The rollercoaster year of 2020 was characterised by many businesses as a time to throw out well-made plans and forecasts and revert to a more reactive strategy – not from choice but from necessity. But as this phase of uncertainty and seemingly constant ‘fire-fighting’ does not seem to be ending anytime soon, it’s important to shift back to a more proactive and strategic approach.
The business landscape looks a little different now. The magnitude of the recession caused by the coronavirus outbreak is unprecedented in modern times. UK GDP was 25% lower during the depth of the crisis in April 2020 than it was only two months earlier in February. By the summer of 2020, 73% of consultancy firms were seeing a negative impact on earnings. And it’s not just the aftermath of the unprecedented COVID-19 pandemic that has impacted everyone’s plans, for many, Brexit will now also require some fundamental changes to be made, even though only 1 in 8 report being prepared.
New thinking is clearly required – but where do you start? And who should be involved in defining how business moves forward over the coming weeks and months?
It is inevitable that project-based operations place their focus on billable work. For that reason, it is common for Partners and commercial heads to always take the lead on the direction of the company. But these are not ‘normal’ times – which means perhaps a good opportunity to involve others in forward planning. When looking to reshape or resize the business, it is useful (and sometimes enlightening) to take a step back and adopt a different perspective. And this is exactly the point at which non-billing teams such as HR and Finance can step into the limelight and add value.
In many professional services firms, the HR and Finance functions are often seen only as back office cost centres. Obviously as the areas responsible for essential activities such as recruitment and cashflow, their contribution is vital. Yet often, too much time is spent on administrative tasks such as managing timesheets, processing expenses and booking annual leave. Automating these transactional elements frees up HR and Finance teams to offer more strategic value. But even more exciting is the opportunities that can be created when these two very different teams work together. Their combined insights could result in an entirely fresh new set of ideas and plans – and that could be a potential game-changer for any firm looking to maximise resources and increase project profitability during 2021 and beyond.
With plenty of challenges ahead, business leaders must seek proactive ways to move forwards. In some cases, difficult decisions may need to be made, and, importantly, these must be supported internally. Taking account of the people perspective as well as the financial one allows for a multi-faceted approach and creates room for new ideas. And by working together, HR and Finance have a unique opportunity to remove the element of chance and build a robust strategy that accommodates both the needs of the firm and of its workforce.
Download our FREE guide: The Business Game: Reshaping your strategy to win has been written for HR and Finance professionals in project-oriented businesses and professional services firm who want to move beyond processing and add more value. It offers a unique insight into the power of a joint HR / Finance strategy for 2021.