Desenvolvendo uma nova Estratégia de Negócios em momentos de crise (english)

Thinking in develop a new business strategy during a crisis is not that easy… instinctively we are focused in reactions and tactic movements only, forgetting the proactive and strategic actions.

So, let’s see the most common mistakes that some executives do when starts to think in a new business strategic aiming win the crisis:
# Enumerate Success Achieved by the Company during the last year or years;
# Concentrate the Focus in financial results;
# Elaborate detailed breakdown of the financial numbers;
# Excessive focus on spreadsheets, numbers, explanations and situation reports. It’s hard to say but will not change any status about the crisis.
# Search for responsible – a kind of a “witch hunting”.

An efficient business strategy must permeate every mind in the Organization with an attitude, with an atmosphere that allows people (actually encourages people) to see the things as they are, to deal with the way it is, not the way they wished it would be.

Establishing throughout the Organization the concepts of reality and teamwork is a prerequisite to execute the central idea. Without this, all the efforts will not succeed… It’s not a question of training. It’s a question of a management posture and determination.

Any Business Strategy must consider:

# “Consistent Earnings Growth” plus “Bringing in Cash” culture;
# Leverage of Company’s competitiveness;
# The existing “Business Intelligence” as a part of a Business Development Department;
# If it’s a business strategy without a long-range competitive solution, it’s just a matter of time before it’s over;
# Every management action must be aligned with the vision.
# The General Manager must have the feeling that is on absolute control of the Organization’s destiny;
# As the managers are the strong arm to develop the new Business Strategy, they must be the best. If it’s not the case the Organization must think in some movements like a checkers – sometimes you must “give away” or “change” some pieces in order to win the whole game;
# That accounting doesn’t generate cash, managing business does;
# That the majority of business efficiency problems is not in costs, but in revenues. Its easy blame costs for the inefficiency of the business.

Basic assumptions:

The Corporation and the Community – When a Company is strong, it not only pay taxes that provide for important services. It also builds world-class facilities that meet or exceed safety and environmental standards. Weak and struggling companies are tempted to take shortcuts to save a buck;

Setting a Tone – The Organization takes it cue from the person on top. When traveling to the company locations the CEO must allow him to touch hundreds, if not thousands, of people;

People First, Strategy Second – Getting the right people in the right jobs is a lot more important than developing a strategy. Without right leaders developing and owing the strategies, we’d get good-looking presentations and so-so results;

Passion – If the Company is selecting leaders without passion in his/her words and actions, the strategies will not be effective. Great Organizations can ignite passion;

Stretch – The whole team must knows that they’re going to be measured against the prior year;

Appraisals all the Time – Appraisals for all employees should be like breathing for the Organizations. Everyone must to know were they stood.

Culture Counts – Setting the culture to the new models straight on day one minimizes the resistance of some. The resisters have to go quickly;

Strategy – Five simple questions bring us strategic thinking to life:
1) What is the detailed position of your business about Market Shares and Strengths if compared with the competitors?
2) What actions have your competitors taken in the past two years that have changed the competitive landscape?
3) What have you done in the last two years to alter this landscape?
4) What have you most afraid your competitors might do in the next two years to change the landscape?
5) What are you going to do in the next two years to leapfrog any of their moves?

Competitors – Two dangerous myths:
1) We’re loosing market because our competitors are crazy and they’re selling their services for free;
2) They will be sleeping while we are developing our new business strategy.

The Field – The headquarters is not the place to be. Headquarters doesn’t making anything or sell anything. Banging around the field is the CEO’s, Directors and Managers best shot.

Employees Surveys – Making employees surveys will be a big breakthrough for your management.

The Advertising Manager – Manage image and Company reputation is one of the more important and obvious jobs of a CEO. A CEO might take it to an extreme. To help a CEO on this job is necessary to build a Business Development/ Marketing area in the Company.

Speed – A CEO must ask to himself two questions:
# How many times should I have held off on a decision?
# How many times do I wish I’d made that move faster?


Source: Jack Welch – Straight from the gut - 2003.