Date Added: May 2009
The typical CFO presides over a performance management system involving plans, targets, and resources that are negotiated, annual, and fixed. Such systems were designed for stable trading environments in which manufacturing firms could invest and plan with confidence. The steady, continuous change of the industrial age is giving way to the unpredictable, discontinuous change of the information age. The future outlook is increasingly unpredictable, employees are more the demanding, the pace of innovation is quickening, prices are falling, customers now rule suppliers, and shareholder loyalty can no longer be taken for granted.