The global pandemic has accelerated the need for basic business acumen and the reality today is that we could be facing an onslaught of restructuring if organisations fail to make the right decisions now.
Last year RSM ran a series of webinars, one of which I presented on the topic of Business resilience.
Resilience deals with what is unknown, changeable, unpredictable, and improbable. We discussed how planning and agility are key in enabling us to not only survive but to thrive amid uncertainty.
The immediacy of the threat and uncertainty we experienced last year during the height of the pandemic served as a sharp reminder that we must maintain an ability to rapidly adapt and respond to business disruptions .
In a recent article my colleague, Graham Bushy, Partner, RSM UK and Chair of the Global Restructuring Group, discusses the steps that organisations can take now in planning for a positive outcome in the future.
1. Plan well
Planning is key. It is important to look at the numbers and consider where you are going to be in six, twelve or eighteen months’ time and plan a way forward.
2. Forecast your future
Build forecasts and projections within this plan. Businesses should involve their advisors to make the best forecast possible which can be adapted as necessary.
3. Engage with the right stakeholders
Engage with all significant financial stakeholders, banks, investors and funders to ensure there is transparency and support for the plan of action.
4. Think Differently
Industries are changing rapidly. Beyond adapting to the current environment, organisations should think ahead to be prepared for different scenarios.
5. Adapt and be flexible
Be prepared to adapt and be flexible. Put financial modelling at the centre of your plans. Actively monitor these models and be open to adapting the approach as required.
6. Be prepared for the unexpected
This is about creating headroom in your facilities to enable you to cope with the unexpected, whether good or bad.