Smart Decision Making In Uncertain Times
Business leaders and managers are experiencing the most unpredictable business conditions most leaders have ever seen. It’s difficult enough to plan three months out let alone three years. Despite the emotional chaos that can stem from uncertainty, there are well-established tools that can be used to navigate the turbulent waters we find ourselves in. The following are 5 simple steps we all can take to make sure we are making the right decision the first time. However, to effectively implement the 5 simple steps you will need to have: • Flexible thinking: Be ready for the unexpected. Learn (study) a proactive mix of quantitative and qualitative management techniques. To grow your skills read, read, read… • Off the chart communication skills: Effective communication is essential in moving an organization forward through the white water rapids of today’s fast-changing economic environment. • Humility: Learn from other industries even your competition. What do they do better than you do? Step #1 - Evaluate your business environment from 30,000 feet. After getting the big picture, focus down to the smaller components. • Track data in real time: Instead of focusing on annual budgets, focus on monthly, even weekly, targets (P & L, sales activities, and customer service activities). To stay ahead of change, managers should also be meeting daily instead of monthly or weekly. Communication is vital in times of trouble. • Identify trends: What are your competitors selling? Whose sales are up? What’s not selling at your company? • Know what you don’t know: Nothing can be taken for granted in times like these. Old assumptions are just that, “old and out-dated.” Pull together friends and colleagues who are successful in their own businesses or management careers. Form an advisory team to brain storm the strengths, weaknesses, opportunities, and threats. The more brain power you can access to assist you, the more successful you’ll become. Step #2 – Create a flexible strategy for the short-term. Make your plan, work your plan, adjust your plan and soon your plan will work for you. • Review responses to possible or impossible scenarios with your team. Put you ego on the shelf. If what you are doing is not working, change what you do. Don’t be too rigid. Be open to new ideas from your team. • Hang on to your cash. Cut your costs where you can, but only where it makes sense. Have your team meet with your employees one by one and ask them each to name three things they can do immediately to save money and conserve cash. You may be surprised how much you can save in the process.
• Be honest. Share your own concerns about the economy, job losses, and the future in general. • Share the vision. Providing a pro-active plan for navigating the short-term is essential. Share what your next step is. • Communicate wisely. Manage by wandering around. Get out of the office on to the floor where your workers are. Step #4 – Strengthen your team. The stronger your team, the stronger your business will become. • Cross-train when possible. This is good for the managers and the company. It is also good for the employee because it will develop new skills. It will also prevent the employee from getting bored or feeling underappreciated. • Focus on specific challenges. Wars are won, one battle at a time. Choose only top-priority projects that can add revenue to your bottom line. • Identify your top performers and recruit new ones. Provide new opportunities to high capacity people. Push them out of their comfort zones. If you have the money, a down economy is a great time to hire new high capacity talent. • Encourage assertiveness. Workers need to feel comfortable about bringing problems to light. Create a reward system to motivate creative problem solving. Step #5 – Keep your ear to the ground. Reach out to understand the changing needs of customers, suppliers, and business partners. • Be proactive. Don’t wait for your phone to ring. Call your customers, suppliers, and business partners before they call you. • Be resourceful. Negotiate discounts from suppliers. But a better idea is to figure out how your company can become less expensive to serve. That could be a win-win for you and your suppliers. Resources: |
