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Financial Processes Mean Business

Date:October 1, 2013

Acting as an interim CFO means more than preparing financial statements. Our interim CFO work with an energy services company involved developing financial and operational processes in several departments, reducing inefficiencies, and improving revenue and profits.

A client of ours referred a colleague to 4Growth, he is the President of a $40MM energy services company (we’ll call him Mr. Mann) and needed help. Mr. Mann was experiencing a decline in profitability and felt there was a problem with the overall financial reporting within the firm. This led to my being appointed Interim Chief Financial Officer for a six-month contract.

Mr. Mann knows his business and there were indeed internal financial reporting issues. But more than that, we found different departments handled their finances differently. The first thing we did was interview each department head to determine their operating processes. Based on that we developed financial reporting strategies that aligned the departments and created a common “financial language”. Now when senior managers meet the financials from all the departments are understood and have the same relative meaning. A big improvement.  

Now as is all too frequent with active management engagements we found other problems. It is our experience that clients often come to us with a presenting problem. We fix that. During the course of that work we uncover other problems and inefficiencies. The next problem we attacked was significant; a complete lack of any kind of evidence-based sales process. The firm was busy quoting, but these quotes were dying after submission. There were sales reports, but they were completely anecdotal and inconsistent across the sales staff. We revamped their sales process and methodology so now sales staff and managers have common metrics that analyse their business flow.

Our active management role has been extended and we continue to work with Mr. Mann and his team to create and implement operating strategies and efficiencies. 

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Date:October 1, 2013