The Private Equity Guide To CFO-Led Transformation
PE-Backed CFOs: The Architects of Enterprise Transformation
Business buzzwords have evolved through the decade. Ten years ago, it was “disruption”. Five years prior “innovation” was all the rage. Now, it’s “transformation”.
However, buzzwords are more than just marketing speak; they point to a shared marketplace perspective on how to best create value and improve EBITDA. Specific to the current perspective, organizations had been focused on transformational initiatives even prior to COVID. Far from disrupting that focus, the pandemic has us doubling down on it.
The report that follows outlines why and how CFOs must be the central architects of any PE-backed enterprise-wide transformation effort. In doing so, it examines the reasons that transformation is best led by the CFO, and the three hats CFOs must wear in order to be effective, transformational stewards and change agents.
It also identifies enterprise targets for transformation, offering CFOs a checklist of the potential value creation programs through which transformation can be achieved (and the sub-levers they may pull within each program to best achieve it). Finally, the report that follows provides CFOs with a transformation cheat-sheet via an illustrative example of potential/expected ROI from various function-specific initiatives within a sample organization.