As a CFO charged with managing the COVID-19 response, what steps are you taking?
I hope they have not been blanket cost-cutting exercises.
Here’s what your peers – at efficient growth companies - are doing.
According to Gartner (1 – 5 are my picks too):
Double-down on bets.
> Pump up R&D budgets to 2x
> 1.4x more M&As with 21% larger deals
Get the whole business’s buy-in
> Equip all internal stakeholders to contribute with ideas
Spend more time with customers.
> High-functioning CFOs spend ~5% of their time working with customers – now doubling to 10%
Protect competitive advantage at any cost
> Even if it means taking a contrarian approach to market
Add new check-posts & advance exit triggers
> Advance/ Pre-pone triggers to evaluate ROI on current non-strategic investments
> Get ‘stop-loss’ points on investments
Dial back your products/ services.
> 24% lesser products/ services
Keep strategy coffers flowing.
> Make available additional resources if required to expedite strategic initiatives
Remove obstacles with clarity & culture
> Make teams ok with ‘experimentation’
Mix up budgeting systems
> ZBB/ KVD based budgeting systems can clarify what cant lose steam
Do you have any other tips?
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