Strategies demand that businesses integrate operations across their value-added chain to serve company goals and objectives – whether it is growth, market profitability or market share. Businesses that have corporate storyline on competitiveness and operational practices are clearer on their goals and objectives. A post-recession global economy will remain dynamic. Having the right strategy will allow corporate managers to analyze and interpret what makes a good business opportunity. Corporate leaders with strategic foresight are aware that flawless execution and good operational practice cannot equal superior performance. Most importantly, they know when to adjust their business strategy. And the best of strategies are flexible enough to accommodate new market scenarios.
Post-recession business leaders are aware that people problems are the most difficult to solve. To avoid corporate recession double dipping, business managers must understand the culture of their organization. Human species cannot be completely captured at one end of behavioural science. However, corporate presidents can identify, frame and execute on key drivers that determine 80% of people behaviour. At one extreme of the supply chain are customers. Businesses must pay attention to their customers. If they will not buy your products or services, you can’t sell them. Business managers are advised to become customers positioned at the corporate headquarters.
Business leaders will benefit from simulating crisis before judgment calls. Alfa operations allow organizations to adjust or reframe business cases. Companies can also refer to their corporate storyline, and identify how best to handle complexities. Whatever your business does, it must reduce crisis-impact on its people and mature business operations. Adjustments on mature businesses should be strategic not accidental. Execute your operations on parameters of selectivity and simplicity.
How do you compete? Are you competing based on cost, quality, speed, service or 21st century corporate favourite – environmental awareness? Benchmark your competitive strategy against industry superior performers as well as immediate competitors. Keep clear view on global best practices in your industry. In this dispensation of emerging markets, access contemporary reports on global commodity pricing and market index. Increase your cash flow by selling dormant assets. Reduce surplus investments across your supply chain. Do not forget your people – reward them appropriately and carry them along.
Quarterly, (three months at most!) look at your business unit and company-wide bottom line. Identify cash cows, dogs, and stars in your product or service portfolio. Sell or close the dogs. Frame cost effective strategies for the cash cows, and take care of the stars. For the most part, concentrate on 20% of businesses that give you 80% of desired results.
These five keys are not by any means all that is required to avoid double dipping into recession. But they can make for a good start. However under crisis, business leaders need not plan to the nth degree. Rather, they should think within. Understand the situation. Assess the crisis in three parts: does it need attention – some crisis recede without attention. Secondly will it require quick impact, short term or long-term impact decision? Always know the difference. Align your key processes and resources (also involve your key people in solutions recommendation). Learn to follow up on execution.
And if you know when change is needed in your business, you will be halfway home.