Four Key Decisions – People, Strategy, Execution, Cash
by Craig Janusz – Strategic Solutions Enterprise
As 2016 comes to an end many companies have experienced growth and improved profitability this year. I hope you have had success this year and are preparing for 2017.Our economy has slowly recovered from the set back early this century, despite the gridlock of our government. I hope the new administration will recognize the importance of businesses being the catalyst for a growing economy and avoid policies that undermine their success.
In turn, business leaders must continue to find ways to grow their businesses in 2017, despite the turbulent times, so here are some thoughts to help you.
Decisions and Success
Businesses must focus on four key decisions in growing their business and must get these decisions right or leave significant revenue, profits and resources on the table. These four decisions are in People, Strategy, Execution and Cash. Every business faces continue challenges in all four areas, at any one time, yet businesses must prioritize which areas overshadow the rest going into 2017. Therefore the business leaders first decision is to choose which one of the four areas they need to focus on as they enter 2017
If you are not enjoying running your company or having drama that cause execution issues, you know you have People challenges. You might have a partner issue, a customer relationship that dominates your resources, trouble with key employees or teams that are dysfunctional that disrupt the business effectiveness, you might have trouble finding employees to serve your customers.
Prioritizing and solving these relationship issues should be your top priority for 2017, or they will continue to consume a tremendous amount of your time, energy and make it difficult to focus on the other three main decisions. Focus on getting the right people to do the right things with clear accountability and metrics and you will be on your way to freeing up your energy to grow and enjoy your business in 2017.
Slow, erratic, unpredictable top line revenue growth is an indicator that your business faces a strategy challenge. Your strategy needs to be articulated so that everyone is aligned on the same page, without wasting sales and operational energy chasing activities that are not useful to the business.
Jim Collins author of Good to Great refers to this concept of articulating your company’s strategy that defines what you are the best at in the world, what drives your economic engine and what you are deeply passionate about. It’s your unique selling proposition (USP) that differentiates you from your competitors. You know you nailed it when revenue grows as rapid as you predictable wants.
Execution challenges occur when your profits do not grow exponentially as your revenue grows. Too often businesses grow without developing the effective habits and discipline needed to develop organization structure, communication, processes to convert increment revenue growth into experiment profits growth.
Indication of poor execution cause businesses to waste employee’s resources in delivering products or services that are not inclemently improving profits. Organizations begin to rely on the heroics of their people to keep the business going, organization drama occurs and profit margins begin to erode.
By steeping back from the business and focusing on the business execution challenges based upon solid execution discipline and habits, you can dramatically improve gross margins, profits, eliminate organization drama and improve employee morale.
The last challenges every company will face is finding enough cash to grow their business. It is simple fact that growth “sucks cash “. What separate successful business is they understanding of cash flow and the importance of managing this resource. Cash is the oxygen that drives your business engine. With it, you can continue to scale up your business, without you will stall and die.
We strongly recommend at a minimum all businesses do a rolling 12-month cash flow projections to anticipate future cash requirements, know you cash conversion cycle and be actively working on ways to improve cash flow.
Now it’s your time to decide. Which of the four key decisions will be your primary focus? Companies that have the right focus moving forward will continue to grow and prosper.
If you would like a free organization assessment based upon these four key decisions that will assist in planning you future: Click Here