Gaining ground in volatile times
Cost control, operations and leadership during this time of low oil prices
Understanding Volatile times
With crude prices declining to a 5-year low and counting, CFOs of oil companies are understandably feeling the pressure – and the urgency – to keep their businesses on track. But as uncertain as the times have become, we can take heart in one basic fact: we’ve experienced – and weathered – similar conditions before. Some of us even still have the bumper stickers to prove it.
But how are these times different? And how not? And what are other CFOs focusing on during these volatile times to regain some control and planning over the longer term?
Learning about Industry Challenges
It is important to realize that not all issues are created equal during volatile times. The factors unique to your organization will determine how you prioritize challenges like:
- Operations excellence and Asset Investment Planning (AIP)
- Cost optimization and cost recovery initiatives
- Organizational restructuring and M&A strategy and execution
Responding to uncertainty?
Before acting on any of the above, you need to know your strategy - for instance, are you specializing or diversifying?
To steer your way forward while maintaining a state of consistent growth, you need to find a way to work together across service lines, integrate strategy, operations, people, process and technology.
Getting to solid ground
Right now, there is an opportunity to infuse strategic best practices into your business processes. Our recommendations include adjusting indirect tax on bad debts, maximizing overall recoveries and cash flow, and minimizing exposures.
But are these enough to get you to solid ground during a storm?