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The Changing Role of the CFO and Finance Organization. Gary Ellis Senior Vice President and Chief Financial Officer Medtronic, Inc. Agenda. Challenges Facing the Finance Organization Changing Expectations of Finance Medtronic Finance Vision Developing Future Finance Talent.

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The changing role of the cfo and finance organization l.jpg

The Changing Role of the CFO and Finance Organization

Gary Ellis

Senior Vice President and Chief Financial Officer

Medtronic, Inc.

Agenda l.jpg

  • Challenges Facing the Finance Organization

  • Changing Expectations of Finance

  • Medtronic Finance Vision

  • Developing Future Finance Talent

Cfo and finance organization challenges l.jpg
CFO and Finance Organization Challenges


  • SOX

  • Regulatory and Legal Liability

  • Global Competition

  • Shareholder Demands and Activism

  • Increasing Capital and Return Expectations


  • Too Much Detail and Complexity

  • Reduced Finance Resources

  • Increasing Business Expectations

  • Strategy Leader

  • Risk Management Expectations

  • Improving Productivity Requirements

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The Four Faces of the CFO

The key to understanding finance’s challenges and opportunities for finance transformation.

Leading Edge

Stimulate behaviors across the organization to achieve strategic and financial objectives

Provide financial leadership in determining strategic business direction and align financial strategies



Threshold Performance




Balance capabilities, costs and service levels to fulfill the finance organization’s responsibilities



Protect and preserve the assets of the organization



2007 Deloitte Development LLC

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Little or no impact

Substantial impact

Moderate impact

Impacting Factors on Finance Executive Roles

In your opinion, which of the following elements have had the greatest (or least) impact on the role and responsibilities of the corporate finance function at your company over the last five years?

Change in government regulations

of financial reporting and governance

Business managers’ need for

finance’s assistance and support

Board of directors and/or

audit committee demands

Investor analyst

or lender scrutiny


market conditions







(Percentage of respondents)

2007 CFO Publishing Corp.

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Impacting Factors on Finance Executive Roles

In your opinion, have the following dimensions changed in the past five years at your company?



No change

Breadth of financefunction’s responsibility

Accountability for yourpersonal performance

Your authority to make decisionsand allocate resources

Respect for the finance functionwithin your company

Resources (funding, staff)for the finance function

Conflict between finance and other groups within your company







(Percentage of respondents)

2007 CFO Publishing Corp.

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Less time

More time

Same amount of time

Impacting Factors on Finance Executive Roles

Compared with five years ago, how much time do you spend on the following activities?

Contributing to company-wide strategy

Regulatory compliance

Financial planning and analysis

Overseeing business operations

Supporting Board of Directors’ information requests

Managing auditors

Human capital activities (hiring, training, developing finance staff)

Communicating with analysts and investors







(Percentage of respondents)

2007 CFO Publishing Corp.

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Less difficult

More difficult

No change

Impacting Factors on Finance Executive Roles

Compared with five years ago is attracting and retaining finance staff more or less difficult for your company?

Mid-level staff and managers(associates and managers)

Senior staff and managers(directors)

Senior finance executives(CFO, VPs)

Junior finance staff(clerks and specialists)







(Percentage of respondents)

2007 CFO Publishing Corp.

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Finance Success Means Strong Management Skills

Open Minded


Risk Minimizing







Risk Averse

Communication Challenged

Low in Trust


Low on Empathy

… while remaining task-oriented, detailed and analytical

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Levels of Finance Leadership

Leadership = Initiative, Judgment, Perspective, Courage

Financial Partner

Business Partner

Proactive Advisor



Internal Control

Cost Control

Process Coordination

Financial Reporting

Use financial analysis to identify issues and opportunities

Establish action plans to address issues and opportunities

Implement action plans

Knowledge of therapies, technologies, markets, customers

Proactive business partner

Develop and implement business strategies

Help operations leaders “run the business”

Lead cross-functional teams on “business” vs finance processes

Counsel to operations management and challenging when/where appropriate

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Medtronic Finance Vision

Vision Statement

Medtronic finance is a diverse, world-class team that operates with the highest ethical and business integrity, leadership and financial technical competence to provide innovative and value added contributions in its role as a full business partner in Medtronic’s mission.

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Medtronic Finance Charter

Medtronic Finance will at all times:

  • Ensure that Medtronic is operating in accordance with all legal and social requirements worldwide while maintaining high standards of professionalism, honesty and integrity. Maintain independence in thought and actions to do what is “right”.

  • Maintain strong technical competencies at all levels of the organization to ensure discipline and accuracy in all financial information while encouraging innovation to improve processes.

  • Maximize profits and growth potential by providing effective analysis, influence, leadership and control as business partners.

  • Protect shareholders’ interest by safeguarding the assets of the Company.

  • Deliver world-class service and productivity.

  • Develop effective leaders and partners through career opportunities that foster improved performance and professional growth.

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Medtronic Finance Vision

Business Partnering















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Finance OrganizationTalent Management Imperative

Overall Goal

Implement and drive a consistent and comprehensive talent assessment and development process across the global finance organization so that we have the right people, in the right jobs, at the right time to realize the finance vision of being world class.

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Finance OrganizationTalent Management Imperative


Drive sustained business excellence by intentionally and systematically identifying and developing talent capable of leading the organization consistent with the Medtronic Mission and business strategy.

Why Talent?

Talent management is the most critical organizational challenge that Medtronic will face in the next decade.

Talent management ensures we have the right people, in the right jobs, at the right time.

Talent management requires a fundamental change in the way we think about attracting, deploying and developing people at Medtronic.

Critical Success Factors in Achieving Our Purpose

  • Fostering a culture that encourages candor and risk taking

  • Employment of formal leadership development processes

  • Adoption of a new talent mindset

  • The Talent Review Process Supports Our Purpose through 5 Key Steps

  • Alignment of talentwith strategic business goals

  • Formal assessment of organizational talent

  • Identification of high potentials

  • Define and drive actions to intentionally develop

  • talents into leaders for the company

  • Management of developmental assignments

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Thinking Competencies

- Judgment

- Strategic Thinking

- Innovation

- Global Perspective

- Customer Focus

- Business Acumen

People Competencies

- Engagement

- Change

- Talent Development

- Diversity

- Relationship Building

- Effective Communication

Finance OrganizationMedtronic Competencies

Personal Competencies

- Integrity

- Courage

- Adaptability

- Self Development

Results Competencies

- Planning

- Results Orientation

- Quality Orientation

- Performance Management

Finance organization finance functional competencies l.jpg
Finance OrganizationFinance Functional Competencies

  • Business Partner

  • Finance and Accounting Knowledge

  • Financial Analysis

  • Internal Controls

  • Planning and Reporting

  • Technology, Knowledge and Application

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Defining Talent Management

  • Strategic attention to talent decisionsthat enhance the competitive advantage of the business

  • Robust developmentof all employees to ensure competencies aligned with business objectives

  • Commitment to ensuring the identification, development and placement of top talent in key roles

  • Unyielding attention to leadership and critical talent pools

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Do you know what is expected of you at work?

Do you have the materials and equipment you need to do your work right?

At work, do you have the opportunity to do what you do best every day?

In the last seven days, have you received recognition or praise for doing good work?

Does your supervisor, or someone at work, seem to care about you as a person?

Is there someone at work who encourages your development?

At work, do my opinions seem to count?

Does the mission or purpose of my company make me feel that my job is important?

Are my coworkers committed to doing quality work?

Do I have a best friend at work?

In the past six months, has someone at work talked to me about my progress?

This past year, have I had opportunities at work to learn and grow?

Retaining Talent: Twelve Questions that Matter

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Best Practices forRetaining Talent

  • Management

    • Talk to your employees one-on-one

      • What’s important to each person?

    • Train managers to be strong people managers and leaders

  • Culture & Environment

    • Employees have a voice

    • Work / life atmosphere

    • Work environment has meaning

    • Talent is everyone’s job

  • Corporation

    • Strong employment brand

    • Exit interviews

    • Re-recruit former strong employees

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Recruiting Talent

Ability to demonstrate to recruits we “walk the talk”


  • MBA rotation program

  • Demonstrated track record of finance personnel evolving from “staff function organization” to “strategic business partners”

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Leadership Development Overview

Define Leadership Needs

Assess Leadership Bench Strength

Acquire, Deploy & Manage Talent



Maintain Internal Talent Profiles

Create Leadership Development Plans

Establish Leadership Competencies

Assess Leaders’ Performance

Maintain External Talent Profiles

Conduct Talent


Design & Manage Job Assignments

Forecast Future Leadership Needs

Manage Succession

Develop Annual Organization Plan

Assign & Manage Developmental Relationships

Match Leaders to Open Positions

Develop & Deliver Leadership Programs

Search Internal Talent Pool

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Leadership Development Process

Performance Evals & Talent Profiles IDPs

Talent Review Discussions

Organization Planning

Leadership Development Strategy

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Talent Review Discussions

Finance Leadership Council

  • Chairs: CFO and Corporate Controller

  • Meets two hours/month – policy, strategic issues and process leadership

  • One full day per quarter – active talent management

  • Special meetings as required

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Organization Planning

Succession planning for each leadership position…

…and key jobs throughout the organization

Pivotal jobs:

The positions that differentiate us from our competitors and give us competitive advantage




What are the consequences if we don’t have enough people in these pivotal jobs?


What are the consequences if we don’t excel at doing these jobs?

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The Changing Role of the CFO and Finance Organization

Gary Ellis

Senior Vice President and Chief Financial Officer

Medtronic, Inc.