Business Survival

Increase your people's engagement with change

2010-02-23T21:56:00.000-08:00

When we engage in the change process we often neglect to consider the various levels of change readiness of our teams. Some team members with be enthusiastic and embrace the change process willingly and eagerly. These guys sometimes called early adopters are a breeze for change managers to deal with. However not everyone will embrace the change with such enthusiasm.
Some team members will prefer the status quo as it appears to make their life easier than having to change something in the way they work. These guys will not be openly seeking to disrupt the change they will just seem to drag the chain and take their time. The will frustrate the manager and possibly the process but with support they will come on side and work with the process. The guys your will need to watch are the group who actively dislike change and will do anything to railroad the process.
It may be comforting to know that the information about which category your people occupy can de uncovered prior to the start of the change process. having the knowledge of which folks are which will allow you to assign tasks within the process and to work with those who are reluctant about the change process. The reluctant folk will have reasons for their concerns which can often be reduced through discussion and communication about the effects and benefits of the process. When communications fail other steps may be necessary but often good solid communication around the rationale for the change and the benefits of it will alley the concerns of most reasonable folk.
Some straightforward behavioural profiling, communications and ongoing information generation upfront can help generate a much smoother change implemention process.

Managing Change needs Management of Risk

2009-12-09T21:10:00.000-08:00

Any change carries with it an element of risk. Will our people at all levels come with us on the journey? Will the numbers really happen as budgetted? Will the new concept or product be as exciting to the market as it is to us? and so on
All change requires a risk analysis and when your change concerns something radically new where ideas are paramount it becomes even more essential that you have an open mind to all ideas however radical they may at first appear. There is a caution here though.
I managed a change process where the manager had followed this idea and had lots of great new product concepts. In his enthusiasm he forgot to take the second step of evaluating the viability or marketability of the ideas. Some succeeded but sadly more flopped leaving a warehouse full of unsaleable items.
Great ideas come from taking a risk but successful great ideas come from evaluating the great ideas before putting them to market. Really go for it because real change comes from fresh sometimes radical ideas not from trimming the edges.

When did you review your Marketing Spend?

2009-12-08T16:47:00.000-08:00

When talking about change we often restrict our discussion to the financials or to the people. Don't get me wrong, both are essential aspects of change management but so is keeping up with what is happening in the marketplace.
What are consumers doing or watching and where are they getting their information from?
When considering your marketing spend you may find it wise to change your view from totally focussing on traditional marketing and promotion techniques and consider the value of Social Media Marketing in the mix.
There are plenty of front end benefits like the low cost and broad distribution. Many might argue then it is probably worth what paid for but consider the valuable informtion gathering you can be doing for your business. Adopting early and testing the available options might just help improve the overall value of a reduced marketing spend and position you well when the New Media becomes the Established Media.
Have fun with it enjoy the learning and keep a record of the results for tracking over time.

Always be alert to change

2009-12-03T22:27:00.000-08:00

We are mostly shy of change but the real future is being alert for the opportunities that a change may present to your business. Become a watcher of the political climate and machinations and very aware of policy discussions, it is here that the opportunities for positive change in busienss are often presented. keep a weather eye on competitors, supliers and client to be sure they are not introducing changes that will rock your business.
If your business operates in international markets keep an eye on the countries economic performance so you will be better prepared for events as they unfold. This applies equally to new opportunities as it does to changes that may negatively impact your business. Stay as friendly as possible with competitors as you may be good sources of information for each other on international markets.
Stay alert, stay alive and have your business continue to thrive.

Learn to Love Change

2009-11-30T19:17:00.000-08:00

If you are creating a culture where change is the big boggy you are creating a whole lot of resistence to change. Many people are afraid of change because they are afraid of what the change will mean for their jobs and their furure ability to support themselves and their families. It is this fear which brings about the restistence.
It will serve you, your people and your organisation a great deal more if you create a culture where change is good. A culture which embraces change because change is happening around you every day and to resist it will only leave you behind in the race against your competitors. Your business will be left behind in a pool of obsolete business practices and products or services.
A culture of 'change is good' will help your people feel less threatened by the constant changes that surround business today. They will be able to embrace the change initiative and work positively to implement it. You may find, with time, your people will even instigate changes that will improve your business. With a culture of 'change is good' your business will be less disrupted by change and more efficient through all times.

Communicate the Change

2009-11-29T19:41:00.000-08:00

Whatever change process you are implementing you will need to communicate with your people what the change involves and why it is important to them and the business. What the change will achieve for the business and what it will mean to their work situation. You must:

Be totally honest in your communications. Do not try and bluff or try to make the situation better than it is because the people who work there know the real situation. Tell them honestly what the change means to their future
Develop Trust: Be Consistent and use consistent measures in your communications Even if there is a slight dip in progress continue to use the same measures as this will retain and build your credability and help develop Trust. The more Trust you can build the more straightforward the change implementation will be.
Love what you are doing. If you don't you will not build trust and it will be very difficult to implement the change process. Let the people know you love the change process, why and smile your way through the highs and lows.

Change is usually done for the good of the organisation and those who work for it and given your change meets this criteria you should be able to successfully commission and implement a change process.

5's start the dancing

2009-09-06T20:01:00.000-07:00

You may be thinking but no one else is doing it so perhaps I should wait. Only if you want to line up behind those who beat you to the punch. There is a beautiful analogy of going to a dance and thinking about whou you will invite.
Imagine that the population under consideration is in groups numbered 1 - 5 and they all fit under a bell shaped curve; ie normally distrubted. The 1's and 2's are outliers on one end and the 4's and 5's are outliers on the other end with the 3s making up the bulk of the population under the bell part of the curve. You won't invite the 1's and 2's because they will either be disruptive or so withdrawn they will contribute nothing. You will invite the 3's because they will eventually dance and create a good party. You will also invite the 4's because they will at least tap their feet to the music when it starts. However you must invite the 5's because although they are kind of 'out there' and 'risky' they will get up and dance as soon as the music starts to play.
You see you need them to get the party started and business needs them too to get the next phase launched before the competitiors beat you too the punch. If you are not a 5 and you don't have any 5's on the leadership team now might be the time to find one and position your business for the good times ahead.

Lead openly and they will follow

2009-07-28T20:02:00.000-07:00

Leadership today is a fast changing skill and requires us to stay on top of the social changes that impact on the folk we lead. If we are steeped in the past and 'this is how I have always done it' or 'this is what I had to do' then chances are you will lose some very valuable talent.
Todays leader needs to recognise that todays employees have developed in a very different society than the one they grew up in and are expecting, if not demanding to be treated differently.
They will want to be spoken to as though they are your equal and will demand better quality work to encourage them to stay. This is because they are a confident savvy breed of individuals. To satisfy yourself that they are capable, you can offer a variety of tasks with differing levels of complexity and assess the outcomes. It will be necessary to understand just how much supervision each person requries/desires and treat each accordingly.
Good open, frank communication is essential for this typse of leadership to succeed so if you are prone to resist too much communciation it would be wise to asses why this is and develop the necessary skills.
Willing and talented employees will respond favourably to your style with the resultant increase in productivity. You will then have more time to undertake the projects that are waiting your skills.

Preparing for abundance

2009-06-23T23:40:00.000-07:00

The tide will turn and the GFC will be put behind us, no-one is sure when but smart operators are preparing for the future rather than just marking time and hoping. So what can you do to prepare for the future when the tide turns.
Perhaps you could review your product or service offerings and determine which of them delivers the best results based on their objectives or goals. For example; If the product or service is a cash cow then now is the time to evaluate its contribution and determine that it is continuing to deliver results comensurate with its status in the portfolio.
All product and service offerings can be put through rigorous evaluation to ascertain their current contribution. If it is found to be no longer contributing at the prescribed level then it is time to either change the product, change its value in the product offering or to retire it and replace it with something better tailored to market needs.
This is a perfect time for this type of evaluation and portfolio restructure to ensure your business is positioned for success when the market turns.

Show me the money

2009-06-10T00:23:00.000-07:00

Well the bank have said no more cash is available to you at this time so where too from here to pay the wages.
How about the debtors? yes I know you have phoned them and they are crying poor just like everyone else.
Bet you are sick and tired of hearing it (except from your credit control people!) You know it is probably true the money go round is not going round real well at the moment but there is money going around. Those who are getting it are those who are negotiating the smartest.
Devise a payment plan on the basis that everyone can afford something and it might as well be you who is receiving it and not someone else.
What have they got that you need and can barter for. It may be the best way of getting paid and having a useful asset.
Perhaps they could be paying the wages of some of your people while they pay off the debt. If you get enough creditors to pay the wages then there is no worry about the wage bill. Now a professional will have to set up the process for this plan to be tax effective for you but it can be done and will start seeing some money going round.

Processes and Procedures

2009-05-28T21:04:00.000-07:00

Many businesses, both large and not so large, have a random assortment of operational processes and procedures that have grown randomly over time. When times are good these processes serve the organisation and there is scant attention paid to whether or not they are efficient.
Frequently they are quite inefficient and it is only when the going gets a little tough and organisations are looking for efficiency everywhere they find time to review the processes and procedures throughout the organisation.

Processes are often found to be more labour intensive and time consuming than they need to be
Data storage arrangements can be cumbersome and lead to slow time inefficient data retrival
Delays can be caused by innecessary data handling delaying outcomes for clients

The outcomes depend on the level of workflow management in your business but there are frequently cost savings to be acheived from processes evaluation.

Survival actions position for a thriving future

2009-05-14T21:57:00.000-07:00

When you are up to your a$#* in crocodiles it is difficult to remember to goal was to clear the swamp.
In todays challenging environment it is easier to focus on survival than it is to focus on a combination of survival and thriving after the swamp is cleared. However it is crucial for the long haul to extend your survival plans beyond the current crisis and position the business to take advantage of the upturn as soon as it occurs. Including plans for the period post recovery positions the business well for the return to more prosperous times.
The planning allows business owners and leaders to review staffing and other resources from a broader perspective than otherwise. This broader perspective enables decisions to be made based on both current and future needs. It will undoubtedly sharpen the focus on which people will be required and therefore which need to be retained.
Reviewing suppliers and clients during these times enables business owners to ascertain which are truly partners with the business and which are just along for the ride. It may well be time to cull those who are not best serving the needs of the business.

Product Distribution

2009-04-30T20:59:00.000-07:00

If you are distributing product the cost of distribution may be one of the most costly parts of the operation and one that will no doubt stand a little scrutiny. By undertaking a review of distribution methods and timings there may be room for considerable cost savings. There will no doubt be room to negotiate new more favourable distribution contracts as the distribution companies seek to retain as much business as possible. New and improved distribution methods are coming on stream all the time and that which once was cost prohibitive may now be cost neutral or cost effective. This may be one area that the Global Financial Crisis will work in your favour.

Managing Costs

2009-04-26T18:20:00.000-07:00

When times are tough the temptation to cut Marketing expense is strong and often occurs to the detriment of the long term business. However these difficult times provide business with a great opportunity to evaluate the effectiveness of their current marketing initiatives. If the results being acheived are not as strong as they could be then it is probably time a revised marketing strategy and some different campaigns. There are ways the business can continue brand building, product awareness and sales in tough times that will position the business well when more positive market conditions return. Refining marketing methods and practices allows the business to retain its place in the customers’ minds and positions it for strength as the economic climate improves. Managing marketing costs is crucial to ensure the business is well positioned through all market cycles - investigate and evaluate before you cut!

2009-04-23T23:59:00.000-07:00

The financial crisis is devastating small and medium enterprises, customers don’t pay, sales are reduced as confidence wanes, cash has all but dried up as the Government's Bank Guarantee takes effect.
We all know cash is king and without cash flow there is no business so we won’t bore you with any more on that front. The question is how did the business get so short of cash in the first place and more importantly what can be done to get the cash flowing again. What parts of your business are broken irrevocably and what parts are redeemable? Where is the plan for moving forward? You may think “well the bank won’t lend us any more money so what is the point?” but you may not need the bank to lend you any more money.
There just may be more cash in your business than you are aware of but need a little help to find it.

Underlying issues compounded by the financial crisis

2009-04-16T22:18:00.000-07:00

It is tough right now and you might be suffering with lower than usual orders and higher than usual costs. You may be having difficulty paying the wages with the bank just not interested to help. This could be a function of the financial crisis or it could be a situation that the financial crisis simply compounded. To understand more needs a thorough evaluation of the business fundamentals which will shed light on the real problems and point to potential solutions.
There is much activity out there right now being blamed on the global financial crisis and no doubt that has compounded many situations but and this is a decided but any number of organisations will be using the GFC as a curtain to hide activities that were in the pipeline anyway.
So what of your business, do you have issues with cash and resources and are unsure if your business can sustain the current climate. Are you concerned as to how the next wages bill will be paid? Do you believe you have no cash any where in your business? Do you think you may just have to shut up shop? Well you might and you might make a premature decision to take that action. On the other hand you may show a little patience and have a group of professional analyse the issues and suggest solutions for a more sustainable future. You see the cup does not always have to be half empty it may be able to be turned around so it is half full. If you don't ask you will never know.