JUNE 20198CFOS CHOICE OF GROWTH PATH: ORGANIC VS. INORGANICIN MY OPINIONMitesh Shah has been fortunate to play a pivotal role in the evolution of one of the biggest Start-up stories of India (Ola) and that has given him some very deep insights into start-up world. At BookMyShow, he spearheads the finance function and plays an active role in strategic business managementBy Mitesh Shah, Head ­ Finance, BookMyShowhich is the one single word that gets quoted, used or pronounced (and sometimes, abused!) the most in any corporate gathering? Yes, you nailed it ­ `GROWTH'. For a CFO, this word signifies the end objective of the entire organization's actions, and hence often finds place on his desktop or cabin walls to nag him constantly lest his focus deviates from it! The means for achieving this revered destination are multifold, subjective and varies from entity to entity in terms of preference. But one point which has been at the center of all management debates over the years is ­ which is the best path to get there? Is it through organic route ­ slow, steady and self-charted path or inorganic route ­ Quick (well, perceived to be!) and Fancy, but expensive.This simple-looking binary choice is the most difficult conundrum for a CFO charting-out growth plans. While my professional colleagues at large conglomerates will have the luxury of allocating capital down the inorganic route effortlessly and frequently, but mid-sized entities & startups have to essentially look at a merger or acquisition as a `special event' given the limited capital pool and manpower resources at their disposal, as a failure here can get the organization limping behind on the growth curve chart. Business is the race to think ahead of time, but work with time. In this jet speed changing era, every company needs a person to maintain the balance between company's growth aspirations and profits & returns. CFO here fits as the missing piece of puzzle. CFO of a mid-sized company is a visionary aligned with a plethora of functions. A key primary navigator of CEO, running the house within a limited budget, encompassing full spectrum of likely scenarios & providing critical & independent sanity check-in validating the needs of entire organization. CFO needs to lead from the front and establish a strong case ­ or absence of it ­ for inorganic growth, both to external, as well as internal stakeholders. As a wise man quoted `Growth for the sake of growth is the ideology of the cancer cell'!Characterization & responsibility of CFO is akin to a CEO in an W
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