Strategi Navigasi Menuju Profitabilitas Tinggi | Stanley Iriawan, CFO PT Elnusa Tbk.

Mens Obsession

9 Jun 202412:57

Summary

TLDRIn the face of current disruption, the management ensures a continued focus on comprehensive data acquisition while managing risks. Innovation in financial management is encouraged through digitalization and enhanced reporting systems. CFOs act as strategic navigators and partners, mapping company direction and maximizing value creation amidst economic uncertainty. They manage cash flow efficiently, optimize costs, and make strategic investment decisions to support company growth. Effective communication with stakeholders is crucial, providing transparency and credibility. The CFO's background in Business Management provides a solid foundation in financial principles, and their diverse industry experience allows for a holistic view of financial management, adapting to market dynamics. Key strategies include open communication, cross-divisional collaboration, and integrated financial management systems for risk management and compliance. The company aims to improve operational and financial efficiency, with a commitment to sustainable growth and transparent financial reporting.

Takeaways

📈 The management is focused on accelerating comprehensive data acquisition processes while considering risk factors.
💡 There's an emphasis on innovation in financial management through digitalization and improved financial reporting systems.
🛠️ The CFO's role is to navigate market volatility, acting as a strategic partner in mapping the company's direction and maximizing value creation.
💼 The CFO must efficiently manage cash flow, optimize costs, and make strategic investment decisions to support company growth.
🗣️ Effective communication with stakeholders is crucial, ensuring transparency and credibility in the company's strategic direction.
🏛️ The CFO's educational background in Business Management provides a solid foundation in financial principles.
🏢 The CFO's work experience in banking and the RIL sector has given them a holistic view of financial management.
🔄 The strategy involves open, active, and collaborative communication across financial and other divisions, supporting strategic financial decisions with comprehensive data.
📊 An integrated financial management system is implemented to monitor financial practices, including risk management and compliance.
🌐 The company is proactive in staying updated with regulatory changes and leveraging opportunities such as tax incentives or new funding mechanisms to support growth and sustainability.

Q & A

What is the primary focus of the management in the era of disruption?
-The primary focus is to ensure a continued focus on accelerating comprehensive data acquisition processes while also considering risk factors.
How does the management encourage innovation in financial management?
-The management encourages innovation by promoting the enhancement of digitalization and financial reporting systems.
What is the role of a CFO in navigating market volatility?
-A CFO acts as a navigator and strategic partner, mapping the company's direction, maximizing value creation, and managing cash flow efficiently, even in uncertain economic conditions.
How does the CFO manage investment decisions and funding to support company growth?
-The CFO takes strategic and efficient investment decisions and funding to support company growth, ensuring efficient cash flow management, cost optimization, and strategic investment.
What is the importance of communication for a CFO?
-A CFO must actively communicate with stakeholders, providing transparency, trust, and emphasizing credibility regarding the company's strategic direction.
How does the CFO maintain a balance between risk and opportunity?
-The CFO maintains a balance by actively managing risks and opportunities, ensuring strategic decision-making that aligns with the company's goals.
What educational background and work experience does the CFO have?
-The CFO has a background in Business Management and has worked in the banking industry and the real estate sector, providing a holistic view of financial management.
What strategies does the CFO implement to adapt to market dynamics?
-The CFO implements effective and adaptive financial strategies, focusing on open, active, and collaborative communication across divisions, and supporting data-driven financial decisions.
How does the company ensure compliance with financial regulations?
-The company ensures compliance by implementing integrated financial management systems to monitor financial practices, including risk management and adherence to accounting standards and financial regulations.
What was the company's performance in Q1 2024?
-In Q1 2024, the company showed positive financial performance with a significant increase in net profit, driven by operational efficiency, portfolio diversification, and the implementation of new technologies.
How does the CFO approach the challenges of global market volatility, energy policy changes, and climate change?
-The CFO addresses these challenges by implementing strategies such as diversifying the business portfolio and strengthening structured and planned risk management approaches.

Outlines

00:00

📈 CFO's Role in Navigating Disruption and Risk Management

The speaker, a CFO, discusses the importance of focusing on comprehensive data acquisition and risk management in the face of disruption. They emphasize the need for financial innovation through digitalization and improved financial reporting systems. The CFO's role is described as a strategic navigator and partner, responsible for mapping the company's direction and maximizing value creation, especially during economic uncertainty. They also highlight the importance of managing cash flow efficiently, optimizing costs, and making strategic investment decisions to support company growth. The speaker underscores the need for active communication with stakeholders, providing transparency, and emphasizing the credibility of the company's strategic direction. The balance between risk and opportunity is also a key aspect of their role.

05:01

🌐 Addressing Global Market Volatility and Strategic Diversification

The speaker outlines the challenges of dealing with global market volatility, changes in energy policy, and climate change. To counter these, they implement strategies for diversifying the business portfolio and strengthening risk management with a structured and planned approach. The company's performance in Q1 2024 is discussed, with revenue reaching 3.1 trillion, slightly down from the previous year due to changes in trading prices of oil by a subsidiary. However, profits have significantly increased by 59% compared to the same quarter in 2023. The speaker also mentions the company's commitment to maintaining cash flow stability and improving profitability margins through operational efficiency, portfolio diversification, and new technology implementation. The speaker's educational background in Business Management and their work experience in banking and the real sector have equipped them with a holistic view of financial management, allowing them to develop effective and adaptive financial strategies.

10:03

💼 Leadership and Team Motivation in Achieving Long-Term Goals

The speaker believes that team motivation stems from a collaborative, transparent work environment with good communication among colleagues. They emphasize the importance of clear understanding of the company's strategic goals and how individual contributions can impact the achievement of these goals. The speaker's leadership style focuses on empowerment and skill development, providing opportunities for the team to learn and grow. They encourage open discussions and sharing of experiences, promoting teamwork and recognizing collaborative successes. The key to a CFO's success, according to the speaker, lies in strategic thinking, adaptability, proactive management, effective liquidity management, and maintaining transparency in financial reporting. The speaker also stresses the importance of effective communication with stakeholders and leading a motivated team. They believe that setting priorities and transparency in addressing issues can lead to collaborative solutions. The financial role in achieving Elnusa's long-term goals is acknowledged as challenging but crucial, with a focus on effective financial resource management to support sustainable strategic investments and accountable and transparent financial practices.

Mindmap

Keywords

💡Disruption

Disruption refers to a radical change that disrupts the normal functioning of an industry, business, or system. In the context of the video, it is associated with the challenges faced by the company in the current era, which requires the management to stay focused on comprehensive data acquisition while considering risk factors. The term is used to emphasize the need for adaptability and innovation in the face of unpredictable market changes.

💡Innovation

Innovation in this script denotes the introduction of new ideas, methods, or products to improve the financial management process. The video emphasizes the importance of digitalization and the implementation of new systems for reporting and managing finances. It is a key strategy for the CFO to navigate the company through economic uncertainty and to maximize value creation.

💡Risk Management

Risk management is the process of identifying, assessing, and prioritizing risks to an organization's capital and earnings. In the video, it is highlighted as a crucial function for the CFO to strengthen in order to handle market volatility. Effective risk management strategies are essential for the company's stability and growth, as they help in making informed decisions and mitigating potential losses.

💡Volatility

Volatility in the video script refers to the rapid and often unpredictable fluctuations in market conditions. It is a significant concern for financial officers as it impacts the company's financial stability and growth. The script mentions that the CFO must be prepared to navigate these challenges, which is why efficient cash flow management and strategic investment decisions are emphasized.

💡Transparency

Transparency in the context of the video is about being open and clear in communication with stakeholders. It is a key principle in building trust and credibility with investors, financial institutions, and regulators. The video mentions that the company ensures all financial reports are prepared according to the prevailing financial standards and presented transparently to foster confidence in the company's growth.

💡Stakeholder

A stakeholder is any individual, group, or organization that has an interest or stake in the company. In the video, the CFO is described as actively communicating with stakeholders to provide updates on the company's performance and strategy. Engaging with stakeholders is essential for maintaining a positive relationship and ensuring that the company's actions align with their interests and expectations.

💡Efficient Cash Flow Management

Efficient cash flow management is the process of ensuring that a company's cash inflows and outflows are managed optimally to meet its financial obligations and support growth. The video script mentions that the CFO plays a role in managing cash flow efficiently, which is crucial for a company's survival and expansion, especially in times of economic uncertainty.

💡Strategic Investment

Strategic investment refers to the allocation of funds to projects or assets that are expected to generate significant returns and contribute to the company's long-term goals. In the video, the CFO is involved in making strategic investment decisions that support the company's growth. This involves a careful analysis of potential opportunities and the risks associated with them.

💡Regulation Compliance

Regulation compliance is the adherence to laws, rules, and regulations that govern a company's operations. The video script highlights the importance of staying updated with the latest regulations and implementing necessary steps to ensure compliance. This is crucial for maintaining the company's reputation and avoiding legal penalties.

💡Diversification

Diversification in the context of the video refers to the strategy of spreading investments across various financial instruments, industries, or markets to reduce risk. The script mentions that the company implements a diversified business portfolio to anticipate global market volatility, energy policy changes, and climate changes. This approach helps in mitigating the impact of any single market's poor performance on the company's overall financial health.

💡Sustainability

Sustainability in the video script is about the company's commitment to responsible and ethical practices that ensure long-term viability. It involves not only supporting the company's growth but also ensuring environmental and social sustainability. The CFO plays a role in implementing financial practices that are accountable and transparent, which contribute to the company's sustainable growth and its role as a responsible corporate citizen.

Highlights

Emphasizing the importance of focusing on comprehensive data acquisition while considering risk factors.

Promoting innovation in financial management through digitalization and improved financial reporting systems.

Strengthening risk management to handle market volatility.

The CFO's role as a strategic navigator and partner in mapping the company's direction and maximizing value creation.

Efficient cash flow management and cost optimization to support strategic investment and funding decisions.

The necessity for CFOs to communicate actively with stakeholders, ensuring transparency and credibility.

Balancing risk and opportunity is crucial for a CFO.

A strong educational background in Business Management provides a solid foundation in financial principles.

Experience in banking and the Ril sector provides a holistic view of financial management.

Developing effective and adaptive financial strategies in response to market dynamics.

Encouraging cross-divisional communication and collaboration for strategic financial decision-making.

Implementing integrated financial management systems to monitor financial practices and ensure compliance.

Providing non-financial divisions with an understanding of financial activities and processes for optimal company results.

The main goal is to improve company efficiency and profitability.

Transparency and consistent communication are key in managing relationships with external stakeholders.

Regular meetings with investors, financial institutions, and regulators to update on company performance and strategy.

Ensuring financial reports are prepared according to financial standards and presented transparently to build trust.

Staying updated with the latest regulations and implementing necessary steps to comply with standards.

Proactively seeking opportunities from regulatory changes, such as tax incentives or new funding mechanisms.

Facing the challenge of global market volatility, energy policy changes, and climate change by diversifying the business portfolio and strengthening risk management.

Maintaining on track growth with revenue reaching 3.1 trillion in Q1, despite a slight decrease from the same period in 2023.

Profit increased significantly by 59% in Q1 2024 compared to the same quarter in 2023.

Capital expenditure has reached 21% of the 2024 target, indicating strong growth prospects.

Financial performance in Q1 2024 shows a positive trend with significant net profit increase, driven by operational efficiency, service portfolio diversification, and new technology implementation.

Maintaining cash flow stability and improving profitability margins is a key success factor.

The CFO's success lies in strategic thinking, adaptability, proactive management, and effective communication with stakeholders.

A collaborative, transparent, and well-communicated work environment is essential for team motivation and understanding of strategic goals.

Financial management plays a crucial role in achieving Elnusa's long-term goals by focusing on effective resource management and sustainable strategic investments.

Commitment to accountable and transparent financial practices supports not only company growth but also ensures environmental, social, and corporate governance sustainability.