How To Optimize Fund Management: Reducing Capital And Increasing Efficiency

Zhang Lei has his unique understanding of the role CFO plays in enterprises.

The first is the Statistics Bureau in enterprises. CFO collates data, collates the data into analysis reports, processes them according to accounting standards, and makes further judgments on the macro and micro environment of enterprises. Zhang Lei, for example, said, "CFO wants to judge which is more important for the development and operation of enterprises at this stage. When cash flow problems arise, it is to streamline investment or internal optimization, or to obtain sources of funds through leverage. Rio Tinto caused a cash flow problem in 2007 due to high leverage, which affected stock prices. Capital is the blood of an enterprise, and financial problems will directly affect the survival of enterprises. CFO takes the pulse of the enterprises by grasping the data, showing the status of the enterprises through reports and analysis, and showing them as a heart rate instrument.

Next is the tax bureau of enterprises. Through the internal control system, CFO manages the revenue part by vertical management and makes cash flow better through centralized pool. The dispersion of funds will not only increase the cost of capital management, but also make enterprises loose and unable to form a game of chess.

The third is the Financial Bureau of enterprises. The finance bureau is responsible for the allocation of funds. It has functions of controlling functions and formulating strategies, and determines where the funds of enterprises should be invested. Zhang Lei said that CFO wants to decide whether the growth of enterprises is external growth through external investment, or through internal investment in technological innovation and internal control to achieve growth. Taking SIEMENS as an example, SIEMENS, as a market-oriented manufacturing industry, will maintain the brand vitality as a development strategy. Every 5 to 10 years, it will update the enterprise industry, develop sunrise industries, abandon the sunset industry, and maintain the overall business rather than the vitality of an industry. Different industries have different industrial characteristics. CFO decides where to invest their capital and how to invest is the best choice.

CFO plays the role of auditing and supervision. There are conflicts of interest in enterprises of any country, and the signing process and authorized supervision in the internal control function are set up for this purpose. As a CFO, the opportunity to control internal control is eliminated from the system. At the same time, the audit function is used to report to the board of directors. This is one of the most important duties of CFO in the enterprise.

　　 CFO And act as an adviser to the enterprise. Zhang Lei said, "for example, when dealing with tax, the tax in different countries is very complicated. CFO should provide a reasonable tax avoidance plan for enterprises according to local policies. In the process of procurement, CFO should also give advice on contracts, avoid subsequent supervision and control costs from the source."

Zhang Lei is very familiar with finance, real estate, manufacturing, mining, oil and gas industry. He believes that to cultivate a CFO's strategic vision, we should pay attention to financial work in different fields, not only to observe but also to practice in person. "The development of enterprises is inseparable from the development of the industry. CFO is the economic officer of an enterprise. It needs to fully understand the industry and understand the economic analysis of its own business. Zhang Lei said.

although organization Similar, but the mechanism of different enterprises is different. Zhang Lei believes that the mechanism of state-owned enterprises is like sheep, sheep can be baa, but the real decision is decided by the goat. The mechanism of Shell is like lanterns, and the personnel are mainly concentrated in the middle level. The decision-making mechanism is democratic, but it is inevitable to form an elbow. The third mechanism is the Pyramid style, with different levels from top to bottom, and SIEMENS is the representative of this type.

stay Decision making efficiency The decision making speed of sheep group is the fastest, while that of lantern type enterprises takes a long time to discuss. The speed of decision making of Pyramid type enterprises depends on which class of decision making is made. From the point of view of execution, if the goats in the herding group do not drive the sheep, the executive power will be very low; in the lantern type enterprises, the employees have their own goals; if they fail to cooperate, they will also reduce their executive power; the mechanism of the Pyramid type enterprises is more suitable for the market oriented manufacturing industry. Zhang Lei believes that the market oriented enterprise mechanism is usually more dynamic, because only in this way can the market be abandoned, while the traditional industries, capital monopoly industries and state-owned enterprises are generally slow.