Companies today are so often caught up in turmoil as they struggle to work through the economic downturn and the cost cutting that has happened in all industries. The focus has become just staying alive.
Scott Adams has cartooned the problem perfectly in a recent strip.
We laugh at this idea and yet we see it happening over and over again. The business model has changed and will never be the same again. There are too many influences. The economy just brought the problem to light.
What can you do as CEO, COO, CFO or any C level executive? Stop the broadscale cost cutting. By now you have trimmed the obvious fat. The issue now is to take stock of what is left and then start to move forward.
We have written many times that a solid business plan is required. It has to have the following characteristics:
1. Recognizes the current market place realities. The old and the wished-for future are not relevant here,
2. Identifies and capitalizes on the company’s core competencies.
3. Focuses effort to maximize the impact of scarce resources, both people resources and financial resources.
4. Kills, stops, drops, sells off, or forgets the non priority projects and initiatives, no matter whose idea they were or how much money has been sunk into them.
5. Emphasizes cash flow. Without the operating dollars coming in at this moment there will not be a tomorrow.
6. Communicates down through the ranks so that “the untalented will not be executing the wishes of the powerful until failure is achieved.”
You may need help. Most companies do, but don’t acknowledge it.
Contact us. We can help. We are turnaround experts.
Maver Management Group