Edelkoort Smethurst Schein CPA’s LLP will guide your company through the entire strategic planning process, or support you with resources in specific areas.
What is strategic planning and why is it so important? Strategic planning is the starting point for establishing financial and operating objectives for a company in support of long-term planning – typically 5 years but is often extended to 10 years. The strategic plan addresses where a company wants to be in the future, and what it will take to get it there. Without this ongoing assessment and vision, your company will not fully understand the risks and opportunities in the market place. It will not be able to properly set financial and operating objectives in the short-term, in support of meeting long-term objectives. It will not know if there will be sufficient funds available to support capital investments let alone knowing if any investments are required. It will not fully understand staffing needs, IT investment, and infrastructure requirements – many of which take years to develop. It will not fully understand its competition, industry and what it will need to do to maintain or increase its market share and profitability. Put another way, it will not have a concrete, well thought out plan to present to its shareholders and owners as to how it will use their invested capital and provide an adequate return for their money.
For a more detailed discussion on strategic planning and what Edelkoort Smethurst Schein CPA’s LLP can do for your company, please refer to Resources – Strategic and Business planning. However, the following is a recommended strategic planning approach:
- Ownership and market expectations for the company
- Industry and competitive analysis
- Company assessment
- SWOT analysis
- Risk assessment
- Long-term Financial modeling (PL, BS, Cash-flow)
- Resource analysis (Capital Budgeting, Staffing, and Financing)
- Sensitivity “what if” analysis
- Recommendations to management
The strategic planning process has always been extremely important, and has become that much more critical with technological advancements, global competitors, and commodity market volatility, to name a few. This requires ongoing vision and planning, the ability to manage undue risks, and to change in response to market conditions and competitors. The strategic plan should incorporate a range of outcomes and consequences, to avoid catastrophic events, and to take advantage of opportunities.
Feel free to call Edelkoort Smethurst Schein CPA’s LLP about interim financial management services.
About GFS “Strategic Planning” Consulting
Edelkoort Smethurst Schein CPA’s LLP has over 25 years of management experience including developing and implementing several strategic planning initiatives. These have been done with publicly traded companies in energy, manufacturing, distribution, consumer packaged goods, health care, and paper products.
A snapshot of Edelkoort Smethurst Schein CPA’s LLP’s strategic planning experience includes:
- As Controller and senior financial manager at Superior Energy Management (a division of Superior Plus L.P.) played a leading role in the development of a strategic plan for Superior Plus in its 2006 “strategic review” of operating divisions. The plan supported the entry into new products and markets, requirement for additional credit facilities, and investments required to meet long-term financial objectives.
As Manager of Finance and Administration & Canadian CFO of SCA North America during 1993 – 2003, played a leading role in the following strategic plans:
- Strategic rethink to identify opportunities for market growth, reduced cost structure, and rationalization of operations to steer company towards long-term profitability targets. The strategic plan was implemented and ultimately resulted in significant cost reductions (including divestitures) and the successful acquisition of its leading competitor in Canada.
- Strategic review of new markets and products, which supported the company’s entry into new retail sales channels, the acquisition and integration of a competitive line of products, and the launch of new products.