In 2012, a paper by The World Bank, The new financial landscape: what it means for emerging market economies, detailed the game-changing year that global financial markets had experienced.
The events of 2012 had led to several decisive moves by central banks around the world that changed market dynamics and took economies further into uncharted territory.
In 2021, almost a decade later, we bear witness to a whole new era of economic uncertainty and global crises. The COVID-19 pandemic that characterised the entirety of 2020 and now, 2021 and beyond, has introduced unprecedented challenges.
Climate change has also become a pressing priority that has made sustainable and eco-positive corporate strategies a necessity for survival. On top of these changes, Britain’s historic exit from the European Union has also sent waves of change across Europe that will present itself sooner rather than later on a global stage.
In the third quarter of 2021, we are able to look back over the past two years and recognise that the current financial landscape is unlike anything the world has experienced in the past.
Many economies had to be stimulated in order to keep countries functioning through the crisis, and as events continue to unfold, it is clear that this is uncharted territory.
Change is inevitable and vital at this moment in time. To be static in the current business landscape would be the equivalent of a company closing its doors for good. The news from all corners indicates that a business must adapt as quickly as possible.
Given the uncertainty that governs the landscape, however, the risk of any business activity at this point also seems magnified tenfold. This adds to the pressure that the next steps any business takes must be decisive moves towards securing the financial future they have worked towards.
It is clear that despite the accelerated timeline that all these critical priorities must work with, a strategy is necessary to ensure these changes are implemented in a manner that yields the desired results.
Every business function yields its own results and holds its own value in a company.
Your finance function is one of these. Despite much of a company’s value being derived from its financial performance, all business functions are intrinsically connected.
Overall efficiency and success cannot be achieved without efficiency being achieved across every business process. This means that all processes must be optimised on simultaneous timelines.
It also means that all processes must be taken into consideration when forming a function-specific strategy.
Paying special attention to your financial strategy is especially critical during this time because now, more than ever, the public is demanding transparency from the companies they invest in. From business partners to clients, the way a company chooses to invest its finances informs public decision-making.
Despite the many flaws in the current business model around the world, digitalisation is one framework that will continue to define the market in the years ahead.
Getting ahead of the digital wave is near impossible with the rate at which innovation is being introduced. What we have witnessed, however, is that implementing the newest technologies and innovations is not necessarily the secret to standing out in the current business climate or a guarantee of success.
In fact, shifting with every trend may indicate that your business framework and overall strategy is not supportive of your goals and cannot give you the stable foundation you require.
All contemporary businesses looking to evolve their strategies on a functional level and an overall organisational level must ensure that their strategy does not just prioritise digitalisation, but centralises it in their plans.
This is the best way to minimise waste, including technological waste, and create a supportive framework that can accelerate the path to achieving business goals.
Sustainability is yet another challenge for contemporary businesses in the current climate.
For a long time, sustainability simply referred to the ability for a certain activity or event to be carried out in the long term. Today, sustainability has become a nuanced issue involving factors in every realm—from the socioeconomic to the environmental—putting all lives at stake.
Simply put, the climate crisis will shorten all timelines, business and otherwise, if dramatic action is not taken immediately.
The delicate ecological balance may be lost forever, but taking steps to ensure not just eco-consciousness but positive environmental action is necessary to mitigate future risks.
This is a defining feature in the current business landscape and your financial strategy must ensure that a commitment to sustainability is featured across your plans.
Kronos Group’s team is a 120+ strong group of skilled professionals who have experience adding value to companies engaged in a host of industries across Europe.
To deliver value to each of our clients and help them achieve their unique business objectives, we leverage a selection of industry best practices, insights based on our experience, cutting-edge tools and innovations, as well as customised strategies.
Our specialisation in the fields of procurement, finance, and project management allows us to deliver integrated solutions and higher value addition opportunities across business processes.
In addition to our strategic insights, we offer:
If you are looking for personalised insights on forming the right strategy for the future of your company, get in touch with our team to schedule a consultation.
You can also email us today at email@example.com.