understand the leadership trait and how the trait helps the financial leader add value to the business. The Evaluate phase is for the financial leader to evaluate their own performance and seek feedback from others regarding their use of trait in leadership situations. During the Act phase we will discuss ways to strengthen the leadership trait. Finally, we will discuss Verify. As with any change, it is critical to look for feedback. Sometimes there will be formal feedback and sometimes the feedback is informal or subtle. We will identify was to seek formal feedback and how to recognize the subtle, informal feedback.
11. Part 1 Month 11 Leadership Assessment – Module 11 should be attended by the CFO / Financial leader and the CEO / Business Leader. Depending on the size and dynamics of the organization, it may make sense for HR leader or others to participate. The participants in the module will be discussed as part Module 1 to make sure the correct team is in the room and the group dynamics are what is needed. Now that all of the financial leadership traits have been discussed, the participants will conduct an evaluation of the existing team. This module will be similar to module 6 in the 4 goals for the team to accomplish. The first goal will be to assess the performance of each financial leader on each trait based on the performance criteria developed in each module. Once the initial assessment has been completed by the CFO / Financial Leader, the second goal will be calibration on the assessment. Calibration will be accomplished by the CFO / Financial Leader leading a conversation of on their leadership assessment. This is a time for the CFO / Financial Leader to seek out formal feedback. Like the calibration in Module 6, the purpose of the calibration exercise is to reach agreement and a mutual understanding. Goal 3 will be for the CFO / Financial Leader to discuss and determine potential actions need to be done after analysis of the data from the assessment and calibration. Finally, the team will create timeline for improvements to be made. The improvements will include addresses issues with the current staff and creating a plan to incorporate screening for the competencies in the recruitment for any new roles on the team.
12. Part 1 Month 12 Implementation Strategies – Module 12 should be attended by the CFO / Financial Leader, the key financial leaders on the CFO’s team and the CEO / Business Leader. The participants in the module will be discussed as part Module 1 to make sure the correct team is in the room and the group dynamics are what is needed. This module’s primary goal is to make the team comfortable taking the theory from Modules 1 to 11 and feeling comfortable making the changes discussed in Module 6 and 11 and moving forward. This module will discuss tools, processes, and communication strategies to aid in the implementation. The primary tool that will be used will be the two matrices that were developed. The Competency Matrix will be used for all employees and the Leadership Trait Matrix will be used for employees in or aspiring for leadership roles. Another key strategy will be in the implementation of a monitoring process. The monitoring process will allow the company to regularly review and monitor the progress being made on the implementation of the model. A regular monitoring process will allow the company to review the effectiveness of the model being integrated in the performance management and recruiting processes. Once the processes and tools are in place, the implementation will be cascaded down starting with the financial leadership. The cascading down provides two key benefits. First, it will make sure you have the proper leadership in place to lead the changes. Second, it will allow the managers and leaders to become comfortable with the model prior to rolling it out to the rest of the team. Finally, we will discuss communication strategies. We will discuss the importance of starting with why the model needs to be implemented. If employees cannot understand the why aspect, it will be difficult to discuss how and what. It will be important to have a KPI or numerical score to describe how the team is performing. Everyone likes to know the score and it will be helpful for employees and other stakeholders to be able to point to numbers to show progress and opportunity for improvement.

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Methodology

Financial Leadership

Part 1 – The first part of the program will be to focus on the implementation of Competencies. The competencies are essential for all members of the finance team. The participants in the process should be the key financial leaders of the business. Modules 2 – 5 will discuss the each of the competencies. The module will discuss each competency, identifying the behavior in employees, discussion on implementation and strategies for employees that do not demonstrate the competencies. Module 6 will evaluate the employees and developing action plans for implementation. The changes that will be made in the organization will involve people and processes related to people. The change process and communication regarding the changes needs to be well thought through and well planned to ensure proper execution. The process of change will be gradual and iterative.

Part 2 – The second part of the program will be to discuss the implementation the financial leadership traits. During these sessions, the participants should be the key financial leaders of the business. Modules 7 through 10 will discuss the each of the leadership traits. The focus on each session will be for the participants to conduct a self-evaluation of their capability of the trait. The participants will also identify role models of the traits and methods to further develop the necessary capabilities. Module 11 will include an assessment of the team and the participants for this module should include the CEO and CFO. This assessment will become the basis for creating a strategic roadmap to improve the team and strengthen the financial leadership of the business.

Transformation of finance is a gradual and iterative process that requires diligence. The process will deal with human elements and changing things that will have an impact on the employees of the company. Implementation of the program starts with developing an understanding of the competencies and the leadership traits. Next, we will assess where the organization is today and develop a plan for implementation. It will time for the changes to take root in the organization and with each change the organization will become more confident and the model will become more integrated into the company.

Module 6 will discuss implementation methods and strategies for the key Financial Competencies. Part of the module will be to perform an assessment of the existing team and begin designing a roadmap for communication and execution of the changes that need to be implemented. The roadmap will be a key output of Module 6. The roadmap will provide a detailed plan for which actions need to be taken first, second and so on. The roadmap will enable the CFO needs to have a clear vision for what the changes will look like, how things will be communicated and the timeline.

Module 11 will deal with the implementation of the financial leadership traits. One of the key elements of the module will be a conversation between the CFO and CEO regarding the CEO’s perception of the CFO’s leadership capabilities using the leadership traits and opportunities for improvement. The CEO and CFO will also review other key financial leaders and make sure they are calibrated on the demonstrated leadership capabilities and opportunities for improvement. Depending on the dynamics and size of the organization other members of the company’s leadership may be involved in the calibration process of the financial leaders.

Transforming the finance team from transactional oriented compliance to a role of financial leadership that focuses on building value is an iterative process. This makes constant review of the goals and progress made critical to successful implementation. The review should also include an assessment how the new model is integrating into the business.

Module 12 will discuss tools to aid in the communication and review of the program. As with any iterative process it is critical to success that there is a process in place that creates accountability for setting goals and keeping track of progress towards the goals.

In Module 12 we will finalize qualitative and quantitative tools to measure and review the implementation. The qualitative tools will be important for measure the progress of individual employees and the team. Quantitative tools will be helpful for communication. Having a numerical KPI will allow the CFO or financial leader to communicate where the team is today and the opportunity for improvement. Being able to tell the score is essential.

We will also discuss communication tools to help in the implementation process. Having a numerical KPI, is one of those tools. Another tool will be the matrices that were developed to set expectations regarding the Competencies and Leadership Traits. The matrices will help with messaging and provide transparency. The implementation will deal with people and their performance, transparency and proper messaging are critical to success.

Finally, we will discuss implementation strategies. The program recommends a cascading implementation for two reasons. First, if the financial leadership is not onboard and shows the necessary traits the implementation message will be lost in translation. Transparency and the ability of the leaders to demonstrate the skills they are trying to implement. Second, a cascading implementation allows the financial leaders and managers to get comfortable with program and make any refinements as part of an ongoing review process.

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Industries

This service is primarily available to the following industry sectors:

Manufacturing

Manufacturing has gone through several waves of disruptive change since start of the industrial revolution and the steam engine. Products were no longer made one at a time by a craftsman. Machines simplified tasks and allowed for less skilled of labor to be used. Soon mass production methods and electrification caused a second wave of disruption. Mass production made products more accessible to the more people. This increased demand for products and provided strong incentives to innovate and improve before your competition. Each wave of disruption caused manufacturers to restructure their businesses and processes.
A third wave of disruption started by changing consumer demand. Consumers started demanding shorter development cycles, greater product variation and higher quality. Process Controls and TQM were introduced. JIT Inventory, Kanban and flexible manufacturing methods started being used. By the 1980s, the Toyota Production System was being implemented and taught. Motorola was using Six Sigma to remove defects and improve the quality of mobile devices. The Six Sigma process was eventually combined with Kaizen and Lean Six Sigma began to be used. By the 1990s Industrial giants Allied Signa and General Electric implemented six sigma and the practice started to spread. As companies became more confident in their ability to control and design their processes, they looked for opportunities to remove labor costs by shifting production to lower cost areas.

If the history of manufacturing has showed us anything it is the disruption will continue and only accelerate over time. The competitive forces have not changed, if you will not make a better product, someone else will.

Today manufacturing companies face significant competition. The competitive landscape in manufacturing is global, even if you do not think you compete on a global scale. Companies continue to look for best quality and prices, even if that means looking to import components or a finished product. Developing economies look to larger markets to export their products to further develop their own manufacturing economies.

The strong competition has led to significant gains in productivity. In the US, US industrial output as a % of total GDP has fallen from 24.3% in 1970 to 11.3% in 2018. This is not due to industrial output falling, it is due to the rise of other sectors of the economy and productivity gains in manufacturing. Gains in productivity have resulted in lower employment in this sector of the economy, it is still vital. In the US, every $1 spent in manufacturing results in $2.74 to the economy. This includes retail, transportation, and business services to manufacturers.

In addition to the competitive landscape, manufacturing companies operate in a complex world. Even small manufacturing companies look to export product and feel global cost pressure. It is not uncommon for a product to be designed in one country, manufactured in another with components coming from a dozen other countries. Many companies have implemented complex software to help manage to complexity of today’s manufacturing environment. All of this has made supply chains very complex. It has also created uncertainty as political or other events around the world can have an impact on goods produced by manufacturers.

Additional complexity has arisen from additional consumer preferences on environmental and social sustainability issues. A growing portion of consumers not only want a great product, but they want it produced in a manner that has minimal impact on the environment and is considered to be sustainable.

A new development in manufacturing has been a shift towards manufacturing in key markets. There are several factors that appear to be shaping this change in attitude. Governments are realizing they impact that manufacturing has on the service sector of the economy. A strong manufacturing economy provides significant opportunity other sectors of the economy. For manufacturers, manufacturing in key markets helps to reduce risk. This can allow for a better understanding of local requirements and allow for a local supply chain to be developed. Consumer preference also appear to be shifting. Consumers understand products made in their country provide jobs to fellow citizens.

The global pandemic of 2020 has also created an environment of uncertainty and manufacturing companies are responding by focusing on improving the resiliency of their operations. This includes further digital integration of the supply chain to improve visibility and transparency to the different partners, but also foster greater integration. Having the ability to shift production between different geographic areas can significantly reduce risk. By building a local supply chain you can source components or other key materials in different areas also reducing risk. This also creates more opportunities for small and mid-size manufacturers to be part of the supply chain.

There are several new forces that could create more disruption in manufacturing. Consumers are demanding greater customization of products. Emerging manufacturing methods like robotics, additive manufacturing and AI will have a significant change on how manufacturers operate in the future. Also new technology such as the Internet of Things (IoT) and block chain could change how manufacturers do business and the products they make.

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Logistics

If you want to understand the history of Logistics look at a map or globe and see the number of large cities, manufacturing centers located near major waterway. This is why most major cities and commerce centers were built by water. Until the railroads, the most economical and safe way to move large quantities of product was on water. The alternative was to use beast powered carts or wagons to pull product. While this was ideal for shorter hauls such as a local delivery, it was slow and expensive over longer distances.

In early 19th century the first commercial steam locomotives were moving product in the UK. Suddenly products and people could be moved over land and compete with ships on water. Railroads allowed for multiple stops and delivery to multiple destinations over land once the track was built. Railroads reduced costs and expanded the network of locations that could be obtained cost effectively.

In the early 20th century planes made delivery to remote places more possible. Highways and trucks also allow for further improvement in delivery times and the ability to distribute product over short and long distances. This improved transit times and deliver options. The increasing complexity also created the need for logistics providers to develop internal systems to manage the growing complexity.

Today, logistics is more than mere transportation. Logistics services include warehousing, order fulfillment, 3rd party logistics, and express delivery. Companies operate complex networks and software to make sure product is moved timely and efficiently. The also provide the warehousing and other services to facilitate the efficient movement of goods around the world.

The logistics industry is still fragmented but the industry is consolidating. In 2019 there was a 12% increase in deals closed over 2018 and the number of larger deals (over $1 billion) increased 38%. Most of the deals are to expand services and network and to leverage economies of scale. Many experts expect the consolidation to continue.

The rise of e-commerce activity has created a bigger focus on the ‘Last Mile’ or final delivery of packages and parcels to business and consumers. The last mile is a significant opportunity but harbors significant risks. While there are significant growth prospects with additional e-commerce, the last mile can be almost 28% of the cost of delivery and there are expectations of the consumer. Some experts have expected local delivery vehicles to increase over 36% by the year 2030. The opportunity will require new methods to deal with the increasing complexity of the last mile deliveries to improve efficiencies. Additionally, there is a customer facing component to the Last Mile delivery. The importance of satisfaction with the last mile delivery is critical to the e-commerce brand. Customers do not differentiate from the product and delivery service. Poor service is considered to be damaging to the brand and not the reliability of the carrier. The ability of customers to rate deliveries along with their product will change how a logistics provider will need to operate in the last mile.

Recently, Amazon has entered the logistics business by building their own fleet of vehicles and warehouse network. Amazon has shifted volume to their own logistics network and is pushing products faster to customers. This is a challenge to other logistics companies but also represents a significant opportunity. The logistics business will always be very competitive from a cost perspective, the growth from e-commerce will provide opportunities for growth in the volume and complexity of the products.

One of the biggest challenges for the logistics industry is the constant battle to hire drivers. A shortage of drivers has been an issue for the industry. Currently there is an estimated shortage of 60,000 drivers in the US. This number is expected to grow to 160,000 in the next 10 years. Experts cite many reasons from an aging workforce, to compensation, and working conditions. The industry is beginning to look at automation to try and resolve some of the issues. While the industry is experimenting with driverless vehicles and drone delivery these solutions are only in their infancy and will need further time to develop before they can be deployed in any kind of scale.

There are emerging technologies that are changing the industry. AI, Internet of Things (IoT) and Blockchain all offer opportunities to improve efficiency and service. These technologies along with the deployment of 5G data networks will have an impact on the industry. 5G will allow for better data to flow through the system allowing better optimization.

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Automotive

The automotive industry has undergone significant change since the days of Henry Ford and the Model T. Henry Ford’s mass production methods helped to lower the cost the Model T so it was something that was attainable to mass market. As the market for vehicles grew the manufacturing of automobiles grew into its own industry segment. The mass production techniques of Henry Ford also served to create barriers to entry due to the upfront capital investment required to build mass production facilities. This forced the smaller players out of the market. In 1908 there were 253 automotive manufacturers and by 1929 there were only 44. However, the ‘Big 3’ accounted for 80% of the cars produced. European car makers would follow suit in the 1930s.

After World War II, countries developed industrial capabilities, the manufacturing of a domestically designed car became a way to prove the capability of the local economy to design and manufacture on a complex scale. As more safety, performance and convenience features were added, automobiles became some of the most complex items to be manufactured, often becoming a symbol of national pride.

Consumer preferences have also changed dramatically since the days of Henry Ford and the old saying, “You can have a Model T in any color as long as it is black”. Automobiles quickly became an expression of individual preference and status, requiring changes to meet changing consumer demand. The required shorter development cycles and more customization of products.

Today the automotive industry is facing several challenges. The industry is under pressure from consumers and governments to offer more options that will reduce carbon emissions and reliance on fossil fuels. The traditional manufacturers in the industry have responded with improvements in fuel economy and the introduction of gas-electric hybrids. There are a growing number of newer companies, led by Tesla, that are designing and building electric vehicles. The traditional manufacturers are being pressured to offer electrified vehicles and not just hybrid model. Recently, Ford announced a major revamp of its line eliminated many gas vehicles and announcing plans to roll out several new electric vehicles.

Another challenge that manufacturers are facing are shifting regional preferences. This is being driven by the importance of the market in China. The days of selling the same car in the New York, Paris and Shanghai are fading. There is increased pressure to make accommodations and customizations for the local markets. Automobiles are also becoming more technology driven. Consumers are demanding enhanced safety and voice activated controls. Vehicles are become more autonomous with technology integrated into the vehicle. Technology to keep a driver in the appropriate lane or brake in case of emergency are becoming common in most vehicles. Wi-Fi and wireless charging of electronic devices are also becoming common.

The industry is also challenged by the proliferation of brands and manufacturers. The number of electric car companies are only adding to the number of firms competing in the space. Currently there is debate more of a gradual change and others feel the industry is facing significant disruption. What is clear is that consumers are holding on to automobiles longer and the costs to develop the new technology is significant. Today we are seeing many automotive companies form alliances or partnerships to share the cost of developing the new technology.

The outlook for the automotive industry is clouded with uncertainty. Global vehicles sales in 2005 were about sixty million and they peaked in 2018 around ninety-three million. The demand for autos was expected to fall prior to the pandemic of 2020. Currently forecasts for global auto sales are expected to by sixty to seventy million. The consensus is the recovery may take several years. This will create pressure to contain costs. At the same time consumers are demanding more innovation, requiring companies to spend more on development of new technology.

While we it will be interesting to see how this transformation unfolds, we are starting to see some strategies emerge. Ford has recently decided to eliminate most of its passenger vehicles from its line up to focus on profitable truck and cross over vehicles. It is also announced an ambitious plan for electric vehicles. General Motors and Nissan have announced plans to build electrical vehicles on the same assembly lines at current vehicles. Rivian, a new upstart has acquired a closed Mitsubishi plant in Illinois to start production, following a similar model by Tesla. A different model is being used by Fisker, another Electric vehicle upstart, by contracting with Magna International to build its vehicles.

The next 5 years will be bringing about change to the industry and the supply chain. It will be interesting to see which current trends become standard practice and how the industry will evolve.

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Consumer Goods

The business of selling goods directly to consumers has been around since people first started bartering and trading goods. Consumers would go to the local producer and seller of the goods and purchased what they needed. As consumers demands shifted, so did the tactics of the maker and sellers of goods. Producers of goods became more specialized focusing on the production processes and sellers of goods started to look at how to sell goods to a larger market.

As manufacturers of the consumer products grew in scale during the Industrial Revolution the process to bring goods to the market also changed. Companies that would export and import goods started so goods could be shipped into different countries. This increased the potential market for manufactures and increased the variety of products for consumers. Local retailers would continue to market and sell the products locally.

As the consumer goods moved into the 20th Century, manufacturers started moving products through different marketing channels to sell the products. Manufacturers focused on branding to communicate to the consumer and focused on managing their different sales channels. Manufacturers would rely on the branding messaging to entice customers to go look for their products at the appropriate retailer. Manufacturers continue to rely on retailers to manage the relationship with the end consumer.

Today the industry is facing significant changes. The rise of Amazon and e-commerce has led to extensive digitalization. Originally, e-commerce was to provide a platform for taking orders and providing product recommendations. This has grown to a fully digital process where information along the entire process is captured and analyzed. The insight into customer and supply chain behavior has resulted in a transparency that has created a more informed consumer.

The changes have been dramatic. Consumers can compare different products and look at reviews from other consumers, diluting the effectiveness of brand messaging. The struggle to own the customer experience is battle. Manufacturers used to rely on brand messaging to control the customer experience. This is now eroding as start up companies have taking products directly to the consumer. Take the example of Dollar Shave Club, which took 7% of the market in a short period of time. By taking the product directly to the consumer and owning that experience, they have built a strong following and inspired others to follow.

Private brands have been around for a long time. Retailers which have historically owned a lot of the customer experience have developed their own digital process with reward programs to further understand customer behavior. Access to this kind of customer data has allowed retails to create strong private label brands. In 2018, private label accounted for 17% of all consumer product sales at the retail level and private label is growing faster than branded products.

The digitalization and empowerment of the consumer will continue in the future. As consumers become more educated on choices and have platforms to share their opinions on products the fight over the customer experience will only intensify. Manufacturers are looking to implement more digital technology to optimize their supply chains and gain further insight into customer behavior. There will also be increased competition from direct to consumer products similar that will look to control the customer experience by marketing directly to the consumer. The rise of subscription services for consumable goods is on the rise and is another avenue for direct to consumer models. As everyone is trying to collect data to better understand their customers, privacy concerns are also rising.

Retailers will continue to leverage their understanding of their customer’s behavior and use private label products to improve their margins. Today Amazon has over 120 private label brands. The success of Costco’s Kirkland, Albertsons’ O Organics and Target’s Made by Design are examples of how retailers have implemented successful private label strategies. As the owner of the customer experience, retails have significant incentive to continue this trend.

Other factors will be the battle between Amazon and the traditional brick and mortar stores. Will ecommerce and quick delivery destroy traditional retail, or will ecommerce become another channel for retailers to sell through? Consumer privacy is also starting to be discussed. Right now, consumers have agreed to allow of their transactions to be tracked and monitored, however what happens if consumers decide that too much data is being collected?

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Food & Beverage

The modern food and beverage industry can be traced to the 19th century when two changes required the development of more packaged and preserved foods. In the early 19th Century France was struggling to keep soldiers and sailors fed. Developing a stable source became a priority. The early French methods used champagne bottles and actually predated the can opener. Canning also played a major role in keeping the armies fed in the Franco-Pruss