A medical device company engaged DLC to help its CFO develop a strategic plan covering the long term. With a lean finance team consisting of the CFO and Controller, the company needed additional support to organize financial information, build the necessary models and turn detailed data into a clear, actionable plan.
Working directly with the CFO, our team developed the financial models and supporting schedules needed to bring the strategic plan together. The work also included building investor schedules, developing budget-versus-actual packages and creating a consolidated view of the company’s financial plan.
The engagement was completed remotely and focused on delivering the planned work within a tight timeline.
The company’s finance function was lean, with only a CFO and Controller and no additional staff below the CFO. As a result, the CFO needed additional resources to create, organize and prepare the strategic plan.
The starting point was an existing budget and a large amount of detailed financial information. The challenge was to turn that information into a more useful, higher-level view that could support strategic planning and discussions with business leaders.
The plan also needed to account for changing business needs over the long term. Compensation and hiring requirements needed to align with product timelines, while overhead and other operating expenses needed to be assessed using appropriate drivers. Actual financial information also needed to be incorporated into budget-versus-actual reporting.
Time was another important factor. The CFO needed to deliver the strategic plan to the Board and potential investors, so the work had to move forward quickly while keeping the models practical and easy to use.
DLC worked closely with the CFO and Controller to build the strategic plan as a connected set of financial models and schedules. Rather than simply adding more detail, our team focused on organizing the information into a clear and usable model that could support ongoing planning.
The work brought together compensation planning, overhead allocation, operating expenses, inventory and cost of goods sold, cash flow, P&L and valuation information into a consolidated strategic plan. We also developed investor schedules and budget-versus-actual packages to support financial review and communication with business leaders.
Continuous communication with the client’s team helped maintain alignment throughout the engagement. The model was built and reviewed piece by piece, allowing the CFO to assess the information, simplify where needed and ensure the final plan met the intended objectives.
