How Finance Can Help When Business Is Bad
Let’s be honest, when you think of your finance function you still see them as the naysayers, the ones that sit in the corner and try not to disturb the business and only raises their voice when things are getting out of hand. When the CFO is involved in strategic decisions it is to make the rest of the management team more realistic instead of adding further optimism to what could be seen as unrealistic plans. However, your finance function could be so much more and add so much more value to your business.
Finance only gets credit when times are tough
When times are tough it’s the CFO that leads the onslaught on costs and makes sure that the business gets trimmed, however, as soon as the crisis is over s(he) again retreats to the corner or the role of the naysayer which really isn’t where Finance belongs. Most people would now proclaim that crisis is over especially in the US, but even in Europe, you see signs of life. Companies have cut costs and those that survived the crisis are now trimmed more than ever. It is clear though that despite the crisis being over it is somewhat unrealistic to see growth rates of the past. 3% would seem good enough in the US, 2% the same in Europe and even in China they are adjusting to much lower growth rates around 6-7%. So in some way, you could say that times are still tough.
Finance as the facilitator
Finance no longer holds a central role though in driving forward the business. It is Sales and Marketing that is now leading the onslaught for growth, market share and world domination. As long as Operations can ensure them the capacity then everything is rosy and Finance really only needs to manage performance and make sure that information is available on th