The 6 Biggest Mistakes Companies Make

“Success has many fathers, but failure is an orphan” is a quote commonly attributed to John Kennedy as he accepted responsibility for the Bay of Pigs fiasco. The idea, however, is an old one. Roman historian and politician Tacitus said that, “This is an unfair thing about war: victory is claimed by all, failure to one alone.”

When things are going well, it’s easy to share credit as a team. When things go sideways, buck-passing and finger-pointing rule the day. Success has many fathers, but for companies, so does failure. The thing about business is that it is always about the people, the process, and systems already in place. And those can fail over time, even at the most successful organizations. Errors, however, can actually help a business move forward – if the problem is identified and fixed. It’s how the owner and management team respond to those mistakes, misses, omissions — or even complacency — that can make all the difference.

InterimExecs surveyed interim leaders from around the world for our 2020 Interim Executives Survey. In addition to asking executives about who’s hiring them and the roles they’re taking on, we asked executives for insights into “The Biggest Mistakes Companies Make.” While their responses varied, clear themes emerged in the areas of leadership, operations, human capital, strategy, financials, and change initiatives. Focusing on these fundamentals is a good starting point for any struggling business.

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When Should You Bring in a CFO?

In every business there comes a tipping point when change is needed to get to the next stage of growth. While as a company owner or CEO, you may be adept at running the day-to-day, at some point you may start to feel that you need to be more tuned into your finances.

Maybe you have a Controller or bookkeeper keeping transactions up-to-date so you can run reports for your banker from time to time. But what happens when transactions start to get more difficult to deal with or you need more insight into financial metrics that will drive strategic decisions? If the following situations sound familiar, it may be time to start thinking about hiring a Chief Financial Officer (CFO):

  • You are growing fast and looking to acquire or attract new capital
  • Investors or financiers are requesting more sophistication in reporting
  • The company doesn’t have the internal capabilities to consistently (and accurately) close out the books every month
  • The business is facing declining revenues, stagnant growth, or rising market competition that calls for someone to provide more strategic leadership and set out a direction and action plan
  • You feel like you don’ have a full handle on the metrics and KPIs that ultimately drive the business and measure your progress
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How Companies Can Stay Ahead of Rising Cyber Security Threats

There are plenty of new challenges to keeping a company afloat while the world endures the 2020 coronavirus pandemic. Here are just a few: 

  • Applying for government assistance to keep paying payroll. 
  • Developing a work-from-home system for employees following stay-at-home orders. 
  • Working out accommodations and new digital venues with customers and suppliers that will help everyone come through a cataclysmic crisis still in business. 

Add to the list a new one: Cyber security threats.  

InterimExecs RED Team executive and CISO, Zeeshan Kazmi, says times like these are prime for opportunistic hackers. 

Just look at financial technology company, Finastra, to see a cyber security nightmare in action. After coronavirus hit, the company was in the middle of developing an emergency plan to operate when hackers found a backdoor into their servers. Malware quickly spread locking down server after server on their network, taking down many of their customers which include 90 of the world’s top 100 banks.   

“We haven’t taken cyber security threats as seriously as they should be taken,” says Kazmi, who has spent 15 years working in the cyber security space. “Companies have been reactive. They protected their business transactions and their reputation. It became a corporate risk management function.” 

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46 Predictions on How the Pandemic of 2020 Will Change the Business World

World War II was devastating Europe. Bombs unleashed death and destruction across London. The Allies could barely secure a beach head in Normandy. Undaunted in those dark days, visionary leaders dreamed of a brighter future when the world would emerge from the deadly carnage, and imagined the structure of a post World War II world.

Businesses throughout the world now confront a different kind of mortal enemy, but equally deadly and disruptive in its own way. This microscopic virus is virtually invisible, knows no borders, and is agnostic to any demographic. It confines us all to our homes, burying loved ones dying senselessly for no cause and way too soon, and upending our work and home lives. Just as our forbearers prepared for a new world order once the terror of their present one surrendered, we now have some time to humbly roll up our sleeves and get ready for what awaits us on the other side once the pandemic is finally vanquished.

 Many of the thoughts in this article are hardly novel, and really simply continue if not accelerate existing trends. Some ideas may seem like logical outgrowths of the pandemic provided they remain emblazed in our consciousness. Others may be dismissed as unrealistic or overly dramatic and alarmist.

 No one, however, can doubt a few things. Our lives and approaches to work, our society and business will change, some for the better, others not. Like inventions, there are unintended consequences and manifestations, many of which we cannot now foresee. Finally, and most obvious as we emerge from this Act of God–  man may make plans, but God just laughs.

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How COVID-19 Is Accelerating Your Company’s Digital Transformation

The COVID-19 pandemic has changed our lives in ways that seemed unimaginable just a short time ago. Within a matter of weeks schools have been shuttered, sporting events and conferences have been canceled, air travel has ground to a halt, over 16 million workers have been laid off, and those able to work from home are now doing so almost exclusively.

Commentators are already proclaiming that coronavirus will permanently change the world. Many of the expected shifts, however, are hardly new. They were nascent prior to coronavirus and emerging stronger than ever due to the pandemic-led paradigm shift.

Nowhere is this more evident than in the migration to remote work and the technologies that enable it. In the United States almost a quarter of employed individuals already were working remotely, and while this trend has steadily increased over the past decade, with coronavirus forcing millions to work remotely, we may have reached a tipping point.

If remote work is indeed the new normal, how can businesses embrace it? Alonso Vargas and Andrew Andrews-Ramirez provide digital transformation, helping organizations with everything from ERP implementation to outsourcing, to migrating to cloud technology, utilizing platforms including NetSuite, SAP, Salesforce, Hubstaff, and Office 365. They have seen a shift in how organizations are operating and have keen insights into how companies can get ahead in the digital curve.

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RED Team Executives: On Call to Help Now

Uncertainty is growing in the US with coronavirus cases mounting. California, Illinois, Michigan, and other states have taken serious actions with shelter-in-place orders, leaving many people wondering how this will impact them personally as well as their companies and the economy as a whole.

At the same time, we’re reflecting on how much there is to be grateful for, including the strong relationships we’ve built over 10+ years with inspiring leaders. These are women and men who focus their careers on running into the burning building – the company in trouble – learning fast, listening, assembling resources, providing fresh and objective insights, developing new plans and actions for survival and ultimately blueprints for a brighter future.

We recently convened a call with some RED Team execs who shared how they are adapting to new ways to work. Many executives shared experiences on the front lines figuring out how to help combat the virus and also help people work smarter and safer:

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Surviving Zero Revenue: Thoughts from a Turnaround CEO

Surviving a period of zero or near zero revenue is extraordinarily difficult. The fundamental challenge is how to use time and capital purposefully. Most businesses have multiple constituents with diverse and conflicting interests. There is no one correct course of action. What is beneficial to one constituent is likely to be harmful to another.

Consider the following: The shareholders, owners and founders of a business have invested their own capital, have taken risk and have worked hard to create equity value. These owners could be individuals, institutional investors, private equity groups and hedge funds or could be a publicly owned company. They could be US citizens or foreign entities. Should the protection and retention of owner and shareholder value be the primary and controlling objective?

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Inspiring Ways Companies are Reacting to Coronavirus

The worldwide outbreak of novel coronavirus (COVID-19) is showing that crises tend to bring out the worst—and the best—in people.

Amid frenzied panic buying, supply hoarding, and finger-pointing, we’re also seeing individuals and businesses step up to help others. If the cloud hovering over the economic system has a silver lining, it’s that temporary changes to how companies define their mission statement could become permanent. Instead of focusing only on their bottom line, businesses might emerge from the crisis more focused on the greater good. In fact, many companies are already leading the way and providing inspiration during these uncertain times.

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Transforming Your Business Through Technology: Chat with Interim CIOs

Technology is the most disruptive force in the business world today. It transforms everything that it touches, creating new opportunities while at the same time threatening incumbents and late-adopters.

Futurist Peter Diamandis describes the technology paradox in the following way: “Entrepreneurs will create more wealth in the next decade, than we have in the entire past century. We’ll also experience the reinvention of every industry. Understanding how to navigate accelerating technological change is essential for every leader. The problem with such dazzling change is that most people fear the future, rather than being excited by it. And fear is a terrible mindset from which to create and leverage the opportunities ahead.”

InterimExecs recently held a webinar with Chief Information Officers (CIOs) David Mitchelhill and Kevin Malover about how you should be thinking about technology and your business strategy as we enter 2020. Among the topics discussed were ways to navigate disruption to stay competitive, the value of outside viewpoints in technology, when to pursue new technology versus maximizing current assets, and balancing the fear of change with the fear of falling behind.

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V.U.C.A. Helps Companies Deal with Dynamic, Shifting and Challenging Situations

Our world, our universe is characterized by constant change. Stars are born and die, storms transform the landscape, nations rise and fall, people change over time. In the business world economies grow and collapse, business models evolve, industries transform and even the Top 100 list of leading companies completely changes in a matter of a few years.

But sometimes the speed and scope of change is extremely rapid, its consequences unforeseeable and unpredictable. This makes planning and decision making highly risky because it is so difficult to see what the future holds. “Everybody has a plan,” said championship boxer Mike Tyson, “until they get punched in the face.”

To help explain the often sudden, fluid, rapidly evolving and dynamic forces of change – that “punch in the face” — the U.S. Army War College created the term V.U.C.A. to describe and ultimately deal with highly dynamic, shifting and challenging situations.

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