Lou's Commentary
Seven Game-Changing Steps to Position for Recovery
Wednesday, November 4th, 2009
Most economists say the worst of the recession is behind us, but they stress that recovery is going to be slow and extremely difficult. The GDP grew 3.5% this past quarter and consumers are spending money again. But the recession has changed the attitudes of these consumers, who are now demanding more and better content for their money.
Although many companies won’t survive the journey over the mountain, it is noted that the recession has created a level playing field for many organizations. Ultimately this is an opportune time for a company that wants to gain ground and compete at a level they never imagined pre-recession. Over the next three months I will examine seven key steps to help position your company for recovery and expand your market share. The following is a brief summary of each step.
Assess Performance
Before you cut more costs, look at your pre-existing business strategy and assess your current position. Focus on where you are now and be prepared to build a plan on your foundation. Pay special attention to core activities and how you can improve on them. Do you have a defined vision for the future? And how do you communicate a value proposition to your customers?
Innovate
Don’t waste the crisis. Involve everyone on your team; in a recession, everyone is a marketer. Can you accept new ways of thinking and abandon crutches of previous years? What is something you have always wanted to try? Companies that innovate are going to have an advantage as they move out of the recession period.
Protect Profits
Protect your profits by improving competitive tracking, price testing, and trying to maximize revenue. And it is a priority to identify and nurture the customer segments that can lead you through recovery.
Revenue Diversification
Construct a detailed picture of your new and loyal customer. Make sure you focus on how new customers find you product and look at what they are buying. If you have the pulse of your customer, this can lead you to create new products and services. Diversified revenue spreads your risk.
Partnering
To reduce costs and expand opportunities, look to partner for business development, shared learning, and marketing needs. When looking for a partner, evaluate complementary competencies, how they can help minimize costs, and create other business opportunities.
Staff Hiring and Retraining
Many businesses today require a smaller, more flexible work force with diverse skills. Smart staffing decisions will save your business and help it grow during the recovery. Make sure you keep long-term staff and positive people on-board to boost morale. Also offer training and career growth opportunities to your entire staff.
Accountability with Customers
See your business as your customers do…the solution to a problem or problems. Take their pulse and measure your success.
In closing, businesses that embrace these practices can develop new revenue, effectively manage resources, develop a stronger team, and position themselves for strong growth moving forward. Each of the seven steps will be examined in greater detail in our bi-weekly blog/newsletter.
If you would like more information about this topic, contact us at http://www.sabatierconsulting.com for more information.
tags: accountability activities creative economic recovery future hiring innovate partnering planning position for recovery profits readers revenue strategy