299 汽车福特汽车CFO-财务核心能力

THEFINANCEROLE

INBUSINESSTODAY

1

ROBPHEBUS

CFO,FORDLIOHO

26+YEARSEXPERIENCE

WITHFORD

2

FINANCEMISSION&KEY

RESPONSIBILITIES

ThemissionofFordFinanceistocontributetothesuccessofFordMotorCompanybybeingthemostdynamic,efficient,andhigh-qualityorganizationofitskind.

FordFinancepeoplestriveforexcellenceandcontinuousimprovementinthequality,effectiveness,andefficiencyoftheservicestheyprovidetointernalandexternalcustomers.

3

FinancePersonnelCharacteristics

Professional---Intelligence,Creativity,JudgmentandCommunication

Skills

Personal---Integrity,Initiative,

InterpersonalSkillsand

Teamwork

4

FinanceRoles

pDevelopandoperatehigh-qualityfinancialreportingandcontrolsystems

pDevelopoptimalbusinesspracticesandprocesses

pProvidehigh-qualityanalysistosupportdecisions

pMakerecommendationsasBusinessAdvisors

5

FINANCEFUNCTIONS

6

Accounting&Auditing

pFinancialReporting--FinancialStatements,TaxAccounting

pOperationsAccounting--CostAccounting,TransactionProcessing

pInternalandSystemsAuditing

pDealerAuditing

pSupplierAuditing

7

Treasury

pCapitalStructureandDividendPlanning

pCashandDebtManagement

pForeignExchangeManagement

pPensions,Insurance,andEmployeePayroll&Savings

8

BUSINESSCONTROL

THECFOPERSPECTIVE

ONGOVERNANCE

9

Signatures

Checklists

SecurityandLocks

InternalandExternalAudit

AccountingVerifications

WHATISBUSINESS

CONTROL?

Anyactiontakenby

managementtoenhancethe

likelihoodthatcompany

objectivesandgoalswillbe

achievedonasustainedbasis

10

ELEMENTSOFBUSINESS

CONTROL

CorporateCulture

ProcessesandSystems

Monitoring

RiskManagement

11

CORPORATECULTURE

RISKMANAGEMENT

PROCESSES&SYSTEMS

MONITORING

DRIVINGFLAWLESS

EXECUTION

Management

Employees

ACHIEVEMENTOF

COMPANY

GOALS&

OBJECTIVES

Businesscontroldrives

achievementofgoals!

12

CashManagement

VariableMarketing

Payroll&Timekeeping

FacilitiesSecurity

CreditFinancing

Customs

Distribution

&Logistics

ProductDevelopment

SalesRecognition

Warranty

ContractManagement

FixedMarketing

EnvironmentalCompliance

ARCollections

TaxCompliance

AccountsPayable

Health&Safety

SafetyEngineering

DisasterRecovery

AccountsReceivable

SystemSecurity

JournalEntries

Reconciliation

g

Purchasin

FixedAssets

VehicleRemarketing

Insurance

SupplierManagement

Inventory

Treasury

WHEREDOYOUFOCUS?

13

CFO‘TOPSIX’

•GovernanceandEthics

•CashandTreasury

•AssetIntegrity

•Revenue

•PurchasingandPayables

•Accounting

14

POTENTIALRISKS

GOVERNANCEANDETHICS

Establishingadecisionframeworkfordoingtherightthing

CONTROLS

•GOVERNANCE

-BusinessMismanagement

-Confusion&Inefficiency

•ETHICS

-LossofReputation

-LitigationIssues

-AssetLoss

AuditCommittee

ClearOrganizationalStructureFormalDelegationsofAuthority

PolicyLetters

InvolvementofOGC

ProceduresforReporting

UnusualEvents

15

GUIDELINESFORAUDITCOMMITTEES

Purpose

•ProvideAssistanceToTheBoardOfDirectorsOnItsFiduciaryResponsibilities

•EnsureReliabilityOfAccountingAndControls,ReportingPractices,AndQualityAndIntegrityOfFinancialReports

16

GUIDELINESFORAUDITCOMMITTEES

Membership

•TwoOrMoreFinanciallyAdeptDirectors

•EachShouldbeNon-ExecutiveMembersOfTheBoard

•CompanyCFOAndExternalAuditorsShouldAttendMeetingsButAreNotCommitteeMembers

•MeetingsHeldAtEachBoardMeeting

•IndividualMeetingsBetweenCommitteeAndCompanyCFOAndExternalAuditorsAtLeastAnnually

17

18

GUIDELINESFORAUDITCOMMITTEES

DutiesAndResponsibilities

•AssureReliabilityOfAccountingPractices

•AssureAdequateInternalControlProcesses

•AssureComplianceWithLegalRequirementsAndCompanyPolicy

•AssureAdherenceToACompanyCodeOfConduct

•AssureAppropriateRiskManagementProcessesEstablished

•ReviewAppointmentAndPerformanceOfExternalAuditor

•ReportToTheBoardOnMattersOfTheCommittee

19

CASHANDTREASURY

Protectionandmaximumutilizationofcashandinvestmentassets

POTENTIALRISKS

•POORCASHMANAGEMENT

-TheftorLossofCash

-LossofInterestIncome

•POORRISKMANAGEMENT

-Currency,InterestRate,&CommodityExposure

-LiquidityRisk

-Property&CasualtyHazards

-DefaultRisk

CONTROLS

AppropriateCashHandlingDelegationsofAuthority

AccountReconciliation

Hedging&RiskTransferTools

•••

UseofTreasury&RiskManagementExpertise

ASSETINTEGRITY

ProtectionandusabilityofCompanyphysicalandinformationassets

POTENTIALRISKS

•PHYSICALASSETS

-Loss,Theft,orDamage

-Waste&Underutilization

•INFORMATIONASSETS

-Loss,Theft,orDamage

-System/BusinessFailure

CONTROLS

PhysicalSecurity

Tagging&CycleCounts

Receiving/ShippingProcesses

ApplicationControlReview

DisasterRecoveryPlan

Passwords

UserAccessReview

20

REVENUE

Timelyrecognitionofsalesrevenueand

collectionofreceivables

POTENTIALRISKS

•RevenueOver/Understated

•OverdueReceivables

•IneffectiveCollectionProcess

•BadDebtExposure

CONTROLS

SeparationofRevenue

Recognition&CashHandling

ProceduresforRevenue

Recognition

AgingFollow-up

BadDebtAllowanceAnalysisAccountReconciliation

21

POTENTIALRISKS

22

PURCHASINGANDPAYABLES

Purchasinghighqualitygoodsandservicesandpayingtherightamountattherighttime

CONTROLS

•PURCHASING

-UnnecessaryPurchase

-PricetooHigh

-QualityNottoSpecification

-ContractsthatDon’tSupportGoals

•PAYABLES

-PayWrongAmount

-PayforGoodsnotReceived

UsePurchasingExpertise

BudgetManagementSupplierDatabase/Preferred

SupplierListingLowValuePurchaseReview

StandardTerms&Conditions

ReceiptVerification

Pre-PaymentReview

AccountReconciliation

CONTROLS

ACCOUNTING

Ensuringthataccountingrecordsareaccurateandmanagedproperly

POTENTIALRISKS

•ACCOUNTSMISSTATED

-ImproperEntryMade

-LegalExposuretoShareholders/Regulatory

•DATANOTUSEFUL

-PoorCategorization

-Non-Timely

•DATANOTUSED

AccountReconciliation

ReconcilingItemFollow-up

JournalEntryReview&

Approval

Up-to-DateChartofAccounts

ClosingProcedures

Budgeting&Analysis

23

EXERCISE:

SPECIALMETALSTAMPERS,INC.

Method:IndividualExercise

Objective:UsetheCFOTopSixtosiftthroughinformationandfindcriticalcontrolconcerns

Time:CompleteBeforeClass

Instructions:YouareRobinJames,andtodayyouaretakingoverfromJohnSmithasControlleratSpecialMetalStampers,Inc.awhollyownedsubsidiaryofWeBuildCars.Asyousitdownatyourdesk,younoticeafullin-basketrequiringyourattention.Reviewthenarrativeprovided(asummarizationofseveralintroductoryinterviews)andthecontentsofyourin-box.Whichthreeconcernswouldyoutacklefirst,andwhy?

24

BUSINESSCONTROLTOOLS

Nowthatyouknowwheretofocus,whattoolscanyouusetofindandaddressconcerns?

•CorporatePoliciesandStandards

•ApplicationControlReview(ACR)

•Training

•InternalControlCoordinators

•ModularControlReviewPrograms

•6-Sigma

•TheGAO

25

BUSINESSCONTROL

HowtoBuildControlintoBusinessProcesses

26

CorporateCulture

ProcessesandSystems

Monitoring

RiskManagement

ELEMENTSOFBUSINESS

CONTROL

CorporateCulture

ProcessesandSystems

Monitoring

RiskManagement

27

GOAL

WithoutControl

WHYIN-PROCESS

CONTROLS?

PLAN

WithControl

PLAN

GOAL

HitthetargeteverytimewithBusinessProcessControl

Repeatability•Sustainability

28

CREATEACONTROLLED

PROCESS

•UnderstandtheComponents

•OutlinetheExistingProcess

•DetermineAreasofRisk

•AssesstheExistingControls

•RedefinetheProcess

29

GOAL

INPUT

OUTPUT

INPUT

INPUTINPUT

OUTPUT

OUTPUT

OUTPUT

1.UNDERSTANDTHE

COMPONENTS

WHEREDOYOUWANTTOGET?

WHATDATAFEEDSYOUR

PROCESS?

Remember–canbeexternalorinternal

WHATPROCESSES

AREUSED?

Whatresources(people

andsystems)areused

totransformtheinput?

WHATISTHERESULT

OFYOURPROCESS?

Thinkenterprise-wide

–areyouroutputs

someoneelse’sinputs?

30

INPUT

INPUTINPUT

OUTPUT

GOAL

INPUT

OUTPUT

31

OUTPUT

2.OUTLINETHEPROCESS

OUTPUT

•StatetheGoal--IsitMeasurable&Specific?

•DetailtheProcess--HowdoInputs今Outputs?

–IdentifyProcessSteps(Sequence/Dependency)

–WhenareDecisionsRequired?

–Watchfor“DeadEnds”–EndShouldEqualOutput

–LookacrossOrganizations–UnderstandHandoffs

–DrawaFlowchart

3.DETERMINEAREASOF

RISK

•AssessGoalAlignment

–Hasthegoalchanged?

–Doestheoutputsupportthegoal

•DoesFailure(ofanyprocessstep)ImpactAchievementofGoals?

–Whatistheconsequenceoffailure?

–Whataretheoddsitcouldfail?

•LookforRedFlags

32

3.DETERMINEAREASOF

RISK

•SomePossibleRedFlags

由HoldingAreas(e.g.overduepayments,unmatchedreceipts,incompleteorders)

由KeyCommunicationPointsTransitions(handoffs,transitions,etc.)

由KeyDecisionPoints

由Manual/PaperProcesses

由AnythingThatCan’tBeExplained

由LongDelaysinRetrievingInformation

由RelianceonDetectivevs.PreventativeControls

33

Process

Controls

4.ASSESSEXISTING

CONTROLS

Risks

•IDENTIFYEXISTINGCONTROLS

–Preventive–Reduceslikelihoodofconsequence

–Detective–Identifiesand(ifpossible)correctsundesiredresults

–Directing–Encouragesadesirablebehaviortooccur

•ASSESSCONTROLvs.RISK

–Whichrisksrequireadditionalmitigation?

–IsthereaCompanystandard/guideline?

–Whattypeofcontrolsmakesense?

34

OUTPUT

OUTPUT

OUTPUT

5.REDEFINETHE

PROCESS

INPUT

OUTPUT

INPUT

INPUTINPUT

NEW

PROCESS

•BuildNewControlsintoProcess

•MatchResourcestoRiskLevel

•EnsureAgreementwithStakeholders

DocumentandCLEARLYCommunicateProcessANDRolesandResponsibilities

35

CorporateCulture

ProcessesandSystems

Monitoring

RiskManagement

ELEMENTSOFBUSINESS

CONTROL

CorporateCulture

ProcessesandSystems

Monitoring

RiskManagement

36

GOAL

WHYMONITORYOUR

PROCESS?

PLAN

ABCDEF

•Processsetsupasequenceofsteps–thingscangetstuck

•Monitoringisaredflag

–Dealwithexceptions

–Addressrootcauseintheupstreamprocess

37

HOWDOYOU

MONITOR?

•IdentifyKeyControlPointsintheProcess

•DetermineMetricsforthosePoints&Outputs

•EstablishTargets,Triggers,andVarianceGuides

•ReviewMetricsFrequently–inandacrossDepartments

CBG/GEC

BusinessProcessControlHealthChart

Transactions>90days

1234

•Althoughconsistent,steadyimprovementwasevidencedinmonths2and3,adeclineincontrolwasidentifiedinmonth4.

•Investigationofcausalfactorsidentifiedachangeinpersonnel–trainingfornewemployeehasbeenprioritized.

Cost/Transaction

•Costhasnotstabilized,andisconsistentlyabovebudget.

1/012/013/014/015/016/017/018/01

Target

38

Cash小$1.3million

WHATHAPPENSWITHOUT

CONTROL?

TheModelEprogramwaslaunchedtoprovideemployeeswithaccesstothe‘ElectronicAge’byofferingacomputerandinternetaccessfor$5permonth.EmployeesagreetopayaterminationfeeiftheylefttheCompanypriortothe36-monthcontractend.160,000employeesparticipated.

Terminationfeesnotpaid

Norobustterminationprocess

Theabsenceofarobustterminationprocess

impactedtheCompany’sabilitytorecover

paymentsowed.

39

GernalAuditOffice

ExternalAudit-CPAFirm

Correct

Actions

NO

NO

Re-exam?

40

FlowChartforInternalControl

.LocalLaws&Regulations

.CorporateGuideline

.FunctionalGuideline

.CheckingList

InternalAudit-AuditPlan

ComplywithLocal

Laws&Regulations

andCorporate

Guideline?

Yes

Yes

Endof

Process

Control

FinancialAnalysis

pProfitAnalysisandBusinessPlanning–ForecastsandBudgets,BusinessPlanningProcess,JointVenturesandAcquisitions

pOperationsAnalysis--ProductDevelopment,ManufacturingCostAnalysis

pMarket-RelatedAnalysis

pShareholderValuePlanning

41

ShareholderValueAdded(SVA)isameasureofhowmuchvalueacompanyiscreatingforitsshareholders

42

43

.Costtouseinvestor’smoneytobuyAssets

.Thereturnshareholdersrequirefromtheirinvestment

44

45

46

MichaelPorter’sFiveForcesModelisagreatwaytoseethebigpictureinanyindustry.

AccordingtoPorter,thestateofcompetitioninanyindustrydependsonfivebasicforces:

•therivalryamongindustrycompetitors

•thethreatofpotentialentrants

•thepowerofsuppliers

•thepressurefromsubstituteproducts

•thepowerofcustomers

47

48

49

Whileseeingthebigpictureisimportant,itisalsonecessarytounderstandlocalconditionsifyouwanttoactstrategically.

Understandinglocalconditionsmeansunderstandingyourcosts,competition,customers,distributionchannels,products,prices,andpromotionalactivities.

Seeingthebigpictureandunderstandinglocalconditionsgivesusthebackgroundforourmostimportantstrategictask–positioningourselvesoptimallywithinourenvironment.

50

51

ActStrategically:

Ford’sVisionandStrategyPyramid

Superior

Shareholder

Returns

World’sLeading

ConsumerCompanythat

ProvidesAutomotive

ProductsandServices

Transformationand

Growth

Nimble

OrganizationWithleaders

Superior

Consumer

Satisfaction&

AtalllevelsCorporate

Citizenship

Loyalty

Strongglobal

Brands

BestTotalValue

ToCustomers

CONSUMERFOCUS

52

53

Toactstrategicallyyouneedto

•seethebigpicture

•understandlocalconditions

•positionourselvesoptimally

Ford’sVisionandStrategyPyramidisanexampleofalargesteptowardthegoalofcoordinatedstrategicactionandoptimalstrategicpositioning.

However,toturnStrategicVisionintoaStrategicReality,allactionsmustsupportandimprovetheoverallstrategicpositionofthecompany.

IncreaseNetIncome

54

55

TheCustomerValueEquation

56

57

DecreasingcostshelpstoIncreaseReturnonSales

Decreasingcostsletsyoumakemore

moneyoffofeachproductthatis

produced.

Decreasingcoststhroughimproved

processescanalsoleadtoimproved

qualityandlesswaste.

58

IncreasingCustomerSatisfactionhelpstoincreaseReturnonSales

IncreasingCustomerSatisfaction

makesmorepeoplewanttobuyyour

products.

IncreasingCustomerSatisfaction

alsogivescustomersoptionsthat

theyarewillingtopayfor.

59

60

FollowTheMoneyConcepts

CreateBusinessUnitsofOne

pEstablishProfitCentersforDifferentBusinessChannels

pDivideBusinessintoSmallerManageableSubsets

pMakeEverySalespersonResponsibleforaDirectBusiness

61

FollowTheMoneyConcepts

KnowtheProfitofEverythingYouSell

pKnowtheVariableProfitofEveryProductand

ServiceYouSell

pKnowtheVariableProfitbyMajorSeriesandOptionswithinaProductLine

pKnowtheProfitofEveryRegion,Zone,and

DistributionChannel

pFocusResourcesonImprovingProfit

62

FollowTheMoneyConcepts

LeverageProductionProgramming

pKnowtheProfitabilityofProductPortfolio

pProgramAggressivelyonHigh-MarginProductsandConservativelyonLow-MarginProducts

pWorkwithPDandManufacturingtoGrowHigh-MarginBusiness

pManageProductAllocationtoMinimizeMarketingAndMaximizeProfits

63

FollowTheMoneyConcepts

GrowNon-TraditionalBusinessChannels

pRuntheChannelasaProfitCenter

pMaximizeTotalProfitforEveryDefinableSub-segment

pPursueWin-WinOpportunitieswithTheseCustomersonHigh-MarginProductsandServices

pWorkonUniqueProductOpportunities

pFocusonServiceandMakeYourselfIndispensable

pManageResidualValues

64

FollowTheMoneyConcepts

BusinessRegionalSalesStaff

pEstablishBusinessesforEachZoneManager

pMakeSureTheyKnowtheProfitofEveryProductandServiceTheySell

pDevelopRegionalProfitImprovementPlansthatExploitGrowthOpportunitiesonProfitableBusiness

pFocusonDealer“Turns”toImproveWholesaleVolumes

pLeverageRegionalResourcesonHigh-MarginProductionwithOpenCapacity

65

FollowTheMoneyConcepts

LeverageRetailMarketing

pKnowtheProfitofEveryProductforEveryTypeofFinancing

pEstablishProcesstoPrioritizeMarketingonHigh-MarginProduction

pFocusonFillingOpenCapacityonHigh-MarginProducts

pDriveSynergieswithSupportingAdjacentBusinesses

pBalanceOutOldProductsEarly

pTargetMarketingbyRegionandCustomer

pProtectResidualValues

66

FollowTheMoneyConcepts

PriceStrategicallytoImproveMargins

pKnowtheProfitofAllProducts,Options,andPackages

pUsePricingasaTooltoIncreaseValueonHigh-ProfitProducts(orOptions)

pPriceAggressivelytoImproveMarginsonLow-MarginProducts

pReduceComplexityandSimplifyProductOfferings(ValidatewithMarketResearch)

pPriceOftentoMinimizeMarketEffectofIncreases

67

FollowTheMoneyConcepts

EliminateWaste–FocusonCash

pEstablishDisciplinedProcesstoEliminateObsolescence

pEliminateReceivables

pReduceCompanyInventory

pCreateTaxEfficientProcesses

pManageCurrencyRisk

68

69

Servicebrandsthatdelightcustomers

Customersalsomustbedelightedinthe

servicesthatyouoffer.

Nomatterwhichbrandpeoplebuy,youmustmakesurethattheirownershipexperiencesareworry-free.

70

71

Playsacriticalroleintheongoingdevelopmentofbusiness

competencies,oneofwhichisbrandmarketing.

Communicationswiththemedia,especiallyonnewbrands,helpto

shape

thebrandimage.

Pricetheproductrightforthetargetcustomerandfindwaystoreducecostwithoutnegativelyimpactingthebrand.

Astheprimaryinterfacewiththevastarrayofsuppliers,Purchasingmustensurethatsuppliers’productproposalsareinlinewiththebrand.

Theguardianofqualityandworkmanshipmustunderstandthebrandtoensurethatcostreductionsandprocesschangesdonotharmthebrand’sessence.

Assiststhecompanyindevelopingrobustprocesses,sothatwemayprovideaconsistentbrandmessageovertime.

72

DecreaseNetOperatingAssets

73

74

75

76

77

78

79

Whyareassetturnsimportant?

“Inthepast,Fordmighthavethoughtthatcertain

partsofthebusinessweredoingwellbecausethey

showedpositiveearnings.SVA,however,

suggeststhatsuchasimpleviewdoesnotgofar

enough”.

“It’spossiblethatthosepartsofthebusiness

actuallydestroyedshareholdervalue—withprofits

nothighenoughtocoverthenetoperatingassets

andmeetshareholderdemands.SVA

underscorestheimportanceofcreatingprofits

whileimprovingassetturns.”

80

ExampleofAssetTurns

Product

NetIncome

-AssetCharge

=SVA

A

$500

400

$100

B

$700

800

$(100)

Atfirstglance,ProductBappearstobe

betterforthecompanybecauseitproduces

morenetincomethanProductA.

ProductBhoweveriscomparativelymore

assetintensive.

Despiteitsrelativelyhighnetincome,

ProductBactuallydestroysshareholder

value.

81

ReduceInventories

Inventoriesgenerallyrepresentasignificantpartofnetoperatingassets.

ThebestwaytocomprehensivelyreduceinventoriesistoadoptaKanban(or“pull”)philosophy.

Kanbanthinkingfocusesonmaximizingthevalue-addedflowandtheefficiencyoftheoverallsystemratherthananindividualprocessstep.

82

IsitinthebestinterestoftheCompany?

WhenevaluatingactionstoincreaseSVA,remembertoconsiderthecompletebusinessimpactofyourdecision.SomeactionsMAYAPPEARtoincreaseSVAbutareeithersuperficialfinancialengineeringornotintheLONG-TERMbestinterestofthecompany.

Examples

•SomecostreductionscanmakeSVAhigherintheshortterm,butleadtolowerquality,decreasedcustomersatisfactionandlowerSVAoverthelongterm.

•LeasingassetscandecreasenetoperatingassetsbutmaynotalwaysincreaseSVA.Theassociatedleasingcostsmaybegreaterthanthebenefitoflowernetoperatingassets.

83

BusinessAdvisor

PlanningCycle

pStrategicReview

pBusinessPlan

pObjectiveSettingandManagementReporting

84

STRATEGICPLANNINGPROCESS

Providesthebackdropforsounddecision-makingandbusinessplanning.Keyelementsofthestrategicplanningprocessinclude:

(1)Acustomerfocus,

(2)AclearVisionandMission,

(3)AffordableBusinessStructuresand

(4)Goals,strategiesandtacticswhichsupportcustomerneedsaswellasthecompanyVisionandMission.

85

STRATEGICPLANNINGPROCESSELEMENTS

pVision:Whattheorganizationwantstobeinthelongrun.

pMission:WhattheorganizationdoesorneedstodotoachieveitsVision.

pStrategicPlan:ThegoalsthatmustbeachievedandthebroadgeneralstrategiesinherentinthosegoalsfortheMission.

pBusinessPlan:Eachoperationdevelopsspecificstrategiesandgeneraltacticsintheformofabusinessplanthatisspecificallytime-boundtoachievetheStrategicPlan.

pBudget:ThecurrentyearoperatingactionsintheBusinessPlan

86

PRODUCTPLANSAREATTHEHEARTOFTHEBUSINESS

pAffordableBusinessStructure:Affordabilityisdefinedbythemarketequationandacompetitiveprofitreturn.

pCompanyFinancialRequirements:Each

majoroperationisexpectedtogeneratesufficientnetcashflowtofunditsgrowthandtogeneratepositiveSVA.

pExternalMarketFactors:Theexternalmarketfactorsdeterminetheparameterswithinwhichyouestablishthevariablesfortheaffordablebusinessstructure

87

FORD’SANNUALPLANNING

PROCESSASANEXAMPLE

pExternalFactorsStudy:Establishesthekeycompetitive,economicandgovernmentalscenariosthatcanaffectthebusiness.

pCyclePlan:Providesa10-yearoutlookforvehicleproductprograms.

pFinancialPlanningVolumes(FPV’s):Representtrendautomotiveindustryandsegmentvolumesusedforlong-termfinancialplanning.

88

FORD’SANNUALPLANNING

PROCESSASANEXAMPLE

pBusinessPlan:ProvidesthefinancialquantificationoftheOperatingPlansandCommitmentsandincludekeyfinancialtargets.

pCashandSpendingPlan:SummarizesthecashneedsoftheOperations’financialplansincludedintheOperations’BusinessPlans.

pFinancingPlans:Aredevelopedbyeachmajorlegal-entitybasedonitsprojectionsofcashtoidentifyfundingneedsforthepresentyearandforthebusinessplanperiod.

89

FORD’SANNUALPLANNING

PROCESSASANEXAMPLE

pBudgets:Reflectthecurrentyearcommitmentonthepartofoperatingmanagementtoachieveidentifiedkeymeasureables.

pProfitForecast:ProvidesmonthlyfinancialinformationforCorporateandoperatingmanagementtomeasuretheirprogresstowardsbudgetcommitments.

90

Business

Planning

Budgeting

OPERATINGCYCLE

CalendarYear

............

Jan.Feb.Mar.Apr.MayJunJulyAug.Sep.Oct.Nov.Dec.

Forecast

1+112+103+94+85+7

6+67+58+49+310+211+1

0+12

12+0

IPV/FPV

91

BalancedScorecardProcessIsA

BusinessPlanningTool

"ThatTranslatesOrganizationPrioritiesIntoAlignedObjectivesAndPerformanceMeasures

"ThatEstablishesAClear“LineOfSight”BetweenCorporateGoalsAndEmployeeContributions

92

BalancedScorecardProcess

BasicElementsOfTheProcessInclude

-Deployment

-ActionPlanning

-IndividualObjectiveSetting

93

TheBalancedScorecardIncludes

"KeyFocusAreas

"PrioritiesToAchieveTheDesiredBusinessResults

"SuccessDrivers

"PerformanceMeasures

"Lead/SupportResponsibilities

94

FordAsiaPacificOwner

FLASH

Viable

Business

Satisfy

Customers

Launchand

improvekey

products

Aggressively

pursue

marketshare

Makethe

businessmore

robust

Buildastrongerteam

PDDirector

FinanceDir

MS&SDir

Bus.Dev.&Assoc

HRDir

Reg&CounMDs

Purchase.Dir

Mfg.Director

FAP2003Scorecard(Taiwan)

BusinessPriorities

Metric200320032001BPTarget

Progress

RYG

OverallCommitment

OverallPerformance

AchievebreakevencashflowStretchtargetforbreakevenprofit

CashFlow($mils)

PBT($mils)/ATROS

SVA($mils)

A

LL

Quality&

CustomerSatisfaction

Deliver10%improvementinCustomerSatisfaction&Quality

High-timeinService

LowtimeinService

SalesSatisfaction(pctcompletelysatisfied)

ServiceSatisfaction(pctcompletelysatisfied)

Numberofcampaignsfornewproductactions

C

C

S

C

S

S

S

S

S

S

S

S

S

C

C

S

S

S

C

C

S

S

S

S

Product

Program&

Execution

Assureaffordabilityofnecessarycycleplanactions

NetSpending($mils)

Engineeringexpense($mils)/eng.as%netrevenue

S

S

C

C

S

S

S

S

S

S

Volume,

Revenue&Marketshare

AchieveBudgetvolume,netrevenue&marketshare.

*Rationalizetraditionalmarkets

NetRevenue($bils)

Parts&ServicePBT($mils)

S

S

S

S

S

S

S

C

C

C

C

C

S

S

S

S

C

C

C

C

C

C

S

S

S

S

S

S

S

S

S

S

RetailVolume('000)

-Fordbrandonly

-AffiliatecontrolledTrustmarkbrands

Marketshare(%)

-Fordbrandonly

-AffiliatecontrolledTrustmarkbrands

Taiwan-completeCMArestructuring(Reducenumberofdealersfrompresent30)

Cost&

Business

Structure

Reducecostandimprovemargins

Improvecapacityutilizationfrom46%in2001to50%

Y-O-YCostPerformance($mils)

Fixedcosts($mils)/fixedcostsasa%netrevenue

TotalMarketingas%grossdomesticrevenue

Warrantycost($mils)/warrantyas%netrevenue

AssetTurns

NetOperatingAssets($mils)

CapacityUtilization(VehicleOps.)(twoshift)

C

S

C

C

S

S

C

C

C

S

C

C

S

S

S

S

S