Turbulent Times: The CFOs Roundtable Conference

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Turbulent Times The CFOs Roundtable
Conference
Session one Strategies for CFOs in Turbulent
Times
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Building value in troubled waters

• Turbulent Times The CFOs Roundtable
  Conference
• June 12 2009, The Oberoi, New Delhi

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Key findings that emerged from the survey

• Business impact 74 have had a low to medium
  impact
• Revenue targets in 2009 42 would achieve 90
• 43 - would meet 70-90 of their targets
• Outlook for 2010 46 would achieve at least a
  10 growth
• Duration of the economic slowdown 65 said at
  least 2 years
• 27 - between 6-12 months

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Six key Business challenges on the road to Market
Leadership
The Exceptional Enterprise model
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Building value in troubled waters
What steps have you taken to meet the challenges
faced by your business in the current scenario?
Operational effectiveness

• Focus shifted from growth to preserving cash
• Cash is the starting point
• Balance cost reduction invest in process
  improvement
• Program well defined, sustainable, transparent
  monitored
• Priority areas - supply chains, infrastructure
  support, advertising marketing

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Building value in troubled waters
In your view, enhancing which of the following
treasury and financial risk management
capabilities would help you deal with the current
economic slowdown more effectively?
Managing finance and risks

• Could have significant bottom-line impact
  inability to access risk
• Process driven strategy capability development
• Governance transparency
• Invest in automation systems
• Terms loans from PSU banks group financing

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Building value in troubled waters
What action steps would you consider to mange
your workforce in the current economic scenario?
People

• Intellectual capital - an investment not an
  expenditure
• Motivational level communication is key
• Rewards recognition performance driven
• Build a team training, empowerment, re-skill

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Building value in troubled waters
In the marketing spheres which of the following
situations have you encountered that has impacted
your business?
Marketing sphere

• Better product, lower price
• Responsive pricing strong value proposition
• Companies reviewing marketing mix
• Leveraging the strength of existing brands to
  expand their footprint
• Focus on front end business activities key
  customer segments
• Packaging equally important

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Building value in troubled waters
How do you think the Mergers Acquisition
route would impact your business growth?
Transactions and alliances

• 63 expect consolidation
• 58 would consider MA as prudent strategic
  decision
• Valuation 47 undervalued, 31 correct value
• Reduced LBO structure
• Inbound MA expected to pick up

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Building value in troubled waters
In what order would you prioritize in
strengthening of the following aspects in
relation to corporate governance and internal
controls?
Managing governance and fraud risks

• Good corporate governance is good business
• Implementation of a code of conduct and an
  anti-fraud policy in place
• Doing periodic fraud risk assessment
• Developing processes to conduct background
  investigation

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What can we expect ?

• Markets confidence in Pranab Mukherjee as the
  new FM
• Aam Admi (domestic output consumption)
  employment, rural development healthcare
• Thrust on infrastructure development
• Fiscal deficit on radar
• FDI liberalization attracting foreign money
• Divestment on cards
• Favourable demographics - median age is 24
  estimated 29 by 2020 education a key to long
  term development sustenance

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The CFO must play four different roles to create
and protect value, all while dealing with
constant change drivers
Business Skills
Commentator
Business Partner
Reporting (Explain) Comment past
performanceTeamworkInstil confidence
Decision Support (Proactive Influencing) Provide
s guidance on future business needs Demonstrates
effective communication Be a leader of change
Proactive
Reactive
Score Keeper
Custodian
Book Keeping (Service Excellence) Reporting
performance measures systems Core financial
expertiseTechnology literacy Legal requirements
Governance Control (Enforce
Embed) Watchdog Internal control focusCompliance
and risk knowledge
Accounting Skills