We talked to a Riveron financial planning and analysis (FP)
There is more pressure on business leaders today to make sure that their financial planning methods help them make quick, smart decisions that support growth while also being more careful with money. This expert interview explores how CFOs and stakeholders can strengthen annual budgeting efforts.
Annual planning efforts are a core component of the role of CFOs and corporate finance professionals. With many companies’ budget processes already underway, how are teams balancing internal constraints and ensuring accuracy?.
Neal McDonald (NM): For many businesses, budgeting in the fourth quarter is “crunch time,” and they may be facing more internal limits. This could be because of something out of the ordinary, like losing important employees in the corporate FP Or, new strategic changes could cause challenges. For example, private-equity backers may only have a short amount of time to do the first pass at a budget for a newly acquired portfolio company. It can be hard to get all the information together in a timely, accurate, and strategic way. Annual planning can still be hard, even if CFOs and finance teams don’t have to deal with these unusual situations at work.
During any budgeting or forecasting exercise, effective CFOs and finance leaders aim toward explainability over accuracy. This means that if you make a budget for 2024 and then the year goes by and the actual numbers don’t match up with the budget, finance professionals want to be able to change the subject from “why weren’t the numbers correct?” to “how should the business respond?” Being able to explain why things aren’t going as planned is very important, and skilled finance leaders will be able to work with operations or other key functions to figure out what to do. In turn, these monthly reporting activities can drive improvements and make the forecasting efforts more accurate.
The past few years have been volatile for companies. What do you think are the most important economic problems and trends that will affect the next budgeting cycle in 2024?
NM: Inflation will still be a factor, since business leaders often try to deal with it by raising prices to cover rising costs. But by 2024, the question will be: how much longer can companies realistically put that burden on their customers without hurting their relationship with those customers? It also looks like EBITDA or margin might naturally go down because companies won’t be able to keep pricing through all the costs that are hitting the business, whether they are related to the supply chain or not.
When it comes to growth strategies, CFOs and other finance leaders will have to weigh a lot of things, both because of the current economy and because, depending on the industry, business or market conditions could get worse. Companies may need to be less aggressive with their growth strategies in 2024 if they think there will be limits on what they can do. This will affect how they plan for different outcomes.
Another trend that could affect growth and planning strategies is the shift toward organic growth. This is because some companies may have seen a drop in acquisitions or have made mergers and acquisitions (M&A) less of a priority. In these situations, for a business to grow, it will need to move toward products or channels that make more money. The profit and loss statement will include inflationary pressures.
If businesses think that 2024 will bring about moderate growth, where should the chief financial officers and other finance leaders focus their efforts to get the most out of them?
What other strategies and tactics are proving to be helpful for companies during annual planning for 2024?
NM: In a world where businesses are under a lot of pressure to grow despite a lot of problems and economic pressures, it’s helpful to look at the strategies used by leading FP To get useful insights, it’s important to put money into improving technology and making sure that people and processes are working together to get the most out of those improvements. In this way, it becomes very important for the FP
These are the FP Planning technologies and tools not only make it easier to report and make decisions, but they also give everyone in the organization a clear picture of key performance indicators and metrics.
Further, having the right team in place will drive success in the use of technologies. If a company has a lot of staff turnover and doesn’t have enough money, especially if budgeting is done by hand using Excel or another program, it can help to bring in temporary help to get through the most important parts of annual planning. No matter what kind of team structure is used, the experts (either internal or external) must know about planning areas that have caused the company problems in the past. For instance, if a store consistently fails to meet its inventory projections, it will be helpful for them to use FP. That functional and technical expertise can support budgetary accuracy and the ongoing rationale for decision-making.
How can CFOs strengthen their annual planning approaches and help their teams avoid issues in the future?
NM: Companies can improve and grow the Office of the CFO by learning from problems at the end of the year. This will make the CFO more useful during all planning and forecasting cycles.
If a company regularly runs into problems during the budgeting process, the team can benefit from writing down and supporting the problems that come up while budgeting is going on. Finance leaders and team members can ask questions such as:
Gathering this information in parallel with budgeting efforts will clarify how to improve the process throughout the year. Once everyone has finished meeting the demands of the end of the year, they can look back at this information and deal with the most common problems. This will help the team avoid problems in future planning and forecasting cycles.
What should finance and operations professionals think about when they want to plan with confidence and accuracy? How should they use technology to make sure the quality and availability of the data?
NM: The first step is to understand where data comes from in an organization and how it connects to other business systems across the whole company. For example, if a customer with loyalty member data buys a piece of clothing in a store, the point-of-sale system records the information about the size, color, price, location of purchase, loyalty member number, type of payment, and so on. ). Then, different parts of the business can use that information in different ways. For example, marketing can look at customer trends and change their advertising, financial data can be added to the main ledger, and operations can figure out how many employees are needed at each store. Reporting on the business depends on how the data moves through the company and how it’s managed as part of the master plan.
Any technology or method used must clearly show where the data comes from, how it goes through any IT or business intelligence functions, systems, or tools, and finally where it ends up in a reporting tool. If there are problems, they need to be fixed so that there is clear visibility from a single source of truth that helps CFOs and cross-functional leaders understand the business and how to use the data in the right way. Finally, when CFOs and finance teams make or improve reporting tools, they will need to figure out the best way to “dimensionalize” the data so that it can be used for reporting and making smart choices.
Landing a job at Riveron – a leading strategic advisory and operations improvement firm – is no cakewalk. With competition for top talent fierce, Riveron’s recruiting process is designed to thoroughly assess candidates to find the best fit for their challenging high-stakes projects.
This article reveals Riveron’s most commonly asked interview questions along with tips to help you craft winning responses. With insights from my experience interviewing for management consulting roles, I’ll discuss both case-based and behavioral interview questions to fully prepare you for the Riveron recruiting experience.
Whether interviewing for an associate consultant or executive position, use this guide to understand Riveron’s priorities, hone your answers, and present yourself as the top contender for the job. Let’s dive in!
1. Why do you want to work for Riveron?
This opener is meant to see how interested you are in the company and how well you fit with their values. Riveron wants to see you’ve researched their mission and culture.
Tips:
- Show enthusiasm for Riveron’s commitment to driving tangible results
- Reference the firm’s emphasis on intellectually curious, innovative thinkers
- Convey understanding of their blended focus on strategic and operational excellence
Sample Answer: I’m really excited about the chance to work for Riveron because the company has three qualities I value: a strong focus on delivering real results, a rigorous intellectual approach, and a mix of strategic and operational thinking. Riveron’s goal of giving clients actionable insights that lead to real, measurable progress fits perfectly with my own values. I’m interested in Riveron’s culture because it values smart, creative problem-solvers who get ideas from tough situations. I also like how the company has a unique mix of strategic insight and operational improvement skills, which gives them a real edge over their competitors. Without a doubt, Riveron seems like the perfect place for me to grow as a consultant.
2. How would you approach a new case you’ve never seen before?
Here, Riveron wants to see your logical structuring of analysis for unfamiliar problems. This tests your critical thinking process.
Tips:
- Structure your diagnostics approach, don’t jump to solutions yet
- Emphasize framing the right questions upfront
- Outline gathering data from diverse sources to inform your perspective
Sample Response: When faced with a new case I haven’t encountered before, I would leverage a methodical diagnostics approach to immerse myself in the challenge and inform my perspective before proposing solutions. First, I’d clarify the case objectives and my role in addressing them. Then I’d probe with questions – Who is the client? What industry trends or competitive forces are at play? Where might opportunities or risks reside? I’d gather data from varied sources, including client discussions, analogous case examples, independent research, and expert interviews. This information gathering would allow me to deeply understand the situation from multiple angles, equipping me to frame an insightful problem statement. Only then would I move forward with structuring a detailed analysis to deliver actionable strategies grounded in a robust foundation.
3. How would you go about estimating the market size for a new product?
Riveron wants to assess your strategic approach to market sizing – a key skill in consulting. Your process for synthesizing data is key.
Tips:
- Show a data-driven approach with use of indicators like demographics, growth metrics, analogous products
- Discuss benchmarking competitive offerings as part of your market analysis
- Emphasize tailoring your estimation approach to the specific product and available data
Sample Response: Estimating the market potential for a new product would begin with profiling the relevant demographics – who are the target users and what need does this product fulfill for them? I’d analyze population size and growth trends in this user base, along with macro factors influencing demand like socioeconomic and technology shifts. Examining analogous products can inform pricing models and adoption curves. For direct competitive benchmarking, I’d study offerings from rival companies, assessing factors like market share, customer overlap, and relative pricing. Synthesizing these data points would provide an initial TAM estimate. I’d then dig deeper into user psychographics and conduct surveys or interviews to refine my market sizing based on interest levels and price sensitivity for this specific product. The goal is developing a robust, tailored market model through data triangulation. I would pressure test my sizing through sensitivity analysis before finalizing the estimate.
4. How would you go about reducing costs in an organization?
Riveron wants to see you can structure a pragmatic approach to cost reduction – a common project focus area. Show strategic thinking but tie it to tactical execution.
Tips:
- Demonstrate you understand common buckets for optimization like operations, procurement, organization structure
- Emphasize balancing cost reduction with preserving quality, talent, and growth capacity
- Outline engaging stakeholders and change management considerations
Sample Response: Approaching cost reduction for an organization requires balancing strategic questioning with tactical steps for execution. I would start by benchmarking similar companies’ cost structures, looking for savings gaps and opportunities. Then I’d analyze the client’s biggest expense buckets – often procurement, operations/production, and personnel. For procurement, I’d renegotiate contracts and source alternate vendors. Operations would be streamlined through process improvements. For personnel, I’d ensure optimal organizational structure, potentially leveraging attrition. Each initiative would be structured to maintain quality and preserve growth capacity. Change management is crucial – I’d engage leadership and employees through transparency on rationale and impacts. My methodical approach delivers meaningful cost optimization without compromising the business or alienating talent.
5. Tell me about a time you successfully influenced someone to adopt your recommendation. What tactics did you use?
Here Riveron wants to see your ability to gain buy-in and enact change – core consulting skills. Highlight influencing skills like empathy, persistence and creativity.
Tips:
- Set the context – why was your idea initially met with resistance?
- Emphasize listening to concerns, finding common interests
- Share creative ways you made your case – data, analogies, demonstrations
Sample Response: One key instance was when I convinced my director to adopt a new IT system. He was resistant to change from the current legacy system. Recognizing his concerns about disruption, I first listened deeply to understand his hesitations. I empathized with his view but systematically addressed his worries, explaining how risks would be managed. Knowing his analytical nature, I prepared a detailed cost-benefit analysis and even created process flow diagrams to demonstrate the efficiency gains. What finally won him over was a prototype – seeing the system interface and features in action made the benefits tangible. My multipronged influencing approach combined persistence, creativity, and empathy – understanding the individual and adapting my methods accordingly. In the end, my director became the biggest champion of this vital systems upgrade.
6. Tell me about a time you faced a conflict with a colleague. How did you resolve it?
Riveron looks for conflict management skills – the ability to resolve interpersonal challenges with professionalism and emotional intelligence.
Tips:
- Set the context – complex project, disagreement over strategy
- Emphasize active listening, finding common ground
- Share how you arrived at an amicable compromise
Sample Response: Early in my career, I faced conflict with an experienced colleague over resource allocations for a high-profile project. Having both joined the team recently, we had different views on timelines and activities. Recognizing my colleague’s deeper expertise, I approached him 1:1 to understand his perspective. Through respectful dialogue, we found common ground – our shared commitment to excellence. I expressed my rationale while acknowledging his wisdom. Rather than competing, we agreed to synthesize our plans. Aligning schedules and dividing activities played to each person’s strengths. Reflecting later, we realized our diverse viewpoints strengthened the end product. This experience demonstrated the power of open communication, empathy and compromise, even under tight deadlines. By setting ego aside, we achieved an optimal outcome.
7. How would you go about analyzing a company’s cost structure? What metrics would you examine?
This case interview question assesses your approach to diagnosis – specifically analyzing an organization’s finances. Riveron wants to see you identify key drivers and metrics.
Tips:
- Discuss examining income statement, balance sheet, operating metrics over time
- Key ratios: Gross/operating margin, fixed/variable costs, SG&A, returns on assets/equity
- Benchmark competitors on profitability and efficiency
Sample Response: I would conduct a deep dive into the company’s financial statements over a multi-year period, supplemented by operational metrics, to diagnose cost structure. On the income statement, gross margin and operating margins indicate profitability, while analyzing cost of goods sold and SG&A helps determine fixed vs. variable spending. I’d review changes over time – are margins trending up or down? On the balance sheet, the asset mix impacts depreciation costs. Operating metrics like inventory turnover would reveal efficiency strengths and gaps to address. Benchmarking competitors on profitability ratios and revenue/cost per employee would provide context. Gathering this holistic data set allows me to pinpoint the biggest drivers and opportunities – Is it a production, overhead or labor issue? This financial grounding enables tailored strategies for cost optimization.
8. How would you design compensation packages to incentivize sales teams?
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