Business Strategy: Success Depends On A Robust Infrastructure
By Jon Armstrong, Managing Director, Simpler Europe
The financial status of a business has become more public since the recession, where redundancies were high and bonuses and salary rises were capped in order to save money. Now, businesses have been forced to create ways in which to run more effectively and efficiently, in a sense doing more with less. Redundancies were rife in 2009, but if businesses think more strategically, preventing rather than having to solve the crisis when it happens — they could not only save jobs, but create jobs, save money, time and energy.
There are three dimensions...
...of a business that must be focused on: Purpose, Process and People.
Business management should never be in denial of what is happening to their company. Employees can smell fear and need to be addressed with care, concern and optimism. Displaying how the company will be able to gain a stronger foothold in the market or how they plan to achieve a solution to their issue will be viewed as prepared and ensure confidence from employees. Build a recession plan. This thinking enables leaders to do the following:
1. Define the reason for action.
Why does the business need to change? Why have you decided to change your way of doing business?
2. What is the current condition?
What do your metrics look like? Has revenue fallen dramatically in recent months, have inventory levels risen enormously or are your overhead expenses increasing? Each business leader needs to have a solid idea of where their company is currently at in order to know where it needs to go.
3. Describe what results your business is looking to achieve, in numbers.
Be bold. Think in terms of double digit levels of improvement... continued on page two >