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Practical Advice for Businesses in Crisis – Emerging

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Practical Advice for Businesses in Crisis – Emerging

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The following is a guest blog written by Mike Sayre.  It is a companion to the interview with Paul Gibbons titled Impact-Leading Change in the Digital Age that aired April 21st, 2020 on Innovating Leadership, Co-creating Our Future.

 

What to start pushing forward on as you think about emerging from this crisis. You do need to push forward!

In the a previous two article, you learned about communicating openly and honestly with your team and understanding your cash and credit resources to push forward. But what do you push forward on?

Because this blog series is meant to be both practical and tactical, I am assuming that you and your company already have a mission, vision and values that are all in alignment and are the basis for the culture of your business. If not, please check out my At C-Level blogs 2, 3 and 4 at the Innovative Leadership Institute website.

As I write this, much of the world is in some kind of lockdown status for “non-essential” businesses. A major indicator that your business is not as essential as you might like it to be, is that during the pandemic, your business was either designated as “non-essential” or your sales dropped like a rock and will take months, if not years, to recover. Whenever your sales are falling off significantly, most of the following applies as well. You always want your business to be “essential” to fulfilling the needs of your customers!

Of course, there are varying degrees of “essential” and some businesses will rebound more quickly than others. What degree of “essential” is your business?

To get a gauge on that, ask yourself, “What are people doing or buying right now instead of what we provide and, more importantly, why?

Then ask yourself,

  1. If the pandemic ends tomorrow, will they immediately come back to us as customers?
  2. If not immediately, is there something we can start doing now to incentivize them to come back sooner?
  3. Is it possible they will continue on with what they are doing now and not need us at all, or nearly as much, going forward?

In any of these three cases, it’s time to engage with your customers and your team to come up with appropriate incentives to insure they come back and as soon as possible, or come up with new directions to keep them from splintering off to those new-found alternatives…which, actually, you and your team should be doing on a regular basis anyway!

If that all sounds like Marketing 101, it is. But it is amazing how much we forget and how far away we can get from our customers in a pandemic, or when things have just been going really well for a while! Your owners, customers, employees, suppliers and communities are all depending on you and your team to be thoughtful and committed in this process!

What does the business and/or its offering need to look like to not only keep current customers, but also to attract new customers as your business emerges from your crisis? Fact is, you will need new customers to fill in for current customers who just won’t come back no matter what you do, and to grow the business and thrive again going forward. What are your competitors doing? Is that what your customers want? Is your new offering really a compelling proposition for your customer and for your business?

Sales in our profitable electronics repair business (something like $12M-$15M at the time) with customers like Oracle, HP, Xerox and IBM were in decline…a crisis for us. Our customers told us we were being excluded from new bidding processes because we only had one location, which made the shipping cost of doing business with us too expensive. To be added back to the bidder lists, we needed to add our own repair locations in Europe and Asia like our much larger global competitors. Our vision had to be “adjusted” from being “the best in the business at what we do” to being “the best in the world at what we do!” We already had an international salesperson selling our customized electronic solutions who had made some nice partnership connections for us in The Netherlands and Hong Kong. So, we cultivated those connections into relationships, raised money from investors, bought a small well-run repair business in The Netherlands, and partnered with our repair contact in Hong Kong to create a small joint venture operation there. We were then put back on the bidding lists, the repair business started growing again, and we eventually achieved our vision to be “the best in the world,” according to our largest customer! Yes, this is a much bigger story, but I think it illustrates the point.

Now that you have some ideas on how you want to emerge from this crisis, you need to focus on what will have the biggest impact for your customers and business, based on what you can actually do considering your resource availability and/or constraints.

I sometimes use a quick model to evaluate such ideas/alternatives with my team:

“Impact” can be short term or long term. So you have to consider your time horizons on each alternative.

“Resources” can be financial, expertise, people, equipment, facilities, etc. Considering all of these, how would you rate it in terms of being possible for your business to do it?

“Score” is just multiplying your two ratings. This is where your risk analysis comes in.

Idea #1 is a slam dunk for an okay impact at best.

Idea #2 would have a huge impact, but is really beyond your resources in a big way.

Idea #3 would have a sizable impact, and you have the majority of what you need…do you have the money or other less obvious resources to fill in what’s missing?

This is just one way to look at it and a place to start. The larger the potential investment, the more analysis you really need to do. If you have the resources to do more than one of the alternatives, and they all make sense strategically, redo the model by taking out the best alternative and assume those resources no longer exist. Re-rate, score, and decide.

Please don’t let any model substitute for your common sense! Your results should mirror your intuition. If not, I’d think it through again.

Now, it’s time to think about the people and capabilities in-house that can be redirected to build up new business capabilities without causing major disruption in the current business, depending on how large the challenges are in the current business.

To become a more innovative leader, you can begin by taking our free leadership assessments and then enrolling in our online leadership development program.

Check out the companion interview and past episodes of Innovating Leadership, Co-creating Our Future, via iTunes, Google Play, TuneIn, Stitcher, Spotify and iHeartRADIO. Stay up-to-date on new shows airing by following the Innovative Leadership Institute LinkedIn.

 

About the Author

Mike Sayre has successfully piloted businesses through difficult times of crisis for over 20 years – as a CEO, COO, CFO, and/or Board Director. He is currently an independent executive leadership consultant working through Civilis Consulting and the Innovative Leadership institute, trusted partners inspiring and enabling perpetual innovation, evolution, and growth in leaders and their businesses.  If you would like to learn more or get help, please contact Mike through LinkedIn.

Fighting a Lot of Fires? —– You may be the Arsonist.

Posted by presspass on
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Business
Fighting a Lot of Fires? —– You may be the Arsonist.

To start or to continue receiving the weekly blogs via email, please sign-up using this link: subscribe to Innovative Leadership Institute weekly blog.

This is a guest blog provided by Dr. Michael Colburn. The interview of Aleksandra Scepanovic as well as this blog challenge us to reflect on our leadership skills even in hard times and what we can learn to become a better leader. The interview on Innovating Leadership, Co-creating Our Future with Aleksandra Scepanovic aired on 10/22/19.

Ever have one of those days?  Crises abound and it feels like you are spending most of your time putting out fires?  Action is taken to solve the crisis at hand.  At best, the cost of the crisis is minimized.  However, your time is taken away from the high value activities that you want to work on.  A crisis is an unexpected event that has a cost assigned to it if it is not resolved.  There are crises that are truly unexpected, and we just have to deal with them.  But there are others where we need to ask the question: What are some things that I do that may create or magnify crises?  Here are five tips you may find helpful in preventing the fires from happening in the first place.

Tip 1:  Communicate openly and honestly even when it hurts.
It is not just the issue that makes something important.  It is often the lack of time to respond to the issue.  When a red or yellow flag goes up, it is time to communicate.  The earlier you communicate about a possible crisis, the more time you will have to create alternatives (eg., get help from a colleague, negotiate a time extension).  Your boss or client may not be thrilled, but they will be informed.  The problem is not compounded.  At worst the impact is minimized.  At best the problem may be prevented.  You communicated and accepted responsibility.

Tip 2: Anticipate potential problems and take preventive actions.
When planning for any project, get in the habit of questions like: What could go wrong? What can I do to prevent it from happening? What corrections can I take when a red flag goes up?  Ask colleagues who have had similar projects the sane questions.  Accelerate your learning from yours and others’ experiences.  Build in preventive actions to reduce the risk of crises.  Plan contingent actions to respond quickly to the unexpected.

Tip 3: Make realistic commitments.
Some golfers’ optimism gets them in a lot of trouble.  If I can manage to hit the ball under the limb, curve around the tree and go over the water, I can reach the green.  Some people, like this optimistic golfer make “best case” estimates to the client to make the sale, to impress the boss or to relent to pressure.  The seeds of crises have been sown.  When commitments are not met, excuses are made, and credibility is damaged.  You need to be both realistic and courageous.

Tip 4: Establish regular communications with the boss and clients.
Take the initiative to schedule regular one-on-one meetings with the boss to review progress, agree on priorities and discuss resource needs.  Openness and candor do not often thrive in group settings.  These accountability meetings keep small problems from growing into crises.  Your initiative eases the need for the boss to check up on your projects.  Have similar meetings with your critical internal clients and teammates. One proactive meeting eliminates many reactive ones. 

Tip 5: Continually improve your processes.
Poor processes create crises. We know this at the organizational level, and it is also true at the individual level.  This may include personal planning, project management and communication methods with the boss, teammates and clients.  Look at your key value creating activities and take a step back and describe as if you were going to teach them to someone.  Identify ways to reduce wasted effort an increase the time you spend on the highest value activities.  Be your own lean consultant.

Next Steps
Review the five tips and choose one that resonates with you.  Identify one thing you can do in the next 24 hours to apply this tip to your professional or personal life.  Success breeds success.  Each step you take will enable you to take control of the seemingly uncontrollable.  Let me know how it works at dr.mjcolburn@gmail.com.

To become a more innovative leader, you can begin by taking our free leadership assessments and then enrolling in our online leadership development program.

Check out the companion interview and past episodes of Innovating Leadership, Co-creating Our Future, via iTunes, Google Play, TuneIn, Stitcher, Spotify and iHeartRADIO. Stay up-to-date on new shows airing by following the Innovative Leadership Institute LinkedIn.

 

About the Author

Dr. Michael Colburn has built his career on performance improvement at the organization, team and individual levels for a broad range of clients in the private and public sectors for more than 30 years.  He recently retired as an Associate Professor of Management at Ashland University where he taught Organization Development, Operations Management, Strategic Management and Self-Management & Accountability.   Michael has authored numerous papers in academic, professional and trade publications.  His first book, Own Your Job: Five Tools for Self-management and Accountability in the Workplace will help you think more entrepreneurial and teach you self-management skills and increase your performance and influence. Check out more of Michael’s blogs on his website.

Photo by Pixabay.

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