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Hire a CFO Call us 1300 447 740

Tag: business strategy

Top 7 Advantages of a Part Time CFO

by lauramills
Top 7 Advantages of a Part Time CFO

A part time CFO is the ideal solution for SME businesses looking to scale, who can’t afford or don’t need a full time resource. One of our clients recently said “it’s the best money I’ve ever spent”.

That’s because a part-time CFO will provide your company with the high-level financial expertise necessary to increase profit, improve cash flow and scale up, for a fraction of the cost of a full-time CFO.

Here are the top seven advantages you can expect when you hire a part-time CFO.

1.   Increased Profit

The number one thing most business owners want!  Having a part time CFO on your team, with their years of commercial experience across many industries, they can increase profits of most businesses by tweaking the levers every business has to increase profit.  For this reason alone, it’s worth considering a part time CFO.

2.    Strategic advice

Your part-time CFO will provide you with strategic analysis and support on every financial aspect of your business. A report from the Financial Executives Research Foundation (FERF) found CFOs play key roles in not only managing a company’s finances but also in setting broader strategic goals and establishing and achieving financial and non-financial milestones.  What’s more, part time CFOs can highlight potential threats or risks of which you and your team may be unaware or perhaps don’t know how to deal with.

3.    Flexibility

You can use the services of your part time CFO for what you need, when you need it. That could be for a variety of different financial functions or a specific project. This means you and your CFO can tailor the role to suit your company’s needs at any time.

4.    Multiple industry experience

Although you can choose to work with part time CFOs who have direct experience in your given industry, you can also opt to work with those that have experience across multiple industries. The advantage will be that your CFO will provide you with access to networks and multi-layered insights that you might not otherwise have.

5.    Sounding board

Running a company can often be a lonely and stressful experience for CEOs, according to The CFO Centre’s Chairman Colin Mills in his book ‘Scaling Up How to Take Your Business to the Next Level Without Losing Control and Running Out of Cash’.  He’s seen first-hand what pressure does to business owners.

“I’ve sat in sales meetings with entrepreneurs who had literally been brought to tears by stress and frustration and the feeling that it’s all too much.”

That’s where a part-time CFO can help. He or she can act as an independent sounding board for the over-burdened, stressed-out business owner. With their ‘big business’ experience, it’s more than likely CFOs can provide solutions to what can seem like overwhelming problems to the CEOs of growing businesses.

6.    Access to a national and international network

If you choose a part-time CFO from an organisation like The CFO Centre, you’ll benefit from the expertise from all the CFOs in its worldwide network. That’s hundreds of years of experience in every aspect of finance—all for a fraction of the cost of employing a single full-time CFO.

7.    Enjoy life through your business, sooner

With the help of a part time CFO, your business will start delivering on what’s really important to you so you get to live the life you choose (eg. more time with family, more time on rather than in your business).

To discover how the CFO Centre will help your company, please call us on 1300 447 740, contact us or watch our short video How it Works.

Photo by Headway on Unsplash

The Ultimate Guide To Strategic Planning

by lauramills
The Ultimate Guide To Strategic Planning

The Importance of Strategic Planning

Strategic Planning is the key to the success of any business, no matter its size or age. The strategic plan sets out:

  • the company’s direction and priorities;
  • its main operating and financial targets,
  • the actions it will take to achieve those objectives,
  • the new initiatives and investments planned, and
  • their impact on performance.

As we swiftly approach the end of 2023, now is a great time for reflection. What were your objectives for this year? Are you on the way to achieving them, or have other things got in the way?

Some SME owners keep plans in their head, but a formal plan is an extremely valuable tool for managing and growing a business, as it: 

  • clearly communicates the company’s priorities
  • ensures all key staff are working towards common goals
  • sets the focus on key objectives
  • delegates actions and accountabilities amongst employees
  • ensures that decisions made will benefit the long-term company goals
  • highlights strengths and weaknesses.
Failing to plan is like planning to fail

Not spending quality time on strategic planning usually leads to a chaotic working environment. Our clients often talk about ‘not feeling in control’ and ‘not really knowing what is coming around the next corner’. When the plan is weak, business owners tend to operate without the same sense of conviction as those who allocate time and expertise to the planning process. Our CFOs often find that their clients have done some good planning and strategic thinking but need a devil’s advocate to ask the right questions and help to steer the ship in the right direction.

4 Mistakes Business Owners Can Make

  1. They don’t have a plan at all
  2. They don’t have a formal plan, it’s in their head which is difficult to share with others
  3. They don’t have an implementation timetable attached to their plan
  4. They don’t have a mechanism in place to conduct regular reviews

Without a comprehensive, up-to-date strategic plan and an implementation timetable, companies may be missing out on opportunities for growth and not realising their full potential. A formal plan can be an extremely valuable tool for managing and growing a business, as it allows a company to recognise its strengths and weaknesses. 

The Importance of Reviewing Your Plan 

Strategic Planning is integral to business success, however a plan is only useful if it is reviewed regularly to ensure it meets the current and future needs of the business.  It’s vital business owners regularly review their financial strategy to ensure they have the right funding in place to meet the needs of their business, at its current stage of the business lifecycle. 

Most CEOs simply don’t have the time to spend on quality strategic thinking and to document and communicate that thinking in a way which allows the whole business to buy into the vision. Harder still is managing and implementing the business plan. Significant strategic course corrections are commonplace in fast-growing companies. These should therefore, be embraced. The tricky part though is in managing regular change. That requires a combination of time and specialist knowledge. 

There is an art and science to effective strategic planning. Getting it right brings a real sense of clarity and direction to a business – this is where an experienced part-time CFO can make a significant contribution. 

Creating Your Plan

Step 1: Analysis

1.  Analysis of Existing Situation – Organisational Philosophy & Mission & Value

  • Does it reflect what you stand for?
  • Do your people understand its true meaning?
  • Does it make it clear as to how you have to compete and against whom?
  • Is it simply written? Is it clear and unambiguous?  Is it believable and realistic?
  • Does it motivate people? Does it attract pride or cynicism?
  • Does it give us some indication of what we should be doing and how we should be doing it?
  • Do all the constituent parts fit and hang together?
  • “Identity Pyramid” – do you have clarity around all the issues?

2. Internal Appraisal of Company
  • SWOT analysis – revisit previous analysis & ensure it is complete & current
  • Distinguish between endowments and core competencies
  • Assess and audit core capabilities.
  • Gauge fit between external environment and core capabilities
  • Identify fit between customer requirements and core capabilities

Having identified what you perceive to be your competences ask yourself the following questions:

  • Will this give us any source of long term sustainable competitive advantage? Clarify the how? (ie. how relevant is it to the needs of our customers (actual and potential)).
  • Do customers (broadly) agree with our findings (ie. the market place)?
  • Can competitors (present/future) emulate or do better? Do they share our perception?
  • How was this list of core competences arrived at (eg. Training, innovation etc)?
  • Any weaknesses/shortfall still? If so, what further investments will be required?
  • Is there any impact on the strategic balance sheet (ie. Intangible and human assets)?
  • Can it be levered, onto other applications and/or markets?
  • What happens next?
3. Competitive Analysis
  • What is the current process for this task?
  • The Positioning Statement (competitive positioning) – refer below
  • Scan present competitive position but focus also on future competition.
  • Do you really know your competitors strategy?
  • Understand changing face of competition
  • Who could be a future competitor?
  • Is your strategy and your competitors becoming more alike or more divergent?
  • What is the most radical thing that your competitor(s) could do?

4.Value Proposition
  • Consider or revisit the current Unique Sales Proposition within your Marketing plan & ensure it is complete and up-to-date.
  • Do you know why your customers buy from you and not you competitor(s)?
  • Have you asked them?
  • How can you improve customer experience?
5. Environmental & Industry Analysis
  • Consider legal, social, political, economic, technological, markets, labour position, society, pressure groups, and any other environmental issue.
  • Assess potential impact of any change(s) and consider timing implications.
  • Conduct intensive industry analysis.
  • What is the long-term viability of the industry as a whole?
  • What could change the industry dynamics?
  • What is the nature of current industry changes i.e. radical, creative, intermediate or progressive?
  • What could be the impact on your strategy and source of competitive advantage of such changes?
  • Five years or so from now how will the industry leaders look and act?

Step 2: Strategic Thinking

1. Identify Strategic Alternatives

  • All options to be examined – growth, acquisitions, alliances, JV’s, innovation.
  • Upside and downside risks identified

2. Strategy Evaluation & Selection

  • Clear choice to be made
  • How will we compete?
  • Evaluate impact of each option
  • Will it give unique competitive advantage?
  • Can it last? Can it be sustained?
  • Will it differentiate us from our competitors?
  • Can it be converted easily into a set of business objectives / KPI’s?
  • How will competitors react?
  • Easy to implement?
  • Contingencies in place?
  • What about the next wave?
  • Is it consistent with customer requirements and industry changes?
  • Will it create shareholder value?
  • Is it financially viable?

Step 3: Implementation

1. Matching Strategy & Organisational Structure 

  • Do we have the necessary resources?
  • Is there a logical fit?
  • Is current structure adequate? Assess extent of change. Do not ignore culture effect.
  • What about the organisation’s values?
  • Is strategy personalised enough? Assess flexibility and robustness.

2. Allocation of Resources & Responsibilities

  • Planning, Plans, budgets, controls, appraisals etc….. all to be consistent with strategy
  • Strategy well translated into clear objectives
  • Priorities and constraints identified
  • Time horizons clearly laid out
  • Management information systems to dovetail strategic choice

3. Regular Reviews & Adjustments

  • Planning, plans, budgets, controls, appraisals etc…all to be consistent with strategy

Strategic Planning – How a CFO Will Guide You

Under The Spotlight – The CFO as a Strategist

Photo by Rohan Makhecha on Unsplash

The Strategic Planning Checklist

by lauramills
The Strategic Planning Checklist

Our Ultimate Guide to Strategic Planning

Part A: Strategy Check List

1. Analysis of Existing Situation – Organisational Philosophy & Mission & Value

  • Does it reflect what you stand for?
  • Do your people understand its true meaning?
  • Does it make it clear as to how you have to compete and against whom?
  • Is it simply written? Is it clear and unambiguous?  Is it believable and realistic?
  • Does it motivate people? Does it attract pride or cynicism?
  • Does it give us some indication of what we should be doing and how we should be doing it?
  • Do all the constituent parts fit and hang together?
  • “Identity Pyramid” – do you have clarity around all the issues?

2. Internal Appraisal of Company

  • SWOT analysis – revisit previous analysis & ensure it is complete & current
  • Distinguish between endowments and core competencies
  • Assess and audit core capabilities.
  • Gauge fit between external environment and core capabilities
  • Identify fit between customer requirements and core capabilities

Having identified what you perceive to be your competences ask yourself the following questions:

  • Will this give us any source of long term sustainable competitive advantage? Clarify the how? (ie. how relevant is it to the needs of our customers (actual and potential)).
  • Do customers (broadly) agree with our findings (ie. the market place)?
  • Can competitors (present/future) emulate or do better? Do they share our perception?
  • How was this list of core competences arrived at (eg. Training, innovation etc)?
  • Any weaknesses/shortfall still? If so, what further investments will be required?
  • Is there any impact on the strategic balance sheet (ie. Intangible and human assets)?
  • Can it be levered, onto other applications and/or markets?
  • What happens next?

3. Competitive Analysis

  • What is the current process for this task?
  • The Positioning Statement (competitive positioning) – refer below
  • Scan present competitive position but focus also on future competition.
  • Do you really know your competitors strategy?
  • Understand changing face of competition
  • Who could be a future competitor?
  • Is your strategy and your competitors becoming more alike or more divergent?
  • What is the most radical thing that your competitor(s) could do?

4.Value Proposition

  • Consider or revisit the current Unique Sales Proposition within your Marketing plan & ensure it is complete and up-to-date.
  • Do you know why your customers buy from you and not you competitor(s)?
  • Have you asked them?
  • How can you improve customer experience?

5. Environmental & Industry Analysis

  • Consider legal, social, political, economic, technological, markets, labour position, society, pressure groups, and any other environmental issue.
  • Assess potential impact of any change(s) and consider timing implications.
  • Conduct intensive industry analysis.
  • What is the long-term viability of the industry as a whole?
  • What could change the industry dynamics?
  • What is the nature of current industry changes i.e. radical, creative, intermediate or progressive?
  • What could be the impact on your strategy and source of competitive advantage of such changes?
  • Five years or so from now how will the industry leaders look and act?

Part B: Strategy Selection

 

1. Identify Strategic Alternatives

  • All options to be examined – growth, acquisitions, alliances, JV’s, innovation.
  • Upside and downside risks identified

2. Strategy Evaluation & Selection

  • Clear choice to be made
  • How will we compete?
  • Evaluate impact of each option
  • Will it give unique competitive advantage?
  • Can it last? Can it be sustained?
  • Will it differentiate us from our competitors?
  • Can it be converted easily into a set of business objectives / KPI’s?
  • How will competitors react?
  • Easy to implement?
  • Contingencies in place?
  • What about the next wave?
  • Is it consistent with customer requirements and industry changes?
  • Will it create shareholder value?
  • Is it financially viable?

Part C: Strategy Implementation

 

1. Matching Strategy & Organisational Structure 

  • Do we have the necessary resources?
  • Is there a logical fit?
  • Is current structure adequate? Assess extent of change. Do not ignore culture effect.
  • What about the organisation’s values?
  • Is strategy personalised enough? Assess flexibility and robustness.

2. Allocation of Resources & Responsibilities

  • Planning, Plans, budgets, controls, appraisals etc….. all to be consistent with strategy
  • Strategy well translated into clear objectives
  • Priorities and constraints identified
  • Time horizons clearly laid out
  • Management information systems to dovetail strategic choice

 

Photo by Andrew Neel on Unsplash

The Top 4 Mistakes People Make When Planning

by lauramills
The Top 4 Mistakes People Make When Planning

A strategic plan is fundamental, it sets out the company’s strategic direction. It defines its main operating and financial targets, the actions it will take to achieve those objectives, the new initiatives and investments planned, and their impact on the company’s performance.

The top mistakes business owners can make when it comes to planning are:

  1. They don’t have a plan at all
  2. They don’t have a formal plan, it’s in their head which is difficult to share with others
  3. They don’t have an implementation timetable attached to their plan
  4. They don’t have a mechanism in place to conduct regular reviews

Without a comprehensive, up-to-date strategic plan and an implementation timetable, companies may be missing out on opportunities for growth and not realising their full potential. A formal plan can be an extremely valuable tool for managing and growing a business, as it allows a company to recognise its strengths and weaknesses.

Chaos Reins

Not spending quality time on strategic planning usually leads to a chaotic working environment. Our clients often talk about ‘not feeling in control’ and ‘not really knowing what is coming around the next corner’. When the plan is weak, business owners tend to operate without the same sense of conviction as those who allocate time and expertise to the planning process. Our CFOs often find that their clients have done some good planning and strategic thinking but need a devil’s advocate to ask the right questions and help to steer the ship in the right direction.

Helping Hand

Being a CEO without a high-level finance person to bounce ideas off can be tough. CFOs often possess a different albeit complementary set of skills to CEOs/MDs. It is natural for business owners to bring people into the company who see the world in the same way they do. However, it is often more valuable to have key members of your team who possess very different skills to your own.

Constantly doing the same things in the same way with the same people will usually lead to achieving the same results. If you are worried about whether you have the right team in place to fulfil the vision you have for your business, or whether you have the funds you require, or whether your business plan is sufficient to reach your objectives, then we would recommend you take the time out to work through the detail. It is rare to see a company succeed if it doesn’t have a robust plan.

Our part-time CFOs often work with clients who started off with intentions to run a business and have ended up working in a job. However, with the right business plan in place and a robust implementation approach, the business owner is able to run the business without getting drawn too far into the day-to-day details. Contact Us if you would like to discuss your options.

How A Strategic Plan Will Change Your Business

by lauramills
How A Strategic Plan Will Change Your Business

Strategic Planning is the key to the success of any business, no matter its size or age but it’s said that many small to medium-sized businesses don’t have a plan of any kind.

What is a Strategic Plan?

The strategic plan sets out:

  • the company’s direction and priorities;
  • its main operating and financial targets,
  • the actions it will take to achieve those objectives,
  • the new initiatives and investments planned, and
  • their impact on the company’s performance.

Nearly a fifth of SMEs say they prefer to keep plans in their head, according to research by Close Brothers Asset Finance. Mike Randall, CEO of Close Brothers Asset Finance, says, “It’s concerning that so many small and medium sized firms do not have a strategic business plan.  Without clear direction, they may be missing out on opportunities for growth and not realising their full potential.”

A formal plan is an extremely valuable tool for managing and growing a business as it:

  • clearly communicates the company’s priorities
  • ensures all key staff are working towards common goals
  • sets the focus on key objectives
  • delegates actions and accountabilities amongst employees
  • ensures that decisions made will benefit the long-term company goals
  • allows a company to recognise its strengths and weaknesses.

Failing to plan is like planning to fail

Strategic Planning is an area SMEs should be focusing on.   Furthermore, a plan is only useful if it is reviewed regularly to ensure it meets the current and future needs of the business.  It’s vital business owners regularly review their financial strategy to ensure they have the right funding in place to meet the needs of their business, at its current stage of the business lifecycle.

Most CEOs and MDs simply don’t have the time to spend on quality strategic thinking and to document and communicate that thinking in a way which allows the whole business to buy into the vision. Harder still is managing and implementing the business plan. Significant strategic course corrections are commonplace in fast-growing companies. These should be embraced. The tricky part though is in managing regular change. That requires a combination of time and specialist knowledge.

There is an art and science to effective business planning. Getting it right brings a real sense of clarity and direction to a business. This is where an experienced part-time CFO can make a significant contribution.

There is an art and science to effective strategic planning. Getting it right brings a real sense of clarity and direction to a business.

Business Plan for Funding

It’s likely at some point in your business journey, that you need access to funding. Whether that be to scale faster, expand into other territories or buy other businesses.

External funding could be via banks, non-bank lenders, venture capitalists, and angel investors.  None of these are unlikely to look at any funding request that isn’t accompanied by a very solid business plan.  It defines exactly what you want to achieve, and how you plan to achieve it across a set time period. It’s a sure-fire way to ensure that growth targets and plans are being met.

However, business owners will struggle to formulate a concrete business plan without firstly ensuring that their strategic plan is solid and robust.

Our team can assist in creating and implementing a solid strategic plan and/or business plan that paves the journey for your business. Click here to find out more, or contact us on 1300 447 740.

4 Signs That My Business Might Need CFO Services

by lauramills
4 Signs That My Business Might Need CFO Services

I have recently been talking to business owners and executives who want to build more resilience into their business. They are considering adding a part-time Chief Financial Officer (CFO) to their team.  During these discussions, two questions usually come up.  “How do I know if my business needs a CFO?” and “what does a CFO do that my Accountant can’t?”.  I would like to share some thoughts on these questions.

The primary responsibility of a CFO is to optimize the financial performance of a company. This includes its reporting and accountability, liquidity, return on investment and long-term value creation.

A CFO has a forward-looking perspective. They look at interactions of the business with outsiders, acting as a diplomat and negotiator with third parties.  Often the strategies put in place by a CFO are not short-term fixes. Some may take months or years to be fully realised.

How do I know when my business needs a CFO?

As to the question of when a business needs a CFO, the following indicators may be helpful.

  1. Internal – When information that helps in making important decisions is not timely or reliable.
  2. External – When improved respect must be gained outside the business. eg from investors, customers, suppliers, labour markets, regulators etc.
  3. Rapid Growth – Growth requires an expansion of systems, and usually additional capital to finance the growth.
  4. Exit – When a business is preparing for a merger, acquisition, or business sale.

So, when the business is at the stage of increased external engagement and growth, a CFO can add significant value.

What does a CFO do that my Accountant can’t?

A CFO always works closely with the external Accountant. Having an accounting background, the CFO is well placed to understand the role of the external Accountant.  The external Accountant’s role is mostly concerned with compliance and transactional advice.  They work from their own offices and will normally attend the client’s business premises periodically.  External Accountants often have the skill sets to provide additional services. However, they are usually not involved closely enough in the running of the business to make this a sensible use of their time.

Functions such as the below will either fall to the CFO or some other suitably qualified resource will need to be allocated:

  • Budgeting and forecasting
  • Cash flow management
  • Financial reporting
  • Scenario planning
  • Internal controls
  • Insurance
  • Bench-marking and key performance indicators
  • Incentive schemes
  • Management of key suppliers
  • Accounting policies

If the business doesn’t have a CFO, the CEO or one of the Directors have to take ownership of these functions.  This means they are taken away from other important leadership and governance roles. They also may not have the depth of experience in the technicalities of financial transactions to handle these things well.

Some of the common misconceptions about a CFO

There are some common misconceptions about a CFO that are worth discussing.

The first misconception is that a CFO may have an excessive focus on short-term financial results ie this year’s profit.  Financial success of the business is undoubtedly the objective of any CFO. This, however, does not mean sacrificing long-term value creation for short-term results.  A CFO is interested in the success of all business stakeholders. This includes owners, employees, customers, suppliers, financiers etc. All stakeholders must be rewarded to ensure the long-term health of the business.

CFOs are therefore, likely to be just as interested in the business strategy as they are in the profit and loss statement. In addition, culture, reputation, governance, and risk management will be on their radar. A good CFO recognises that sustainable financial success is only achieved when all aspects of a business are working well.

Another commonly held misconception is that CFOs think in “black and white”. That therefore, they may not be comfortable with the various shades of grey that business and life deal up.  Whilst that may be true for some aspects of a CFO’s decision-making, good CFOs will look closely at the underlying issue.  For example, CFOs are often involved in analysing the performance of a business or even individuals.  In understanding performance, a CFO will often consider a range of underlying factors. This can include; roles and responsibilities, resources, delegated authorities, remuneration and incentive systems, behavioural assessments, management approach, and organisational structure and culture.  CFOs are first and foremost experienced corporate managers. They understand that people are usually the most critical resource in businesses. From experience, most CFOs are skilled at dealing with people issues sensitively.

If you’d like a confidential discussion about whether a part-time CFO could be right for your business, please contact us.

Allan Robb, CFO at the CFO Centre

Step Back and Allow Yourself to Dream

by lauramills
Step Back and Allow Yourself to Dream

The Challenge

One of the toughest challenges for owners of SMEs is to be able to stand back. To look at their business through a wide-angle lens and identify what it is they really have.

When you started your company, you almost certainly allowed yourself to dream. Every successful business operator needs ambition. But as we’ve seen, all too often those aspirations become bogged down in the everyday grind of keeping a business afloat.

Because quite often, the day-to-day distractions and diversions that inevitably surround the running of a successful business get in the way. This affects sensible, objective evaluation and strategic decision-making. Crucially, important opportunities can go at best un-exploited and at worst, un-noticed.

If this resonates with you, what can you do to change the status quo? Ultimately you need an extra pair of hands at a senior level to free up your time and allow you the time to dream.

The Solution

The key could be a CFO (Chief Financial Officer).  Whether that is promoting from within, hiring a full timer for a large business, or using a part-time CFO making it affordable for SMEs.

A CFO can be that extra pair of hands to free up your time by ensuring the smooth running of the finance function. They will also being a senior sounding board, taking on some of your worries as well as:

  • help decode your dream
  • turn your dream into a plan
  • be the one to hold you to account to make it happen.

Great CFOs are catalysts. They can help you break the pattern of linear growth and get you what you really want on an expedited timetable.

Your dream is achieved by developing a concise roadmap based on what you want to achieve. The role of the CFO is to help you identify and unlock that potential. Thus, freeing the dream and making it a reality.

Of course this is not to suggest that success comes easily. Business challenges are usually complicated and risky. That’s another reason why potential isn’t always realised.

If you’d like to learn more about how our part-time/as needed CFOs can help you unlock and realise the true potential in your business, please contact us

Photo by carolyn christine on Unsplash

Why Weathering The Storm Might Not Be The Best Strategy

by lauramills
Why Weathering The Storm Might Not Be The Best Strategy

Business Strategy in a downturn

 

Why reducing costs and “weathering the storm” may not always be the best business strategy.

 

Businesses are facing a perfect storm. High and persistent inflation. Input costs are rising twice as fast as selling prices are rising. Margins are being squeezed. Human talent is scarce, expensive and increasingly demanding. Consumer demand is falling from cost-of-living pressures and slowing economic growth. Lastly, global supply chain challenges.

Defensively cutting back on discretionary spend may not always the best solution. The actions taken at start of contractionary periods are critical to how the business will exit these periods. Gartner research show that the companies that made the correct  decisions in the 2007-2009 downturn outperformed their peers for the next decade.

FOUR KEY AREAS TO FOCUS ON

 

COSTS
  • Meaningful costs reductions will generally have an adverse operational effect. Impact on the long term business plans must be considered. If costs must be cut, understand the trade-offs involved, and prioritise the cost reductions to minimise the long term impact within your strategy.
  • Challenge workflows and processes, not only to reduce costs, but make the business more nimble.
  • Accelerate movement to cloud to reduce IT asset spend and improve cashflows.

 

TALENT

Ensure your organisation is one that talented staff would like to work for, e.g., work practices, culture, challenges and opportunities. Ensure your Employee Value Proposition is attractive and clearly communicated. Make sure that key digital talent is secured. See below.

 

DIGITAL

A clear digital strategy is essential. Ensure you attract and retain staff who can analyse,  decide, enable and execute these strategies.  Digital transformation can improve resource management, lower costs, enhance supply chain, improve customer experience, and gain insight into customer trends.

 

EXPANSION
  • A slowdown may well be the best time to secure that scarce digital talent, when other companies are reducing costs and laying off staff.
  • It may also be an opportune time to buy businesses and assets at attractive prices
  • It may present opportunities to gain customers and sales when your competitors are bunkering down

 

SUMMARY

The current business environment is challenging and uncertain, and likely to stay that way for quite a period. Weathering the storm may well be the best strategy for some businesses.

But for well-resourced companies, with good products/services and growth aspirations, risk also represents opportunities. The winners emerging from these times will be better positioned to capitalise on the growth that invariably follows.

Gary Campbell is an experienced “on demand” CFO consultant, based in Victoria, working for The CFO Centre Australia. He is particularly successful at profit improvement, financial turnarounds, risk management within manufacturing and distribution sectors. He can be contacted here or call us on 1300 447 740