The current economic situation is pushing a lot of businesses to downsize and even get out business. Below is a main strategy that applies to many companies and has proved its efficiency during the last 15 years: FOCUS.
We’ve all heard of the 80/20 rule. That’s what we’re talking about:
- Who are your top 20% of employees who are giving you 80% of the productivity? That’s your standard team performance. Anything below that level must not be accepted. Pamper those people, give them incentives, reward them for their great work and appreciate what they do in all possible ways.
- Who are your top clients; again, 20% of your clients give you 80% of your profitability. Who are those top 20? What is common between them? How can you give them more attention? How can you personalize the relationship and make them real partners for your growth? Meet with them regularly, understand their profile, their behavior and give them your full attention! Anything below that level must not be accepted.
- Who are your top suppliers? The 20% that never fail you with time and quality. Meet with them; understand your competition and the market through their experience. Try to reshape new deals that are win-win for both of you. After all you are their client; they must treat you just as you treat your top clients.
- What are your top tasks? Don’t waste your energy doing several tasks that won’t help you move forward. Automate whenever possible, delegate to the key employees, free your time to draft new strategies to help you focus on your top strengths and specialize in what you do.
- What are your top products and services: put all your energy there. Crisis times are not always healthy for diversification. People need to remember you in a specific area. No one can remember what the best restaurant is, but everyone can tell you what the best sushi destination is.
Such turbulent times are shaking the ground. Be solid yet flexible. Have a strong base that can support you in times of negative cash flows. Don’t go for quick solutions, additional funding sources that you might not be able to pay back or for theoretical hopeful approaches that could drift you out of business. Prioritize, focus and do the basic things that will give you the maximum result.
The situation is tough but so are you!
Jade W. Dagher
Business & Wealth Strategist
Certified Management Consultant ©