What’s your business strategy?

by Julian Briggs on 10/04/2020 0 comments
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Business Strategy | Pyramid Resource Solutions

Chances are this year isn’t going according to your business plan. Some predict a downturn, others believe there’ll be a boom. Either way, there’ll be opportunities. So, whats your business strategy…

Chances are this year isn’t going according to your business plan. Some predict a downturn, others believe there’ll be a boom. Either way, there’ll be opportunities. So, whats your business strategy…

The most successful business leaders have a written strategic plan. They also continuously review it. First of all, to monitor progress is on track with the plan. But also, to adapt their business strategy inline with unforeseen market changes, and todays increasingly dynamic business environment.

Business strategies include, or at least should include, planning for potential threats, and how to manage the effects of them. Again, the most successful business leaders spend considerable time trying to anticipate threats, and preparing for them. Therefore crisis management planning is an essential part of any business strategy. In short, being prepared for the threat, and having a plan to navigate it, is far less expensive than trying to fix the damage after the event.

In 2018, PwC conducted a survey of Chief Executives on crisis management. 73% of respondents said they expected to be hit by at least one crisis in the next three years. However, for all the time and effort spent on crisis prevention, companies are still caught out by unforeseen events.

In conclusion, I think its fair to say even the most in-depth business strategy didn’t have a crisis management plan for the Covid-19 pandemic. As a result it’s left most leaders asking themselves – will my business survive coronavirus?

What’s your business strategy?

Most crisis management planning relies on predicting possible threats. For example, planning for a recession. Predicting market trends, succession planning etc etc.

Even before the Covid-19 pandemic created fears of an economic downturn, a recession was well overdue. Whether the coronavirus outbreak causes one or not remains to be seen. Some fear the worst. Others are predicting a boom. In reality, regardless of the pandemic the economic cycle dictates both outcomes are guaranteed. Inevitable the economic cycle at some point has a negative downturn. However, the positive bounce back always returns. And most notably, historically the cycle favours positivity over negativity in terms of duration and growth.

So, it’s important to understand that recessions are just part of the economic cycle, which on average lasts approximately 4.7 years. The average length of a growing economy is 3.2 years. And the average recession lasts 1.5 years.  According to Forbes, in October 2018, a recession was overdue by four and a half years. Therefore whether recent events causes a recession or a boom, maintaining your business strategy to always be prepared for each scenario, puts you in a position of strength.

The term recession shouldn’t necessarily be viewed by business leaders as a negative. As already mentioned, a downturn is simply part of the business cycle. If your business strategy includes plans for one, and as a result is in good health, then a recession can actually become a positive for you.

It’s time to review your strategy & health check your business

We’re big advocates of encouraging regular business health checks. They ensure sound business health, provide companies with the ability to adapt to market changes and take advantage of opportunities. It’s also important to realise that today we live in an increasingly dynamic world. Business health, agility and efficiencies are essential to survive and thrive the disruptive business environment.

If you haven’t already, it’s time to review your strategy and health check your business.

The recent coronavirus bailout packages from the government are largely to prevent the economy crashing. It’s interesting to see the different approaches of businesses, ranging from those that have closed. Some misinterpreting the guidance and have effectively mothballed their business unnecessarily. To those that have embraced the situation. Adapting their strategy and are now supplying much needed products and services.

Those who have shut unnecessarily, or have convinced themselves there’s no business out there, are potentially missing out on unforeseen revenue their competitors are currently capitalising on.

Business Health Checks | Pyramid Resource Solutions
Business health checks keep your business fit & well, ready to adapt to changing market conditions & capitalise on opportunities. learn more

Which leadership style best describes you?

The chances are this year isn’t going as planned. The most important thing you should do right now is address the situation and adapt your business plan.

Decision making is a key leadership trait. However, whilst some batten down the hatches, procrastinate and hope for the best, the most succesfull business leaders take affirmative action. Adapting their business to the environment, they turn negatives into positives, and come through a crisis in a position of strength.

Which leadership style best describes you, and what’s your business strategy? Bury your head in the sand and hope for the best, or take affirmative action and get your business ready for the return to the new normal.

Some companies fear a recession. Some predict a boom. Of course we don’t know yet what will happen. Although on the other hand we do. It’s a fact that both predictions will inevitably be true, and are dictated by the natural economic cycle.

So to conclude, business leaders who embrace a continuous strategy of maintaining a fit and healthy business, will always be the ones that benefit at each stage of the cycle. And as a result, their businesses will always outperform their less savvy competitors.

If you haven’t already, now’s the time to review your business strategy. Conduct a full organisational review, and implement change initiatives that equip you for success.

Conclusion

In conclusion, companies that enter a recession in good business health will benefit from the demise of those that don’t. As the above suggests, and the past has proven, there are always business opportunities out there. They may differ from your original business plan. But that just demonstrates the importance of continuously reviewing your strategy, and adapting it, and your business, for unforeseen events that can provide threats and opportunities at any, and all, the time.

Last week we saw a number of positive signs. There is no denying the sudden and dramatic impact of Covid-19. However, our clients that engage our business consultancy and advisory services have already positioned themselves. But what we’re also seeing from other companies in the markets, whilst slower to react they seem to be getting over the initial shocks. In some cases rectifying their initial mistakes of shutting down, and returning to trading.

It’s important to realise that our clients, and I’m sure others who aren’t, have already got a head start on their competitors who misinterpreted the guidance or were slower to react.

We also saw an increase in demand for our talent attraction and acquisition services too. This included a mix of a more cautious approach for freelance and contract recruitment, but equally we arranged more interviews for permanent roles this week than we did for the whole of March.

Whilst this isn’t meant to be about us. It’s intended to demonstrate the increasing market activity, as business are now preparing for the future, and the inevitable opportunities coming.

We’ve been consulting with our client companies, helping them to access and ensure their  business health. They’re on the front foot, accelerating development plans, and snapping up the talent their competitors have let go and will likely regret in the near future.

If your leadership style is proactive, as opposed to one of procrastination, then if you haven’t already, now is the time to take affirmative action. If you want support in health checking your business, strategic planning or sourcing talent, talk to us, and get your business ready to adapt to market changes and take advantage of opportunities.

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