CFOs finding some security during times of uncertainty
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CFOs finding some security during times of uncertainty

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There is a lot we can learn by observing behavior and human nature. Depending on our level of apprehension or fear about the future, we decide what initiatives to cut and what to save. Having the ...

There is a lot we can learn by observing behavior and human nature. Depending on our level of apprehension or fear about the future, we decide what initiatives to cut and what to save. Having the responsibility of being your organization's financial captain, the pressure ... Read more here...

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CFOs finding some security during times of uncertainty CFOs finding some security during times of uncertainty Document Transcript

  • Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com © 2012 Taico® Incentive Services Inc. CFOs Finding some security during times of uncertainty. There is a lot we can learn by observing behavior and human nature. Depending on our level of apprehension or fear about the future, we decide what initiatives to cut and what to save. Having the responsibility of being your organization's financial captain, the pressure is on you to always have the right answers. I don't speak as one myself but as someone who has worked with CFO's in the hospital and manufacturing industries. I have observed, first hand, the knee jerk reaction by some CFOs to cut back when the economic news looks bleak. They instantly focus on streamlining rather than growth. No criticism on this. You must look realistically at your organization's state of financial affairs. Some CFO's have confided that when the economic landscape doesn't look so great, they consider a roll of the dice before choosing a path on an issue. During these uncertain times, its natural to be somewhat tentative about where and in whom to invest company resources. No doubt every organization has its unique challenges and workplace culture. The factors that go into a CFO's dollar allocation decisions are numerous. The good news is that more and more financial leaders are turning to their employees as a valuable resource. Investing in this valuable asset can boost value and profits. Lets take a look at today's economy and how investing in your workforce can offer big returns. Employees cost money by paying them wages and benefits. Other necessary costs may include infrastructure, equipment, promotion and administration. Nobody needs to tell you, not every cost is an investment. Expenditures become investments when they achieve a worthwhile result or increase your value to customers and your industry. When it comes to employees, one of your best investments is helping them achieve their full potential, improve their motivation, and strengthen their loyalty and engagement. Engagement will empower your organization to reach higher performance and profits. As I have learned with hospital CFO's, reducing their workforce stress levels and investing in creating a happier staff improves everything. Share This
  • Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com © 2012 Taico® Incentive Services Inc. In the case of a film editor, for example, the investment in his tools and equipment translates into greater knowledge, better performance, better product and subsequently more customers. Everyone in his sphere of influence benefits. He has the option of putting his money into cheaper quality tools. But he chooses to achieve better results and gets more years from his investment in the higher quality. In much the same way, working along with your HR, you can optimize your company's tool box investment. Making strategic investments into your workforce will empower employees to make huge contributions toward your bottom line. These types of strategic employee investments will also prevent unnecessary expenses like turnover, safety, health and other claims. No one can deny the increasing amount of research and studies supporting employee engagement, motivation, reward and recognition. Simply put, investing in your employees creates a behavior that wants to improve the quality of their work, develop ideas and present creative solutions. These benefit the whole company community. Employees work more effectively, instead of just working more. They also share knowledge with co-workers and speak up for your organization. All these in turn improve your customer service and experience. According to Bruce Rayton of the University of Bath, School of Management, 70% of engaged employees have a good understanding of their customers’ needs, while only 17% of disengaged employees could say the same. This resulted in higher customer satisfaction. Blessing White is a research organization dedicated to teaching leadership. Their 2013 study demonstrated a correlation between engagement and retention—85% of engaged employees planned to remain with their employer for ten or more years. Share This
  • Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com © 2012 Taico® Incentive Services Inc. The Center for Human Resource Strategy at Rutgers University found that highly engaged business units were on average 3.4 times more effective financially than units who were less engaged. This financial effectiveness was reflected in total sales and revenue, in actual performance compared to target goals, and in year-to-year gains in sales and revenue. Gallup Consulting discovered that high-engagement firms grow their earnings-per-share (EPS) at a faster rate of 28%, while low-engagement firms experienced an average EPS growth rate decline of 9.4%. In Gallup Consulting’s Q12 study, it was found that organizations in the bottom quartile of employee engagement had 62% more accidents than organizations in the top engagement quartile. Indicators and Opinions There remains a difference of opinion among reporters and pundits as to where the economy is going and when it will get there. According to Grant Thornton's chief executive officer, Stephen Chipman “Seemingly, steady improvements in key economic indicators, including labor and housing, have helped stimulate greater optimism among CFOs, at least in the near-term.” On the other side, many business leaders express the inability to go forward with growth measures due to legislative indecision, game changing technology, political changes, health care policy, regulation and taxes. Just pick up any newspaper these days and read how the global economy is cloaked in uncertainty. “After years of global economic uncertainty, companies in emerging markets are clearly poised to take advantage of market opportunities and drive growth,” Shane Berry, Senior Vice President at American Express said in a press release Thursday. “That’s not to say that mature economies aren’t also looking to increase investments, but recent history has made them much more cautious.” Could we then say 'optimistically cautious'? Forbes writes: "A total of 71% in the U.S. are generally optimistic about economic growth over the coming year, but they are restrained in their approach to spending and investment." Regulation, these survey respondents said, is making the United States less attractive. Share This View slide
  • Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com © 2012 Taico® Incentive Services Inc. There's no one I've met, so far, that can claim having a crystal ball on this. Being optimistic or not may come down to one's personal preference. The more realistic approach, however is capitalizing on your most valuable asset to prosper you. There's the story about Sears and Roebuck fairing very well during the depression. They made it their business strategy to offer more value to customers. A surprising number of companies fail in a tough economy by not observing this basic rule. Utilize your employee asset to add value and keep customers during tough times. That is a smart business strategy. Some certainty in this uncertain economic environment Implementing an employee incentive program can improve workforce wellness, boost sales, employee loyalty, employee ideas, retention, safety. Whatever performance area you want to improve on. If your incentive program is well designed and focused you will produce astounding results. Organizations that give regular recognition and rewards to their employees far outperform those that don’t. "Management has a great deal of influence in improving overall performance." There are numerous engagement, recognition and incentive approaches. Its vital in today's world that a company have an effective communication network that empowers everyone." The expanding role of the CFO continues to present challenges but also opportunities. Kurt Kuehn CFO of UPS puts it this way: "My experiences in having served in a variety of job disciplines at UPS have prepared me well for the role of CFO. I believe the CFO can embrace multiple disciplines, such as finance, marketing, sales and engineering to become more effective. That's important because today's CFO is more than a money manager – they must also be a strong driver of company strategy." Being that strong driver presents an opportunity to invest in employee engagement. Benefit by recognizing and rewarding employee suggestions and ideas. What's important to CFOs today? Everything! Expenditures, sales performance, growth strategies, scorekeeping, cutting workforce costs and risk factors. Share This View slide
  • Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com © 2012 Taico® Incentive Services Inc. Seeking the assistance of a professional incentive expert can save you a lot of valuable time and money. Start with identifying: 1. What is the specific performance that needs to improve, and how is it measured? 2. How can reliable and credible estimates of the value of this performance improvement be collected and calculated? ROI 3. How can these improvements be linked to organizational results and then converted to dollars? 4. What tools are also available that can improve our inter-organizational communication? "What?".... You say. "Implement an incentive program, in this economy?" Yes absolutely. Share This