CEOs Organize Forum to Share Best Practices

The rules and regulations are coming from all quarters, but U.S. executives are taking it a step further by creating their own group to monitor corporate performance and accountability.

In the post-Enron corporate world, it has never been a more challenging time to lead a major U.S. corporation. The 2002 Sarbanes-Oxley Act put more responsibility on the shoulders of CEOs to ensure accurate financial reporting and accounting. In a sign that executives are taking the new environment seriously, 175 of them have formed The Business Performance Management Forum.

The Forum was founded with the goals of establishing best practices that will lead to better performance and to help each other comply with strict new accounting standards.

"As the world moves at a faster pace, it's more important than ever for a CEO to know what has to be done to achieve performance," Gil Amelio, former CEO of Apple Computer and a member of the BPM Forum's advisory board, told the Mercury News. "Even if Enron hadn't happened, it would have become clear that accountability was a big issue."

A survey of the group’s members found that 60 percent are unsatisfied with their own company’s financial forecasting accuracy. The Forum will help members address these concerns and will allow them to tap the collective expertise of some of corporate America’s top names.

The survey further found that 85 percent of Forum members are very concerned with how they will institute Sarbanes-Oxley mandates within their companies. Just 21 percent reported available funds for compliance with another 41 percent indicating they expect immediate compliance with the act’s provisions.

"Sarbanes-Oxley has raised the level of concern, but it's also raised the level of anxiety by me as a board member to do a better job," Jeff Rodek, chairman and chief executive of Hyperion, told the Mercury News.

You may like these other stories...

We've all been there. Trying to make our work-lives more efficient, transfer knowledge to newer team members, and leverage our practices. Sometimes it works, and sometimes, well, the result is embarrassing at best.Here...
From May 20-23, the Association for Accounting Marketing (AAM) held its annual conference. Frequent contributor Sally Glick picked up some ideas that she will be sharing with us in the coming days, as she has done in...
Success, for a practitioner in a busy CPA firm, requires the ability to handle multiple tasks effectively. To get everything done, CPAs typically track their agenda with a "to do" list or other open-item systems to...

Upcoming CPE Webinars

Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.
Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.