UK finance directors report on their key priorities

Wednesday, January 05, 2011 | Posted by: Fiona Cullinan
Categories: Thought Leadership | Tags: statistics, investment, report, survey, risk, data, advice, FD, CFO, Directorbank, talent, finance director, analysis, skills

If you could ask a fellow finance director for their advice in the current economy, what do you think they would say? A number of outstanding finance directors shared their views in Grant Thornton’s FD survey, researched in conjunction with Directorbank.

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You can download the full survey and report What makes an outstanding FD? as a free PDF. Or, to read just the key findings of the survey of 350 directors, see our post on Elevate – for business leaders. 

We asked the outstanding FDs what their key strategic priorities should be in the current economy.

Finance concerns
The answers were rather surprising – and tend to turn the stereotype of FDs being risk-averse on its head. Most comments were made on the assumption that any necessary cost-cutting within the business had already taken place.

All said that any banking requirements that had not been sorted out properly yet should be addressed immediately to make sure the business is adequately funded. With this in place, however, our FDs placed more importance on making business improvements and investing for growth.

Focus shifting back to growth
Their advice was a mix of managing a tight ship and having courage to invest in the future. Several talked about the opportunities that the current economy presents – particularly in emerging markets. Most agreed that the next two years are likely to remain testing – average at best – with low economic growth. All concluded that it is a delicate balance between keeping a really close eye on today’s costs and attention to detail, whilst having the confidence to invest for the future.

Our FDs agreed that there is a real danger that we can get too caught up with today without planning for the future. The most important thing that came out consistently was the need for longer term investment and expansion. This is where our class of outstanding FDs felt the future value in a business will be created.

FDs should ‘seize the moment’
Most significantly, all our interviewed FDs felt that now is a great time for an FD to make his mark. Now, they said, is the time to look to the future. Now is the right time to seize the moment and make brave decisions. The current economic climate, they said, could present an opportunity for yet another one of those career defining moments.

Our respondents said:
“Keep investing and finding new markets”

“Have options ready to roll”

“Keep close to the customer”

“With good people readily available, consider ‘upgrading’ some of your team”

“Too many people are still looking back. For me, it’s all about where’s the business going?”

“Businesses that spot an opportunity can outperform in tough economic situations.”

“If you’ve got debt coming up for maturity in the next 18 months, sort it as soon as you can if you haven’t already. Finance is there but it takes a lot of putting together and I wouldn’t leave it till the last moment.”
Sir Richard Lapthorne, Chair, Cable & Wireless Communications Plc

“Businesses do not grow by continually cutting costs, but by investment. In difficult times it’s an even more difficult choice where to put your limited resources. We’ve strategically gone to other parts of the world – emerging markets and oil-backed. It’s going to be tough but I’m optimistic.”
Matthew Streets, CFO, Foster + Partners

“The problem with downturns is everybody gets into the downturn methodology and mindsets, looking to reduce more. Things are better than they were and so being ready to accelerate the implementation of your growth plans has to be the number one priority.”
Paul Venables, Group FD, Hays Plc

“As everybody else worries about being refinanced and taking costs out, you need to look at how you can benefit from the fact that a number of your competitors will be weak at the moment. Now is the time to be brave.”
Anon

“It’s knowing and trusting that you have assessed the risk and the decision that you’re taking is, on balance, a damn good bet as opposed to a risky bet. But it’s always a bet.”
Richard North, NED, Majid Al Futtaim Properties

“If you aspire to running the company, now is your best chance of proving your credentials. It’s a cliché but FDs can impress their board colleagues by being grippy and forward thinking. Right now as an FD, you can have major impact – and if you don’t seize the moment they’ll find somebody else who will.”
Steve Marshall, Chair, Balfour Beatty Plc

As always, we welcome your thoughts on this and any other aspects of the What makes an outstanding FD? report. If you would like to speak to anyone about any of the details in the report, please get in touch with Jo Parr at jo.k.parr@uk.gt.com.

You might also find these posts useful:

* Read the other six posts in our FD series.
* The governance landscape is changing - are you ready?
* Cream of the crop: the Grant Thornton Quoted Company Awards 2011 shortlist.