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Flexi-Retirement: The Alternative to Traditional Retirement

The Flexi-Retirement Trend

An Alternative to Traditional Retirement

Two-thirds of people set to start retirement this year do not expect to give up work completely, according to a report released this week by investment and wealth management company abrdn.

This is par for the course as ‘flexi-retirement’ emerges as an alternative to traditional retirement. A quarter (24%) of the retirement “Class of 2022” will go part-time with either the same job or a new one, 15% will continue to work for their own business, and 12% plan to become entrepreneurs.

“The days when everyone had a set date or a set age from which they’ll never work again are long gone. The emerging trend for ‘flexi-retirement’ for financial reasons, or just to keep busy, is here to stay,” said Colin Dyer, Client Director at abrdn.

Flexi-Retirement: The FocusCFO Way

Flexi-retirement is a rewarding option for professionals, at any age, who are looking to reclaim balance in their lives and find greater flexibility and meaning in the next stage of their career. 

At FocusCFO, we have structured our CFO and Area President positions around these values. Our associates ditch the long hours and unsustainable working conditions, by setting their schedules, both in terms of the number of hours and in terms of their availability.

They also pursue more of the work that they enjoy – more high-level strategy and less administrative – and leverage their years of experience knowledge to help small and medium-sized businesses build sustainable, transferrable business value.

Our CFOs choose their schedules, have control over their client roster, and can focus on the rewarding aspects of their work, which lets them write a new chapter in their careers, one that is less stressful and more meaningful.

Learn More

Wondering if transitioning to a fractional CFO role is the right ‘flexi-retirement’ role for you? Read about John Voglpohl’s experience as a CFO with FocusCFO: “Your valued skill set is strategic vision, problem solving, crisis averting, seeing the future, explaining dynamics of a business, especially financially, and sometimes simple coaching. READ THIS: Gray hair valued!!

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Julie Payovich

Welcome Julie Payovich

Welcome to the Team!

 

Julie has over 30 years of executive financial management and leadership experience in both US and international markets. Throughout her career she has helped small to medium size companies expand their business, launch new products, manufacturing products, set up cashflow management and implement business improvements. Julie also has had experience in working with both Asian and European markets for product development, product distribution and manufacturing.

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How a CFO Can Help You Solve the Inflation Puzzle

How a CFO Can Help You Solve the Inflation Puzzle

As inflation drives higher in today’s markets, many business owners find themselves in unfamiliar territory, struggling to make sense of an ever-changing puzzle. However, with guidance and strategic planning led by an experienced CFO, organizations will be well equipped to weather the storm. 

 

Focus CFO Guide to Supply Chain Metrics and KPIs

The CFO—either a full-time CFO or a Fractional CFO embedded in the leadership team—has a critical role in response to the current inflationary cycle and the resulting uncertainties. It all boils down to data-driven analysis, scenario planning, communication, collaboration, and—just as important—coordination. A skilled CFO will coordinate how all the pieces of the organization’s inflation risks and responses click into place. 

This is explored further in a February 2022 article in Forbes Magazine. 

 

Key Challenges, Regardless of Industry, Include:

  • Working capital management pressures: High prices raise pressing questions concerning working capital: How much inventory are we willing to carry as warehousing costs increase? What’s our breaking point? What’s our exposure to rising interest rates? How do we balance working capital management requirements with the need to satisfy customer demand? What’s the optimum cash position needed to support operations and take advantage of discount opportunities given the deterioration in purchasing power? 
  • Trading partners’ credit risks: Customers and suppliers grapple with the same inflationary pressures and working capital management challenges, which can create a drag on their profitability. Moreover, these issues can impede a customer’s ability to pay and a supplier’s ability to deliver. 
  • Pricing strategy: Businesses have the option to pass along higher costs of manufacturing and talent to customers by raising prices. This response can work well—until it doesn’t. When prices become too high, customers reduce purchasing activity, eating into profit margins. Or they may choose to take their business elsewhere. CFOs face a tall task in pinpointing the breaking point in price increases. Also, there is the challenge of aligning sales management with pricing strategy and concessions, not to mention keeping the strategy current with changing inflation rates. 
  • Workforce risks: Inflation is an equal opportunity risk in that it affects everything with a value assigned to it, from the purchasing power of monetary assets to the cost of commodities and raw materials to defined benefit plan performance to the cost of talent. When annual compensation increases 3-5% but inflation hovers at 7-8%, employees are effectively experiencing a pay cut—this is less than optimal during a long-term talent crunch which has given substantial leverage to employees. 
  • Procurement strategy: Persistent inflation necessitates different approaches in negotiating pricing with suppliers. For example, proposed price increases should be traced back to specific inputs (including labor) and raw materials, product design should be evaluated to optimize cost builds, and price negotiation strategies should vary depending on whether long-term purchasing contracts are indexed to inflation. If hedging strategies are in play, they should be coordinated enterprise-wide. 

A Plan of Action

To ensure that our clients are well-equipped to address challenges sparked by mounting inflationary pressures, FocusCFO associates work with organizations to:

  • Get (and make sense of) the data 
  • Elevate scenario planning 
  • Help find (and keep) finance talent 
  • Communicate and collaborate – both internally and with external partners 

Learn more about how a FocusCFO’s Fractional CFO services can help your organization with strategic planning.

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An Introduction to Supply Chain Metrics & KPIs

An Introduction to Supply Chain Metrics & KPIs

 

This article, from business software provider NetSuite, lays out a Comprehensive Guide to Supply Chain Metrics, including 22 top supply chain metrics and KPIS and the formulas to calculate them.

At FocusCFO, our CFOs work closely with owners and management teams to evaluate whether the right metrics are being collected an analyzed in order to monitor the health of the supply chain and know whether investments are paying off.

Focus CFO Guide to Supply Chain Metrics and KPIs

What Are Supply Chain Metrics?

Supply chain metrics are the numbers and ratios a company tracks to measure how efficiently it delivers goods to customers. Keys to efficiency in supply chain execution include how well and cost-effectively companies drive the flow of materials from procurement to delivery, including activities like production, warehousing, and transportation.

The right metrics shed light on where to invest to achieve maximum returns.

Key Takeaway

  • It’s vital to employ metrics and KPIs to assess how your entire business is performing, including it’s supply chain.
  • Important KPIs for finance include cash-to-cash cycle times and gross margin return on investments.
  • Inventory turnover ratios and inventory velocity are two central gauges of how well your company manages its intake and outflow of goods.
  • A central KPI dashboard accessible to all stakeholders helps leaders stay on the same page and prioritize resources.

Supply chain leaders are constantly seeking an edge—they know that even a modest technical or process improvement, multiplied on the scale of modern supplier networks, can pay huge competitive and cost-saving dividends.

Because there are many metrics that can add value, it is advisable for companies to divide supply chain KPIs into tiers based on functions. Your CFO can help you decide on a bucket of top metrics that are most important to the business and watch some lower-tier KPIs occasionally.

The NetSuite Guide outlines 22 top supply chain metrics and KPIs, provide the formulas to calculate them, and discuss how dashboards can help track the success of your improvements and updates.

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