CFO's Financial Management Base: Concentrating Superior Resources

With the acceleration of global integration, the competition of state-owned enterprises will increasingly shift from domestic to overseas.

If we want to have certain competitiveness in the international market, the internal management level of state-owned enterprises must be further improved.

As an important part of enterprise internal management, the choice of financial management mode is particularly important for enterprises.

Good financial management mode will provide sufficient guarantee and backup support for the landing of enterprise development strategy.

As everyone knows,

The pattern is divided into two types: centralization and decentralization.

Li Peihui, executive vice president and chief financial officer of Gujing Group Co., Ltd. in Anhui, it seems that during the gradual growth of state-owned enterprises, the financial management mode will eventually move towards centralized development.

There are many debates in the industry regarding the similarities and differences between centralized and decentralized financial management models, mainly based on the distribution of financial core power.

Centralized financial management mode concentrates power on group companies. Major decisions, including investment and financing, asset disposal, dividends and so on, are decided by group headquarters. While decentralized financial management mode is controlled by molecular companies, financial companies have relatively independent management decisions.

From the perspective of characteristics, the advantages of both are different.

Compared with decentralization, the biggest advantage of centralized financial management mode is that it can concentrate all the advantages of the group enterprise resources and do one thing well.

"This is very important for enterprises with clearer and unified strategy."

Li Peihui said that financial strategy is an important part of enterprise strategy. Centralized financial management mode can help enterprises effectively implement their own strategies.

And the real reason for the landing of enterprise strategy is that centralized financial management mode has certain advantages in concentrating resources and optimizing resource allocation.

Li Peihui explained the above points to reporters by focusing on funds.

He said that in the past, the funds of the enterprises affiliated to Gujing Group were managed by themselves, and the financing of the molecular companies was also their decision-making and management.

However, because of the relatively small amount of funds, the bargaining chip of the banks in the financing process is relatively small, which causes difficulties for the financing of the molecular companies.

Now, Gujing Group takes

The way to collect more than 500 million yuan to 600 million yuan of funds each year is a bargaining chip for the financing of the molecular company, and on the other hand, it can be put into operation quickly when the group strategy changes.

Li Peihui thinks that centralized financial management mode is the future development direction of the enterprise because it has the advantages of solidifying the process and supporting the policy system in addition to concentrating superior resources.

According to Li Peihui, the financial management mode of Gujing Group is becoming more and more centralized.

"At present, we have about 30 molecular companies. The major decisions include major capital management, landing of accounting system, financial informationization and accounting appointment.

Li Peihui said.

So, can such a management mode lead to the phenomenon of "dictatorship" in financial management to some extent? Li Peihui said that this is precisely the problem that enterprises need to pay special attention to in the process of gradually pforming to centralized financial management mode.

"Enterprises should not overemphasize the literal meaning of" centralization ".

In fact, centralized financial management mode is for the enterprise strategy. The core concept should be to integrate business processes into financial strategy through financial information system and mutual relationship, so as to ultimately implement the overall strategy of enterprises.

Li Peihui told reporters.

Based on this, Li Peihui believes that the power of four aspects of finance, auditing, public relations and information technology is a group enterprise must concentrate on any matter.

Among them, the construction of informatization is the key project that group enterprises need to build.

Taking Formosa Plastics Group as an example, the advanced degree of information construction is mainly reflected in the curing of business and financial process.

The whole process and information of group enterprises are embodied through informatization and managed by information tools.

"For state-owned enterprises, we have been issuing the system now, but how to control the system and how to control it is the biggest problem.

If there are problems in the management of enterprises, it is often not a problem with the system, but often a problem exists.

Li Peihui said, therefore, the most advanced experience in the development of foreign informatization is to ensure the implementation of the system through informatization.

Still taking Formosa Plastics as an example, the core concept of information technology is management flow, process form and form information.

This means that the system has finally become part of the business process through informatization.

This is a fundamental help to the implementation of the system.

Shen Ke (Tianjin) Industrial Technology Co., Ltd. vice president and CFO Tan Xiangyang: in the sound management of strategic development at the same time

In a perfectly competitive market, an enterprise always seeks a balance between sound management and strategic development. Germany's Shen Ke group, a 133 year old multinational group, has very good experience in this respect.

It has five major divisions in China, including mining, heavy industry, light industry, power and pportation automation. Its products and services involve coal, iron and steel, mining, power, pportation automation and other industries.

Tan Xiangyang, vice president and CFO of Shen Ke (Tianjin) Industrial Technology Co., Ltd., introduced to us their experience as a global leader in weighing and feeding industry.

Speaking of development, Tan Xiangyang said that Shen Ke, while maintaining a stable share of a mature market, is committed to the introduction and business operation of new products and technologies. In this process, Shen Ke does not simply pursue the speed of development, but focuses on the steady growth of enterprises.

"We will synthesize the different growth targets of various departments and product lines, and take the growth expectation of local GDP and the growth expectation of industry development as reference to determine the speed and goal of development."

Tan Xiangyang said.

In the global market, Shen Ke often relies on the development of new products and equipment, establishes centerofcompe tence, and vertically manages the target market in the global market, so that the local market can cooperate with the overall strategy.

"The highest R & D capability of each product and product line may be laid out in different regions, so the qualification centers may be established in the United States, Germany, or in Australia."

Tan Xiangyang, for example, if the qualification center is set up in Australia, where the iron ore loading system is built, that is, while the train is moving at a constant speed, iron ore is loaded on the car skin.

If the Chinese market wants to develop this business, the Chinese branch will have to rely on the Australian qualification center to analyze and develop the customer base of the market and meet its personalized requirements, but it can only return to the customer center in Australia to customize the products of special needs of customers.

That is to say, the local market of different regional branches cooperate with group strategic planning, but the branch should carry out target value analysis for the locals.