In the past few months, our businesses have been severely disrupted by the COVID-19 pandemic. In a previously published article, we presented how CFOs can prepare for the "new normal" by defining an exit strategy that can cope with the constant uncertainty. In this article, we shift our focus to how to navigate the uncertainty of the upcoming months.
The COVID-19 crisis sharpens and widens the challenges of the CFO. The vast majority of companies are looking for cash and working capital optimisation, focusing on productivity and investments. More than ever, Enterprise performance management (EPM) is the tool the CFO uses to navigate the company through muddy financial waters. A well-designed EPM framework is essential to measure the extent to which a company realises its strategic objectives.
The EPM concept is not new. However, many companies still struggle to use it to generate valuable forward-looking insights. Too often, companies aren’t connecting their various plans together and seem to redo the same plans again and again, leading to lengthy processes and hampering their agility.
As most countries across the globe are rolling out their COVID-19 exit strategy, it’s crucial for companies to sharpen their ability to collect relevant data, model it and draw scenarios from it. Only companies that succeed in running connected scenarios will properly understand where they can go and what it will take them, their people, customers, processes and systems to get there.
With the aim of helping companies to manage business performance at each level of their organisation, EPM provides a competitive edge by allowing to simulate and quantify COVID-19 related measures on performance and hereby reacting adequately.
Why does it matter today?
PwC can support you on ramping up your forecasting ability.
We have developed a 3 steps modelling approach designed to quickly set up the predictive ability for your company.
Through this model, we make sure that within a month, you have the right tool tailored to your needs to perform your simulations and to navigate through the crisis.
At PwC we are working closely with our clients to help them respond to COVID-19 and prepare for the “new normal”. Our Management Consulting Finance team has significant experience in helping a diverse range of clients in different industries on complex Finance (and beyond Finance) challenges.
Starting from your vision and the impact that COVID-19 has on your business, we can help you steer through the crisis to set you on the right track in turning this crisis into opportunity.