The age-old approach by executives is to expect that managers must do more next year. Use the same resources as this year but achieve better results. Resources are usually limited, but improved results must be delivered.
Businesses constantly face important short term issues. The pressure is always on to improve performance while decreasing costs. More regulatory compliance, more risks to manage, more stringent internal audit findings to attend to, the list goes on and on ….
Executive management needs to regularly assess their ability to grow turnover and bottom line profits in a competitive environment. They need to understand the role product / service innovation plays in the corporate growth strategy.
Interesting article by EE Publishers on the same subject.
Managers must do more next year
Few businesses are able to achieve growth through sustainable operational improvements in the short term. Focus must be on opportunities that will drive future growth and operating efficiencies, while identifying and managing business risks.
This is often difficult because risk processes are disconnected and critical information is not shared.
Executive management on the other hand must continuously evaluate the risk-management processes being used. This is to ensure that they are focused on the risks that are relevant and that matters. They need to understand and manage
- the risks that threaten their strategic objectives, and
- be poised to capitalize on opportunities that will bring growth and operation efficiencies.
Add to this the reality that businesses also need to deal with a growing list of increasingly complex regulatory requirements. Small businesses usually find these challenges overwhelming. They simply do not enough skills and experience available. There is never enough time to consider & plan for the medium term.
The risk of not being able to timeously react to a changing business environment could lead to failure. It is a known fact that four out of every five small businesses fail within the first 3-5 years of operation. While it is often due to other factors than strategic planning & analysis, the lack of these abilities certainly play an important role.
Businesses need help to meet the these challenges. Expert consultants who are able to bring their experience and diverse perspectives of business management across a range of sectors, are needed. These people must be seasoned consultants & analysts with strong people and communication skills.
Consulting teams should offer multi-disciplinary skills and be able to deliver a value-for-money experience. Having the right team of advisors to work alongside management can realise their focus on transforming the business or improving profitability.
Consultants must be able to bring fresh ideas and objective insight into the complex issues facing businesses each day. They must be able to assist management to work smarter, to manage the business risks & regulatory requirements and to capitalize on opportunities that will bring growth and efficiency.