As confirmed by Chancellor Rishi Sunak on the excellent 1Andrew Marr Show, this weekend, the second lockdown is inching towards completion.
So how do businesses continue to frame growth within the new paradigm?
Orthodox thinking remains valid and businesses should still examine the careful redeployment of existing resource as the most efficient means of growing revenue and bottom line.
How do businesses work out the optimal redeployment of existing resources for growth?
Existing allocations of resource are typically aligned with past performance2. So ensure your Finance Director or CFO explores freeing up 20-30% from each unit line and models a reallocation and redeployment over to growth plans. The impact on existing vs new growth revenues must be evaluated for the present and medium terms.
CFOs and Finance Directors must have a live understanding on the level and effectiveness of resourcing across the business.
Questions to be answered include “Are our resources currently deployed to meet the next phase of growth? What changes need to be made to achieve this?”
‘The 5D FD’ White Paper attached underpins the importance of ensuring the CFO is right-skilled and able to understand and pro-actively deliver optimal resource allocation as the business evolves.
To learn more about ‘The 5D FD’ and how Acuity Associates uses The Acuity Method™ to ensure the right skills are present in the CFO email firstname.lastname@example.org and request a call back.
1 The Andrew Marr Show – 22/11/2020 https://www.bbc.co.uk/iplayer/episode/m000prj5/the-andrew-marr-show-22112020
2 Doherty, R., Gaibi, Z., Kelkensberg, F., & Koivuniemi, A. (2020, November 19). Eight lessons on how to get the growth you planned. https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/eight-lessons-on-how-to-get-the-growth-you-planned?cid=other-eml-alt-mip-mck