The Detonate Imperative: Why you should blow up your best practices
In an economic environment where—to borrow the mutual-fund disclaimer—past performance is no guarantee of future success, finance leaders play a critical role: to realign their functions and work processes to keep pace with the demands of an increasingly disruptive marketplace.
That imperative is even more pressing given how technology is rapidly changing that marketplace and how finance operates within it. In fact, in the Q3 2018 CFO SignalsTM survey, CFOs reported that they expect a large relative increase over the next three years in the gig economy, shared service centres, and offshore finance operations, overlaid with the growing need to address evolving talent requirements.
Against this backdrop, finance executives who seek competitive advantage by implementing widely accepted “best practices,” or by following playbooks that distill conventional wisdom, may be destined for mediocrity. Moreover, those who continue to embrace “the way we’ve always done it” approach in an era abounding in uncertainty, may not only squander resources, but also destroy value.
In their new book, Detonate: Why—and How—Corporations Must Blow Up Best Practices (John Wiley & Sons, 2018), authors Geoff Tuff, principal, Deloitte Consulting LLP, and Steven Goldbach, chief strategy officer at Deloitte LLP, suggest a wholly new approach to capitalising on a continuously changing market.
Among other recommendations, they share four guiding principles for adopting a new mindset to break old habits. They also identify specific areas—in risk management, strategic planning, and elsewhere—that should be targeted for detonation.
In this May issue of CFO Insights, we will outline those principles, and offer guidance as to how finance can be better calibrated to an environment where risk is difficult to measure and manage.
For more information about Deloitte's CFO programme, click here.