Wadds Inc. works in a non-executive director capacity with agencies in the creative sectors, helping to set company direction and provide support with strategic growth plans.
Here director Sarah Waddington CBE looks at key areas for all businesses to concentrate on now as part of business planning.
1. Secure non-executive director (NED) support
The Corporate Governance Code recommends that SMEs have at least two independent non-executive directors. The outside perspective and objectivity that NEDs can bring to a Board can’t be underestimated. Our role is to scrutinise management performance and contribute to strategy development. One of the things Wadds Inc. clients like most is the accountability as it means things move forward faster and in the right way.
Get the right person and you get a range of benefits with them. Good NEDs bring useful contacts, expertise and knowledge, reduce the threat of group think and act as powerful ambassadors for the company because of their reputation and standing.
Appointing a NED is the first step to getting ahead, particularly when trading conditions are challenging.
2. Revisit your purpose
When it comes to best practice, all roads lead back to the Corporate Governance Code. This sets out that Boards should promote the long-term sustainable success of the company, generate value for shareholders and contribute to wider society.
It’s just one of the reasons organisations need a strong purpose to help define values and guide decisionmaking and strategy.
Does your business have a clearly defined vision that communicates what it will look like in the future? If not, or if the vision is out of date (which happens more frequently than you might think), make this a priority now. It’ll make all the difference to how fast you get out of the blocks when the upturn comes and your team will have a renewed sense of purpose in terms of achieving your objectives.
3. Futures and foresight work
Identifying change drivers should be a management mission. How up to date is your organisation’s strategic analysis of its market position?
The right intelligence can provide competitive advantage because it tells you which up and coming changes to respond to. This is how more agile companies exploit opportunities and minimise risks as they arise.
The upcoming General Election is a great example. Are you monitoring each party’s policies to plan for how these could affect you?
Working without this data means you’re benefiting from luck rather than skill and as we all know, luck runs out eventually.
4. Risk management
The risk register is one of the first things a NED will ask for when coming into a business but often there isn’t one in place.
This doesn’t need to be a complex piece of work. Identify your risks, prioritise them and make sure you have the appropriate controls in place. Then monitor and report on these on an ongoing basis.
Risk management is absolutely critical to successful strategy implementation and, when the chips are down, survival.
5. Cost of finance
Finally, however you choose to fund your business, the financing strategy should fit with your risk appetite. When did you last review the cost of your finance? Have you really got the cheapest form of debt?
Remember access to finance can come in the shape of grants, voucher schemes and tax credits too. Researching your options can equal a big pay off so it’s worth your time and attention moving into the year ahead.
If you’d like help with any or all of these areas, please visit www.wadds.co.uk