'What can PLCs learn from how private equity owned companies manage performance, and vice versa?'
Following our inaugural Tomorrow's CFO® event last month, the highlights of the conversation at that event have been published as a short white paper. The topic of the discussion was 'What can PLCs learn from how private equity owned companies manage performance, and vice versa?', and attendees included senior finance professionals from The Economist, Fidessa, Hackett, Premium Credit, WSH, and the Virtual Technology Cluster.
Attendees discussed the topic in some depth, and the conversation focused on five main areas.
First of these was the importance of a driver model. This is something that is considered fundamental in many PE-owned companies, because it underpins the value creation plan for the first 100 days (and beyond) and the accountability and transparency it promotes is vital in both PE and public businesses.
The second factor identified was the need for analysis to be relevant and forward looking, and attendees agreed that the driver model was a vital prerequisite for that. It was noted that the ability to use analysis to proactively intervene in managing risks and opportunities was a hallmark of the best PLCs and PE-owned companies.
Next, attendees highlighted the importance of clear, visual analysis, that can be quickly understood by different stakeholder groups, including those that are not financially trained. Many well-run PE-owned companies provide good examples of how analysis like this can be used.
Finally, quality of dialogue was acknowledged as a vital factor in driving performance improvement at PE owned and publicly-listed companies. The attendees agreed on the potential for the finance team to increase their influence and effectiveness, by focusing on the skills associated with collaboration and supporting colleagues across the business.
In era of rapid change and great opportunity for finance professionals, there is a demand for forums in which finance leaders can share knowledge, experience and expertise directly with their peers. This is what the Tomorrow’s CFO® programme aims to provide, not just for those who attend events but, through published research and online forums for discussion, for the entire finance profession.
Tomorrow's CFO® Forums are invitation-only events. If you're a senior finance professional, and you would like to join an event, then please do get in touch HERE.