Ensure Long Term Value Creation

Guide decisions that enhance resilience, adaptability, and sustainable value creation while balancing short-term demands.

Current Score

out of 10

Target Score

out of 10

Progress to Target

50%

Excellence Framework

What Good Looks Like

These assessment criteria define excellence for this driver. Use them to evaluate your current state and identify areas for growth.

Strategic Balance

Financial decisions balance near-term performance expectations with the investments required for sustainable growth and future competitiveness.

Capital Stewardship

Capital is allocated with discipline across growth initiatives, operations, acquisitions, innovation, and shareholder returns.

Scalable Infrastructure

Financial systems, processes, controls, and organizational capabilities can support growth without creating unnecessary complexity or risk.

Transition Readiness

The organization is prepared for leadership transitions, ownership changes, acquisitions, succession events, and other significant inflection points.

Enduring Competitiveness

Financial decisions actively strengthen the company's ability to compete, adapt, and build sustainable value.

Self-Assessment Tip

Are today’s financial decisions strengthening the organization’s future—or optimizing near-term results at the expense of long-term value?

Real Results

How Leading CFOs Create Enduring Value

See how leading finance executives applied this driver to strengthen performance, guide transformation, and create long-term value.

Siemens

Industrial Technology • Dr. Ralf P. Thomas, CFO

8 years

The Situation

Siemens operated a broad, complex portfolio across multiple industrial markets while confronting technological disruption, uneven business performance, and significant capital demands. The company needed to simplify its portfolio, improve operating discipline, and continue investing in digital capabilities without compromising shareholder returns or long-term financial resilience.

The CFO's Approach

Thomas helped execute a disciplined portfolio strategy that included acquisitions, divestitures, and the separation of major businesses. Finance reinforced margin accountability, cash conversion, and capital-allocation discipline while supporting investment in higher-growth digital and industrial technologies and returning capital to shareholders.

The Impact

Finance helped Siemens become a more focused technology company with stronger profitability, substantially greater cash generation, and increased capacity to invest and return value to shareholders. The transformation strengthened financial flexibility and supported a more durable platform for long-term value creation.

Measurable Results

Orders

+12%

€82.3 billion → €92.3 billion

Industrial Business Profit Margin

5.3 pts.

10.1% → 15.4%

Free Cash Flow

+113%

€4.7 billion → €10.0 billion

Dividend per Share

+34%

€3.50 → €4.70

Ready to Strengthen Strategic Alignment?

Assess how effectively finance connects resources, priorities, and performance with the organization’s strategic direction.

Long-Term Value Outcomes

Business Impact

Organizations that balance near-term performance with disciplined long-term investment are better positioned to strengthen resilience, preserve strategic flexibility, sustain competitiveness, and create enduring enterprise value.

Enterprise Value

Disciplined strategic and financial decisions strengthen the organization’s long-term economic potential and overall market position.

Capital Efficiency

Rigorous capital allocation directs resources toward opportunities with the strongest strategic and financial returns.

Strategic Resilience

Long-term planning and financial flexibility help the organization withstand disruption and continue investing through uncertainty.

Scalable Growth

Strong systems, processes, and infrastructure allow the business to grow without sacrificing control, quality, or profitability.

Competitive Durability

Continued investment in innovation, talent, customers, and operating capabilities helps preserve relevance and differentiation.

Transition Readiness

Preparation for succession, ownership changes, acquisitions, and leadership transitions protects continuity and enterprise value.

Where should your finance organization focus next?

Turn Insight Into an Improvement Plan

Understanding the gap is only the beginning. CFO Circle helps finance leaders establish priorities, develop practical initiatives, and maintain the accountability needed to achieve measurable progress.