There is an old Chinese proverb that says, “The best time to plant a tree was 20 years ago. The second best time is now.”
As we face uncertainty due to COVID, business leaders need not wait for “normal” to return, they need to take action now. “Normal” is not returning! Remember this is not an economic crisis as much as a public health crisis. Until we fix the latter, the former cannot recover. Given our failure at dealing with the latter, I think that we are going to be living in this uncertain state for the next 12 to 18 months. Thus by the time we emerge, behaviors adopted during this time will have become the norm.
While many companies have received PPP loans or are feeling comfortable with current orders, as economist Tom Cunningham pointed out so pointedly on a call on Friday, most of the government support is in the form of bridge loans; the problem is we don’t know how long the bridge needs to be. If we are going to be in this limbo for 12 to 18 months, the loans are not long enough, and many will not survive. Bankruptcies have already wreaked havoc on the economy and are not slowing down. State and local governments, which account for 60% of government-generated GDP, are in a terrible state and will be shedding workers and cutting services as they struggle to survive. The ripple effects will continue. Be prepared.
As I and many have pointed out, COVID is an accelerant. We are now five to ten years ahead in our industries, so are you positioned for such a place? Darwinism is not survival of the fittest, but those ablest to adapt to the new environment. Start adapting. Expand your market and potential client-based. Review processes to see if they can be more efficient.
Not only should you review your business, but also your personal life. COVID is not the flu, it is horrible, and those that survive will in many cases, not have an easy time going forward. Thus, look at your relationships with your parents, spouse, significant other, children, close friends. Are they where you would want them in five to ten years, and if not, make them so. The window to do so may not be as open as you think.
Boeing’s 737 Max issues highlighted the company’s sacrifice of safety for financial performance, resulting in a tarnished reputation. The prioritization of profit over core values also damaged the FAA’s credibility and revealed a lack of accountability for top executives. This downfall serves as a reminder of the importance of maintaining core values and prioritizing them over short-term financial gains.
In reflecting on 2021 resolutions, the author scored themselves in three categories and sought to improve success in 2022 by addressing friction points. Drawing on advice from social psychologist Wendy Wood, the author identified areas to reduce or increase friction in their failed resolutions. By making these adjustments, the author aims to enhance their goal achievement and encourages others to consider friction when setting resolutions.
COVID has taken a toll on all of us. If you have not taken an extended vacation in a while where you disconnect, you need to now. You and your business will benefit.
In a previous discussion, I highlighted the importance of being famous for something. Being well-known in your niche can help you: Concentrate on your strengths Connect with your target audience Communicate your offerings more effectively Receive referrals Identify...
Understanding and optimizing the Cash Conversion Cycle is crucial for business growth, as it impacts cash flow and the ability to access external capital. This cycle consists of four components: Sales, Make/Production & Inventory, Delivery, and Billing and Payments. To improve the Cash Conversion Cycle, companies can eliminate mistakes, shorten cycle times, and revamp their business models.
As an entrepreneur, it’s crucial to specialize in a specific area and become famous for something, allowing you to generate referrals and build your brand. Understanding the “job” you’re hired for helps you stand out in the marketplace and communicate your value proposition effectively. By providing value to your clients, you can adopt a value-based pricing approach, ensuring your business remains competitive and maintains a strong market presence.
Rethink your pricing model by focusing on the value you provide and your customers’ Best Alternative To a Negotiated Agreement (BATNA). This approach can help you maximize margins while delivering better value to your clients. Assess your offerings and brainstorm with your team to identify pricing adjustment opportunities or eliminate commodity products or services.
I recently facilitated a workshop with several CEOs where we worked on the dramatic business growth model components. One of the questions that I had asked them beforehand was, "What is Your Profit/X?" The results showed that there this concept is not clear to many....
In today’s War for Talent, attracting the best employees requires a focus on value creation, core customer, brand promise, and value delivery. Clearly articulate your company’s mission, identify your “core employee” based on shared values, and offer more than just a salary to stand out as an employer. Utilize employee satisfaction metrics and showcase your company’s commitment to its workforce on your website to make a strong impression on potential candidates.
Productivity remained during WFH with COVID. However, further analysis found that hourly productivity fell and was compensated for by employees working more hours. What was the culprit – Meetings. Want to increase productivity, have fewer meetings.