Notes on "THE CFO's NEW VALUE ROLE" (Peter Clark, Stephen Neill, Greg Jones, Juliana Rowe)

THE CFO's NEW VALUE ROLE

By Peter Clark, Stephen Neill, Greg Jones, Juliana Rowe

The Stage 1 Managing for Value company focuses on those value creation options that begin end within financial officer's own function.

Achieving a value-optimal mix of debt and equity in the company's ongoing capital structure can and does generate significant - albeit one-time - incremental shareholder value.

As followers in that industry narrow their MFV gap, the pacesetting value firm must uncover and capture new value sources.

The Stage 2 successor adds Growth, Permanent Expense Reform/Efficiency Improvement and Investor Perceptions Management to the scope of value creation opportunities.

The Five Key Value Levers define the full range of value opportunities available.

(Five Key Value Levers from presentation by Stephen Neil and Greg Jones to the Australian Institute of Company Directors in Melbourne on May 9, 2002)

At the Stage 2, the CFO leader actively seeks to move MFV forward - away from his domain alone, into those areas of the company where even greater value opportunities reside.

In stage 3, the CFO-led MFV firm must add additional depth to the new breadth already introduced at the second stage. The key word is "maximum". MFV becomes Managing for Maximum Value.