Posted on January 22, 2012
European leaders have warned of a difficult year ahead, as many economists predict recession in 2012... so the BBC reports. They go on to say that growth in Europe has stalled as the debt crisis has forced governments to slash spending. The leaders' New Year messages came as leading economists polled by the BBC said they expected a return to recession in Europe in the first half of 2012.
However, it doesn't have to be all doom and gloom.
Whilst the inevitable chaos caused by recession has a tendency to push organisations into retreat this is not always the case. Did you know that iconic companies like:
Disney, CNN, MTV, Hyatt, Burger King, FedEx, Microsoft, Apple, Gillette, AT&T, Texas Instruments, 20th Century Fox, IBM, Merck, Hersheys, IHOP, Eli Lilly, Coors, Bristol-Meyers, Sun, Amgen, The Jim Henderson Company, LexiNexis, Autodesk, Adobe, Symantec, Electronic Arts, Fortune, GE, and Hewlett-Packard
were all founded during periods of economic recession.
One definition of chaos suggests that it is the uncertainty sparked by uncharted territory, economic recession, and bubbles of opportunity. We seem to phase in and out of this chaotic state... a state of randomness and disorder. The ebb and flow happens in an almost natural way, almost mimicking what occurs in the natural world. This system of natural governance that blends the characteristics of chaos and order is known as the chaordic state.
The good news is that we can use the significant power of these chaordic forces to help with generating revenue and growth, so important for our future economic survival.
One such way could be to embark upon a business transformation programme, another might be to merge with or acquire another company. All of these require change... something that we have to accept is a permanent feature of the world in which we all live.
So what is business transformation - well, it's all about aligning people, process and technology to achieve some previously agreed significant change. These three areas also feature as being important when considering an integrated approach to the associated areas of governance, risk and compliance within an organisation.
Our Business Transformation Consultant comments on the importance of making sure your desired significant change is relevant and appropriate ie is your business strategy "fit-for-purpose" and correctly aligned with what is going on in at the operational level? It could be that in order to achieve your strategic objectives you need to merge with and/or acquire another company... or it could be that organic growth is what is needed.
The conclusions from a recent Economist Intelligence Unit report on business transformation highlighted that the ability to manage change effectively is a great competitive advantage. It goes on to make the point that external crises such as what we are experiencing at present help to drive change in organisation and provide a "burning platform" for change, but emphasises the importance of the people-related challenges.
Several years ago, an earlier white paper from our own consultancy promoted the benefits of using a ten-step approach for generating prosperity from the deteriorating economic conditions at that time. It is encouraging to see that recently, the Kepner-Tregoe consultancy has been recommending a similar approach in their paper about coping with uncertainty in the business environment. The key message from both approaches is the importance of developing a clear business strategy and then maintaining strategic directions and integrity when times get tough.
Posted on December 10, 2011
Although building a business relationship depends on an equal exchange of value, there are three key steps that you can take to help you do it.
1. The first one is to give away your best value. Granted, this can be difficult to do if your product happens to be a high-ticket item, such as a car. But, customers know when they're being given something that is truly of value and when they're not.
Let me give you an example. Some years ago, I received one chopstick in the mail. I don't know who the marketer was who thought that one up, but it was a complete waste of money on their part. The idea was that I could get the other one by contacting them or having a meeting.
The folly of such a gimmick can be seen in a couple of ways. First, relatively few people use chopsticks. That means that the chances of two of them, never mind only one, would be a little value to most of those who received it. The second thing about it was the fact that such implements are know to be quite cheap in any case. That meant that there was no perceived or actual value in it.
2. The second way to build a business relationship is to endear your customers to you. Here's a personal example to help you understand how to do this.
We have two cars. One we bought new, and the other was eight years old when we got it. We've had it for six years. It has a lot of miles on it, but it's perfect for running around town and for other short trips. While most people would have sold it long ago, we just keep replacing various bits on it as needed. It costs us less to fix it, than to buy another one.
We have it serviced by a family-run garage. Almost every time the car is returned to us, it has been washed. One time, some used floor mats that were in good condition were put in free of charge. Another time, the owners gave us a bottle of wine, just because we paid them promptly. Read more...
Posted on December 6, 2011
BEST BUSINESS LOCATIONS
The best business location for a company will vary enormously depending on the nature of the company and its business. Each individual business will have its own set of priorities and these should shape the final investment decision. To make the best location decision requires a real understanding of which location factors are most important to the company. To apply that properly the company then has to have access to a huge amount of information and intelligence about individual locations.
The range of factors include - Infrastructure; access to road/motorway networks, railway, ports and most importantly for many foreign investors, international airports. Labour skills and availability is normally a crucial factor - there is no point in locating in an area where costs are low and incentives are high if its difficult to recruit the skills needed in the business.
Even when the choice of country has been made there is a huge variety of potential locations available. Without in depth knowledge of what candidate areas and cities can offer it would be easy to come to a less than ideal solution. Once an investment decision is made it is extremely difficult and costly to change. Making the right decision in the first place will maximise productivity and profitability. In looking for the best business location a company is well advised to really understand and investigate all the potential solutions available. Read more...