Thinking Strategically During Times of Business Uncertainty

The question we all face: What do I do during this time of Business uncertainty?

The news channels tell us that the “Great Recession” is over; others tell we are heading for a double digital recession. Who do you believe? Are you waiting for someone to tell you what to believe? Don’t wait. Now is the time to think strategically.

Here is how you overcome the uncertainty:

1. Know what you are trying to accomplish.

· You need to have a clearly and precisely written objective

· You should focus on ONE overarching objective, i.e. “Acquiring 10 new customers by year end.”

REMOVE the UNCERTAINTY by staying focused on your ONE Business Objective

2. Know the differences between your firm and the competition and make sure you are telling the right people.

·   You need to state your Strategy as simply as possible, don’t get fancy

· You need to state the VALUE you offer to your customers

· You need to tell them and re-tell them the value they received…don’t sell. i.e. use social media, voice message, newsletters, PR, advertising all with the same VALUE message

REMOVE the UNCERTAINTY by knowing what you are doing to achieve your objective

3. Be specific in the action steps you will take to implement your strategy.

·   You should pull your team together and obtain alignment to effort

·   You should make sure all team members understand and commit to implement the strategy to achieve the overarching objective

· You should create a 30 day work plan of action steps, i.e. meet with your team on a very regular basis, maybe daily, weekly, semi-monthly or monthly. As least monthly refresh your 30 day work plan.

REMOVE the UNCERTAINTY by driving daily closer to achieve your overarching objective

Don’t just talk about it…do it! Let me know your results.

Now is the time to take a breath.

I have time to think about our future. Try to anticipate what is going to be normal in the future and build a strategy around that expected normalcy to come – no matter what business you are in – no matter what type of product or service that you provide – no matter who your customers are, you need to anticipate the future – no need to understand the future as it relates to your markets, your customers, your customer’s customers. You need to anticipate the future.

Our world is changing and has changed – we don’t know exactly where it is going, but we need to make some moves to anticipate the expectations. We need to develop potential scenarios that are possible. Consider the ramifications or impact it has on your business outcomes going forward.

Let me tell you about two friends of mine. Both in the same type of business, both playing in the same type of market, both looking at the future (their past). Let me tell you about my buddy Frank and my other buddy, Bill. Both are conservative guys. They looked at the marketplace and each saw a different view.

Frank saw the world as moving so fast he wanted it to stop so he could take a breath. Bill on the other hand, saw the world with excitement and wanted to learn more. Frank would begin to shrink – customers became harder to get, competitors were beating him, employees moved to other companies. Bill started to grow rapidly. He saw so many opportunities that customers wanted to be part of Bill’s plans. Competitors feared Bill’s company. Bill had many people seeking employment.

Frank was satisfied, yet his business was declining.

Bill was satisfied, yet his business was booming.

Many business owners and managers will see the exact circumstances – and they see it in different ways. Are you Frank or Bill?

The moral of the story is … you fill in the blanks!!

Warmest regards,

Bob

All of us would like to find out why strategic plans don’t get implemented.  What do you think?  If you could jot down the answers to the following three questions and email them back.  I will compile the responses from everyone and send you the results.

1. Know your Strategy Statement:  How does your organization differentiate itself from the competition?
2. What are the top 2 or 3 initiatives that will implement the strategy?
3. How will you know if your organization’s performance is on track?

I travel the Illinois tollway system almost every day…words of warning from big brother.

Illinois will begin using photo radar in freeway work zones in July.  One mile per hour over the speed limit and the machine will get you a nice $375.00 ticket in the mail.  Beginning July 1st, the State of Illinois will begin using the speed cameras in areas designated as “Work Zones” on major freeways.  Anyone caught by these devices will be mailed a $375.00 ticket for the FIRST offense. The SECOND offense will cost $1000.00 and comes with a 90-Day suspension.  Drivers will also receive demerit points against their license, which allow insurance companies to raise Insurance rates.

One mile per hour over the speed limit and the machine will get you a nice $375.00 ticket in the mail.

This is the harshest penalty structure ever set for a governmental unit involving PHOTO speed enforcement.  The State already has two camera vans on line issuing tickets 24/7 in work zones with speed limits lowered to 45 MPH.  Photos of both the Driver’s face and License plate are taken. Pass this on to everyone you know who might be affected!!!

For more info: http://www.dot.state.il.us/press/r033005.html

Warmest Regards,

Bob

When Dee Hock, a small-time banker from Washington, took over Visa in the late 1970s, it suffered under restrictive management-which Hock hated. His vision for the company emphasized decentralization, not consolidation; freedom, not restriction. Ownership of individual Visa franchises now lies largely in the hands of individuals, and these individuals are constantly encouraged toward creative decisions-even (especially) decisions that pose competition for their fellow owners. Hock calls his system “chaordic”-a synthesis of chaos and order-and it seems to work: since 1970 Visa has grown by approximately 10,000% and still grows at an average of 20% per year, serving half a billion clients. The level of cooperation among the company’s elements lends Visa just enough conformity to remain unified; this is the “order” in “chaordic.” The chaos lies in Visa’s creative, no-boundaries decentralization.

Biologists call this fine line between structure and mayhem “the edge of chaos.” On this edge species experience their greatest fitness, fastest evolution, and most fluid adaptability. At the edge of chaos, interactions among individuals are high-energy. Necessity actually does breed invention. New ideas are both steadied by order and driven by pandemonium. The creative solutions found at this line are the emergent properties so crucial to the survival of any species; they’re jackpots of new information and industry-leading ideas.

Most companies’ business strategies never take the plunge into chaos. Their corporate strategies cause them to lie safely in their market niches, content with miniscule annual growth and an age-old customer base. Their employees use time-tested business strategies and refrain from launching anything new. But these rigid companies crack and shatter under the weight of an economic climate that changes massively at whim. Your market readily adapts to a constant influx and outflow of companies and innovations; in order to outperform the market, you must match or exceed its flexibility. Before rigor mortis sets in, limber up and dive toward the edge of chaos.