The technology-centred, open economy is changing at light speed and finding a sustainable competitive edge is an ever sterner test for the business community. Clients and data are becoming companies’ most important assets. This in turn has significantly redefined the role and area of responsibility of the chief financial officer.
Although planning and goal-setting takes place both in the long term and monthly (or at least quarterly) basis, the question becomes an urgent one for management at a time when the next year’s goals and action plans have to be drawn up. Budgeting is very closely connected to strategic planning. Through this manner, accountants and financial analysts have a direct role in the organisation’s development.
Most business leaders dream of rapid growth and fast success. Often it is said there is only one limiting factor, one bottleneck, but in fact there are several. Rapid growth does not always mean rapid profits and ultimate success.
Start-ups are playing an increasingly important role in the Estonian economy – about 550 start-ups are operating in Estonia, paying more than 3,700 people an average of around 2,200 euros a month in earnings, and employing hundreds of people outside Estonia.
Spring is an appropriate time to talk about ice starting to break up. In this article, however, the ice means women, and the perspective is that the share of women in top management of the world’s companies is finally seeing brisk growth.
Hundreds of companies are bought and sold each year in Estonia. In the case of bigger transactions, relying on assistance from transaction advisers has become the norm, although for the sake of total certainty, it’s a good idea to bring aboard an adviser even on smaller acquisitions.
It is extremely important for managers to pursue self-improvement. As the saying goes: a fish starts rotting from the head. Unfortunately, managerial culture in Estonia is not at a level we can be satisfied with. We have many companies where money and financial results are managed but where the people are not. Actually, instead of money and results, it’s people who should be managed. If so, the good results will not be long in coming.
This year, a number of large-scale purchase and sale transactions have provided much fodder for discussion in the media – Nelja Energia, Luminor and Utilitas are three examples. The large transactions always stand out, but this year has seen many mid-sized and small company acquisitions as well.
Although employer branding is seen as mainly the domain of personnel and marketing people, it isn’t only their function. Managers have just as important a role here, because it is managers who can leave employees with a good experience of the organisation as employer. Or the opposite – a negative experience, because Estonia has many organisations that have a substandard managerial culture and instead of leading people, they’re busy managing money and processes.
According to Michael Porter, whose book Competitive Strategy is one of the most highly regarded works on management, a company develops a competitive advantage over its rivals when it purposefully differentiates activities from others in order to create unique value.
How to hold on to good employees? For starters, understand that employees may consider leaving, competitors try to outbid you for them, and employees have their own personal career goals.
Entrepreneurs believe the hard times are past and increasing turnover and profit will also lead many countries’ economic growth to faster recovery. A survey conducted by tax and business advisory firm Grant Thornton among business people in 36 countries found that business optimism is at a two-year high.
Estonia’s entrepreneur of the year: the biggest risk is laziness
What lies ahead for the hotel business: revolution or decline?
Who will gain from the change in the threshold for registration as VAT payer?
Are clients moving to the web, lock, stock and barrel?