Financial Impact Of Change Management

We can expect inflation and tariffs to drive bigger forecast misses in 2025. Financial models should capture the impact of both. Here's how: 𝗖𝗼𝘀𝘁 𝗼𝗳 𝗚𝗼𝗼𝗱𝘀 𝗦𝗼𝗹𝗱 (𝗖𝗢𝗚𝗦) 𝗮𝗻𝗱 𝗜𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 The most obvious negative impact of inflation and tariffs is on the cost of imported goods or raw materials. While inflation drives the cost up over time, tariffs artificially inflate the cost of goods through what's essentially an import tax. Higher input costs from inflation and tariffs also increase the carrying cost of inventory. How can a financial analyst capture the impact appropriately? - Break out material costs into domestic and imported components. - Apply the inflation rates to both and apply the impact of tariffs to the imports. 𝗦𝗮𝗹𝗲𝘀 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 If you think that tariffs will only penalize foreign businesses, think again. Higher input costs may force companies to raise rates, potentially impacting the price consumers pay. It may also have a profound impact on the supply and demand. It won't be a matter of consumers choosing domestic goods over foreign goods. It might be a permanent reduction in goods produced. How can a financial analyst capture the impact appropriately? - Don't just forecast sales in total. Make it the product of volume and price, allowing for each to be modeled independent of the other. - Consider contingency scenarios, which can be activated based upon customer responses and the implications on revenue targets. 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀 Inflation and tariffs can increase operating costs across most categories. This includes wages, utilities, and logistics among others. Financial planning & analysis professionals may need to aid in the restructuring of operations depending on the outcomes of their forecast models. How can a financial analyst capture the impact appropriately? - Include an inflation escalation factor for key operating expenses. - Separate tariff-related costs from inflation for greater visibility and influence. Inflation and tariffs in 2025 will have major disruptions on a global scale. Forecasting failure comes from a lack of consideration about future realities. Operational failure comes from a lack of imagination around how to deal with them. #BigIdeas2025

💡 Stop Starving Your Venture — But Don’t Feed It a Buffet. One of the biggest myths in corporate venture building is that you either: A) Throw chump change at a new idea (and watch it crawl), or B) Burn mountains of cash and hope for a miracle. Both miss the mark. The real play? Metered, milestone-based funding. 🔑 How it works: Fund the next riskiest assumption, not the whole roadmap. Release cash only when evidence proves traction (LOIs, paid pilots, usage metrics). If proof stalls, pause or pivot. If proof pops, double down. This isn’t “spend big.” It’s “spend right to learn fast.” Think of it like fuel stops in a race: too little and you sputter out, too much and you carry dead weight. The art is topping up just in time to stay in front. 👀 Questions to ask before writing the next cheque: - What’s the single learning we’ll unlock with this tranche? - How will we know (within weeks, not years) if it worked? - What’s the kill-switch if it doesn’t? Fund with intention, validate in sprints, scale what wins. That’s not reckless spending — that’s disciplined growth. #CorporateVenturing #Innovation #MilestoneFunding #GrowthStrategy

Financing #water infrastructure is always complex, imagine in fragile settings! But this week at IMD's Driving Innovative Finance for Impact #DIFIprogram, we dared to do it Here are the transformative water solutions pitched to our expert panel 2: Frederik Teufel Helene Willart Petra Demarin Mike Pfister 🔹 Aden Water System Transformation: In Yemen's largest port city, 1.5 million people lack reliable water access, with a stalled $1B masterplan and 45% water losses. A three-phase approach combines catalytic grants leading to concessional finance for implementation with the support of ICRC's 50+ year presence Goma West 🔹 Goma Resilient Water Services (GRWS): Recurring conflicts and volcanic threats have left 2 million people relying on unsafe water, facing constant disease risks. This projects aims to scale up through innovative blended finance a previous success. The expansion combines World Bank loans, development grants, and private sector participation through Virunga as operator. Seven work packages, from pipeline replacement to capacity building, are designed to create a sustainable water system, serving as a model for fragile settings. 🔹 Uganda Refugee Settlements Water Initiative: In a country hosting 1.7 million refugees, Nakivale and Kyangwali settlements struggle with just 11L of water per person daily—far below the 20L standard. Blended finance mechanisms combining EU/donor grants for feasibility and behavior change, AfDB/World Bank concessional loans for infrastructure, and innovative utility payment models are being explored to transform access for 70,000 households. 🔹 Water at the Heart: South Sudan faces extreme water insecurity, worsened by floods and droughts. A national plan, led by the Ministry of Water in partnership with the Red Cross, aims to change this by strengthening governance, improving borehole infrastructure, and catalyzing blended finance for long-term resilience. With €6.6M secured and an additional €4.4M in soft commitments, this initiative leverages the fact that every $1 invested in WASH generates up to $7 in returns. 🔹 Ghana Urban WASH Project: Low-income communities face significant barriers to water access, despite Ghana Water Ltd. (GWL) having surplus treatment capacity. Affordability and infrastructure limitations have hindered connections in underserved areas. This initiative leverages underutilized water systems, optimizes service delivery, and incorporates social connection funds to ensure affordability and sustained demand. With a projected 1:6 ROI, the approach enhances resilience while making water access financially viable. #Grants alone won’t solve these challenges—#innovativefinance is essential. #WaterSecurity #imdimpact

𝗙𝘂𝗻𝗱𝗶𝗻𝗴 𝗶𝘀 𝘀𝗵𝗿𝗶𝗻𝗸𝗶𝗻𝗴. 𝗦𝘁𝗮𝗳𝗳 𝗮𝗿𝗲 𝗯𝗲𝗶𝗻𝗴 𝗰𝘂𝘁. 𝗕𝘂𝘁 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀? 𝗧𝗵𝗲𝘆'𝗿𝗲 𝗵𝗶𝗱𝗶𝗻𝗴 𝗶𝗻 𝗽𝗹𝗮𝗶𝗻 𝘀𝗶𝗴𝗵𝘁. Last month, I sat down with an NGO director. He looked exhausted. "We're cutting staff. Funding has dried up." I asked: "How many funding platforms have you explored?" He said: "4… maybe 5." I shared a list of 50+ grant and funding platforms with him. Within 𝗼𝗻𝗲 𝗺𝗼𝗻𝘁𝗵, he had strong signals on new funding. No magic. No connections. Just knowing 𝘄𝗵𝗲𝗿𝗲 to look. Here's the truth most NGO leaders don't talk about: → It's not that funding doesn't exist. → It's that most organizations only search in 5% of the places it lives. So I'm sharing the full list publicly. FundsforNGOs – https://lnkd.in/duHayZu3 ProposalsforNGOs – https://lnkd.in/di4e5rbW Devex Funding – https://lnkd.in/dmDeTKpS ReliefWeb Funding – https://lnkd.in/dtGaqinr Candid / PND RFPs – https://lnkd.in/dCkFkM58 Terra Viva Grants Directory – https://lnkd.in/dNKXBUGC GrantStation – https://grantstation.com/ GrantWatch – https://lnkd.in/dupvBwdR GrantPortal – https://lnkd.in/dk8J76dp Grantway (Idox) – https://www.grantway.com/ OpenGrants – https://www.opengrants.io/ Instrumentl – https://lnkd.in/dSGEdP2F 360Giving / GrantNav – https://lnkd.in/ddQ96Q_i Innovation for Change – https://lnkd.in/dbdNjRkR UN Global Marketplace (UNGM) – https://www.ungm.org/ UNDP Procurement Notices – https://lnkd.in/dYaXbCPS UNICEF Procurement / Calls – https://lnkd.in/day9F_fq UN Women Procurement – https://lnkd.in/dnKGbSh2 EU Funding & Tenders Portal – https://lnkd.in/dgB3aFiV EuropeAid / INTPA Calls – https://lnkd.in/dxDT79-X World Bank Procurement – https://lnkd.in/dJ7SkvDy African Development Bank – https://lnkd.in/dZeG69ur Asian Development Bank – https://lnkd.in/dPzahtHU Inter-American Development Bank – https://lnkd.in/dcap4rFU Grants.gov (US) – https://www.grants.gov/ SAM.gov (US) – https://sam.gov/ USAID Business Forecast – https://lnkd.in/d-UwyrrK WorkwithUSAID – https://lnkd.in/dvmUpE4C UK Find a Grant – https://lnkd.in/dEKYQTGn Global Affairs Canada – https://lnkd.in/dmeBkg-N DFAT Australia GrantConnect – https://www.grants.gov.au/ MFAT NZ Contestable Funds – https://lnkd.in/dDjvcDRb Netherlands RVO Subsidies – https://lnkd.in/dGV5gu-F Engagement Global (Germany) – https://lnkd.in/dgNPsyAH Norad Calls (Norway) – https://lnkd.in/dZXUhnqj Sida Funding (Sweden) – https://lnkd.in/dJPudQcA Danida Open Calls (Denmark) – https://lnkd.in/dgMASuih SDC Calls (Switzerland) – https://lnkd.in/dU6uiY64 JICA Partnership Program (Japan) – https://lnkd.in/dEZ3FtEW KOICA Notices (Korea) – https://www.koica.go.kr/ Opportunities for Africans – https://lnkd.in/dS8UTJFM WACSI Opportunities https://lnkd.in/dzn-NPpp NGO Pulse Grants https://lnkd.in/dQkR3Vcf #NGO #Funding #Grants #NonProfit #SocialEnterprise #HumanitarianAid #Development #FundingOpportunities #GrantWriting #CivilSociety #NGOManagement #SocialImpact

Ever found yourself struggling to explain, in concrete terms, what you actually do as a change manager?...You’re not alone. Most of us default to: “I support the people side of change.” “I manage stakeholder engagement.” “I help with adoption.” And then we wonder why senior leaders still see us as an add-on. The problem isn’t capability. It’s translation. Because what we actually do looks more like this: – Identify and mitigate behavioural risk before it hits delivery – Translate operating model shifts into lived role clarity – Align narrative so leaders don’t accidentally fracture trust – Design behaviour change that protects commercial outcomes – Surface shadow risks no dashboard is showing – Hold tension when strategy meets reality – Navigate power dynamics without formal authority – Turn resistance into usable data – Connect adoption to ROI, not just attendance – Leave capability behind so the organisation isn’t dependent on us We don’t just run workshops. We protect value. We don’t just write comms. We reduce risk exposure. We don’t just track benefits. We translate behaviour into performance. If you’ve ever struggled to articulate your value, try this shift: Stop describing activities. Start describing consequences. Instead of: “I created the engagement plan.” Try: “We reduced adoption risk across three critical teams before go-live.” Instead of: “I delivered training.” Try: “We shortened time-to-competency and reduced reversion risk.” Change management isn’t soft. It’s systemic. It sits at the intersection of risk, behaviour, performance, and trust. And when you learn to frame it that way, the conversation changes. Let’s name the work properly. The work I do is about equipping you to go from delivering change (often inefficiently), to shaping and influencing organisations to create environments where we can all thrive during change. And show the tangible contribution we make! I have more practical examples and reframes in my strategic change leader programme. Give me a nudge for more info. Next sessions kick off March. Note! I’m aware of the typo in the image 😩Sadly LinkedIn doesn’t allow images to be updated once posted, so… --- ♻️ Repost to share with your network 💡 Follow Nissi Ozigbu for more Leadership and Change Management content 📧 Signup for my newsletter and get insights like this straight to your inbox: https://lnkd.in/eESS94TS

Rapidly rising tungsten carbide prices are forcing a redefinition of what “optimal” machining parameters look like. Holistic cost optimization and physics-informed tool-life definitions are enabling sustained profitability even when cost metrics evolve. Recent increases by ~300% in the cost of raw materials used to produce carbide cutting tools are leading to major headwinds for domestic manufacturing. Regardless of economic circumstances, process optimization is always tied to economics: Change the cost structure and the optimal feeds and speeds change with it. To illustrate this point, I optimized two finish milling strategies for the same Inconel 718 part. For simplicity, I used the same overhead rate and same selling price; The only difference was a 3× increase in cutting tool price. The model accounts for both machining economics and the physics of tool-wear, including the effect of wear progression on workpiece surface integrity. In both cases, the process meets all quality requirements. Under 2024 carbide prices, the economically optimal strategy favors higher speed and feed with moderate axial engagement. Relative profitability for this representative finish milling operation is approximately 48%, and tooling cost represents about 21% of total production cost. Under 2026 carbide prices, the optimal strategy shifts. The model reduces feed and cutting speed to moderate tool stress and wear rate, while increasing axial engagement to maintain material removal efficiency. Profitability drops by almost 8x to only 6%, and tooling cost rises by about 2.5x to 43% of total production cost. If the 2024 feeds and speeds are maintained under 2026 carbide pricing, profitability collapses to barely 2%, and tooling cost rises to approximately 65% of total production cost. The process is no longer economically viable despite producing acceptable parts. The difference between 6% and 2% margin is the difference between adaptation and inertia. Hopefully this arguably oversimplified example illustrates how optimal machining parameters are not fixed, but rather a complex economic objective function constrained by tool-wear physics and quality requirements. When tooling price, overhead rate, or labor cost changes, the optimal solution changes. In many cases, a process that may have been economically viable in the past can turn into a net loss and this obviously needs to be avoided. The same framework can be extended to different machine rates and personnel costs. As overhead increases, the model shifts toward strategies that tolerate greater tool-wear while ensuring required workpiece quality. The physics don't change, but specific strategies can differ significantly. Let me know how you are dealing with the escalating carbide prices and feel free to reach out if you are interested in further exploring cost-driven and physics-informed optimization of your machining processes. I will also try my best to answer any general questions in the comments.

I had coffee chats with EDs of 53 nonprofits that collectively raise $200M+/year. These are the secrets that I learned: 1. Invite funders for a site visit, always. 2. Search for funding by looking at peer organization’s funders. The highest signal that a funder is interested in your work is not that they claim to "value" a category that you belong to, but rather that they’ve funded an organization with the same programming. 3) Donor fatigue is a myth, sort of. Atypical appeals / capital campaigns don’t usually cannibalize regular giving, if the campaign is transparent. 4) Seek funding from: 1) previous funders, 2) funders of peer organizations, 3) local foundations with relevant priorities 4) national foundations with relevant priorities 5) everything else. In that order, or you're being inefficient with capacity. 5) Don’t avoid hiring, but hire carefully. EDs of small orgs can’t grow impact by doing more in the same amount of time. Quality of work inevitably drops, and the org risks over-reliance on a single individual. 6) Government agencies don’t fund organizations they believe in — they fund organizations they trust. Working with local, state, fed agencies requires long-standing relationships, much, much more than private foundations. Foundations expect some experimentation/failure when funding, agencies expect guaranteed results. 7) Send handwritten letters to funders It's the most underrated and underutilized stewardship strategy in 2025. Easiest way to implement this is have a volunteer write on a blank piece of paper and mail it out with each new outbound grant application. If there’s more capacity, thank historical funders with notes. I talked to one org that had a ~25% success rate with unsolicited requests to funders no formal application process with handwritten notes, and another org with a 60%+ win rate with normal grant applications when they did this. With individual donors, orgs can expect to see ~30% lift in average check size with handwritten notes. This is my first post, let me know if I should post more! I have the privilege of meeting with more EDs / development directors than probably almost anyone else on the planet, so I thought I'd share these insights in a space where evidence-based development strategy is so hard to find.

The next era of Change Management will seperate change as a service from change as a muscle... For years change has been treated as a support function. Helpful but rarely strategic. Useful but rarely core. That era is ending fast in the organisations that seek to win fast. The organisations that win the next decade will build Change into the centre of how they think decide and lead. Here is what the next era looks like for the winners....🏆 Change becomes a core business capability Not a project service. A permanent organisational muscle that shapes strategy design, delivery and culture. Behaviour design becomes the real currency. Comms and training still matter but they are not enough. The future is built on psychology, habit formation and human insight. AI amplifies human capability. AI does the repetitive and the analytical. Humans focus on coaching decision shaping and culture. The best Change teams will be AI fluent and emotionally intelligent. Campaigns replace rollouts 📢 The mindset shifts from broadcasting information to influencing belief and behaviour. Segmentation targeted content and continuous optimisation become standard. Leaders take centre stage. Every leader becomes a change leader. Practitioners become advisors, challengers and thinking partners to the executive team. Data drives the narrative. Real time dashboards, readiness scoring, sentiment pulses, behavioural indicators. Change becomes measurable visible and impossible to ignore. Culture becomes the power source 🔋 No more bolting culture on at the end. Culture is designed into the transformation from day one. Creativity steps forward. Storytelling design, motion graphics, immersive learning; learning that cuts through noise and lands emotionally. The next era of change belongs to the people who can blend strategy + psychology + creativity + culture + AI and turn it into momentum 🔁 This is where the profession elite is heading. This is where the opportunity sits. This is the capability that will define the next generation of leaders. #changemanagement *excuse some typos in the AI generated imagery, still mastering the art and my patience

Why It’s So Hard to Explain What We Do in Change Management Change Management is one of the most misunderstood disciplines in modern organizations and part of the reason is how we talk about it. We often describe it in soft terms, “helping people through change,” “supporting adoption,” or “driving engagement.” All true, but it sounds intangible to leaders who are measured on business outcomes, not sentiment. Here’s how I reframe it when talking with executives: 👉 It’s not about feelings. It’s about risk, readiness, and return on investment AND it's based on data and insights. We reduce project risk by ensuring the business can operate on Day 1. We accelerate adoption so value is realized faster. We stabilize performance to minimize rework, productivity loss, and turnover. We’re not the “soft side” of change. We’re the sustainment engine that makes transformation stick. And when I tell leaders: “If project management ensures the system works, change management ensures the people use it,” that’s when it clicks. Because transformation doesn’t fail due to technology. It fails because people weren’t ready, leaders weren’t aligned, and adoption wasn’t built into the plan from the start. Change Management isn’t a support function. It’s a strategic discipline that protects your investment and ensures the results actually land. The irony? When it works, it looks invisible ~ no chaos, no resistance, no missed milestones. But that quiet success is what every transformation needs most. #ChangeManagement #Leadership #Transformation #BusinessReadiness #Adoption #OrganizationalChange #Strategy #PeopleAndCulture