{"id":2493,"date":"2020-09-15T20:21:20","date_gmt":"2020-09-15T18:21:20","guid":{"rendered":"https:\/\/www.stefan-gros.de\/growth-transformation-back-to-long-term-thinking-short-term-problems-must-not-overshadow-long-term-trends\/"},"modified":"2024-07-25T20:20:55","modified_gmt":"2024-07-25T18:20:55","slug":"growth-transformation-back-to-long-term-thinking-short-term-problems-must-not-overshadow-long-term-trends","status":"publish","type":"post","link":"https:\/\/www.stefan-gros.de\/en\/growth-transformation-back-to-long-term-thinking-short-term-problems-must-not-overshadow-long-term-trends\/","title":{"rendered":"Growth transformation: back to long-term thinking – short-term problems must not overshadow long-term trends"},"content":{"rendered":"\t\t
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Growth transformation: back to long-term thinking – short-term problems must not overshadow long-term trends<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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by Dr. Stefan Gros and Matthias M\u00fcller, September 2021<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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A comprehensive consulting approach incl.
\nsystematic checklist tool for the sustainability, robustness and future viability of your company in the context of growth transformation <\/strong><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Introduction<\/strong>
The prospect of an end to the pandemic cannot alleviate the recent sharp rise in uncertainty in the face of ever-increasing volatility and short-termism on the markets.
\nEven though SMEs, and in particular the many family businesses, have demonstrated a high degree of flexibility thanks to their adaptability and personal proximity to customers\/suppliers, the equity and liquidity reserves of most companies have been significantly strained in some cases, although there are some companies that have emerged stronger from the crisis.
\nNevertheless, the increasing uncertainty about the influence of exogenous factors provides the main argument for the behavior of many top managers: “We’re playing it safe!”.
\nGiven the current situation, this is initially the most logical reaction.
\nHowever, management should always be aware of where it is steering the company and which different actions are also options in the long term in order to achieve the goal.
\nDespite the current economic situation, simply “driving by sight” is not enough and can quickly lead to a lack of direction, fear of the unknown, a lack of vision and falling behind the competition. <\/p>\n

In our day-to-day work, we are increasingly faced with the challenge of volatile framework conditions, both in the short and long term.
\nThe trick is to align the transformation of the company with long-term trends and not to ignore them, despite the usually urgent short-term solutions to problems.
\nWorking with companies from a wide range of sectors helps us to anticipate developments across all industries and to align the measures to be taken in the short term as flexibly and with as much future potential as possible within the scope of the company’s capabilities. <\/p>\n

Short-term distortions are currently being caused by fluctuating commodity prices and imbalances in international supply chains, among other things.
\nLong-term distortions can be seen in the shift of general market trends such as sustainability and digitalization into the future.
\nCompanies that are barely able to service their liabilities from their own resources due to short-term problems, or can only do so with liquidity assistance (bridging aid, KFW, etc.), are inhibited in their ability to invest in the future.
\nNevertheless, transforming the company and looking to the future is essential in order to survive not only in the short term, but also in the long term.
\nClearly defined strategic directions and priorities ensure the targeted and effective use of limited human and financial resources. <\/p><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The target picture: short and long-term alignment of strategy, operations and financing<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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A key success factor for a successful future is the short and long-term alignment of strategy, operations and financing, which also has a significant impact on the trust of employees, creditors and shareholders.
\nThis is ultimately achieved through a scenario-based, objectified and consensual strategy that takes into account the iterative triad of market, value creation and financing perspectives.
\nA special focus should be placed on the targeted use of resources: they ensure innovation and growth and thus ultimately sustainability. <\/p>\n

On this basis, possible courses of action, scenarios for the future and financial framework conditions can be derived, which serve as guidelines for all those involved.
\nAbove all, the creation of different scenarios can form a target corridor in which the company is aware of the negative fluctuations of the various scenarios and has already thought through potential countermeasures.
\nThis makes it possible to act at an early stage and not just have to react at short notice.
\nThis makes it possible to take over market competitors or, for example, to proactively address imminent financing or a change in the business model without time pressure. <\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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1) Checklist tool: The concrete procedure (Business Re-view)<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The following section outlines potential steps of a business review that a new CFO plus (possibly as an interim manager) can carry out with the help of suitable advisory teams.
\nThe experienced CFO plus is called upon in many different areas and is more of a transformation officer than a sparring partner for the CEO and a business partner for the operations. <\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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a. Step 1: Potential analysis from three perspectives:<\/strong>
A viable starting point in terms of value creation and market as well as transparency of figures with regard to potential and risks<\/p>\n

Detailed analyses of the past do not make it clear what a picture of the future might look like and how the company’s capabilities can best meet the requirements of the market and customers.
\nThe authors therefore pursue a forward-looking approach in which the following key questions are answered with regard to sources of income, value creation and growth: <\/p>\n