Is now the right time to change business strategy?
Leadership is about making effective decisions about direction and implementation. The problem with making decisions in turbulent times is knowing what to change and when to make changes. Over the next few months, too many businesses will make knee-jerk decisions which will do more harm than good.
Of course all businesses need to make changes to the way they are operating in light of the credit crunch to ensure that cash flow is maintained. My concern is for those businesses that change without understanding why they are making those changes. My experience tells me that many small and medium-sized companies (and often even larger businesses) do not ‘know their numbers’ and why they have been successful in the past. Without knowing this, how can they know what parts of their business model to adjust.
Worse still are those businesses where the directors virtually abandon their current strategy and embark upon ‘panic measures’ with the best of intent. Not content with this, impatient for results, they become anxious and make more changes. Under pressure, we are all capable of making crazy choices.
Our job as business coaches is to help directors and managers to make better choices. Sure, we cannot ‘pull rabbits out of hats’, and help to turn businesses around in an instant, but we can help companies to analyse their problems, reflect on potential solutions and support them to implement their chosen solution.
Now is the time a good business coach can really make a difference. Most coaches can look good in prosperous times, but only the best coaches shine in times of crises. Without taking over the directors' responsibilities and making decisions on their behalf, can you provide the leadership your clients need?
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