Mark Sykes, a member of the Expert Council of the Association of Certified Professionals,
contributed to BDO’s guidance for business leaders preparing their organisations for an
increasingly uncertain operating environment.
Published on 29 November 2022, the material focused on practical considerations for
companies developing their plans for 2023. Businesses at the time were facing a combination
of inflationary pressure, rising costs, changing customer behaviour, supply-chain challenges
and broader economic uncertainty.
One of the central themes was the importance of maintaining an adaptable business strategy.
In a rapidly changing environment, traditional plans based on relatively stable assumptions
can quickly become outdated. Businesses therefore need to understand the factors that have
the greatest influence on their performance and regularly reconsider those assumptions as
conditions change.
The guidance considered several areas relevant to business planning, including cash flow,
costs, customers, employees, supply chains, technology and access to finance.
A particularly important element is scenario planning. Rather than relying on a single
forecast, organisations can consider different possible developments and assess how each
would affect revenue, costs, investment requirements and operational capacity.
This approach can help management teams identify vulnerabilities before they become
critical and determine which actions may be required under different circumstances.
The broader lesson extends beyond periods of economic uncertainty. Effective business
strategy requires organisations to combine long-term objectives with the ability to respond to
new information and changing market conditions.
Companies that understand their financial position, operational capabilities and strategic
priorities are generally better placed to evaluate opportunities and make informed decisions
when circumstances change.
Mark Sykes is a member of the Expert Council of the Association of Certified Professionals,
with expertise in Business Strategy, Consulting and Business Transformation.