Managers: Transform your business for a better growth
Organizations and managers that shrink faster and deeper are not the ones that get more powerful after the stagnation. Surveying strategic priorities and chains and bringing the people with you in a modern way and searching for diversities in values are the necessities for becoming more powerful. Chief executive officers were struggling to decrease additional cost issues even before the Coronavirus pandemic. And now the situation has become worse for them due to the global quarantine. Some managers that had experiences in previous crash downs and crises knew what to do and they started protecting and holding their cash as soon as possible. Now we have to ponder what should managers do for the situation in the future that nobody knows anything about it and even it may change for good. Many enterprises try to manipulate their expenditures to help retain and rebuild the infrastructures by creating more flexibility and proficiency in the establishments.
Although reducing additional expenditures is indispensable, it won’t be sufficient and even if the managers make mistakes while trying to reduce them, the problems and risks will become more and more. Also, managers must review their priorities and valences and make fundamental changes in their management and detect new resources for obtaining money and revenue. It is possible by reducing expenditures somehow that no damage is towards the organization and commerce and it leads to more development and benefits. This crisis has changed many things comparing to the past. Managers must create new models for their businesses. The expenditures and capabilities have all changed. Even though many things can be learned from the previous lessons but they are not adequate and they should be revised for post-pandemic.
Here are some recommendations to do for reducing additional expenses that would help the advancements and growth:
Strategic preferences must be reviewed by managers
The first level is to have responses for some questions such as:
In what way has your market been verified? What your clients, competitors, and provisioners are doing?
What value cases sound hopeful for managers in a post-pandemic world?
Is it possible for the leader to name some of the stuff that needs to be done in a better procedure to confront those value cases? And what will your rivals do?
Are your outlays sufficient for those modern kinds of stuff that need to be done? Where should the expenditure reduction happen to make changes in the organization?
By reviewing the questions above, managers must obtain a frame of what they are going to do and evaluate the pros and cons and the capabilities and distinguishes of their corporations.
Always consider that whatever distinguished your enterprise from others, may no longer work during and after the pandemic crisis. Consider how your rivals may react in these districts:
Changes that will happen to the priorities of the clients: Due to the pandemic, digital usage has augmented among people therefore face-to-face expectancies will be altered.
Unstable and obscure business circumstance: To resist against powerful exterior forces and getting recovered quickly after the defeats, managers seek new ways for investments. They are creating new dynamic strategies that can contribute to their flexibility. Several hypotheses and strategies are being exanimated by managers but time and cycle loss must not happen at all.
The essence of the work must be changed. taskmasters are shifting from a constant and predictable workforce sample to more pliable, figurative, and diverse samples that assist independence, pliability, and more suitability.
Credibility reduction in trading: it is obvious that even before the Coronavirus pandemic the reliance on the governments and taskmasters was decreased among ordinary people. On the other hand, many people may hear something from healthcare centers and medics about the incompetency of governments and vaccination misuse so this trust between administrations and the public is decreasing day by day. Therefore, individual companies can invest in health protection and safety and aid the datum privacy and even assist the vaccination procedure.
The companies must not insist on the old-fashioned rules. They should renovate both their attitudes and infrastructures because the old ones aren’t efficient. Their preferences must be those things that protect new capability differentiation.
Seek the differences in the value continuum to readjust your expense structure
The company’s prospects often are not perfect in times of remarkable pressure. Hence, mostly some regular actions must take place as always. For instance: expenditure reduction from a project or budget reduction for different sectors, decreasing the seller costs, or closing projects that are under construction. Now the question is where, how far, and how fast should the managers take action for these issues? Managers must devote these intentions to those firms that can investigate through the value continuum. They can be a great help because some issues need to be solved as soon as possible while trying to figure out the long-term problems. Here is what we should do:
- Switch marketing to channels obtaining demand.
- Make a balance between services and products. For instance, speed up the alteration and aid replacement strategies.
- Eliminate obsolete intricacy patterns and create modern and advanced ones.
- Remove opinions and productions that aren’t suitable anymore for now and the future. Try to establish new occasions for your company’s competency.
- Speed up the coalition between traditional attitudes with the recent commerce patterns.
Managers: Involve the public with your modern operation model.
Alteration in business patterns may make people think about their positions and many of them want to be a part of these changes. In this pandemic, we all saw that people tried to stay connected with each other but without the casual bureaucracy. They simply made their decisions and accomplished their obligations. Sections that normally grow due to friction assembled with a substandard intention and they were aiding clients and make the occupations running like always. Because of the situation, many patterns changed in just a few days. For example, many banks started digitalization (such as, digital endorsement) on a vast scale which was considered an impossible thing to do for many firms before the pandemic. We could say that the policy alteration is a must during the crisis. Managers must do something if this situation goes on for a while. Some of the actions that you can take as a leader are:
Let your team be independent in solving issues.
Assist each other within the natural hierarchal and functional frontier.
Indicate your unanimity, interest, and acknowledgment towards learning.
Be responsible for all decisions and increase the deficiency endurance.
Our inquiry shows that people are optimistic about the future and are willing to cooperate not only with each other but also with different companies to make life easier and happier but again it is remarkable to declare that as far as we can see, there is no return to the past. Our expectancies must be adjusted because the future is obscure. Leaders must assist people to adapt themselves to the new conditions in a fast way and the end, make people collaborate with leaders and companies in resolving different problems so their trust in the changes in the future will be increased.
Article by Amir Masoud Navidi
Adapted from: Strategy&