Changing lanes 2014-15

Key considerations for the C-suite

  • Share

Theme 1: New sources of volatility – navigating uncertainty is business as usual

Operating and performance considerations

  • Implement driver-based insight, data analytics and scenario modeling
  • Implement global capacity management-sharing framework
  • Optimize hedging strategy for currency and input cost fluctuations
  • Assess readiness for regulatory changes in local markets

Investment and capital considerations

  • Enhance business modeling and cash forecasting systems
  • Stress test investment business cases
  • Build flexibility into emerging markets investments
  • Integrate government incentives, direct loans and guarantees in capital-raising strategies

Theme 2: Getting closer to customers

Operating and performance considerations

  • Adopt customer life cycle approach to identify touchpoints to cross- and up-sell
  • Converge digital and physical experience of brand
  • Implement transparent customer data privacy policy

Investment and capital considerations

  • Assess potential investment opportunities and risks associated with new segments and business models
  • Renew digital marketing investment strategy

Theme 3: Multidimensional competition

Operating and performance considerations

  • Leverage connectivity and captive finance to identify new revenue streams
  • Provide greater autonomy to local centers of innovation
  • Evaluate sustainability of brand position and value proposition

Investment and capital considerations

  • Form need-based and strategic alliances, JVs and acquisitions to gain technology and/or geographic coverage
  • Capture and monetize synergies from partnerships and identifying key performance indicators
  • Leverage credit and cash availability to pursue vertical and horizontal integration

Theme 4: Operational efficiency through digital transformation

Operating and performance considerations

  • Leverage IT and data for greater visibility into distribution network and supply chain
  • Standardize and centralize processes around logistics, supply chain, IT and finance
  • Develop a global shared services strategy
  • Develop flexible production systems and focus on converting fixed costs into variable costs

Investment and capital considerations

  • Improve the quality of information flows to support enhanced visibility of liquidity and cash risks and opportunities
  • Balance cost reduction with sustainable process change

Theme 5: Resource management

Operating and performance considerations

  • Identify programs to attract and retain talent to drive innovation
  • Focus on greater visibility and accountability in the supply chain, particularly in emerging markets
  • Promote diversity and inclusiveness

Investment and capital considerations

  • Embed a cash culture with clear performance metrics
  • Maximize return to shareholders with effective reinvestment strategy
  • Benchmark leading-class performance and pursue targeted change