As I wrote in my last blog, this update is to share my experiences at The CFO roundtable hosted by CII at Pune, 3rd Feb 2010. It was one of the best collective dialogue that I had with CFOs of the most esteemed companies.

Right at the very outset I must congratulate CII for conducting a really well hosted event.The topics of discussion bore a futuristic element to them with strong underlying pragmatic tones and I for one enjoyed the session immensely.  This is a great way to remain connected. These forums offer a wonderful opportunity to discuss serious business in a very informal setting. We should have many more of such forums to meet and discuss common issues.

I jotted down a few underlying thoughts that emerged in the discussion – which I am sharing with you. What strikes me is that as the economy is slowly bouncing back and while there is general optimism that business will improve and that there is good opportunity in the marketplace, the shape of the recovery and its sustainability is still not clear, and we are still grappling with the right approach of tackling the recovery process.

As  financial leaders, we need to be able to deal with the uncertainties, whether it be in an up-cycle or downcycle.  The key focus is on how we adapt and manage the change. From the discussions it emerged that belts have been tightened and it was clear that even in upswing some of the cost actions will  not be reversed.  The focus will be on spending that will improve market positioning and deliver growth. Balance points have been lowered and the ability to remain agile given the uncertainty is paramount. Figuring through more flexible cost structures, sharing risk, understanding core competence and value drivers are important parts of a transformation in uncertain times.

One more key factor that evolved from the discussions was our ability to leverage the data that is available and provide insight to our Management teams and Boards, will become a key differentiator.  The wait and see approach is over and we need to move foward sure footedly based on sound business insight and analytics.

I look forward to your views and please feel free to put in your comments.

Disclaimer

The views and opinions mentioned in this blog are strictly my own and in no way reflect those of IBM or any other corporation or individual in any manner