Business Strategy in Tough Economic Times

Doom and gloom seems to be everywhere inthe marketplace.
construction and real estate these days. TheProject Management. Review the jobs your company
subprime scandal leading to record foreclosures looksdid over the past year including what went well,
like it will not be going away anytime soon. The creditwhat didn't go well, etc. Compare your performance
crunch originating from high defaults in the residentialwith your competitors and identify changes and
real estate market has not been kind to commercialopportunities where your company can outperform
construction and real estate either. Given thesethe competition.
challenges, it may be time for many companies toFinance and Accounting. Evaluate the procedures in
review their business strategy because what workedplace. Benchmark your collections and reporting
well in 2006 may not work for the final quarter ofsystems to make sure you're getting paid on time
2008 and all of 2009. Here are the areas that shouldand you have procedures that work. Also review
be reviewed:your systems to make sure that management
Human Capital. Defining recruiting needs is even moreknows what is coming in the door over the next six
important in down markets. Show me a companymonths and can trust the accuracy of these reports.
with more than 30 employees and I'll show you areasHaving accurate reports lets everyone know where
where deadwood exists. Most companies cannotthe company stands and what is needed to be
afford deadwood in down economies. They needsuccessful.
star performers capable of operating at maximumMarketing. One key item to look at in marketing is
efficiency to assure that the company will bethe ROI. Did the money invested in marketing
profitable even in down times.produce the results expected i.e. profitable jobs? If
This type of talent, however, is rarely available onnot, why not and what should changes be made? In
the open market. The best candidates are probablyaddition to ROI, take the time to evaluate the
working for your competitors and need to bestrength of your brand though a client perception
approached directly if you want any chance at hiringsurvey and see how you're viewed versus the other
them. If you're not doing as well as some of yourpeople fighting for jobs in your marketplace.
competitors, perhaps it's time to identify this type ofIT. Information technology expenses can get out of
talent currently working in the industry, convincecontrol quickly if management is not careful and is
them to work for your company, and level thealso instrumental in most business operations today.
playing field with your competition.It can also be a strategic advantage in some cases.
Top Management and Governance. Reviewing yourReview what you spend versus your competitors
corporate structure is essential in uncertain times toand the efficiencies you get. Then determine areas
make sure that the right leadership is in place. Onethat can be improved and develop a plan to make it
way to identify potential problems with the structurehappen.
is to do a cross section of confidential interviewsLooking at the key aspects of your business should
throughout the company to identify strengths,be done every year in good times and bad. Will it
weaknesses, and opportunities for improvement.guarantee success? No, but having a roadmap is
Another step in the process is to benchmark youralways better than being lost in the car and refusing
corporate structure with your competitors' to get ato stop and ask for directions.
good evaluation on how effective your structure is in