ACCA and KPMG Study establishes that business Chiefs Still follow their Hearts and not Heads
The knowledge based economy requires that data is centrally optimized in order to assist organizations in making better decisions. In a new performance study report carried out by ACCA and KPMG, it was established that close to 40 % of finance professionals consider that decisions are primarily based on gut feelings.
The Worldwide report which accommodated views of 1100 accountants from nearly 50 countries across the globe established that many decisions are based on the instinct of the organization’s CEO and not the insight based on information. While making comments with regard to the findings, Jamie Lyon who is the ACCA corporate sector head said that the benefits of using data sources concretely and especially the external ones are diverse. Nonetheless, gaining buy in from the business top is useful in unlocking the true value. In case management does not trust the data whose basis is performance insight, it is harder for other businesses to establish if this is a crucial part in the process of decision making.
56 % of the respondents said that the team in finance is principally perceived as data gatekeepers or at its best, providers of basic financial analysis. The team requires stepping out from behind, guiding the board actively and working hand in hand to drive the business strategy. In the sector of consumer goods, this is already happening. The finance team work together with leaders and the wide business in order to drive improved performances.
Nevertheless, the reputation overhaul may not be attained while the finance teams are tied up in transactional activities like traditional end month analysis or data extraction. Often, this kind of activity is not valued by the business and may be achieved by technological reporting, freeing up finance professionals in joining colleagues at a client meeting and assisting in setting the agenda.
With regard to performance reporting, more than 71 % of these respondents are of the opinion that their organization applies a more common set of KPIs across the business. There may be consistent KPIs in organizations even though they could pose a danger of a misleading picture if not correctly focused.