Directionally Correct podcast

This week on the podcast, we look at a few real-world examples of how the implementation of best practices can move the needle dramatically for businesses, and discuss why some firms are unable to accomplish these changes. 

In July 2017 Southern Oak Consulting authored an analysis entitled, "Management Consulting's Impact on Private Equity Performance".  The analysis used data from the Pitchbook database and revealed that U.S private equity funds who used management consultants for operational performance improvement outperformed the IRR of their peer groups by an average of 1.52% - that's no small number.

As it turns out, our analysis was in good company as a former PE analyst has been actively campaigning to show that PE firms are not really great at operations and turning their portfolio companies in to winners.  What are your thoughts on that?

Today we look at the question:  Does PE have an operations problem and if so, what can be done about it?

Last week the Turnaround Management Association had their Southwest Conference in San Antonio and Southern Oak Consulting was there.  Greg Saltsman shares the latest insights about what's being discussed at the TMA event.

How aware are you of disruption happening in other industries?  We look at 3 seemingly unrelated fields - self driving cars, real estate, and recycling - to show how disruption all around us may be an opening to new growth in your business. 

Walmart is all about "low prices" and until now they have reigned supreme.  But when a company competes on price, there will always be someone "cheaper" coming up from behind and that's what's happening with advances by Amazon.  Walmart is making it clear they won't give up their position quietly and lately we've noticed a few curious stories in the news.  What does Walmart know about the future?  It's anyone's guess, but you may be surprised to hear about moves the company could be making to fend off competition. 

KPI scorecards are standard practice for financial metrics, but what about qualitative goals?  Diversity, inclusion, employee satisfaction, sustainability, innovation, ethics - all are important and none are attached to a general ledger.  In this podcast we talk about the softer side of scorecards and how much weight should be given to non-financial metrics. 

Relying on external auditors is not enough to protect your company from loss.  Do you have effective processes and procedures in place  for fraud control?  We look at a few examples of easy traps and cautionary tales for companies both large and small.  Kelsey Robertson of Swingle Collins & Associates explains "Social Engineering" - a terrible new crime that is on the rise and could happen to your firm.  What it is and what you can do about it. 

What do oil companies really do?  They are efficient allocators of capital.  In this podcast we take a look at what Shell Oil is doing to transform their business in the face of an historic shift away from petroleum to electricity.  A few lessons from a big company, doing it right.  

The plan you had was wrong.  Now what?  Under what circumstances should you consider changing your strategy and how do avoid doing it either too soon, or too late. 

What are the real benefits of FP&A and why are they so often ignored by business?  Greg Saltsman addresses a few common questions about Financial Planning and Analysis, the strengths and limitations.