Finding your business sweet spot: Balancing finance, people and operations (FPO)
By Michael Waite, Waite Partners Advisory
Navigating the growth of a business requires more than just passion and commitment. Many organizations find themselves out of sync, not quite hitting the mark in terms of being properly scaled or appropriately risky in their finance, people, and operations (FPO).
In my experience spanning over two decades, I've identified a consistent oversight among leaders across various stages of business development. They tend to prioritize external factors or get swayed by the latest industry trends, neglecting the essential internal trifecta of finance, people, and operations. This imbalance often derails the strategic alignment crucial for sustainable growth.
This misalignment can lead to significant issues, including lost revenue, increased expenses, wasted time, diminished team morale, eroded investor confidence, and, ultimately, a heightened risk of failure.
Here are essential, expert-backed tips to ensure your business's FPO is aligned for success:
Finance: Your financial health is pivotal. If your financial statements are a source of pride yet challenging to produce or explain, it's a signal to reassess. Clear, timely financial reporting that you can confidently discuss with stakeholders is crucial. Your ability to discuss financial health openly with stakeholders is a key indicator of your business's stability.
People: The backbone of your operation is your team. If they're overextended or if your company's success is predicated on long-term goal achievement, it's time to recalibrate. Ensuring your team feels empowered and that decision-making isn't bottlenecked at leadership levels is key.
Operations: Operational efficiency can't be overlooked. If your company is constantly in crisis mode or downplays emerging issues, you need to revisit your operational strategies. Clear, understood, and shared company priorities are fundamental.
To deepen your understanding, here are some extra points to consider in your FPO evaluation:
Adaptability: How quickly can your company adjust to unexpected changes? Being right-sized means being flexible, not just fit for today's challenges but ready for tomorrow's surprises.
Meeting structure for FPO review: Optimal FPO alignment can be achieved through structured reviews. Ideally, this involves two meetings of approximately one hour each with key leaders, and additional sessions with team members to assimilate and act upon the insights gathered.
Leadership impact on FPO: Acknowledge how leadership style influences FPO alignment. A collaborative, transparent approach can facilitate more effective alignment compared to a dictatorial style, which may alter or suppress genuine assessment.
Resource allocation: Are you investing your resources—time, money, people—in the areas that will bring the most benefit? Ensure you're not just fighting the latest fire but nurturing future growth.
Communication: A transparent and open communication channel is vital. Everyone should know where the company stands and where it's headed.
Feedback loop: Establish a system where feedback flows freely and is used constructively. It's not just about pointing out what's wrong but finding ways to improve continuously.
Culture: Your company culture should support your FPO strategy. A culture that encourages innovation, responsibility, and learning will help keep your organization aligned and agile.
Remember, aligning your FPO isn't a one-time fix but a continuous process of adjustment and improvement. By keeping these factors in check, you're not just avoiding pitfalls; you're setting the stage for sustained success and growth.
If you're ready to take your business to the next level or if you simply want to bounce ideas and explore new strategies for your business growth, don't hesitate to reach out.
I am here to offer personalized, expert advice and strategies tailored to your unique business challenges and opportunities. Let's work together to transform your FPO alignment into a powerful engine for sustainable growth and success.
Connect with me, today. Let's embark on a journey to optimize your business's potential and achieve your mission and goals with precision and expertise. Contact me to Email or let's chat through LinkedIn.
Michael Waite, MBA, CEO and Founder of Waite Partners.
20+ years experience leading innovative entrepreneurs, medium-sized businesses, corporate teams, and communities organizations to achieve growth results.