A CFO’s Priorities: Seizing Opportunities During an Economic Downturn
There’s No Doubt About It, Economic Downturns Are Challenging, But Using Technology Properly Can Help You Position Your Organization for Growth, Despite the Current Circumstances…
Every CFO knows that operating during an economic downturn can be tricky, and naturally, the coronavirus pandemic has brought about a significant impact on the economy as social distancing has slowed all activities down. As we return to some sense of normalcy, many organizations will face difficult decisions. Should you hire internally or outsource? Will employees continue to work remotely or come back into the office? Amongst all of the decisions, CFOs will also be working hard to:
- Modeling cash flow to identify liquidity
- Understanding and getting ahead of current debt
- Diversifying and securing new lines of credit
- Managing accounts receivables and dealing with disputes
It’s important to note, however, that despite the difficult time, it’s possible to position your organization for growth and outpace your competition. How? It’s all in the technology choices you make.
Priority #1 for CFOs: Driving Operational Efficiencies
At the heart of operational efficiency is business output. What is your desired business output? Are you looking to streamline the time it takes to accomplish projects? Or speed up how long it takes to complete product development from start-to-finish? When it comes to driving operational efficiencies, it’s all about doing more with less.
CFOs must consider working with an outsourced IT company that knows how to leverage technology for the purpose of:
- Accessing measurable, real-time insight through data analytics
- Improving processes and/or workflows with automation
- Providing employees with the tools for collaboration
Ultimately, operational efficiency relies on technology nowadays. It’s the most essential aspect to ensure your operations are smooth and seamless. An IT company works well with those facing shrinking budgets as they provide all of their services and support for a flat-rate monthly fee that’s easy to budget each and every month.
Priority #2 for CFOs: Reducing Ongoing Expenses
As CFOs face the need to preserve cash and work with shrinking budgets, it’s more essential than ever to reduce ongoing expenses. Many organizations have already started embracing cost-reduction initiatives, such as:
- Restructuring their staff with layoffs and/or embracing remote work options to keep costs low in terms of real estate, workstations, office supplies, etc.
- Restructuring their information technology environment as they move from on-premise equipment to cloud-based environments.
This is another priority that requires CFOs to consider outsourcing to an IT company. Essentially, outsourcing allows you to shift high-fixed costs to variable costs that can be adjusted as needed. You pay a flat-rate monthly fee for what you need, and as an added benefit, an IT company uses proactive measures to minimize downtime – meaning less unexpected costs associated with repairs and/or troubleshooting:
- Around-the-clock monitoring to detect and resolve minor issues on the network that would otherwise turn into downtime.
- Regular maintenance with patches, updates, etc. taking place as needed to keep equipment functioning properly.
- Comprehensive cybersecurity measures that protect against costly and dangerous malware infections.
An IT company is also able to assist with leveraging the right mix of technologies to keep operational costs low – from switching on-premises equipment to cloud-based environments to embracing automation for time-consuming, manual tasks.
Priority #3 for CFOs: Preparing for Resiliency Against Future Disruptions
It’s no secret… Coronavirus isn’t the first disruption we’ve seen and it won’t be the last. We often think of business contingency planning in terms of storms, floods, and fires. But now, we’ve seen the potential for a much larger scale disruption come to life. For CFOs, it’s imperative to prepare the organization for resiliency against future disruptions. An IT company is able to assist with business contingency planning that keeps short and long-term disruptions in mind with:
- Communication solutions such as collaboration tools for video conferencing, VoIP business phones, and other equipment.
- Remote access solutions that give employees any time, anywhere access to your applications and data from home.
- Emergency procedures that outline how to recover from outages, transition to remote work, and any important emergency contact information.
- Cybersecurity solutions designed for home computers with enterprise-grade capabilities, including anti-virus software, spam protection, and more.
CFOs must navigate the COVID-19 crisis – preparing for scenarios of varying degrees of duration. We can help. Let’s talk about your priorities. Reach out to us via the chatbox.