During the pandemic, I published an article in which I presented five actions to overcome the challenges that arose after the drop in sales and the cessation of activity in a significant part of the global economy.
2024 presents similar uncertainty as a result of geopolitical instability, the rapid emergence of AI, rising interest rates, inflation and a slowdown in major world economies, among other circumstances. That is why companies must conduct a rigorous analysis of their situation, taking into account macroeconomic conditions, to obtain an accurate diagnosis that will allow them to navigate obstacles as effectively as possible.
Below are six actions that I and my team are implementing in multiple companies early in the year to strengthen ourselves in a more aggressive and uncertain environment.
1. Create a rigorous strategic plan for the year.
Entrepreneurs should dedicate quality time with the management team to reflect on the achievements of the past year, with the aim of reinforcing them in the coming year. They should also discuss the difficulties and challenges not met, which will allow them to identify areas for improvement.
From this process, an action plan with specific measures, assignment of responsibilities and deadlines should emerge, aimed at enhancing strengths and addressing weaknesses. It’s a culture of commitment that should extend throughout the organization.
2. Adapt, transform and, if necessary, reinvent the company.
In such a changeable environment, it is necessary to work together with the team to adapt, transform and possibly reinvent the company to suit the new times. This should involve:
- analyzing the market and trends
- evaluating human and, especially, financial resources
- fostering a culture of change among employees
- encouraging the contribution of new ideas
- investing in innovation and technology
- introducing AI
- diversifying products or services based on an analysis of customer trends and preferences
- optimizing processes for efficiency
- seeking strategic collaborations
- measuring results to remain competitive and relevant in a constantly evolving business environment
3. Strengthen your teams.
The key to a company’s success is not its products or services. While they are important, it is strong teams that make them possible and drive innovation, efficiency and adaptability. A cohesive and well-led team can maximize product and service quality, identify opportunities and overcome challenges.
Additionally, collaboration and a diversity of skills within teams are essential for well-informed decision-making and effective problem-solving. Keeping teams trained, motivated and engaged will also allow for better talent retention, which is one of the major challenges of this decade.
4. Listen to the market.
The primary cause of a company’s closure is often offering products or services that the market does not demand. Therefore, it is vital to listen to the market so you can effectively adapt to the real demand for your products or services. By paying attention to customer needs and preferences, a company can identify improvement opportunities, adjust its offerings and remain competitive and well-positioned. This not only increases customer satisfaction but can also boost growth and customer loyalty.
I suggest conducting continuous quality surveys, as my team does with our customers, to evaluate various aspects of the value chain and obtain the necessary information to meet your actual needs.
5. Get obsessed with profitability and cash flow.
These are two points I strongly emphasize to all companies I speak with. Although they might seem self-evident, the reality tells me that in too many cases, they are not given due attention.
Paying attention to cash flow and profitability is crucial for a company’s survival. A rigorous analysis of the profitability of your portfolio of products and services must be conducted, along with extreme monitoring of cash flow by improving collection periods and extending payment terms using financial tools for that purpose. There should be rigorous tracking of unpaid invoices, which can ultimately lead to high-tension situations for the company.
6. Focus on data utilization.
In my experience, a significant percentage of business decisions are made without the necessary information, simply because the company data is not structured and up-to-date.
Data provides objective and quantitative information about a company’s performance, customer preferences, market trends and many other important aspects of business activity. Having an updated dashboard with key indicators is mandatory to run your business with the necessary information about what is happening. No one would think of driving a vehicle without looking at the dashboard, and similarly, we should not run companies without one. This is especially relevant in the digital age, where data has become the most relevant asset in every industry.
Final Thoughts
To conclude, I’d like to highlight two things: the importance of having a contingency plan and enough flexibility to be able to quickly adapt to changes that the market indicates, and the need to work with the best professionals so that these actions can be carried out successfully.
Si quieres ver esta publicación en la web original de Forbes, accede aquí:
José Luis González, Forbes Coaches Council Member
