Kill the Dog?!

No, not really. Older readers might know that this email’s subject line is lifted from a 1973 cover of National Lampoon. 50 years later, the need for sensationalist triggers to attract our attention is greater than ever. There’s so much competition for your time, everyone’s at it – in the media, on your socials, even in your meetings and board packs.

But this is the first (and last) time the monthly Pitch Hill Partners newsletter will engage in such blatant attention-seeking. We want this to be a fun read with a purpose – the ideal combination for the busy finance exec with a desire to stay connected.

Each month, we’ll look out some useful things to add to your to-do list, either to enhance your career or make your day-to-day life a bit easier. We’ll try to give you some talking points to make you look good in meetings. And we’ll offer a bit of a catch-up service – doing the reading in the finance leadership world so you don’t have to.

We’d love suggestions on how to fulfil those missions as we evolve – whether it’s specific areas you’d like a reading list for, what topics you’d like summarised, or specific tips for furthering your career. The first step to your next job is always a conversation.

- Ray Nicholls

Things to do…

Now

Review your cashflow forecast. Most of you will run a tight 13-week cash projection, but with new uncertainty in the air, reviewing reporting processes and the variables informing them seems wise. Every turnaround interim we know makes it "job one", and with inflation, rates, and debt shenanigans still on the table, plus a toppy stock market, its never to early to fine tune assumptions.

Next

Lock down your WFH policy. So the latest research (£Economist) shows working from home isn’t more productive than being in the office. But flexibility remains vital to recruitment and retention – and is more inclusive for working parents, carers, and others. But lack of clarity or fairness heading into autumn could be a nightmare. Codify a new normal (Wednesday-plus-two or three?) and enforce the policy.Whatever it is, the way you tell your story online can make all the difference.

Later

Look abroad. A robust 2022 for exports (up 7.3%) has fizzled out this year and the BCC predicts a flatline next year. But any (new?) government knows it needs to boost exports to generate growth, so it might be worth looking now at opportunities. Sure, the CPTPP might not be a real "multi-trillion dollar" trade deal, but we can expect more support for business on this front... we hope.Whatever it is, the way you tell your story online can make all the difference.

Lies, Damned Lies and…..

Company insolvencies in the first quarter of 2023 were around quarter up on the same period last year – and well above the five-year average. The monthly figures for July are a little better... sort of. 124 administrations is 53% higher than July 2022, and there were a lot more CVAs. But creditors’ voluntary liquidations (CVLs) were down 17% on the same month last year, dragging down the headline number. The ONS points out we’re seeing an unwinding of both government support and commercial loan deals made during Covid. But the big question is whether we've seen the worst of the rates rises over the last year - and the challenges for companies re-financing (FT) that have been offset by amend-and-extend deals may yet tip the balance. Watch those counterparty risks, guys, that's all we're saying...

Bored pack: AI

Bored Pack is where we do the Google search ahead of the inevitable board discussion so you don't have to. This month's look at AI is inspired by McKinsey's analysis of the impact of generative AI - that's stuff like ChatGPT (writing words and code) or Midjourney (for pics).

Doom: The Guardian with a warning: AI deepfakes are a new vector for fraud and finance function scams. 
Utopia: This guide to AI in the finance function reads like it was actually written by ChatGPT… but it’s not a bad summary of use-cases. Check out IBM’s relatively sober thinking, too.
Hype: BCG thinks AI will revolutionise how you evaluate projects and manage change… The counter-hype? Visits to ChatGPT portal OpenAI are well down on the recent peak. Lots of coders still using it though...
Dull-but-worthy: McKinsey offers four questions for the AI boosters, but regardless of the answers says you need to learn fast. (Inevitably, it’s also an AI booster itself; always be on both side of the trade, guys.)

Too long; didn't read: alone?

In the 1990s and 2000s there were lots of publications vying for your attention – Real Finance, Financial Director, Accountancy Age, CFO Europe… – and they helped create a sense of a broader finance leadership community. But the print advertising apocalypse has seen most of them reduced to a rump web presence. Most of the web venues are driven by sponsored articles – but are still occasionally useful. Take this piece from the-cfo.io (reg. req. - The CFO also demands a unique PIN every time you log on🧐) on the loneliness of the CFO role. 

The TL;DR? The CFO role is uniquely tough and isolating on the board (partly because of all the times you have to say “no”). Networking inside and outside your business can help – and that requires a defined strategy including attending events, getting (and being) a mentor, as well as seeking out other CFOs. Oh, and “Good recruiters become good long-term friends – they know your colleagues in the industries and can always make good recommendations”, explains Milk & More’s finance chief Billie O’Connor, who hosts her own female FD networking group at LinkedIn. We liked that bit especially...

Passé meme of the month

I think we all know which side of the Barbieheimer coin the finance function is. Although... write in and let us know if we've got that wrong and precisely why...