Hackett Group, Inc. (NASDAQ:HCKT) has recently released its new Financial Key Issues research. The research is aimed at improving enterprise agility and innovation.
Hackett group’s Principal and Global Finance Executive Advisor Panel Leader, Jim O’ Connor is of the view that economic and political volatility are high. He gives the recent oil price collapse as an example of an event which no one saw fore coming.
According to O’ Connor there would be more pressure to for agility and innovation. He further adds that finance has to take the role of identifying opportunities and response to unforeseen events. However, due to years of cost-cutting improving finance performance is a hard task, added O’ Connor.
The research by Hackett group finds that companies are trying to increase innovation and agility in a world full of economic and political uncertainty. In response, more than 75% of the finance executives have stated their highest priority as the execution of company’s growth and innovation plans.
Finance organizations are however hampered in their task due to shortage of funds. Most will have to do their jobs without any additional funding and many will see their budget trimmed marginally in 2015.
According to Hackett Group, Inc. (NASDAQ:HCKT)’s research to counter the problems faced by financial institutions, they need to follow a two pronged strategy, drive down the costs and pursue a strategic transformation agenda. Going for cost reduction will further help finance to self-fund and build critical capabilities.
According to the research the two main capabilities identified as most critical to the achievement of strategic goals of 2015 are building better partnerships and improving analytics. The study finds that finance has very low capabilities in these two areas. There were shortcomings in the capability in other areas too, according to the research.
The research finds that the overall risk management is extremely immature in finance. The study found that fewer than 40% of all companies have a chief risk officer in place.