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The tool will assist in the identification and closing of gaps in a business, helping them improve in light of the returning insolvency rates, says the firm.
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Advisory firm reveals business resiliency index
15 June 2023
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Advisory and business turnaround firm Vantage Performance has released a resilience assessment tool for organisations to use to determine their entities’ viability.
The firm said with insolvency rates returning to pre-pandemic levels along with rising interest rates the pressure was growing on business owners to ensure their firms were on track, which resulted in the Vantage Resilience Index (VRI).
CEO of Vantage Performance, Michael Fingland said business leaders only had to complete 50 yes-no questions to access a VRI dashboard that could display their firms’ strengths and weaknesses.
He said hundreds of executives had already begun using the tool and that it had helped them identify tactics to make their businesses more resilient and profitable.
“Financiers love the VRI because it’s an easy way to identify the gaps in a business and have a conversation with clients about how they can close those gaps, which leads to improved financial performance,” said Mr Fingland.
“It’s the burning question all owners want to know: how resilient is my business? Are we going to make it? With GDP flatlining and productivity decreasing, business conditions will get tough before they get better so the earlier a business can answer these questions, the better.”
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“The VRI is a great indicator of how your business will respond if you are thrown a curveball, whether it be unexpectedly losing a major customer, suffering a disaster or battling interest rates and inflation. It offers business owners a great gap analysis to show what aspects of their business they need to work on to make it more resilient.”
Mr Fingland said business owners or managers would not need to input any financial figures for the VRI as the firm found they were a lag indicator of problems, with the index developed with two decades of experience as a business growth and turnaround specialist.
“We know it works, we’ve seen it in action for a decade. With the VRI we’ve taken the key traits of highly successful businesses and turned these into initiatives that SMEs and larger businesses can implement to improve,” he said.
“No financial metrics are needed, which makes a business leader much more likely to fill it in and take that important step to find out how their business is really tracking.”
“Financials are only 30 per cent of the answer and are a lag indicator of problems – the VRI highlights how the business is tracking on a series of lead indicators. So much of business success comes down to the skill of management, the right team and culture in place.”
He said the VRI index was designed to help businesses facing cash flow or underperformance issues and demonstrate to the manager or owner how the entity was tracking.
“Business success really comes down to filling the gaps, having a robust strategy and the right capital and people in place to execute that strategy,” said Mr Fingland.
“Using the VRI doesn’t require being a Vantage client. You can use the results to work with your own trusted advisers or work with us, to improve your metrics.”
“Running your own business is tough. This is our contribution to improving business success rates in Australia.”
Founded in 2005, Vantage Performance has worked with hundreds of SMEs and large companies to improve their sustainability and performance, along with more than 215 successful turnaround engagements with an 85 per cent success rate.
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