Although profitability is often listed as a main financial objective, in practice, it is not always made a top priority. A lot of enterprises focus on revenue and put the realization of a constant revenue growth on top of their lists. In the current dynamic market, in which the position of banks is changing drastically and in which companies can no longer completely rely on their credit anymore, enterprises are increasingly forced to ensure sufficient financial scope themselves. Therefore, it is important for an organization to pursue a healthy balance between profitability and growth. The EFBQ methodology pays particular attention to this issue. During the assessment, the foundation of the objectives, among other things, is assessed, and it is examined whether the organization has sufficient financial means to realize its ambitions. The insights of the companies that participate in the Peer Group are mutually shared by means of the knowledge exchange that occurs during the Management Tables as well as one-on-one contacts.
The long-term continuity of the enterprise is an aspect that does not always receive the attention it should get at many enterprises, especially at those that are part of a holding company/corporation. The parent company is often largely focused on financial results, especially if it is publicly listed or a private equity firm, and the consequences of certain measures are not always sufficiently taken into account. The extent to which the continuity of the enterprise is secured is interwoven throughout the entire EFBQ methodology and forms a key component of the benchmark. Is enough attention being paid to external threats? Is there an adequate understanding of the potential strategic risks an enterprise is exposed to as a result of strategic decisions? Has the enterprise adopted a conscious and concrete policy that ensures its continuity? Particularly the family businesses, which are part of the EFBQ Peer Group, like to share their knowledge and experiences with regard to ensuring continuity with their fellow participants.
Creation of value
Any business does not only aim to make money and secure continuity, but also to increase the value of the enterprise. “Creation of value,” however, can be interpreted differently by different companies. Some focus on creating shareholder value, while others emphasize the improvement of the enterprise’s image or market position. In an increasing number of branches and companies, Corporate Social Responsibility is a key aspect, and the value of the enterprise for society in general is a point of focus. In the view of the EFBQ, the creation of value should, regardless of its definition, form part of the strategic considerations of the management of an enterprise. Therefore, companies within the network are encouraged to ask themselves questions concerning this subject: What issues are important and valuable to shareholders/owners? In what ways are these issues geared towards the ultimate objective of the enterprise and the ambition of the management? Your colleagues inside the Peer Group can assist you in finding answers to these questions.