As we prepare to enter the new fiscal period it is essential to review current operational results whether you are experiencing a loss, breaking even, or making an acceptable profit, a critical part of the review process must include an accepted ‘Vision for Change’

Michelangelo stated, ‘The greatest danger for most of us is not they we aim too high and miss it, but that it is too low and we achieve it’

My experience clearly demonstrates to me that ‘Those without a Vision, I really wonder why they bother to go to work each day’

Could I state also that my experience shows some reasons for the ‘High Failure’ rates of businesses:

  • Lack of financial strength
  • Too small to service growth demands of the market
  • Family opts out of the business
  • Sibling rivalry splits the business
  • Poor or no succession planning
  • Split in the family
  • Lack of management skills
  • Lack of planning skills Little or no ability to assess the strengths and weaknesses of the company
  • No analytical skills
  • No appreciation of financial management especially cash flow and budgets
  • Unwilling to establish a ‘Strategic Business Plan’

I see Business WINNERS as those with the following:

  • Strong capable leadership
  • Committed employees
  • Clear and consistent 2 way communication at all times
  • Timely and accurate reporting systems for pro-active management
  • Cooperative and supportive culture in the business
  • Clearly defined goals and KPI’s
  • Clearly defined, understood and accepted Strategic Business Plan by all employees
  • Effective and ongoing employee development and appraisal program at all levels

I see business LOSERS as those with the following:

  • Lack of Leadership
  • Autocratic management
  • Low employee morale
  • Inadequate communication
  • Secretive management
  • Poor reporting systems
  • Crisis management style
  • Open family conflict – sibling rivalry
  • Little or no planning
  • Lack of clear Strategic Business Plan goals

Sustainable change = Search for initiatives and there are 15 as follows:

  1. Confront reality – The reality of the business is clearly shown in results against KPI’s
  2. Focus on Strategic Outcomes – Too often we focus on $ out the door and ignore the consequences
  3. Demand a strong mandate – In all SBP’s there must be a strong mandate from the top – The business is not a circus
  4. Set the scope intelligently – Use hindsight and history – Don’t repeat past mistakes
  5. Building a powerful case for change – Don’t wait until it’s too late to change
  6. Let the market drive change – Know the market demands – Listen to the customer
  7. Know your stakeholders – Your stakeholders is just not an empty room of people
  8. Communicate continuously – This is the cornerstone of all successful companies
  9. Reshape your measures – Measure the most critical elements which control your business
  10. Use the levers of change – It’s all about bench-marking, people, and capabilities
  11. Think big and think new – Think outside the box – Don’t re-invent the wheel
  12. Leverage diversity – Use all of the diverse skills from within and outside of the company
  13. Build skills and empowerment – Develop employees at all levels and offer them a future
  14. Make a ‘Strategic Business Plan’ – This is one of the most important securities for your business
  15. Integrate your initiatives – These are the initiatives from the SBP

There are 11 reasons why your ‘Strategic Business Plan’ will fail:

  1. Failure to deliver early, tangible results – Positive results relate to employee motivation
  2. Talking about breakthroughs while drowning in detail – Rhetoric without results are a deterrent
  3. Everything is a high priority – Prioritise everything and ensure that outcomes are communicated
  4. Old or no performance measures block change – People respond to KPI’s
  5. Failing to connect the dots – Ensure all processes and systems are ‘closed looped’
  6. The voice of the customer is absent – This is crucial to repeat business
  7. The voice of the employee is not heard – Employees must know what is expected of them and provide with the tools to perform to the highest of standards
  8. Senior management wants to help but doesn’t know how – It’s all part of leading by example – If you don’t know how get someone to facilitate the situation professionally
  9. Whats in it for me is not clear – The benefits for all key stakeholders must be know, understood and accepted
  10. Too much conventional wisdom – What was conventional and worked yesterday may not be effective and spell trouble today
  11. Same old horse, same old glue – Change doesn’t happen easily but change is a must not an option

CHANGE IS NOT OPTIONAL – IT IS MANDATORY

  • Managing change
  • Creating Vision
  • Developing support
  • Managing the transition
  • Sustaining momentum

Please feel free to contact me if you need assistance in any of this planning.