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Recession 2009: A
few words for the Boss. For Better, for Worse, for Profit or Loss? |
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Providing: Cost Reduction,
Performance Improvement, Change Management & Trouble-Shooting Additional Information: Recession 2009 -
Profit or Loss? |
Most of us are in business for profit and pleasure. To successfully steer a business through difficult times demonstrates just how well a CEO, MD or Owner knows the market and is able to manage “the team”. Managing “the business and the team” entails managing a complex mix of elements - assets (customers, knowledge, money, premises) and a team dedicated to the cost effective management of resources i.e. time, people, materials, ancillary supplies & equipment, information, communications and computer systems.
So what can today’s managers learn from the past
and where, if they need it, can they find help?
Survivors of previous recessions were either lucky, had very deep pockets or they concentrated on delivering to successful customers and those that paid their bills and came back for more. Those that survived and profited did so by out-performing their competitors in terms of delivery, cost management and discreet investment. All of which were and still are, only achievable by paying constant attention to the market, customers and the cost of delivery at every stage and level of business process.
But what if you are saying to yourself “we are already doing all this”? Then I suspect you only think you are or it is not being done thoroughly enough!
Are you sure you have identified and removed all non-essential activities, bottlenecks, duplications of effort? Have you revalidated the effectiveness and use of management information and supervisory control systems and parameters; reviewed the effectiveness of finance and departmental budgetary controls, purchasing and stock holding policies, sales order processing and fulfilment, customer management and schedule missed reporting within each department? Are you keeping a close eye on recruitment, staff complaints, poor attendance, sickness, absenteeism, discipline and turn-over?
If you are still unconvinced when you or your team say there are no more opportunities for improvement, then it is time to call for a second opinion from an independent consultant.
We recognise that most employees are committed to making a business successful. Some commit for the regular wage and life-style it offers, while others see opportunities for recognition and advancement and some even take a share of the profits. Few employees however are prepared to put those values, particularly shared values, at risk by challenging the norm – especially during periods of hardship.
A consultant on the other-hand is committed to providing his or her client with an objective and confidential review, to provide confidence and experience to tackle challenges found and to helping the business to move forward and prosper.
Sometimes just a review of how you operate will be enough to point your team along the right path. However, if more direct intervention is recommended, beware of consultants offering the latest sector or system panaceas.
It would be folly to contemplate the introduction of new systems, structures, methodologies or markets until you are 100% sure you have a full and qualified understanding of what really is contributing to the successes and failures of your current business model and operations.
Almost all legacy and recent problems will have been recognised by someone in your team and they probably have very practical ideas on how to resolve them. The consultant’s role is to challenge your systems and processes not your people – to quantify, qualify, enable and underpin change, not to reinvent the wheel.
One final lesson from recessions past. Large numbers of companies fold as a recession clears because they are too slow to recognise and respond to a new era of business and competition.
Working longer for less is not a business solution, working smarter is. © Consultancy Support 2009 |
