Your Key to Results at All Levels
Over the past twenty years, I've had the experience of working with some great leaders and companies and with some that floundered when things got rough. I'd like to share a few strategies and best practices that could improve your business and make it "fool" proof in this challenging economy:
1. Prepare for the worst possible scenario
After working with and observing many leaders who thrive in a growth-oriented economy, one of the most difficult things to do is to consider the worst-case scenario. Many entrepreneurs, for example, just don't want to "think negative." By looking at the worst-case scenario, an organization gets a better sense of its break-even point as well as which strategies could be put in place to prevent the worst-case scenario from unfolding. In scenario planning, it's important to look at the worst-case as well as the best-case scenarios. In addition, consider two others: unexpected or "wild card" scenarios like a nuclear attack from North Korea or some legislation that helps you build a new profitable business niche; also look at a more moderate scenario where you consider various "mixed" factors.
2. Have a vision - don't shortchange the future
Yogi Berra once said, "If you don't know where you're going, when you get there you'll be lost." What sage advice from a very insightful, hands-on guy. Just because we are going through challenging times and you may even be experiencing a reduction in force, doesn't mean that you shouldn't have a vision and continue to communicate it. A vision is simply a realistic and desirable picture for the future. As you deal with the current reality of our time, be cognizant that communicating an attainable vision helps those high-performing employees who need to see and work toward a picture of where the organization might go next.
3. Rethink growth and protect your core business
After spending their careers in a pursuit of growth, business leaders may have to adjust their thinking. It's usually easier for most to lead in the uptimes. Business consultant Ram Charan cautions businesses to pursue growth to gain market share only if it's profitable and cash efficient, meaning that gains and market share don't eat away disproportionate amounts of cash; this could be in the form of more inventory, extended duration of accounts receivable or creating financial complications in general.
Every business has a set of invaluable assets such as their customers, people who know the technology inside and out who work for their company, their brand, etc. It's important to protect this core part of your business. When you ask yourself - "What is it we can't afford to lose?" - The answer will shed light on what your core really is.
Dr. Mary Key is consultant, speaker and the author of several books including CEO Road Rules and The Entrepreneurial Cat: 13 Ways to Transform Your Work Life.
www.CEORoadRules.com
Mary Key & Associates, Inc. ©2009
