How to get the most out of your reading experience?
Scroll to read the article
Swipe to navigate between articles
Everything that can be counted gets counted in financial management. Recording, reporting and analysis of the revenues, expenses and profits of the business bring transparency to all aspects of the business. Data provides a fact-based perspective to decision-making. Stronger reporting and deeper analysis of data provide CEOs with better visibility for decision-making. Financial dashboards promote organizational goals, objectives and KPIs. Access to capital, strategic growth and investments must all connect with the market and the organization’s ability to execute.
Financial management comprises many different elements, including potential legal/governance issues, access to capital, acquisitions, KPIs, data and metrics. It blends managing a balance sheet with managing the board. Critical valuation calculations, succession planning, and exit strategies power the CEO’s vision for the organization and drive the strategy. Forward-looking projections based on economic, regulatory and market conditions are part of every business decision the CEO makes.
Bouncing Back Better Than Ever
Pamela Jung credits Vistage for her comeback story.
Pamela Jung credits Vistage and her group Chair for saving her professional career. In the late 2000s, Workforce Solutions Group, a human resources consulting and talent solutions firm, went from $5 million in revenue down to $500,000. But with swift, strategic decisionmaking and the support of Vistage, Jung weathered the downturn and built her business back up—way up. In 2016, Workforce Solutions Group generated $32 million in revenue.
For many companies, 2008 was a painful year. The employment industry is invariably one of the first to feel the effects of a recession, as businesses stop or slow their hiring. Jung realized she needed to take quick action, and she turned to her Vistage group for feedback. She leased out her building and reduced headcount. She also had to manage major cash flow issues as banks called her lines of credit and credit card companies capped or froze her spending.
On top of this, Jung’s business partner pulled out and refused to turn over her shares unless Jung absolved her of all financial responsibility. Effective decision-making is particularly challenging when emotion is involved. Jung’s Vistage group urged her to take legal action, but she admits she dragged her feet in doing so because of the personal connection. With time, her group helped her make the tough decisions the situation demanded, including getting her attorney involved. Vistage was, and is, her sounding board. “I could throw ideas out, and they would give me honest feedback. Most importantly, they pushed me to make decisions I wasn’t comfortable with,” she explains.
Jung persevered. She reevaluated her strategy and decided to focus on healthcare. Bit by bit, year by year, she grew her business—into something bigger and better than it was before.
Jung is particularly grateful to her Chair, Dwight Frindt, for refusing to let her give up. “He believed in me even when we were in our darkest of times, when every time I got a penny in, I had to pay someone with that penny,” says Jung.
Being a CEO can be lonely. You can only share so much with those around you, or you risk losing their confidence, notes Jung. You need an inner circle of peers who aren’t connected to your business, but who relate to your challenges. For Jung, that circle is her Vistage group, and together, they navigated an incredible business turnaround.