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Performing Company-Wide Assessment Can Help CFOs Turn Firm Around

Performing Company-Wide Assessment Can Help CFOs Turn Firm Around

Struggling companies saw their difficulties compounded by the economic recession, which had lasting impacts on profits and revenues that are only beginning to rebound.

When such cases arise, and firms are struggling to hit their financial marks, CFOs should strongly consider spearheading

Struggling companies saw their difficulties compounded by the economic recession, which had lasting impacts on profits and revenues that are only beginning to rebound.

When such cases arise, and firms are struggling to hit their financial marks, CFOs should strongly consider spearheading a company-wide assessment, in order to determine the problems and get the business back on track.

According to a recent CFO.com article, when acquisitions don't pan out as expected right away, it can be easy to point at top-level executives as the problem. However, seeking an outside firm to conduct an organizational assessment can help pinpoint the root of the specific problems the company faces.

One of the first thing CFOs need to do in these instances is to alert their employees that the assessment is taking place, often through the distribution of surveys that can help the executives get a better understanding of the company culture and leadership.

A major problem often discovered in these assessments is a lack of communication, according to the publication. This can be especially true in cases of acquisitions where members of the parent company may not associate as much as they need to with the newly acquired business.

Additionally, while the results of the assessment can be sobering - perhaps indicating that some members of the company are not performing to the necessary level - this can motivate these workers to exert more effort.

The assessment can also lead to the creation of a to-do list for CFOs, causing them to go back to the drawing board and refocus their strategy. Other action that should be taken once assessments are completed and the problems are pinpointed includes organizing a layer of middle management to improve communication, establishing a succession plan for the future and making sure that each employee understands his or her role and day-to-day responsibilities.

One recent notable example of companies utilizing a succession plan came when Verizon Communications named Lowell McAdam as its president and CEO. According to The Motley Fool, investors had known for nearly one year that McAdam would be taking over due to Verizon's succession plans, offering the shareholders a sense of comfort in knowing which direction the firm was headed.

Ensuring that a clear message is sent from the top down, with no wavering at the executive level is critical to the success of a business, as it prevents information from falling through the cracks. An assessment can help locate where there may be communication breakdowns within the company and which members of the team need to improve their productivity.