Innovative CFOs increasingly are focused on finance transformation strategies to enable their companies to succeed in the competitive global marketplace. Rather than emphasizing mundane transactional processing and account analysis tasks, value creation strategies ultimately revolutionize enterprise performance and influence corporate outlook.
Toyota Motor Sales U.S.A. (TMS), a subsidiary of Japan's Toyota Motor Corporation, is a leader in finance transformation. It has a unique approach combining the latest business process reengineering and enterprise software techniques with Japanese business methods based on the Kaizen system of continuous improvement and respect for the individual.
Learn how TMS group vice president and CFO Tracey Doi has helped manage Toyota's impressive growth and is spearheading efforts to ensure that the growth is profitable and sustainable. The firm's pilot transformation project within the Accounting department is called Driving for Higher Performance. The project involved upgrading to a full suite of Oracle PeopleSoft Enterprise Financial Management applications and is already generating excellent results.
Ask any CFO what's at the top of his or her agenda, and the likely answer will be value creation. According to the CFO Executive Board, a Washington DC-based research organization representing CFOs from the world's top 500 corporations, more than two-thirds of global CFOs are now engaged in finance transformation strategies to move their teams away from mundane tasks like account analysis and transactional processing, toward more value-creating activities that can influence corporate strategy and impact enterprise performance.
The most-successful strategies that CFOs have adopted to transform finance are focused on providing expertise and assurance at the corporate center in tax, treasury, accounting, and other compliance-related processes; embedding finance managers in lines of business to influence outcomes and help drive value creation; and moving toward a shared services or outsourced environment to drive costs out of finance and free up managers to focus on more value-creating activities. Value-driven CFOs have also moved to adopt a single instance of their financial applications, coupled with performance management applications to improve decision support and align finance to corporate strategy.
Transforming Finance at Toyota Motor Sales
Among those companies considered leaders in finance transformation, Toyota Motor Sales U.S.A. (TMS) stands out for its unique approach. The U.S. subsidiary of Japan's Toyota Motor Corporation is revolutionizing its finance operations by combining the latest enterprise software and business process reengineering techniques with decades-old Japanese business practices based on respect for the individual and the Kaizen system of continuous improvement. It's a powerful combination that is being emulated around the world, as companies compete to find ways to differentiate themselves on price, quality, and customer service.