CFO Studio Magazine with Alison Cornell

EVENTS EXECUTIVE DINNER SERIES 22 WWW.CFOSTUDIO.COM Q1 2017 BUSINESS AS USUAL, NO MATTER WHAT STIMULATING FINANCIAL GROWTH IN THE FACE OF ECONOMIC UNKNOWNS IS THE KEY TO SUCCESS M ost executives would agree: In order to stay in business and outpace competitors, companies need to grow and expand, regardless of what is going on in the worldmarket, or their own backyard. How that’s accomplished, however, is a “challenge and a good question that may not have one definitive answer,” according to JasonMulliner, CFOof EdmundOptics, a supplier of optics, imaging, and optomechanical components, based in Barrington, NJ. Mr. Mulliner spoke on “Driving Domestic and Global Growth Despite Currency Swings and Economic Uncertainty” at an invitation-only dinner discussion attended by CFOs from middle-market companies in the Philadelphia and New Jersey areas. The event was held recently at Morton’s The Steakhouse in Philadelphia and is part of CFO Studio’s Executive Dinner Series. Mr. Mulliner began the discussion by acknowledging how “economic uncertainty can be very much domestic in nature.” For companies based in the U.S., he said, “there are so many things that can create uncertainty — like what’s going to be the gross domestic product growth for the upcoming year, and what might the Fed do with interest rates?” He continued: “How about the unemployment rate and its effect on the cost of employees?” And, naturally, he didn’t stop short of mentioning the veil of ambiguity that typically surrounds a new president in the Oval Office. With those questions dangling in the room, Mr. Mulliner then posed the most important one to his fellow financial executives in attendance: “How do you budget and plan for the upcoming year in the shadow of so much uncertainty?” That question was answered with more questions, and an observation agreed upon by all: “It’s a considerable, yet exciting challenge.” Most companies, Mr. Mulliner noted, begin budgeting for the next year in September, with such calculations continuing until December. Any good plan, he said, “probably needs to be amended every three or four months anyway, which is a good thing when so much is up in the air.” At a time like this, Mr. Mulliner suggested “rolling forecasting” could be considered a best practice: “You always have a 12-month plan ahead of you, as opposed to working with BUSINESS DEVELOPMENT PARTNERS