Strategic Management During Uncertain Times

CFOs and their teams see the bigger picture, understand the challenges and opportunities facing an organization, and can map the best path to success. Strategic management is a business imperative, especially during times of uncertainty.

By J. Stephen McNally, CPA, CMA, Feb 10, 2025

CFOs and their teams are uniquely qualified among cross-functional partners to meet the challenge of strategically managing an organization during times of uncertainty. Leveraging insights into financial and operational performance, CFOs and their teams can see the bigger picture, understand the challenges and opportunities facing an organization, and map the best path to success. And it’s a good thing, too, because we continue to live in a volatile, uncertain, complex, and ambiguous (VUCA) world!

Times of Uncertainty

Volatility and uncertainty have been ever-present since the global pandemic struck in March 2020, including a rollercoaster economy, supply chain disruption, talent issues, political division, and geopolitical unrest. One suspects 2025 will most likely bring more of the same.

From a macro perspective, the Federal Reserve has been methodically bringing down the interest rates it hiked to combat inflation, but yield curves remain inverted – which is often a harbinger of recession. Inflation has been moderating, but it remains sticky: will promised tariffs reignite it? The regulatory environment will surely change with the new administration. But how?

From a micro perspective, what is your own company’s outlook? Will your new product launch be successful? Will the ongoing transformation stay on track? Will you find the talent you need?

As Yogi Berra once said, “It’s tough to make predictions, especially about the future.” Despite all the uncertainty, you still need to run a business!

The Strategic Management Process

I spent many years at Campbell Soup Company, a Fortune 500 consumer goods company. In every Campbell’s role – whether I was part of a brand team, in the sales organization, or the finance executive for Campbell’s largest supply chain operation – strategic planning was a key responsibility. Many organizations, especially smaller and midsized ones, are not leveraging effective strategic planning and annual budgeting processes, if they are engaging in such activities at all.

As CFO, you and your team are needed more than ever to bring structure to your organization’s planning and decision-making. Strategic management is a business imperative, especially during times of uncertainty. Most importantly, strategic management requires being intentional! Strategic management consists of the following:

• Strategic Planning. Strategic planning begins with understanding your organization’s mission and purpose (i.e., reason for being), then developing strategies to make it a reality. Start by conducting a strengths, weaknesses, opportunities, and threats (SWOT) analysis, then analyze the gap between where the organization is now and where you want it to be. Finally, formulate your strategy, answering the question of how to get there, including goals, strategies, and specific objectives.
• Strategic Implementation. Bring your strategic plan to life with leadership, budget alignment, risk management, and change management.
• Strategic Evaluation. Leverage key performance indicators (KPIs), financial metrics, balanced scorecards, good governance, and ethics to evaluate actual performance relative to your strategic plan, adjusting and course-correcting along the way as needed.

Managing Your Business During Uncertain Times

Despite developing a solid strategic plan, any number of things can derail your organization’s success. A challenge could be internal (e.g., production issues, talent gaps, or a leadership change) or external (e.g., supply chain disruption, trade wars, or economic turmoil). The following tips may help you prepare for the uncertainty ahead:

• Understand the Challenge. Are you dealing with a company-specific issue or a macro issue? Is the issue impacting just one line (e.g., equipment failure), one plant (e.g., a severe weather event), or your entire organization? How long is the situation likely to last (e.g., one hour, day, month, or forever)? And what is the level of pain your organization will likely experience (e.g., a simple nuisance or an existential threat to the company)?
• Run Scenarios. Determine how various risks may impact your plan by running “what if” scenarios. For example, how will a significant increase in raw material prices due to tariffs or in personnel costs due to a tight labor market impact profitability? Or how will a key customer being unable to pay their bills or the bank cutting off your line of credit impact your cash flow? Then develop appropriate contingency plans.
• Cash, Cash, Cash. The lifeblood of every organization is cash. You must be able to meet your debt obligations, pay suppliers, and meet payroll. Prioritize cash forecasting, potentially increasing your forecasting frequency, analyzing cash inflows and outflows in greater detail, and building cross-functional awareness.
• Tightly Manage Spending. Carefully analyze discretionary spending. Address operational inefficiency and reduce headcount if needed, being transparent with employees along the way. That said, don’t cut strong talent, inadvertently cut areas generating positive cash flow, too deeply cut your sales and marketing spend, and/or overlook the seemingly small stuff.
• Consider All Your Tools. Analyze your pricing methodology: can you raise prices strategically or across-the-board? Analyze profitability, then promote those products or services that are most profitable and consider pruning those that are falling short. Can you use your inventory as a physical hedge? Make sure you leverage all the tools in your toolbox to manage your company through uncertain times.
• Seek Opportunity in the Chaos. During times of uncertainty, you are likely to experience some rough riding where planning, agility, and execution will be key, along with a lot of nerve. But while riding the ups and downs – and working to fix cash flow, supply, and other immediate issues – you should also be on the lookout for opportunities, such as new products, new markets, or competitor weakness. There is opportunity in chaos!
• Implement an ERM Framework. To achieve your organization’s strategic goals, and to be more anticipatory, agile, and adaptive in managing sudden or disruptive events, consider implementing an enterprise risk management (ERM) framework with a strategic, long-term focus.

Call to Action

In times of uncertainty, organizations look to their CFO for leadership and guidance. To that end, embrace the concepts of strategic business management and bring structure to your organization’s planning and decision-making. As you prepare for the uncertainty ahead, be sure to consider leveraging a few of the tips shared above.

J. Stephen McNally, CPA, CMA, is chief financial officer, secretary, and treasurer for Plastic Technologies Inc. in Holland, Ohio. He is a past chair of the global board of directors for the Institute of Management Accountants and a member of the Pennsylvania CPA Journal Editorial Board. He can be reached at [email protected].Will Casserly is an industry expert in accounting and financial services with Hinge, the leading research-based branding and marketing firm for professional services. He can be reached at [email protected].

This article is provided complimentary by PICPA. Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of CPA Crossings officers or members. The information contained herein does not constitute accounting, legal, or professional advice. For actionable advice, you must engage or consult with a qualified professional.