Strategy Archives • NMS Consulting A Vision for Solutions Mon, 28 Nov 2022 17:43:10 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.2 https://nmsconsulting.com/wp-content/uploads/2018/12/cropped-NMS-Favicon-32x32.png Strategy Archives • NMS Consulting 32 32 How to Be Investment Ready https://nmsconsulting.com/how-to-be-investment-ready/ Fri, 20 Nov 2020 06:05:09 +0000 https://nmsconsulting.com/7403/strategic-management-moving-away-from-planning-and-into-hands-on-bridge-building-copy/

When looking for an investment, know what it takes to secure the deal.

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When looking for an investment, know what it takes to secure the deal.

How to Be Investment Ready

 

As a business looking to raise capital to expand and take on new growth strategies, it can be difficult to understand exactly what investors in the marketplace are looking for, and what your company needs to improve on to garner interest. It is important to understand the mindset of an investor, and analyze your company from their viewpoint. Beyond the business itself, investors look for a management team that shows a clear understanding of the market, and a drive to make the company successful.  Most investors will want to see an experienced team that has succeeded in previous ventures by either being part of a successful exit, capital raise, or growth of a previous company. Other questions that are usually at the top of the list for investors include:

  1. Is this business model or the future opportunity easily understood?
  2. Has this business model or concept been done before? Is it now being done better, faster and/or cheaper?
  3. Is there a current problem or niche in the market that the business is going to help solve?
  4. Is the market for this product or service growing at a strong rate for the next 3-5 years?
  5. Are the financial projections supported by the industry and revenue models?
  6. Has the revenue model been proven, and does it have a significant advantage over competition?
  7. What percentage of the company is being offered in return for this investment and what market capitalization does that indicate?
  8. Does the company have any contracts or partnerships in place?
  9. What intellectual property does the company have?
  10. How will your company perform under an increased or expanding workload if you grow rapidly?

Improve Your Company’s Image

Every business owner wants to make sure their company looks as pristine as possible. To accomplish this, business owners will want to:

  1. Have a strong business plan and presentation without the fluff

Most investors are not going to want to go through a massive business plan that is full of unnecessary jargon or statistics.  It is better to pique the interest of investors (and short attention spans) by keep your business plan or presentation simple, and focusing on only the most important aspects, projections, and strategies. 

  1. Under-promise and overdeliver

As much as you believe in your company, providing projections with astronomical growth rates can be detrimental. Although the higher the growth and figures, the better your company’s future looks, it also can make investors question your methodologies. If you are unable to deliver on the first set of projections in your model that you had shared with interested parties, it will create concern and doubt in the minds of investors. That is why it is best to have projections that are realistic and achievable, and if you surpass your projections, all your other future projections will appear much more achievable in the eyes of the investor. This will also create a track record of your success and will leave investors with a positive perception.

  1. Have a detailed quarterly plan on how you will scale the business

Providing a strategic roadmap with a step by step process will help investors understand your vision and your target market. By going through this process, the investor can see exactly how you plan on using the capital raised and will feel much more comfortable proceeding. Plans should include goals, expenditure estimates, and should specify when and how you will become profitable.   

Ensuring Due Diligence is Complete and Accurate

Once an investor has decided that your business has strong investment potential, they will then want to go through the due diligence process and review the business in depth. It is vital for you as the business owner to ensure that the due diligence package you provide is complete and accurate, as to avoid any issues during discussions. Documents that investors will want to review include the business plan, financial performance/projections, contracts, partnership agreements, and more.  You will want to make sure you have all pertinent information readily available in a data room and organized in a way that makes it easy for investors to view the document they want quickly and without confusion. The more transparency you can provide an investor, the more they will be able to understand your business and feel comfortable investing in you.

How NMS Can Help

We advise companies throughout the deal life cycle, providing deep deal experience coupled with unique industry experts to help prepare a business plan, due diligence packages, presentations, and financial models. We work side by side with your team before, during, and after a financing round. Our offerings include pre- and post- investment advisory, business unit improvements to drive efficiencies, cost-cutting and profit-enhancing solutions, a roadmap for investment integration, as well as tax advisory.

NMS Consulting is also hosting a free webinar on this topic.  The webinar Are you investment ready? will take place on December 2nd at 8:00 am PT / 11 am ET. Harry Moore, Senior Partner – Head of Europe, will take you through the various options for fundraising, and will provide valuable information on how to both prepare your business to be ready for an investment or sale, and how to present it in the best way to potential investors. For more information on this event and to register your attendance, please click here.

About the Author

How to Be Investment Ready

Mr. Mansourian has a 12-year track record as both a management consultant and investment banker, advising clients on valuation, capital markets, structured financing, mergers, acquisitions and divestitures and general corporate strategy.  Mr. Mansourian served as Vice President while at NMS Capital Advisors, when the company achieved cumulative sales growth of over 5,100% with annual compounded sales growth in excess of 120% from 2012 to 2017.

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How Turnaround and Transformation Consulting Can Help a Struggling Business https://nmsconsulting.com/5315/how-turnaround-and-transformation-consulting-can-help-your-business/ Fri, 02 Sep 2022 05:00:00 +0000 https://nmsconsulting.com/5315/the-second-wave-is-here-how-businesses-need-to-prepare-copy/ turnaround and transformation

Companies experiencing difficulties due to inflation, supply chain issues, and rising energy prices should use this time to optimize their business models.

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turnaround and transformation

 

 

Companies facing difficulties due to inflation, supply chain crunches, or increasing energy prices, should use this time to optimize and re-evaluate their businesses.

 

How Turnaround and Transformation Consulting Can Help a Struggling Business

 

The disruptions taking place in businesses across the globe today vary in origin, but the outcomes and consequences are equally painful for companies. Using turnaround and transformation as tools to help companies of all sizes can be the pivotal point for the future of a business. However, it is vital to have experienced consultants implement such measures, as turnaround and transformation will lead to major changes, and successful changes require expertise and thoughtful strategy.  These changes can come in the form of overall company culture and mission, and as short-term improvements to a business’s bottom line.  Typically, these changes do require precise timing, and that is why many turnaround and transformation consulting attempts do not obtain the desired outcome.  Resources and research on how to complete successful turnaround or transformations is minimal, and are some of the reasons why they are so difficult to implement successfully.

What is the difference between turnaround and transformation?

Turnaround typically entails an overhaul of a company, which can include; 

Employee incentive plan review
Pre-bankruptcy planning
Working with creditors and negotiating
Improving disposing of non-core assets
Redesigning the business plan
Addressing liquidity issues


The goals of a turnaround usually include structural reductions, feasible short-term goals, and preparing a company for transformation.  When performing a turnaround, consultants need to be prepared to have the necessary tough conversations with leadership.  Business leaders need to be honest and transparent to help consultants quickly identify the most vulnerable areas of the business.  Management consultants play a vital role in critical thinking and imploring execution discipline, and a business must support the consulting team with whatever resources and information they need.  Transformations are major changes in operating model, people, processes, and the overall organization. Solutions focus on weaknesses or problems a company has and aim to achieve a drastic improvement.  

Transformations usually involve:

A “selling” of a company vision
Extensive changes to personnel
Transitions of revenue models
Cash flow management

In such scenarios, the most important aspect is to have a clear understanding of the goals and the company vision.  Transformation usually includes exploration and diagnostic work. When compared to turnaround consulting, there is typically a demand for more detailed direction when it comes to systems, structure, and strategy.

How NMS Consulting can help

To understand what your company needs, we start by interviewing leaders and asking a series of questions to identify the necessary changes that will create value.  If a company is in a dire situation, whether it is operations, capital structure, or strategy, a turnaround approach may be needed.  If on the other hand a business is not on the brink of collapse, but is looking to achieve a higher level of success, our transformational approach may be the right method to implement.  This would include preparing a bold vision for how your business must change based on our objective analysis of its core competencies and major hurdles.  

Importantly, we strive to provide a “realistic” timeline of what can be achieved in the near term versus long term .  Such a plan includes managing change from start to finish, and aligning leadership goals with what is necessary to work through the disruptions.  Creating a transformation or turnaround plan is just the beginning, as the execution of such plans will require the right consulting approach.  The approach we take also depends on the type of organization your business has – whether it is centrally controlled by a few managers, or a more distributed model.

While turnaround and transformation can come in many different forms, we view such consulting as a cross-functional effort to change the current trajectory of a company, whether it is operational, strategic, or financial in nature.  If you feel your company is not performing at its peak, we are here to guide you with a team effort which will culminate in improved and sustained performance.  Whether your company needs a complete overhaul, or simply additional guidance on some needed changes, we will be at your side until the goal is reached.

 

About the Authors

Arthur Mansourian has a 12-year track record as both a management consultant and investment banker, advising clients on valuation, capital markets, structured financing, mergers, acquisitions and divestitures and general corporate strategy. 

Mr. Mansourian served as Vice President while at NMS Capital Advisors, when the company achieved cumulative sales growth of over 5,100% with annual compounded sales growth in excess of 120% from 2012 to 2017.

Dr. Harry Moore MBE is the Head of Europe, Global Head of Turnaround and Transformation.  His experience and expertise include international strategy, corporate turnaround, transformation, market penetration, and increasing profitability.  Prior experiences include leading business transformation teams at both KPMG and PwC, and being sponsored by the UK Government to manage initiatives that he designed to secure the future of enterprises in the SME sector in the UK.  His strategies resulted in saving roughly 135 UK businesses. 

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Trevor Saliba Nominated for Inaugural CEO & CFO Leadership Award https://nmsconsulting.com/trevor-m-saliba-nms-consulting-managing-partner-nominated-for-la-times-inaugural-ceo-cfo-leadership-awards/ Fri, 17 Sep 2021 00:01:47 +0000 https://nmsconsulting.com/8244/nms-consultings-partnership-with-cloud-primero-copy/

Trevor M. Saliba, NMS Consulting Managing Partner, Nominated for L.A. Times Inaugural CEO & CFO Leadership Awards

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Trevor Saliba Nominated for Inaugural CEO & CFO Leadership Award

 

Trevor M. Saliba, NMS Consulting Managing Partner, Nominated for L.A. Times Inaugural CEO & CFO Leadership Awards.

 

LOS ANGELES, CA – September 16, 2021 NMS Consulting, Inc. (“NMS”) announced today that its Founder and Managing Partner, Trevor M. Saliba has been nominated for the L.A. Times Inaugural CEO & CFO Leadership Awards in the Chief Executive Officer category.

As part of this year’s inaugural CEO & CFO Leadership Awards event, the L.A. Times B2B Publishing team staged a virtual event panel discussion exploring the hot button issues and trends affect the C-Suite in 20201 and the employees, customers, shareholders and constituents they serve.

The event recognizes Chief Executive Officers and Chief Financial Officers of public and private companies and educational and non-profit organizations. Trevor M. Saliba was nominated in the Chief Executive Officer of a private company category. View the full list of honorees here.

As the Managing Partner and Global Head of the Private Equity, M&A and Strategy Practice Groups at NMS Consulting, Mr. Saliba is a sought-after strategic advisor to a global client base and variety of industries.

NMS Consulting is a global management consulting and strategy firm focused on delivering client solutions to a global client base comprised of private and public companies, governments, philanthropic organizations and the individuals who lead. Drawing upon our global team’s extensive expertise and diverse skills, our clients benefit from a global organization of more than 250 seasoned professionals across 15 offices located throughout the United States, Europe, Asia and Middle East resulting in a unique multi-disciplinary platform.

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Trevor M. Saliba Recognized by Los Angeles Business Journal https://nmsconsulting.com/news/trevor-m-saliba-recognized-by-los-angeles-business-journals-2021-leaders-of-influence-private-equity-investors-and-advisors/ Wed, 07 Jul 2021 17:17:34 +0000 https://nmsconsulting.com/7911/nms-consultings-own-dr-harry-moore-mbe-releases-7th-book-copy/ Trevor Michael Saliba

Mr. Saliba is a sought-after strategic advisor to a global client base working with them at every stage of the private equity and M&A transaction life cycle.

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Trevor Michael Saliba

Mr. Saliba is a sought after strategic advisor to a global client base working with them at every stage of the private equity and M&A transaction life cycle.

Trevor M. Saliba Recognized by Los Angeles Business Journal

NMS Consulting, Inc. (“NMSC”) announced today that its Managing Partner and Global Head  the Private Equity, M&A and Strategy practice groups, Trevor M. Saliba was recognized by the Los Angeles Business Journal as a “Leaders of Influence: Private Equity, Investors & Advisors” for 2021.

Published in the June 28, 2021 issue, the Los Angeles Business Journal profiled an impressive cross-section of the top private equity investors and advisors in the Los Angeles marketplace who fund or work on deals that shape the local and national economy in its “Leaders of Influence: 2021 Private Equity Investors and Advisors.” Included in the issue are some LA’s most successful private equity and M&A dealmakers, lawyers, accountants, consultants and insurance providers.

As the Managing Partner and Global Head of the Private Equity, M&A and Strategy Practice Groups at NMS Consulting, Mr. Saliba is a sought after strategic advisor to a global client base working with them at every stage of the private equity and M&A transaction lifecycle. Mr. Saliba’s Strategy practice supports clients post transaction closing advising on post-merger integration and growth strategies.

“It’s an honor to be recognized by the LABJ as part of this impressive group for a second year in a row” said, Trevor M. Saliba. “At NMS Consulting, we remain singularly focused on our client’s goals in the transaction to create added value throughout the process through completion. The firm has seen a significant client mandate increase in Private Equity and M&A transactions with a particular client focus on SPACs, infrastructure and real estate in 2021.”

NMS Consulting, Inc. is a global management consulting and strategy firm focused on delivering client solutions to a global client base comprised of private and public companies, governments, philanthropic organizations, and the individuals who lead. Drawing upon our global team’s extensive expertise and diverse skills, our clients benefit from a global organization of more than 250 seasoned professionals across fifteen offices located throughout the United States, Europe, Asia, and Middle East, resulting in a unique multi-disciplinary platform.

To view the original press release, please click here.

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Trevor M. Saliba Interviewed and Featured in CIO Look Magazine https://nmsconsulting.com/trevor-m-saliba-interviewed-and-featured-in-cio-look-magazine/ Thu, 22 Jul 2021 23:55:51 +0000 https://nmsconsulting.com/7958/softforay-rebrands-as-nms-consulting-following-deal-closing-copy/

Trevor M. Saliba, Managing Partner of NMS Consulting was interviewed and featured in the June 2021 Edition of CIO Look Magazine.

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Trevor M. Saliba Interviewed and Featured in CIO Look Magazine

 

Trevor M. Saliba, Managing Partner of NMS Consulting was interviewed and featured in the June 2021 Edition of CIO Look Magazine. The article highlighted its 10 Most Innovative Business Leaders to Follow in 2021.  CIO Look is Global business authority platform for entrepreneurs, business owners, and innovators who drive business around the globe.

To read Mr. Saliba’s interview, click here.

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The Second Wave is Here: How Businesses Need to Prepare https://nmsconsulting.com/5212/the-second-wave-is-here-how-businesses-need-to-prepare/ Thu, 11 Jun 2020 13:47:00 +0000 https://nmsconsulting.com/5212/keys-to-successful-business-transformation-copy/

COVID-19 infections are on the rise, again.

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COVID-19 infections are on the rise, again.

The Second Wave is Here: How Businesses Need to Prepare


As many experts expected, a second wave of COVID-19 has reared its head. Since Memorial Day weekend, hospitalizations related to coronavirus have increased in Alaska, Arkansas, Arizona, California, Kentucky, Mississippi, Montana, North Carolina, Oregon, South Carolina, Texas, and Utah.  

The Second Wave is Here: How Businesses Need to Prepare

Chart of daily new cases of COVID-19 in Texas, Source: www.bing.com “Coronavirus (COVID-19) trends”

This is not welcome news for businesses. Throughout the world, businesses were shut down for a long period of time earlier this year, and some have closed permanently. Names that were a household staple, such as JC Penny, Hertz, and Neiman Marcus, have filed for bankruptcy.  For many, COVID-19 has led to an era of unprecedented changes and uncertainty. For businesses, these issues have shown up in terms of business continuity, operational standards, supply chain disruptions, and changes in the way we work. For example, Jack Dorsey, CEO of Twitter, announced that all workers will work from home permanently, and many businesses have changed to an all remote and all digital model.

It is important for us to learn from the past, and to realize that having the knowledge to deal with these changes is the key to success. Within roughly the last 100 years, there have been four pandemics, and each offered important lessons for businesses small and large. One of the main lessons that arose from past pandemics is that infections come in waves. From recent statistics, it appears the second wave of COVID-19 is here. Unfortunately, this is likely not the last wave, as it is expected that infections will continue to spread until herd immunity is reached, or a vaccine is ready next year.

When examining the 1918 pandemic, we see that three waves of infections took place according to the Center for Diesel Control and Prevention (CDC): the first wave in spring 1918, the second wave in fall 1918, and a third in winter 1918-19. Even though the spread of the H1N1 virus subsided in the summer of 1918, the subsequent wave in the fall became the most fatal in the United States. Furthermore, waves of infections were seen in 1957-58, with the H2N2 virus, and yet again in 2009-2010 with the swine flu. Therefore, even if the number of COVID-10 cases decline, which they have done so over the last few months, businesses should be vigilant and remain prepared.

The Second Wave is Here: How Businesses Need to Prepare

How You Can Prepare

First, businesses need to take a close look at their operations and business model. Business owners and managers need to be fully prepared for a second, and potentially third or fourth, wave of infections. To do so, it is imperative to develop and plan your business model and operations from top to bottom accordingly.

Also, it is important for business owners and managers to be proactive with any needed changes, and thoroughly communicate needs and changes to staff members. Business leaders also need to continually watch for new developments and take this time to examine weaknesses and threats of the business to refine the plan now before moving forward.

Moreover, companies need to put in place strategic preparedness plans and test them thoroughly before rolling them out. It is also crucial to increase flexibility, expand supply chain options, and identify solutions for worst case scenarios. Most importantly, businesses need to create models to understand all the different scenarios that will impact their customers, employees, and suppliers. This is particularly important for businesses that rely heavily on a large staff and that would be deeply impacted by employees who get sick.

 

How NMS Consulting Guides Businesses

We have been working with companies throughout this year to help them identify contingency plans, new strategies, and analyze potential scenarios using detailed models. Although it is hard to make monumental changes quickly, businesses cannot brush off such important steps, and need to be very thorough in their preparedness. Our team of consultants are helping businesses throughout this process, and uncovering weaknesses and opportunities owners were not aware of before. We are currently offering a free consultation to businesses, to provide an overview of how we believe we can help avoid catastrophes and major setbacks.

 

About the Author

Arthur Mansourian has a 12-year track record as both a management consultant and investment banker, advising clients on valuation, capital markets, structured financing, mergers, acquisitions and divestitures and general corporate strategy.  Mr. Mansourian served as Vice President while at NMS Capital Advisors, when the company achieved cumulative sales growth of over 5,100% with annual compounded sales growth in excess of 120% from 2012 to 2017. With over $5 billion in completed transactions, the investment bank consistently ranked among the Top 10 investment banks by the Los Angeles Business Journal.  Mr. Mansourian holds an MBA from USC’s Marshall School of Business and a Bachelor’s Degree from UCLA, and the CIPP/US certificate from IAPP.

 

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The Modern ESG Movement https://nmsconsulting.com/the-modern-esg-movement/ Mon, 28 Nov 2022 09:07:37 +0000 https://nmsconsulting.com/8215/leveraging-erp-and-digital-transformation-to-achieve-growth-copy/

Traditional methods of establishing a competitive advantage are not sufficient enough. It is more critical than ever that businesses address new realities, evolve with the changing conditions, and deliver effective change to gain a competitive advantage.

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The Modern ESG Movement

 

Traditional methods of establishing a competitive advantage are not sufficient enough. It is more critical than ever that businesses address new realities, evolve with the changing conditions, and deliver effective change to gain a competitive advantage.

 

In recent years, Environmental, Societal, and Governance (ESG) issues have begun to make more of an impact on companies which increasingly seek to appeal to markets that often emphasize corporations which have shown dedication to these causes. Due to this, the idea that a corporation exists solely as an economic entity has become eclipsed by the conception that companies have an obligation to address ESG issues both in the public, and crucially, within their own company, in matters of procedure, impact, and industry standards.

Due to these factors, an organization must take a look at the fundamental operating procedures we consider, and ask ourselves the hard questions regarding the role and impact our current practices have on ESG issues. Notably, this means that a company will need to work to improve our understanding of the factors which can raise these issues to prominence, as we seek to rectify issues within our company. This includes actions from government entities, which are increasingly concerned with reducing carbon emissions, in addition to private entities such as loan granting institutions who wish to ensure that companies are operating with financial transparency. Another notable factor in the previous year which has expedited these concerns was the 2020 global pandemic, whose long-term economic and societal impact remains to be seen. However, it has made it clear that addressing these concerns is not a task that can be ignored.

As a result of these factors, corporations have begun to formulate a strategy for growth which formulates a cohesive unit, many of which are multifaceted strategies which can be utilized by companies at various stages of ESG development and growth. Regardless of the baseline of a corporation, many of these steps can be applied to increase their understanding and abilities to address these problems.

The Modern Agenda

To address these issues, there are three separate, but related spheres which are together able to improve a corporate structure. They are the following:

The Modern ESG Movement

Despite the relatively independent nature of these branches, the successful integration of one into the corporate structure should support the integration and success of the others. Additionally, as personnel become more accepting of each approach to addressing ESG issues, the momentum should result in a change of corporate culture, which makes it more likely that future innovations will become more popularized within a company.

Reimagined Reporting: This model is perhaps the most important for innovation, as non-compliance cannot be known by a company’s management if there is not set standards for how they are reported. This also includes training the employees in the new approach, and what constitutes compliance, or non-compliance with the new procedures.

Strategic Reinvention: Ideally, the information reporting will serve as a baseline knowledge of the current culture and inclusivity regarding ESG issues. Afterwards, strategic reinvention can be used to develop both general and specific goals and methods of improving the current culture of the organization in order to become better at creating a stable environment, which is better able to develop their methods encouraging ESG inclusivity.

Business Transformation: This model can be used to encourage the development or revision of business practices to be brought into compliance with initiatives that address ESG issues. Once the reporting process is undertaken, there will need to be a concise set of practical steps which are taken to correct the concerns of those affected. This will primarily take the form of developing systems to begin the process of transforming the business. This includes implementing the strategies which were developed based off of the reported infractions of agents within the company. See Exhibit B, which states the current percentage of executives who report problems with the following issues.

State of ESG Movement

The Modern ESG Movement

ESG prioritization is rapidly becoming a point of emphasis for governments and organizations, which is a trend that is likely to continue. Both the European Union and the United States have introduced policies and initiatives regarding climate control that are only going to increase the burden on organizations and require more detailed methods of tracking progress. Due to this, it is important for organizations to begin improving their procedures in order to be better situated to function in this changing environment.

Enhancing Measurement

The methods to track ESG issues such as carbon footprints, and financial impact of environment policies are increasingly becoming complex. Due to this, it is necessary that organizations plan how to best measure and report their impact in various industries. These new methods will likely be tracked on fiscal assessment and other non-financial statements. Due to this, companies need to be able to provide specific data on both their reporting methods, and their impact.

Ecosystem Evolution, Digital Transformation

Depending on the company, the methods of innovation employed could be radically different from one another. For example, consider the role of a chemicals company, who may face unique challenges due to the high number of hazardous materials and byproducts they create, which could serve as a major hindrance to meeting government and corporate benchmarks such as attaining net-zero carbon emissions. However, the important consideration here is that by working with other companies within the supply chain who may have use of such byproducts, corporations are able to better reach their goals regarding ESG issues.

Leading the Transformation

Due to the broad nature of both the changes necessary to change the corporate structure to better address ESG issues and the potential impact of such changes, it is clear that the movement must be spearheaded by industry leaders who are willing to function at the forefront of the movement. In doing so, they are likely to provide a clear direction from within their company on the goals of such innovations. Additionally, they will be able to provide a clear model for future companies on how to implement such changes. Overall, the priority for such leaders should be to set a direction for these changes and ensure that the initiatives are properly funded, and are able to practically alter the functionalities of the company to achieve their stated goals. It is when leaders are able to become impassioned by the importance of their changes that the rest of the organization becomes motivated to support their vision and enable the necessary changes to ESG procedures and initiatives within an organization.

How NMS Consulting can Help

Change management led by experienced NMS consultants provides a uniform approach to enabling the changes mandated by a company’s initiative, mitigating risk, and drastically increasing the success rate of changes. Executives need to analyze and understand the hurdles that make transformation efforts fail, and NMS can guide the way.

Businesses are facing economic unpredictability, disruptive technology, and organizational issues. Traditional methods of establishing a competitive advantage are not sufficient enough. It is more critical than ever that businesses address new realities, evolve with the changing conditions, and deliver effective change to gain a competitive advantage. Without clearly defined milestones and sufficient commitment by management, change initiatives are bound to fail.

A focus on an organization’s people, leadership, execution, and governance is paramount to success. Change management must be executed with transparency with a focus on value for your people. To satisfy these requirements, your organization can leverage the same technologies that are triggering the transformation. The scalability and reach of digital tools provide your business with opportunities to create innovative and powerful change. We partner with you to customize the right set of solutions for your change initiatives, ensuring that the internal capabilities needed to manage change now and in the future are established. 

The Modern ESG Movement

Mr. Mansourian has a 12-year track record as both a management consultant and investment banker, advising clients on valuation, capital markets, structured financing, mergers, acquisitions and divestitures and general corporate strategy.  Mr. Mansourian served as Vice President while at NMS Capital Advisors, when the company achieved cumulative sales growth of over 5,100% with annual compounded sales growth in excess of 120% from 2012 to 2017. With over $5 billion in completed transactions, the investment bank consistently ranked among the Top 10 investment banks by the Los Angeles Business Journal.  Mr. Mansourian holds an MBA from USC’s Marshall School of Business and a Bachelor’s Degree from UCLA, and the CIPP/US certificate from IAPP.

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The Coming Recession: How Companies can Still Thrive https://nmsconsulting.com/1247/the-coming-recession-how-to-align-for-protection/ Thu, 25 Aug 2022 10:00:34 +0000 https://nmsconsulting.com/?p=1247

After a record long bull run, US economic indicators and global data are showing signs of a recession in many countries.

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The Coming Recession: How Companies can Still Thrive


By Arthur Mansourian

After a record long bull run, including a major comeback from the COVID-19 caused stock market decline in 2020, global data is now pointing to a likely recession in many economies.  Signs that point to a new business cycle include historically high inflation, supply chain constraints, low interest rates coming to an end, and US home prices falling for the first time in 3 years.   


The Coming Recession: How Companies can Still Thrive

                                     Source: World Economic Forum


Of course, not every recession is the same, and after the Great Recession, companies are generally quicker to make changes in the face of a potential down leg.  With the social and political climate around vast income differences and the rise of employee activism, cutting costs drastically can easily backfire.  With so many people around the world learning to go digital because of COVID-19, companies can now use analytics and new tools to find other ways to tip the balance sheet, such as by identifying areas of growth or ways to increase efficiency.

Overall, balance sheet discipline, aggressive growth plays, timely restructuring of cost, and mergers and acquisitions prove to be the most important differences between successful and unsuccessful companies.  Other factors that have proven to be instrumental are close monitoring of credit lines, balance sheets, inventory, and financial ratios.  Of course, having a strong cash reserve plays a very instrumental role in surviving downturns, but it is a thin line to walk when determining how much cash to save and how much to deploy.   

 

To not flounder, maintain market share, and continue to grow profitability during a downturn, companies with strong management need to make changes to strategy at the right time.  In past environments that are similar to today, the opposite has been seen in companies that faltered, where they would make no significant changes until it was too late to stop the bleeding.  Research on how companies have fared during recent recessions, and the differences between them shows that taking a disciplined yet proactive approach, and cutting costs before the markets get weaker, is paramount.  


When an economy dips into recession territory, the companies that did well had a few characteristics in common.  First, winning companies would take on an aggressive M&A strategy to purchase distressed companies and reinvest in themselves.  Those companies that faltered during downturns tended to make the mistake of taking drastic cost-cutting measures, which has unintentional side effects and can backfire.  


Other typical mistakes these companies made are letting go of valuable employees, terminating acquisition discussions, and trying to hit a homerun by investing in non-core unfamiliar businesses to make up for growth.  On the other hand, winning companies moved swiftly and with purpose at the first sign of a downturn.  Companies that recognized that some of the best deals happen in weak markets and during distressful times were able to capture the greatest opportunities.  These companies understood that although cost control during weakness is important, completely letting go of the steering wheel and not focusing on core business, was a major misstep. 

 

Companies that followed such a strategy not only survived through the recession but grew at an impressive pace.  In the years after a recession, winning companies grew at an average CAGR of 13%, while the other companies only grew at a rate of 1%.


It is noteworthy to point out that companies that fared well actually lost almost as much money as their cohorts that did not grow during the latest major downturn ending in 2009.  However, the winning companies increased EBITDA by an average of 10% once the recession bottomed out, while losing companies saw EBITDA decline by an average of about 15%.

 

References

  1. Holland, Tom and Katzin, Jeff.  Bain and Company.  “Beyond the Downturn: Recession Strategies to Take the Lead”. May 2019. https://www.bain.com/insights/beyond-the-downturn-recession-strategies-to-take-the-lead/
  2. Conerly, Bill.  Forbes.  “How A Business Can Survive An Economic Crash”.  December 2018. https://www.forbes.com/sites/billconerly/2018/12/15/how-a-business-can-survive-an-economic-crash/#636014ea6aad
  3. Laczkowski, Kevin.  Harvard Business Review.  “What Companies Should Do to Prepare for a Recession”.  May 2019.  https://hbr.org/2019/05/what-companies-should-do-to-prepare-for-a-recession
  4. https://www.cnbc.com/2022/08/24/home-prices-fall-for-the-first-time-in-three-years-biggest-drop-since-2011.html
  5. https://www.weforum.org/agenda/2022/07/global-economic-recession-meaning/

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Keys to a Successful Business Transformation in 2022 https://nmsconsulting.com/4919/keys-to-successful-business-transformation/ Thu, 18 Aug 2022 15:07:00 +0000 https://nmsconsulting.com/4919/how-consultants-can-help-during-the-covid-19-crisis-copy/

COVID-19 was the catalyst for revolutionary transformations, but companies still need assistance in implementing lasting change.

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COVID-19 forced businesses in many industries to go digital, and they are not going back.

Keys to a Successful Business Transformation in 2022


Since the beginning of the COVID-19 pandemic in 2020, businesses in virtually every sector have gone through a digitization of their companies, and started transformations they put off for so long. However, many businesses do not have the adequate tools to tackle the project, and missteps along the way can lead to costly decisions that do not promote efficiency. In this article, we go over the key elements to a successful implementation; testing, training, and proper utilization.

Production Simulation Testing (PST) is an effective tool to insure the successful implementation of enterprise resource planning (ERP) or any other mission critical information technology project. Business owners should view PST as an insurance policy for their information technology projects. PST is a sub-phase of testing, with the overall goal being to demonstrate that the system is ready to support production operations. The approach is to further validate a system and ensure its viability through system integration testing. 

Furthermore, it is important that businesses conduct the PST in parallel with the regular testing cycles, but it should lag to give the development team time to build the solution and allow for fixing bugs. The PST should be done well before the user acceptance testing, as all defects should be solved before then.

Other important control mechanisms should be in in place before a business starts a PST program, including:

  • Entry and exit criteria for each testing cycle
  • Acceptance criteria for the production testing
  • A detailed and integrated test plan with test benchmarks
  • Clear defect management process with the severity of test defects identified
  • Monitoring and reporting of defects
  • A management reporting dashboard with concise key performance indicators (KPIs)

The acceptance criteria should not be established by the implementation vendor, as this can create conflicts of interest. This conflict risks the credibility of test results and operational readiness of the system to go live. The conflict exists because the vendor built the system, tested it, and proposed the criteria for the client to accept the system’s production readiness. Clients’ agencies should develop acceptance criteria in consultation with business process users and/or independent third parties.

Clear Test Benchmarks and Integrated Production Simulation Test Plan

Clear benchmarks help a business measure test results. An integrated test plan with easily accessible documentation on the benchmarks, should be used to assess the various types of tests conducted and show what tests were successful. This will allow management to assess whether the new system is fully ready to support production operations. The plan should contain details about the specific tests included under each test type and the benchmarks for success.

Oversight of the Severity Classification of Test Defects

Clients should review the categorized log of defects found in the PST process by the development team, verifying that all errors have been remediated or formally mitigated and accepted. All defects need to be identified, logged and their severity classified (e.g., low, medium, high, or critical) during testing. All tests need to be repeated until all critical, high, and medium errors have been resolved. You also need an audit trail of test results. The results of testing need to be communicated to stakeholders in accordance with the test plan to facilitate bug fixing and further quality enhancement.

Other key points business leaders need to be aware of are:

  • Clients need to develop documentation that clearly identifies the benchmarks for tests conducted during the PST phase.
  • Clients need to evaluate final PST results against benchmarks.
  • Clients need to revisit the current acceptance criteria for the PST phase and receive formal approval by a steering committee.
  • Clients need to assess final PST results against the approved PST acceptance criteria.
  • As part of the production simulation testing deliverable review, clients need to conduct a review of all open test defects and their assigned severities before the PST is accepted.

Independent Assessments and Monthly Assessments by the Enterprise Project Management Office

Clients should engage a third party to conduct the PST. During the PST phases, the third-party independent verification and validation (IV&V) PST services vendor needs to create their own test result reports and conduct its own test case analysis. During this review, an assessment is made by the quality assurance staff to determine the status (i.e., Green, Yellow, Red) of the following eight project indicators:

  • Overall
  • Project Funding
  • Phase Cost
  • Project Scope
  • Phase Milestones
  • Project Staff Utilization
  • Project Issue and Risk Management
  • Project Status Reporting

 
For a project to receive an overall rating of “Green”, no more than one of the following three indicators must be “Yellow”:

  • Phase Milestones
  • Phase Cost
  • Project Scope

 
How ERP Makes a Big Impact
When business owners hear digital transformation, they typically think of robotic process automation (RPA). However, more simple applications like ERP continue to evolve, moving from simple back office tools to playing a large role in front-facing business digitization. Although ERP is typically used only to help organizations combine management solutions, ERP does also provide support that a business can use to further integrate more technologies. According to Gartner, ERP data will be the backbone for 30% of AI-generated predictive analyses and forecasts by 2023. That is why it is paramount to have a properly configured ERP solution that can help businesses with their transformation and future. Some key considerations to make in regard to ERP are to implement the changes in phases, ensure ERP is aligned with the company’s overall digital strategy, properly utilize underlying data, and train staff members thoroughly on the changes that come about from ERP.

How NMS Consulting Can Help

Business owners and project managers can lean on NMS Consulting’s experienced staff members who have conducted extensive PST and ERP implementation, led complex business transformation projects, and solution architecture. We can support you and your company from start to finish, ensuring the appropriate steps are taken to avoid any future issues that may result from a lack of oversight or proper structuring.

 


About the Authors

Oscar Perez has functional expertise in Artificial Intelligence, Big Data, supply chain, SOA, SAP, CRM, procurement, corporate finance, and product marketing. He specializes in software selection and implementation of SAP ERP packages. Oscar has appeared in publications including Computerworld, InformationWeek, and The Wall Street Journal.

Mr. Perez has conducted project reviews for Goldman Sachs, Bain Consultants, Brown Brothers Harriman, McKinsey & Company, Norges Bank Investment Management, P. Schoenfeld Asset Management, Iconiq Capital, Greencape Capital Pty Ltd, JMI Equity, Coatue Management, The Boston Consulting Group, Platinum Asset Management, Invesco, Guggenheim Partners and private equity firms.


Arthur Mansourian has a 12-year track record as both a management consultant and investment banker, advising clients on valuation, capital markets, structured financing, mergers, acquisitions and divestitures and general corporate strategy. 

Mr. Mansourian served as Vice President while at NMS Capital Advisors, when the company achieved cumulative sales growth of over 5,100% with annual compounded sales growth in excess of 120% from 2012 to 2017.

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Strategisches Management https://nmsconsulting.com/strategisches-management-weg-von-der-planung-zum-praktischen-bruckenbau/ Thu, 24 Sep 2020 16:23:10 +0000 https://nmsconsulting.com/7063/strategic-management-moving-away-from-planning-and-into-hands-on-bridge-building-copy/

How agile working methods and the challenges of an ever faster moving business environment (VUCA) is forcing management to rethink its classic role as a chief strategist and decision maker.

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Wie der Einzug agiler Arbeitsweisen und die Herausforderungen eines immer schnelllebigeren Geschäftsumfeldes (VUCA) das Management zwingt, seine klassische Rolle als Chefstratege und Entscheider neu zu denken.

 

Strategisches Management

 

Klicken Sie hier, um die englische Version dieses Artikels anzuzeigen.

Agilität wird oft vom Top Management als Wunderwaffe für „schneller-höher-weiter“ gesehen: mehr Projekte in kürzerer Zeit schneller umsetzen, um so die auf der strategischen Ebene gesetzten Ziele zu erreichen. Genau unter diesem Aspekt wurde Agilität in den letzten Jahren von namenhaften Beratungsfirmen häufig an das strategische Management in einer Vielzahl von Branchen verkauft – leider oftmals ohne ein wirkliches Alignment zwischen den hochgesteckten strategischen Zielen und der operativen Ebene. Und, oh Wunder, auch bei Agilität stellt sich heraus, dass „schneller-höher-weiter“ so nicht unbedingt langfristig erreicht wird. Dass viele Fehler gemacht wurden und werden. Dass in der Praxis sowohl „alte“ als auch neue Probleme auftauchen…*. Dass auch dieser Wunderwaffe, die so gut gestartet ist, irgendetwas fehlt. Was ist es, das fehlt?

Ein Beispiel: Die Einführung von SCRUM funktioniert hervorragend in einem (Projekt-) Team. Alle freuen sich über die erzielten Erfolge, vom Team bis zum Top Management. Und dann: Stößt das neue Vorgehen plötzlich an eine Grenze. Und zwar: Nicht an seine Grenze, sondern an eine Grenze, die es alleine nicht zu überwinden vermag: die zur klassischen Managementstruktur. Und plötzlich stehen die Umsetzer und das mittlere Management alleine vor dieser Grenze. Vor diesem Problem, das allein ihnen gehört – nicht dem Top Management. Mehr noch: Da gibt es keine Tür, sondern ein großes Schild mit den Worten „Die im letzten Jahr im ‚Elfenbeinturm’ gesetzten Unternehmensziele sind um jeden Preis zu erreichen.“ Und der Preis ist: Operative Umsetzer und mittleres Management kommen mit dem neuen Vorgehen nicht mehr weiter. Es wird auf klassische Eskalationsinstanzen aus der „alten Welt“ zurückgegriffen. „Oben sticht Unten“ gilt plötzlich wieder. Denn was fehlt ist: die Brücke.

Was fehlt sind die Menschen, die täglich daran arbeiten, diese Brücke zu bauen und letztendlich: Grenzen aufzulösen. Sodass die Einbahnstraße „Top Down Unternehmensstrategie“ in eine in beide Richtungen befahrbare Brücke zwischen der strategischen Ebene und dem Tagesgeschäft verwandelt wird. Und täglich weiter daran gebaut wird – egal ob unter der Anwendung von Kanban, OKRs, LeSS… Die zur Verfügung stehenden Tools und Methoden sind vielfältig und müssen unternehmensspezifisch, dem Kontext entsprechend ausgewählt und genutzt werden.

Was allerdings nicht optional ist, ist WER für diesen Brückenbau verantwortlich ist: Das Top Management.

Das Top Management, das „neue Werte“ vorlebt. Das keine Einbahn-Elfenbeinturm-Strategie mehr fährt, sondern eine in unserer VUCA-Welt notwendige, agile Unternehmensstrategie selbst lebt – vorlebt und somit erst ermöglicht. Eine Strategie, die atmet und auch auf aktuellen Erkenntnissen der operativen Ebene basiert, die Grenzverkehr erlaubt und beflügelt. Gerade die aktuelle Krise hat uns doch genau das wieder gezeigt: Wie wichtig die Vernetzung über Unternehmenssilos hinaus ist. Wie essentiell dabei die Brücke zwischen der leitend-strategischen Ebene und dem Tagesgeschäft ist, um möglichst schnell auf Veränderungen reagieren und neue Möglichkeiten erkennen zu können.

Was nicht heißt, dass das Management alles selbst machen muss. Aber: dass es für die Statik bzw. die Rahmenbedingungen dieser Brücke verantwortlich ist. Und als allererstes für ihre Existenz! Dass es eine Brücke erbaut, pflegt und erhält, über die Informationen und Impulse möglichst aktuell in beide Richtungen fließen können. Dass es seine Kernaufgabe weniger im Kreieren und Er- bzw. Festhalten einer unbeweglichen Strategie sieht – sondern vielmehr darin, sukzessive die notwendigen Rahmenbedingungen für das gesamte Unternehmen zu schaffen, die diese Form von Austausch beflügelt. Und: genau das auch vorzuleben.

Ein solcher Ansatz stellt das Management vor neue Herausforderungen und erfordert ein Umdenken an vielen Stellen – auf allen Ebenen der Organisation.


1. Servant Leadership
Das erste ist ein verändertes Selbstverständnis: Führungskräfte als Unterstützer ihrer Mitarbeiter. Als Befähiger, die wie oben beschrieben den Rahmen schaffen, der den Mitarbeitern ermöglicht, ihre Arbeit bestmöglich auszuführen – und den Informationsfluss in beide Richtungen anstößt und fördert sowie fordert! Ein klarer Bruch mit dem oft gelebten hierarchischen Ansatz der Führung, wie z.B. von Robert Greenleaf beschrieben. Ein Ansatz, für dessen Erfolg andere menschliche als auch technologische Faktoren relevant sind, Stichwort Digital Leadership.


2. Kommunikation auf Augenhöhe
Hand in Hand mit dem Konzept des Servant Leaders geht die Art und Weise der Kommunikation: Wenn das Ziel ist, dass befähigte Mitarbeiter selbständig und ehrlich relevanten Input für das Unternehmen und die Strategie geben, müssen Manager aktiv zuhören und eine wertschätzende Begegnung auf Augenhöhe ermöglichen. Ansonsten werden Motivation und wertvolle Erfahrungen aus dem Tagesgeschäft im Keim erstickt.


3. Veränderungsbereitschaft – oder auch: „Leading by Example“
Die eigene, ehrliche Veränderungsbereitschaft ist Key um den gewünschten Wandel zu erreichen. Kombiniert mit dem Willen, zu experimentieren, Fehler zuzulassen und daraus zu lernen. Eine Situation wie oben beschrieben, in der bei Problemen oder Fehlern – die dazu gehören! – alte Mechanismen greifen und nach dem Prinzip „Oben sticht Unten“ agiert wird, stoppt jeden Veränderungswillen und führt zurück zur strategischen Einbahnstraße.


4. Immer Das Ganze im Blick!
In den meisten Fällen muss das Top Management nicht nur eine Brücke bauen. Sondern: ein Netzwerk von Brücken. Zwischen Abteilungen und Bereichen. Zwischen „oben“ und „unten“. Zwischen Arbeitsweisen und Aufgaben. Ein Netzwerk von Brücken über existierende Grenzen im eigenen Unternehmen – über Gräben und Schlagbäume – hinweg. Das einen schnellen, offenen und zuverlässigen Informationsfluss und Austausch ermöglicht. Das weg vom „Die“ – hin zum „Wir“ führt.

Um in einer VUCA-Welt besser zu performen, muss Strategie aktueller und lebendiger werden. Sie muss eine in beide Richtungen befahrbares Netzwerk von Brücken werden, über das relevantes Wissen und Ideen fließen, ausgetauscht und verfügbar gemacht werden – von allen Ebenen zu allen Ebenen der Organisation.


Das heißt: Unternehmenslenker müssen ihre Rolle neu denken. Vom Strategen im „Elfenbeinturm“ zum „Strategic Enabler“, der enger als bisher üblich mit dem Tagesgeschäft verbunden ist, Impulse aus allen Ebenen der Hierarchie laufend aufnimmt, zusammenbringt und wiederteilt – und vor allem: Die Brücke(n) für alle baut.

 

*Eine fundierte Analyse hierzu findet sich z.B. in dem Buch” (Darrell Rigby, Sarah Elk, Steve Berez 2020), das viele Problematiken auf den Punkt bringt, denen auch ich in der Praxis begegnet bin.

 

Über den Autor

Strategisches Management

Herr Rufus Henneken hat einen vielfältigen multinationalen Hintergrund als Strategie- und Change-Management-Spezialist mit Schwerpunkt Digitalisierung. Er verfügt über mehr als 10 Jahre Erfahrung in einer Vielzahl von Branchen, darunter Versicherungen, Ingenieurwesen, Logistik, Finanzdienstleistungen und der öffentliche Sektor. Er war in vielen verschiedenen Funktionen tätig, unter anderem in den Bereichen Vertrieb, Unternehmensentwicklung, Projektmanagement und Unternehmensberatung für Unternehmen auf der ganzen Welt.

Zu den bekanntesten Unternehmen, für die Herr Henneken gearbeitet hat, gehört PricewaterhouseCoopers, wo er als Wirtschaftsprüfer und Berater tätig war. Herr Henneken hat einen Master-Abschluss in Strategie und internationalem Business von der Aston University (UK).

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