Come January and many companies will commence the annual ritual of the Financial Budget. Last year Budget will be dusted off, actual year-to-date performance will be reviewed, next year performance target will be demanded from business heads, numbers will be negotiated, financial planning and analysis (FP&A) folks will crunch and consolidate and voila, the EY 16-17 will be ready!
Certainly, this is how the ‘classical’ budgeting process works. But is this how companies now do their budget today? A large number of companies no longer follow this approach and even if they do, the Budget is no longer the ‘Holy Grail’ of annual planning.
“The company benefits immensely if the finance and human resource functions are in accord”
The HR Head and the CFO are the respective leaders of the ‘soft’ and ‘hard’ domains in a company. The former deals with people,culture, and behaviour – the soft side;the latter with data, facts, and money – the hard side. While these may look like completely divergent functions, for a company’s success, they need to be in harmony.Most crucial decisions are usually taken collectively, often with unanimous feedback from both the soft and the hard sides of businesses. Continue reading →
This article is useful to PE Funds and CXO’s of PE invested companies who are eyeing an exit in the next 12-18 months and looking to strengthen/ streamline decision support systems, squeeze cost reductions, enhance governance mechanisms, implement risk management systems which will help them build a case for better valuations closer to the date of an exit either through listing or through sale to another PE fund.
How does a company get itself exit ready? Unfavorable market conditions and not so good business environment are today stated as primary reasons for PE funds and companies not being able to get an exit. A recent article in the Economic Times states that there are close to 630 PE invested companies, which are waiting for an exit. There is pressure and Continue reading →
This article is useful to CXO’s of High Growth companies who want to lead their companies to the next level of growth and recognize that they need modern, experienced and professional finance skill sets to support their vision. This is particularly true for CXO’s of companies, which are PE/VC invested and where existing Finance and IT systems have not kept up pace with the rapid scaling of the business.
Can Robin’s energy and passion alone get him to scale up his business in a sustainable manner? Here’s how Robin managed to do this by investing the right time, energy and bringing people who could relate to his vision. Continue reading →
With over 90% of the businesses run in India promoted, owned or managed by families, is it possible for an ‘outside professional’ to play the role of CFO?
Do such businesses require a ‘professional CFO’ in the first place? Is it possible for a CFO to operate independently and yet win the trust of family promoters? How can a CFO from a structured corporate environment make a tangible difference to family managed companies?
Soumitra Bose, an ex-Lever Finance Director, shares his experience of having made the transition from a leading Professionally Managed Global Consumer Goods major to India’s largest Family Owned/ Managed Flavour and Fragrance Company as their Group CFO.