One of the things that can kill companies faster is –bad economy. When the economy is bad, many things can happen to businesses. Many businesses close, sales goes down, unemployment goes high, the standard of living comes down and there are general economic hardships. Yet, in this terrible and turbulent economy, some companies find a way to turn things around. They find a way to turn their companies around, while some companies collapse. But in general, what we need to learn and find out is: How to Turn A Company Around in a Bad Economy. In my quest of finding the best answer to this question, I decided to read Jim Collins’ book, “Good to Great”. Because, in there, we see companies that were able to survive bad economies and became buoyant, regardless of the recession. So, let’s look at a few things to do to turn a company around in a bad economy.
- Understand that you can’t change the external, only the internal.
- Focus on changing or improving leadership
John Maxwell, the Leadership Mogul said, “If a person’s leadership is strong, the organization’s lid is high. But if it’s not, the organization is limited. That’s why in times of trouble, organizations naturally look for new leadership.”When a company is having a hard time, the best place to stop and work on is the leadership—the leadership quality of the company must be questioned. In a bad economy, companies need great leaders with terrific leadership qualities and abilities to turn things around. If you’re running your own company, maybe is time to improve upon your leadership ability. The more you learn about leadership and improve upon your leadership ability, the more you can lead your team to victory. You should also consider changing some of your departmental and operational leaders—if the leadership is weak. The stronger the leadership, the better the organization’s ability to weather the storms of a bad economy. The leadership should, in turn, build a better strategic alliance and an internal team that makes the company weather all the storms of the bad economy. Visit Our Online Store & Try Our Result-Driven Digital Marketing Packages.
- Focus on Building a Strong Team
- Focus on strategic approach, instead of operational approach
“In a bad economy, many companies are in a survival mode. So they adopt an operational approach to management instead of a strategic approach to management,” says Edmond Nartey, my uncle, a seasoned entrepreneur.Well, the economy is bad so what most businesses do is to look for ways and means to keep surviving. While they are doing this, they forget to develop a strategic long-term approach to growing and developing the company. Many companies have no clear plans—they just operate on day-to-day basis, hoping to do well. But that’s not the way out. The way out is to “Confront the brutal facts of reality” says Jim Collins. Ask the hard questions:
- What do we do to make the company stronger and stronger?
- How do we strengthen the company?
- How do we make the company great despite the economy?
- Mission: Why are we in business? What’s our reason for existence?
- Core Values: What do we stand for? What are our core principles for doing business?
- Vision: How do we see the company in the near future?
- Goals: What measurable steps do we take to create the ideal future?
- Objectives: What actions must we take now to turn things around?
- Team: Who or which people needs to be on the team to achieve the company’s mission, core values and the overall vision?
- Management: What must be changed, removed and eradicated? What new systems, structures and policies must we adopt to grow the company?
- Make the Customer A Top Priority
Warren Buffet said, “Don’t satisfy your customer, delight your customer. I’ve never seen a company with delighted and happy customers that failed.”In a bad economy, what you want to do is to keep your current customers by delighting them, while at the same time increasing marketing and promotions to get new customers. If you focus on your customers and how to delight them—you can develop high customer loyalty that would enable you to grow your business. To do this, you must improve your customer service, value and offerings to the customer. You have to get closer and closer to the customers. You must think about pleasing the customer all the term. You must think about building a stronger relationship with the customers all the time. You must think about being more caring to the customers all the time. The entire team must be focused on delighting the customer. Everybody in your company must think in terms of the customer—they must think to deliver services or products with exceptional excellence that would make the customer to love the business.
- Focus Your offering, Instead of Diversifying
- Increase Public relations, marketing and sales