The strategies that set the most successful businesses apart.

One of the biggest and most persistent challenges for business leaders today is navigating uncertainty. After all, if the future were easy to predict, every investor and organization would be enjoying success.

Sebastien Solar knows this scenario well. As president of Commerce Bank’s Houston market, he serves a wide range of businesses with revenues ranging from $50 million to multi-billion. He’s helped them weather a series of disruptions in recent years, including the global pandemic, rising interest rates, and waves of technological changes. The most successful companies, he said, aren’t necessarily the best at predicting future outcomes, they’re the ones best prepared to adapt to whatever comes next.

“If we’ve learned anything in the past few years, it’s that every business needs an offensive and defensive playbook ready to go,” Solar said. “You can’t afford to wait until the pivot is urgent.”

Many business leaders are focused on staying ahead. When it comes to AI, for example, a recent McKinsey Global Survey opens in a new window found that more than three-quarters of respondents across all industries report using the technology in at least one business function. Advanced industries are adopting AI as part of their strategy and corporate finance functions at the highest rate (21%), followed by the technology and professional services industries (both at 14%).

Leaders need financial clarity.

The team at Commerce Bank helps business clients gain a clear view of their financial position through a range of strategies, including improving internal systems to give leaders access to real-time data.

“The faster you see your numbers, the faster you can adjust,” said Southwest Ohio and Northern Kentucky Market President Matt Crossin. “If you’re relying on backward-looking reporting, you’re already behind.”

To keep pace, companies must invest in systems that automate reporting and eliminate delays caused by manual collection and analysis. Tools for forecasting, cash flow and scenario planning equip executives to make fast, informed decisions with confidence.

“Financial clarity is the foundation for action,” Solar said.

Commerce bankers consult with clients as they explore and implement new financial systems. This guidance helps businesses avoid investing in redundant or incompatible technologies and positions them to gain the insights and efficiency needed to move forward with confidence.

“Many businesses don’t know where to start because there’s so much technology out there,” Solar said. “Bringing in a banker or change management consultant early can save you from costly mistakes, like buying duplicative systems or tools your ERP can’t support. Cutting corners up front often means paying for it later.”

People, culture drive results.

The most successful companies aren’t investing in systems at the expense of their teams, Solar and Crossin agreed. Instead, they’re using technology to empower strong teams to produce more impactful results. In fact, there’s a strong correlation between a people-centric culture and high performance during challenging times.

“Culture isn’t something you fix during a downturn,” Crossin said. “If it’s not strong going in, you’re playing catch-up.”

He recommends business leaders develop cross-functional teams that are diverse, agile and empowered to make decentralized decisions. This requires transparent communication, support for continuous learning and a strong focus on well-being.

“Even the best tech doesn’t work without great people. The goal is not to replace them — it’s to enable them,” Solar said.

Reevaluate capital, growth strategies to stay nimble.

For the current market, the team at Commerce Bank is advising clients to position themselves for growth by focusing on financial flexibility and customers. Key considerations include exploring financial tools such as employee stock ownership plans, interest rate swaps and working capital lines of credit, while also diversifying revenue streams where appropriate.

“We’re seeing companies get a lot more strategic about their capital stack,” Solar said. “It’s not just about surviving the next year — it’s about setting the foundation for the next five.”

Rely on strong advisory support.

As business leaders plan, having the right advisors in place can make a big difference. Some organizations opt for an advisory board to support their long-term planning. Solar and Crossin said they value being able to serve in a strategic role with their clients.

“No one has all the answers,” Crossin said. “The smartest companies know how to build a bench of people who can challenge their thinking in the right way.”

In this capacity, Solar said he is spending a lot of time working with companies to map out the digital transformation of their finance departments to help them find ways to improve results.

“Not every business has a need to borrow,” he said. “Not every business has liquidity to invest. But every business needs to collect money and transmit money out. We view that as the foundation of every business and if we can unlock a 5% improvement in that process — which we can consistently — that generally results in greater confidence to take on the next big project.”

Strategic bankers, accountants and other advisors often see patterns that span customers, vendors and peer companies across industries. Business leaders can use their insights to validate assumptions, assess risk and generate ideas that might not come from internal teams.

By combining recurring strategy check-ins with financial clarity, a strong internal team and the right capital strategies, businesses can set themselves up for success no matter what’s to come.

“You don’t need to predict the storm,” Solar said. “You need to be the best-prepared ship in the water.”