Tightened belt or systematic analysis for growth?
The result stalls and the pressure on the wire increases. This is a familiar situation for many business leaders - including me. The response is to take the easiest and quickest route.
Marketing and travel to the break, airing the YT and getting people off the pitch. The work will be done with fewer people and people will adapt to the new situation.
Often forgotten in the rush and pressure of life systematic screening and analysis of the activities and opting for the approach described above because it is easy and the results are quickly visible.
The problem, however, is that it sets in motion a downward spiral, even though almost all companies are pursuing strategies for profitable growth and expansion into new business areas. So what needs to be thoroughly investigated before corrective action is taken?
Sales and margins
Often, the problem lies in falling sales and margins. The reason is that the market has gone quiet and the gloves are falling off. It's worth putting them back on and thinking about what is the market position of the company? If it is small, there is always something to take.
What can be done to boost sales? Is there anything that can be done about pricing to improve margins? Why are new focus products or services not catching on? What is the situation of your main customers? What innovative promotional activities can we put in place quickly?
Procurement, partnerships and the ecosystem
The old wisdom is that you make your margin by buying. The bigger the company, the more bureaucratic the procurement process tends to be. What can be done in procurement to improve margins or performance? How can partnerships bring more value? What could we achieve by being more active in our ecosystem?
Work, productivity and portfolio
We're smart and smart and our products and services are on point - or are they?
How can we eliminate waste even better? Which of our services would solve customers' problems right now? What new solutions can we bring to market quickly? How could we coach our teams to be more self-directed and efficient?
Systematic analysis in everyday life
You could add to the above lists depending on the type of business you are in. However, it is essential to systematically check the most important functions and areas of your business, ask the relevant questions and seek answers from those who know them best, or even from an external consultant.
Often the people responsible for different areas sit in the same seat. on the management team, so investigations can be set in motion quickly - if you have the management skills and the will. Once the studies have been carried out, it will be decided which measures could bring rapid results in terms of profitability.
From these studies, a few improvement projects will be launched, with progress and results monitored on a weekly basis. And this means monitoring by senior management too, not just middle management.
It is worth communicating the situation as openly as possible to staff and asking everyone to make suggestions and take action to improve profitability. It is also a good idea to communicate the progress of the study and decisions, and especially the results of improvement projects. This will send out a message that the situation is serious and requires action. If, in the end, there is a need to reduce staff numbers, this will be justified and widely understood by the staff.
In today's world, situations change quickly and markets react in unexpected ways. Businesses need to react quickly to these changes. But that doesn't mean you have to make sloppy, uninformed decisions.
Will you make good decisions and growth actions this year based on systematic reflection?
