By Rich Bond
Consulting powerhouse McKinsey just posted an excellent article about the role CFOs can play in making sure their companies come out of the coronavirus crisis in better shape than they might otherwise (“The CFO’s Role in Helping Companies Navigate the Coronavirus Crisis”). I think the article offers great free advice and insight that most companies need but cannot afford to buy from a top consultant. The writers delve into lessons learned from a subset of leading companies that McKinsey dubs “the resilients” and how they came roaring out of the 2008 world financial crisis to outperform their competitors.
If you’re running a small or privately held business, the advice McKinsey has for CFOs of the Fortune 500 is even more critical for you, as you have even less margin for error. In my opinion, the most valuable recommendation McKinsey makes is to “turbocharge the role of financial planning and analysis.” The Financial Planning and Analysis (FP&A) team can give the company the tools to effect a 30% to 40% boost in profits when the crisis has eased, rather than merely 5% to 10% by reallocating resources.
The article points out, however, that many organizations lack the FP&A resources to get the things done that really need doing and may have to search outside for such talent or move people within.
I’m interested in hearing your opinions about McKinsey’s article or in learning what you may be doing to get the most out of your financial executives to emerge strongly from our current Covid-19 crisis. Email me at: firstname.lastname@example.org or call me at: (203) 221-3233.