Measuring performance against strategy For CEOs and CFOs, growth has its flipside: complexity. As large corporates Additionally, internal and external stakeholders are looking for more frequent, grow and expand, business complexity — and therefore the complexity of accurate information. CFOs must consider the needs of different audiences, measurement — continues to rise. from supervisory boards to the media, and tailor the information they Organizations have more intertwined operations spanning many present accordingly. jurisdictions. The pace of regulatory change is also increasing, and a range Performance data also needs to be mined for forward-looking information, so of stakeholders — from investors to supervisory boards — are requesting that the CEOs do not miss strategic opportunities because they are only given deeper and more nuanced information about the organization’s performance a “rear-view-mirror“ approach that focuses on past performance. Measuring against its strategy, as well as non-financial measures, such as performance performance in this context has become extremely challenging for CFOs. on sustainability. “ Long-range planning and forecasting is of particular “ Sustainability reporting is rapidly evolving from interest to CEOs instead of just looking backwards a voluntary, nice-to-have effort to a de-facto at actual results and performance; they require compulsory and increasingly audited non-financial information that enables strategic thinking about report. These non-financial measures include the future.” how organizations are respecting human rights throughout their value chains, their impacts Tony Klimas, Global Finance Performance Improvement Advisory and dependencies on natural capital and how Leader, EY their strategies align to the UN Sustainable Development Goals.” In parallel, an increasing number of organizations have begun to consider Brendan LeBlanc, Sustainable Business Solutions Leader, their performance against their overall purpose: the meaning that sits behind Ernst & Young LLP their activities, and inspires internal and external stakeholders. Defining this purpose, and measuring performance against it, can help to unite the organization; differentiate from competitors; increase internal commitment, engender loyalty with customers and employees and build reputation with investors. Partnering for performance Part 5: the CFO and the chief executive officer 17