by Kalle Kilpi
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Most organizations have to quickly adapt their operations to align to a new situation with social distancing and its impact on customer demand and the economic climate.
In practice, this means the quick launch and execution of internal initiative to move capital between legal entities, rationalize operations, and cut costs. We at Midaxo are assisting many of our customers on these initiatives, and we wanted to share some actionable best practices here.
Common transaction types:
- Intra-company capital infusions
- Rationalization of operations
- Cost-cutting initiatives
- Legal entity changes
- Sale of assets
- M&A and divestments
Example of an initiative pipeline:
A good approval pipeline typically has the following stages:
Virtual Project Execution
The second step to enable efficient remote collaboration is to provide a manner to plan and track these initiatives online.
Each initiative shall have a clear project plan with clear responsibility assignments, jointly agreed objectives, and adequate guidance. Together with the ability to track task completion and share documents, this plan is the backbone for virtual teamwork, complemented by Zoom video calls, instant messages, and written correspondence.
Example of a project plan for an initiative:
As many of these initiatives are launched to reduce costs or move capital within the group, it is important to be able to track the financial impact of these initiatives.
A best practice IMO dashboard, like the one below from our M&A software platform, visualizes financial impact across initiatives:
And calculates deltas between planned and realized outcomes:
Reach Out to Us for More Info
We would love to help you get up to speed with your initiative management. Please reach out to your customer success manager, direct message me, or email firstname.lastname@example.org for further discussion.