Boardroom brief that matters: Bottom line
Navigating bottom line priorities with a future-focused approach that embraces strategies for growth, innovation and risk management
Take the bottom line brief on-the-go,
What's the issue?
Improving the bottom line remains at the top of the agenda for business leaders who are increasingly prioritising short-term cost-control and business resilience as uncertainty looms. In 2024, their focus will be on managing three key risks: persistent inflation, macroeconomic volatility, and geopolitical conflict. But while bottom line concerns drive business decisions, CEOs can’t afford to neglect long-term brand reputation and innovation in the pursuit of profits.
Technology remains the top priority for discussion in many boardrooms today, a survey by Gartner reveals. More than two in 10 digital businesses across Asia Pacific have already invested in generative artificial intelligence (GenAI) in 2023. A further 44% are exploring its use, with most anticipating greatest impact in areas such as product development/design, research & development, customer engagement, sales, and marketing. Talent and sustainability are also paramount, with companies placing greater emphasis on ethical, environmental, and labour practices within their supply chains, looking to improve margins by up to 4%, according to Bain & EcoVadis.
Key quotes and market realities
Boardroom whispers...
Positive wellbeing is good business. Public companies with good wellbeing scores perform better in the stock market. Improving employee wellbeing factors can lead to a significant boost of 11% to 55% in company performance (2022-23 Aon Global Wellbeing Survey).
Delivered in the details. E-commerce is still growing, but has slowed. To maximise its impact, businesses are focusing on the operational processes of their marketing, sales, and supply-chain logistics. The EY CEO Pulse Survey reveals that 95% of APAC CEOs have adjusted their strategic investment plans for geopolitical challenges, with 39% relocating operational assets. Marginal gains across the e-commerce process can significantly enhance overall efficiency and potentially deliver a 16% increase to the bottom line (Menzies LLP).
Three ways real estate is helping boardrooms with the bottom line
Efficient space utilisation
Maximising the value of rented space goes beyond decentralising or downsizing to cut costs. By relocating, renegotiating or repurposing spaces, businesses can reduce rent, maintenance, and utilities to minimise unnecessary expenses tied to underutilised space.
Efficiencies with technology
Real time data helps dial down unnecessary utilities usage. Seven in 10 occupiers expect the largest increase in their tech budgets over the next three years to be allocated to technologies that effectively manage, reduce, and report on environmental sustainability. (JLL Global Tech Survey).
On the ground
Outsourcing a Facility Management team allows businesses to prioritise core competencies whilst achieving cost savings and operational efficiency. Improving operational effectiveness and resource alignment directly contribute to an improved bottom line.
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