5P Method (Part 1) – Analysis
Trained to be the managers we are, we are strong believers in analyses – and we are right: A good analysis is telling about weaknesses both in terms of business and organization. Who will do the analyses may not matter: The big consulting companies will do a great jog, boutiques, too. Own controlling will always support such work, and our business leaders, too. Cost structure will tell about hobbies and areas to hide. Whatever you like will be a great foundation to build on. The only advise: Don´t invest too much time – the analyses are based on historic figures. Work on the future you can influence. Mak your plans. Now, it´s getting interesting or dangerous:
During my decades in our industry, I have seen many analyses and was part of making them, too. I have seen plans to develop business, build new technologies, decide about hardware investments, disinvestments of companies or parts of it, and on the other side acquisitions and post-merger integration. I have seen bullshit, dreams, opportunities, and several times great occasions. What I have never seen is a plan including a war, a recession, natural disasters, or other harsh measures. But it happened. In other words – we should know that what we plan is in the moment we agree on the plan will be subject to change and influences.
All organizations I was working for underwent even during the planning periods changes. In most organizations the work of controllers and CFOs became more relevant than the work of business functions. My last decades have been to clean-up after financial adventures. In other words – I got hired when the air got thin. I learned to respect analyses, but to focus on other aspects of management. The consequence: Several successful turnarounds. Repeatedly restructured with only little layoffs (this will get relevant in the next weeks posts). Up to tripled EBITDA, organic growth of up to 25%. All achieved in no easy business environment and against industry trends.
How radical such change will be we will discuss in the coming weeks here and eventually with you here.
