Without question, the ripple effects of this tough economy will be felt throughout business, government and personal finances for years to come.
For the vast majority of businesses, there will be no bailout or stimulus package. The sooner business can return to value creation instead of worrying about its very survival, the quicker we’ll restore jobs, home values, investments, consumer spending and tax receipts.
Economic recovery depends solely upon our own action. There’s no time to waste.
Some thought starters:
Get ahead of the curve. Things move so quickly that continuous assessment has replaced the traditional multi-year plan as the primary business management instrument. Today’s managers must adjust to weekly, even daily dashboards, and the associated drivers.
Nimble executives are actively managing best, worst and the most likely scenarios. They keep costs to a minimum, so they can endure even the worst. Then, they treat all other costs as variable, depending on business conditions.
Consider bold moves. There never has been a time when businesses were so openly permitted to hit the reset button. Perhaps when we witness Lehman Bros., CitiGroup and AIG on the edge, we have newfound courage to make bold moves.
One area financial planner made the decision to give up 95 percent of his clientele to focus on the 5 percent who truly appreciated his value-added services. The result: stronger clients, fewer distractions, more profit.
Love your partners. Every organization has a value chain of key customers and suppliers, but most are attended by a single account rep or procurement clerk instead of a relationship team.
Business is a contact sport! Spend time together by debriefing on a recent project, celebrating your business anniversary or hosting team-to-team meetings and exploring the question “How could we do more business together?”
Engage the entire organization. Topline-generating sales leaders traditionally are the business heroes.
Now, a new kind of hero is emerging: The person who champions specific ideas for operating better, cheaper and faster. Great ideas can bubble up from courageous people in all facets of business.
These front-line profitability experts need to be honored, protected and, most likely, promoted.
Remember Pareto. As more business activity is shouldered by fewer staff, executives hear complaints about overburdening existing staff. But the Pareto Principle says 20 percent of activity produces 80 percent of results.
With this in mind, have a conversation about what matters most, giving employees permission to minimize, eliminate or automate the rest. It works.
Shed extra baggage. As the adage goes, one man’s junk is another man’s treasure. Take a close look at your assets to see if any “junk” can be turned into cash.
One area company successfully financed a business transformation by selling unneeded intellectual property. Another is subleasing buildings. You won’t get top value for these assets today, but they’re junk to you so any value is better than none. And you’ll shed carrying costs.
Understand what makes you special. There are reasons you stand out from other businesses. Seize those points of difference. Bank of Clark County solidified its service reputation by creating a courier service, even agreeing to collect customers’ daily computer backup tapes.
Sure, there are painful dimensions to the economic downturn. But if you look closely, you may just find ways to strengthen your business while weathering the storm.
Ron Arp is president of Amplify Group, a communications and public relations firm based in Brush Prairie.
