54 VISION & STRATEGY www.ceotodaymagazine.com How Automation is Helping Business Efficiency in Challenging Market Conditions From supply issues to soaring utilities costs, the COVID recovery effort is bringing a new set of financial pressures to businesses all over the world. For those businesses based in the UK, general political uncertainty which includes Brexit, a leadership race and the ongoing war in Ukraine, on top of a looming recession, is all adding smoke to an already clouded horizon that businesses attempt to plan for. Uncertainty is already taking its toll and has forced many to scale back as they look for where they can cut costs to save on the bottom line. Even big tech giants such as Google, Microsoft and Facebook are cutting headcounts, or pausing on new hires, whilst FinTechs are delaying IPO plans to focus on profitability. Whilst growth should always remain part of the long-term strategy for any ambitious business, patience has never been more important. A pivot to focus on efficiency strategies that enable sustainable growth will be crucial to withstanding this period of financial uncertainty. Needless to say, finance leaders have an integral role in setting a business strategy that aligns to realistic targets for the rest of the year and beyond. The challenge of the current market conditions Businesses are dealing with the hardest fundraising climate in more than a decade, while delayed IPOs are scuppering financial planning. For example, FinTech Klarna saw its valuation drop dramatically last month from pandemic heights of $46bn to just $7bn. As a result, businesses are still working out what short-term success will look like over the next few years. For Klarna, this takes form in a shift away from growth and towards short-term profitability. As businesses contend with these new challenges, financial consolidation throughout the business will be taking place – whether that be through redundancies, hiring pauses, delayed expansion or IPOs. Ultimately, businesses will have to revert to more firefighting strategies with these new market conditions. Whilst many businesses are experiencing the impact of the current business climate right now, these conditions won’t last forever. Instead of making wholesale changes to the structure of a business that goes in search of short-term success, taking stock and looking for ways to maximise efficiency of the team you already Rob Israch General Manager Europe at Tipalti
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