New "Operations Efficiency Radar" survey by Roland Berger and the International Controller Association (ICV) finds that CFOs are pursuing a strategy of risk-aware growth and increased flexibility

• CFOs are concerned about the euro crisis and the unstable economic situation – only 50% think the last crisis is over
• Focus in 2012 is on risk-aware growth
• CFOs believe that increased efficiency will improve flexibility and enable quick reactions to setbacks
• Top four levers are future-oriented and focused on growth

Following the turnaround in the economic trend in 2010, German firms have by and large pursued a growth trajectory. Most companies hope to continue growing in 2012. But because of the ongoing euro crisis and unstable economic situation, companies are focusing on risk-aware growth. This is reflected in CFOs' top levers for 2012: developing a robust product portfolio and identifying further opportunities for growth. To minimize risk, CFOs plan to raise efficiency so their companies can react more flexibly to potential setbacks. These are the results of the new study "Operations Efficiency Radar – Top Levers 2012" produced jointly by Roland Berger Strategy Consultants and the International Controller Association (Internationaler Controller Verein, ICV). More than 100 CFOs of manufacturing companies participated in the study.

"The trend for 2012 is toward risk-aware growth," says Oliver Knapp, Partner at Roland Berger Strategy Consultants. "Companies want to stay flexible so they can react quickly to any potential setbacks, such as fallout from the euro crisis." With this in mind, CFOs are focusing their plans for 2012 on forward-looking levers and increased efficiency. Overall, despite the euro crisis, they are positive about the future.

Top levers focused on growth

"As we saw last year, growth-oriented levers are at the top of the CFO agenda," says Oliver Knapp. Once again, developing an innovative product portfolio tops the list – a full seven percentage points ahead of other levers. Some 70% of CFOs in the survey are planning action in this area. Optimizing production also remains a priority, coming second on the list, as last year. "We are pleased to see that companies in Germany have not forgotten about innovation and R&D," says Thomas Rinn, Partner at Roland Berger. "Companies clearly understand that investing in R&D is the key to guaranteeing future growth." Around 60% of CFOs are planning to take action in this area in 2012.

Risk-aware growth through increased flexibility

Despite a generally positive outlook, CFOs are concerned about the euro crisis and the highly unstable economic situation. "CFOs are not focused purely on growth but will also be trying to keep risk to a minimum in 2012," says Oliver Knapp. They are pursuing a strategy of increasing flexibility in their companies so that they can react better to any potential setbacks caused by the economic situation. They hope to achieve this primarily by improving efficiency and cutting costs. "The trend is clearest in controlling and finance departments," says Partner at Roland Berger Thomas Rinn. "Last year, only 50% of CFOs were planning to take action in this area; this year it's a good 10% more. With the future unclear, transparency is becoming more and more important." Indeed, levers such as strengthening controlling and optimizing back-office services feature on the top 10 list for the first time this year.

Uncertainty about economic developments

The study includes a special section entitled "What does the future hold – recovery or downturn?" Companies are plagued by uncertainty, despite their growth ambitions. Thus, over half of the CFOs in the survey say that they have successfully dealt with the recent crisis. But about the same number are already making preparations for the next one.

The CFO agenda for 2012 indicates the top levers for raising efficiency and helps CFOs plan for 2012. "Ten factors are critical in implementing the CFO agenda," says Knapp. "Besides identifying the most promising levers, companies must monitor projects carefully, tracking and documenting their impact, for example."