Whitepaper – Rethinking Capital Allocation for the New Normal
Re-allocation and Rightsizing towards New Growth and Value Creation.
Systematic capital allocation is a distinguishing factor for successful and outperforming companies in the long term. The current economic crisis, triggered by the COVID-19 pandemic, has highlighted the need to re-allocate capital to those business models flourishing in a new normal and to resize the relevant resources and costs accordingly. To leverage this opportunity, CFOs should focus on four imperatives of capital allocation as part of their recovery strategy. With a systematic approach to capital re-allocation in hand, companies are able to recover from crises faster and much stronger than their peers.
Acting swiftly and authentically, ensuring transparency, building trust—the demands placed on communicating with stakeholders are especially high in a crisis. In such situations social media are both a blessing and a curse.