What to do.
I summarize BDO's recommendations here:
* Take Fast and Decisive Action to "determine core needs and shed excess costs".
* Develop a Comprehensive Approach to cutting costs, finding efficiencies and accelerating cash
* Develop a Comprehensive Approach to cutting costs, finding efficiencies and accelerating cash
flow.
* Manage Costs with Targeted and Timely Reporting rather than waiting until it's too late.
* Manage Operating Results Proactively - before you start losing money.
* Conduct an Internal Assessment for Possible Restructuring in order to ensure you are looking at
* Manage Costs with Targeted and Timely Reporting rather than waiting until it's too late.
* Manage Operating Results Proactively - before you start losing money.
* Conduct an Internal Assessment for Possible Restructuring in order to ensure you are looking at
the big picture and that you understand how your organization fits into the current and future
business environment. Then plan to align it accordingly.
How to do it.
Although finance is not my line of work, Organization & Leadership Development services can enhance the work of Chartered Accountants and Financial Advisors and help organizations ensure success in implementing their advice. BDO tells you what you need to do, Organization & Leadership Development tells you how. The key is in leadership. Strong leadership to establish priorities. BDO's recommendations require leadership excellence in order to establish priorities, guide the process, and implement the procedures for the actions to be taken.
Although finance is not my line of work, Organization & Leadership Development services can enhance the work of Chartered Accountants and Financial Advisors and help organizations ensure success in implementing their advice. BDO tells you what you need to do, Organization & Leadership Development tells you how. The key is in leadership. Strong leadership to establish priorities. BDO's recommendations require leadership excellence in order to establish priorities, guide the process, and implement the procedures for the actions to be taken.
BDO rightly indicates that organizations must take a comprehensive approach to determining core needs and understanding viability now and in the future. In order to successfully actualize BDO's advice an organization needs leaders who will ensure that the steps the organization takes are carefully planned and anchored in core values. If not, they will not be supported by employees or sustainable in an operational sense. Now more than ever organizations need dedicated leaders to articulate and support a clear organizational identity and make decisions accordingly. Many employees are already alarmed at the uncertainty of this economic climate and leaders must help them feel reassured by upholding the organization's values and immersing themselves in the organization's reality. Leaders will need to go back to the Mission and Core Values statements, building plans and making decisions from this foundation. Leaders should also make time for a brief Culture Audit in order to understand the organization's reality to quickly find efficiencies and deficiencies.
In addition, a quick SWOT analysis with key players will also point to current strengths that must be maintained, weaknesses that must be reduced or eliminated, potential threats that must be addressed, and opportunities that can be leveraged, bearing in mind the current climate. Leaders must do their best to make sure that organizational changes are planned and controlled evolutions rather than sudden upheavals. If planning can only take a short time, leaders must ensure the most optimal planning process possible. Core values must be at the centre of this process.
Strong leadership for teamwork.
The actions BDO suggests require support from employees. Thus, strong leadership is also required to ensure teamwork around BDO's proposed actions. Strong leaders will be necessary to drive the process and get everyone on board. Not only because careful implementation is paramount, but because your employees need a pillar of strength in order to re-build or maintain their confidence and abate their fears. People in a distressed organization tend to work together less rather than more if leadership is absent. Absence of leadership only adds to fears and mistrust and often makes employees feel they have nothing left to lose. Leaders must therefore take additional steps to ensure teamwork, making certain that goals, accountability, and decision-making principles are clear, and that everyone feels empowered by the process. Leaders must also be more visible and communicate more. It is often necessary to hold more closed door meetings during a crisis, but leaders still must make it a priority to communicate with all employees and to literally be more visible. Leaders must be seen as allies and as trustworthy. Don't forget that your employees are people with emotional needs, especially right now. They need to know that you believe in them and the organization if they are to rally for the organization's survival.
The actions BDO suggests require support from employees. Thus, strong leadership is also required to ensure teamwork around BDO's proposed actions. Strong leaders will be necessary to drive the process and get everyone on board. Not only because careful implementation is paramount, but because your employees need a pillar of strength in order to re-build or maintain their confidence and abate their fears. People in a distressed organization tend to work together less rather than more if leadership is absent. Absence of leadership only adds to fears and mistrust and often makes employees feel they have nothing left to lose. Leaders must therefore take additional steps to ensure teamwork, making certain that goals, accountability, and decision-making principles are clear, and that everyone feels empowered by the process. Leaders must also be more visible and communicate more. It is often necessary to hold more closed door meetings during a crisis, but leaders still must make it a priority to communicate with all employees and to literally be more visible. Leaders must be seen as allies and as trustworthy. Don't forget that your employees are people with emotional needs, especially right now. They need to know that you believe in them and the organization if they are to rally for the organization's survival.
With strong leadership and careful, albeit quick, planning you can actualize BDO's excellent recommendations.
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