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| Looking for the Sugar in 2009 |
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When Life Hands You Lemons – Look For the Sugar: 2009 and Beyond Our favorite time of year is upon us. Sleigh Bells are ringing, bright lights are being strung, and the headlines are informing us: Congratulations, we are in a recession. It’s a recession! Finally! A real recession! It’s official! We are in a recession! And here is the new one: U.S. has been in recession for a year, economists say. Weren’t you feeling much better when you didn’t know you were in a recession? Has everybody gone mad? Let’s stop this vicious cycle and start thinking clearly and strategically. As a first step, how about changing your mindset and looking at what you can do to change and improve your company’s outlook? We were all handed lemons, no doubt, but are you even looking for the sugar? This article will center around 3 areas:
Don’t set yourself up for failure. Companies are preparing their strategic and marketing plans for 2009. What is your mindset when thinking and planning? Are you in a mindset of ‘nothing is going to help’? ‘It is out of my control”? A negative mindset affects your business decisions. Let’s look at opportunities, and no matter what business you are in, you can find a way to reshape your thinking, take a fresh look and move forward. And by the way, international markets may be your best bet. Follow my logic here, since at the end you will have new ideas as to where you can take your business next. There are certain growth industries you may want to look at, and certain regions in the world you may want to look into. Let me name just a few industries that will stay strong in 2009 and beyond: Pharma, Food, Eco-friendly/Green. Let me mention a few regions/countries in the world where there is projected to be growth: Eastern Europe, BRIC countries (Brazil, Russia, India and China), the Middle East. Look at your product(s)/Service(s) and ask yourself the following very basic questions to help you discover new opportunities and see the light:
 Look at the Ansoff Matrix and try to answer these questions. Any new ideas spring to mind? Any new actionable direction you may be able to pursue? Of course implementation requires more research and planning, however, for the ones that feel there is no market for their product(s)/Service(s), this quick assessment may be able to open your minds. Doesn’t it feel better to focus on your strength, on actions you can take, as opposed to what is out of your control? Let’s explore a few ideas as to how you can take advantage of where you are today, and get to where you would like to be, tomorrow. I would like to direct the spotlight on how you can make money, and not focus on saving money. How you can achieve top line growth instead of centering your efforts only on bottom line cuts. I had a conversation last month with a company in the service industry, regarding their plans for 2009 and beyond. I was astounded to keep hearing them repeat the same chant: we are cutting our budget by $500,000M. I am usually a fast thinker however, this got me. I couldn’t understand what does this have to do with strategy, business development, customer retention, sustaining their business, etc. After a while it hit me: they are focused on saving money only. It is almost like a secret cult or some type of denial or paralysis. They have no plans in place or ideas as to how to thrive, or how to initiate the change process. They are going to make no attempt to think about growth, and integrate this negative mindset into their planning for 2009. Don’t fall into the same pattern. If you need to cut on expenses that may not be necessary, go ahead. It may be wise. However, increase your budget for business development. I am not talking about sales. The world is changing, and unless you develop a relationship with your customers, sales will continue to drop. I am emphasizing the necessity to build relationships; talking to your customers, current and potential ones; taking the time to learn who and where they are; what their needs are, and when you can respond to their needs, and may exceed expectations, you will gain their loyalty and business. I want you to look at the world and the opportunities it presents in an actionable way; try to remove the fog and uncertainty, and see the light for 2009 and beyond. Change can be good. Reshaping your company can present amazing opportunities. Look into the future, don’t focus only on today. Many other cultures around the world have a long-term outlook. They know the difference between real change and a quick fix that doesn’t last long. Collaboration with internal groups and external partners, as well as within vertical niches can help you grow your business. One option in this economic weakness and ambiguity is to wait for a recovery. But a better one, for most companies, is to try to think through what to do during the down. Executives face numerous challenges in successfully managing operations, whether globally or locally. This is a good time to collaborate by deploying a common platform to manage maintenance, production, quality, inventory, and other aspects of your business. For example, "We are heavily exposed to client pressure to contain costs and improve logistics excellence," explains Pascal Ober, Director of Competency Centers at Saint-Gobain Sekurit, "Our customers asked that we reduce prices by 6% while simultaneously delivering 10% improvements in productivity. To address these pressures, we have implemented a platform with both a Manufacturing Execution System and a Warehouse Management System, providing real-time visibility and control for global Manufacturing Operations Management."The truth is, many companies could do better by treating downturns as times to —including additional globalization—rather than buying into the hopeless mentality. Be aware that certain parts of the world have escaped the effects of the credit problems in some advanced economies, which provide opportunities. Also, look at this downturn as an opportunity involving buying into markets at the bottom top of cycles. Many companies look at M&A activities as a timely strategy for growth and expansion. The truth is, many companies could do better by treating downturns as times to —including additional globalization—rather than buying into the hopeless mentality. Be aware that certain parts of the world have escaped the effects of the credit problems in some advanced economies, which provide opportunities. Also, look at this downturn as an opportunity involving buying into markets at the bottom top of cycles. Many companies look at M&A activities as a timely strategy for growth and expansion. If you would like an assessment of opportunities your company may want to explore, don't be shy, give us a call. |