Business developments in company: Guide from the front
What do successful leaders do in business transformation?
The CEOs we spoke to spent most of their time on developments in their company or business. Simply put, managers do not feel responsible for responding to change, but instead of spending time on tasks related to their business or the changes they organize, they spend most of their useful time modeling themselves or individuals and companies in vain. They do what they wish were in their place.
Demonstrate real ownership by requiring participation and going into the details of business processes.
Some managers want to emulate themselves so well that in response to our question, he critically stated that “malicious people have no place to hide.” Another manager suggested, “You have to be serious and think that we will do this no matter what.” Modeling requires managers to go into more detail about the business. Our research shows that if leaders model this change, they are five times more likely to succeed, and if leaders spend more than half of their time on it, they are two and a half times more likely to succeed.
Involve everyone in the transformation, not just senior business leaders.
Long-term goals and setting a timeline for the CEO need a large team to execute. One CEO was impressed when “his staff came back with a thousand ideas on how to improve the organization.” “Imagine what we could have achieved with 100% of the workforce,” said the company ‘s initial goal of involving only 25 percent of its employees directly.
From the beginning, focus on your immediate activities.
Unsuccessful developments are often hampered by the notion that “it can not be done” or “we can not afford it” or other limited mindsets. Successful launches occur when teams avoid disagreements over long-term challenges and immediately focus on the next step – creating a list of initiative ideas. Over the next nine weeks of the company, these initiatives can emerge as a realistic plan with financially positive results and a workable set of set milestones.
Increase productivity through digitization
This is the first economic disruption that requires a large portion of the global workforce to perform their tasks remotely, and the tools make digital collaboration essential for business to continue. But using the financial team for digitization to help participate in crisis management should not be considered a one-time phenomenon.
Digital initiatives that once seemed out of reach – from auto-closing to instant forecasts – are now important in business. Long after the crisis is over, the CFO and financial team must take the lead in supporting the use of digitalization in the organization. The CFO and financial team can codify the solution they have created – for example, the cash war room, new forecasts and shared dashboards – and help them throughout the organization. This active and aware digitalization embrace will be invaluable in ensuring accurate reporting, informed decision-making and business continuity in the future in any crisis.
At the same time, too much attention has been paid to widespread disruptions in global supply chains. These disruptions have changed business leaders’ ROI-based accounting overnight – and instead of focusing solely on performance, the focus has now shifted to flexible and consistent accounting. Consider how business process outsourcing centers around the world suffer from lock-in and limited bandwidth in their home countries (eg India and the Philippines) and to the extent of disrupting many of the vital processes they support. think. Financial managers need to do the hard work of digitizing and automating core business processes to withstand external shocks and create flexibility.
Imagine and modify: Business regrowth in the next normal condition
After the crisis is over, the CEO naturally wants to move forward. To enable the company to pursue and advance bold strategic actions, the CFO and co-managers must form a small group of talented senior staff tasked with a focus on strategic planning, overseen and supported by senior management and the board. The program team adjusts the game for investments, portfolio changes, and major productivity initiatives that galvanize the company to win and return as strongly as possible after the current epidemic.
There are five major moves that our research shows have the greatest impact on a firm’s ability to perform dramatically in the post-epidemic market: dynamic resource reallocation, program-driven M&A, large investment costs, and profit success. Differentiation and improvement of differentiation, etc. are all important, but in the current crisis, redistribution of resources for future growth, reorganization of the portfolio through purchases and divestitures, and increasing productivity are among the most important issues.
When redistributing resources, adopt a transformational mindset
Crises are often good for structural changes in parts of the business that need to change. This one is not so different from the others. The CFO and the financial organization can well adopt a transformational mindset to determine the overall mindset, performance management, budgeting, or challenging their business in the face of growth measures or related costs. The financial team should begin by reviewing the portfolio with a focus on achieving the full potential of each business unit. At this time, it is time to abandon gradual thinking and look for transformational programs that can increase revenue or reduce costs – not 5 to 10 percent of the workforce but 30 to 40 percent.
Consider how M&A and divestitures can improve your business.
Unstable markets and falling investment can create a good financial environment for M&A. The CFO should be the leading voice in determining how to use M&A as a tool for crisis management (eg through divestiture) and allocating capital to high priority needs (e.g. through products, geography, or supply chain purchases). Be. A programmatic approach to M&A – where companies pursue frequent small and medium-sized purchases – may become a very promising phenomenon during this critical period.
Consider that in the last financial crisis, companies with a planning approach to M&A outperformed the general recession and maintained additional TRS by improving their business. In fact, high-performing companies through the recession (those with the highest TRS rankings) had the highest average annual trading volume in that time period, about six times the performance of low-performing firms. Similarly, resilient companies sold 1.5 times more assets than their non-resilient counterparts.
Adapted from: Articles Return: Stabilizing the business and Reimagine and reform: Thriving in the next normal.