Private Equity Insights Q4
We are approaching the last quarter of a challenging 2022, and as many of us dive into our strategy and business planning for 2023, the coming year looks to be more of the same. Inflationary trends, supply chain challenges, access to talent and skills, security and privacy issues, and working capital management are among the many challenges that private equity firms and their portfolio companies face for the foreseeable future.
In our latest installment of Private Equity Insights, we offer our latest perspectives on supply chain management, talent management, security and privacy, and inflation. I’ve also included an invitation for you to participate in our latest Top Risks Survey.
Corporate boards and executive leaders are waking up to a new world with the disconcerting realisation that they don’t know what they don’t know about their supply chains. This lack of transparency marks a pivotal and pervasive challenge to the board’s strategic oversight and governance of supply chain risks, and it comes with a heavy price tag. The underlying problem has for years resided in the standard, narrowly focused supply chain model. Under the board’s oversight, management can address the strategic imperative of supply chain management with proactive approaches that have helped other organisations achieve double-digit market share and shareholder value growth.
Today’s challenging business climate demands that boards of directors and executive leaders view the organisation’s talent strategy in coordination and lockstep with their strategic business objectives. High-performing organisations are deploying a new talent game plan, led by their CHROs, to establish and sustain this alignment. The next chapter in advancing and transforming the organisation’s talent strategy hinges on how well boards of directors and executive leadership teams leverage HR’s perspective and expertise to derive the greatest value from the organisation’s current and future talent investments to support the business and its growth and performance objectives.
Data proliferation and data privacy regulatory activity across the globe have created the need for focused boardroom discussions. While cybersecurity continues to be an issue for boards, a more targeted focus on data privacy is increasingly necessary to ensure compliance across a rapidly expanding number of privacy regulations. Directors need to be familiar with the key components of data privacy and prepared to ask the right questions.
Along with their C-suite peers, CFOs have treated cybersecurity and data privacy as top strategic priorities for several years. Regulators are embracing a similar approach and CFOs need to be ready. The CFO’s expertise is especially needed as organisations address seven cybersecurity-related challenges.
As concerns over the rise of economic inflation escalate, a stark reality emerges: There are legions of executives — even board members — who have never had to cope with persistent inflation. A rare environment of this kind presents a unique opportunity for CFOs to elevate scenario planning activities and other next-generation finance capabilities with the objective of contributing an enterprisewide solution to a puzzling challenge with numerous moving pieces.