As the economy becomes increasingly volatile, how can managing directors, CEOs and owner-managers prosper in uncertain times? Tony Price, acting CEO of Vistage International, gives his top tips.
1. The younger and newer entrepreneurs may be exposed to an unstable climate for the first time. It’s tempting to press the panic button – but if there ever was an economy that punishes hysteria and sloppy thinking, this is it. Don’t act without first taking time to think. If you keep calm, you can think on your feet and respond appropriately when challenges arise.
2. Don’t stop listening to your customers. In times like these, many MDs and CEOs become insular, ignoring customers and turning their focus to internal operational challenges. As a result, they disconnect themselves from the best source of current revenue and future success. Take the time to demonstrate your company’s value and stability at every opportunity – after all, your customers will be braving this difficult climate too.
3. In a volatile business environment, the market can shrink and become elusive – not to mention fiercely competitive. To outsmart other companies in your sector, you must learn what it is that customers value about doing business with you and your rivals. Armed with this information, you can developing a competitive advantage that will build upon your strengths and provide added value for your customer base.
4. In uncertain times a committed, trustworthy team is priceless. Do everything you can to get the right people in the right place, right now. Having the wrong people “on the bus” could sink your business.
5. Tough times call for tough action – so jettison underperformers. Monitor the activity, quality and results of your staff and make sure your talent is best utilised to help you face the challenges ahead.
6. Evaluate every part of your business. The rule is simple: if it doesn’t yield a profit, get rid of it or scale it down. Remove your company from areas that aren’t going to grow.
7. Indiscriminate cost cutting will weaken your business and place it in grave danger. Don’t axe your most valuable team members or slash prices for new customers, while failing to invest in your relationships with longstanding clients. Identify what your customers value - this is the key building block of your competitive strategy.
8. If you batten down the hatches in time, you are well-equipped to sit out the challenges ahead. Advance preparation is key. At Vistage International, for example, we operate a local, confidential peer group system of non-competing business leaders so that bosses can develop their skills and company strategies on an ongoing monthly basis, building and putting into place robust support structures. With a strong core business and a flexible business plan you are primed to succeed in any climate.
9. If chaotic times cause organisational panic attacks within your team, progress could be stopped in its tracks. Keep your people on your side. Ask them: “What can I do to help you succeed?” This cuts through the outside “noise”, inspires hope and reduces anxiety. Listen carefully to their answers, be scrupulously honest about what you can and cannot deliver on, and act on your words. Demonstrate your dedication to your team and encourage them to aim for higher levels of achievement. Mutual commitment will result in mutual success.
10. Keep innovating! However successful your product or service is, always look for ways to improve it along with new market opportunities. Standing still today might see you left behind tomorrow.
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Tony Price, acting CEO of Vistage International (UK) Ltd, the world’s leading chief executives’ membership organisation. For more information on Vistage, contact David Alexander on 01962 841 188 or visit www.vistage.co.uk.
