Organizations in today’s economic times are either playing offense or defense, whether they know it or not. What determines which style of play? Cash or operating capital availability. With the credit markets shrinking, cash on hand has become a significant criteria for survival and the opportunity for growth. Those organizations that have lived from month-to-month…
Tag Archive: business
The Importance of Cash Flows to Your Enterprise
It should be obvious, but unfortunately, it is not for many organizations- “Cash is King”. Especially in a downward business cycle or extended cycles called “recessions”. Cash levels will determine if your organization will operate offensively or defensively. Just because you have profits does not mean you have the cash needed for your operating capital…
Layoffs-think before you act
During these times of the recession, most management start cost cutting by laying off employees. This may be a mistake, depending on the knowledge level needed for your product or service. Consider lowering payroll costs through eliminating or deferring bonuses, salary annual increases, reducing contract labor, reducing salaries across the board (management first, then other…
The ROI of Helping Your Competitors
Most organizations believe it is their objective to destroy their competition. Putting the competition out of business means more customers for them. Consider this, there may be a great ROI in helping your competition in time of crisis. I believe the more competition there is actually validates a market. If you’re the only organization in…
The Influence of Cultures
Organizations are like societies, they each have their own culture that has developed over time due to the actions of their personnel (leaders and employees/volunteers). When working to bring about change within an organization, one of the biggest mistakes leaders make is that they discount the impact that the existing culture has on their efforts….
Don’t Confuse Efforts with Results
Recently I heard a couple of client employees commenting on how hard they are working to be noticed. I could tell by their conversation that they were both trying to position themselves for a favorable performance review and consequently, a raise or promotion. I never once heard them talk about their accomplishments. Effective employees (leadership…
Using Debt to Finance the Organization
Organizations can finance their missions in several ways, but the two most common methods are equity and debt. Equity means you sell a portion of the organization in the form of stock or units of ownership, and the buyer now owns part of your organization. The other way to finance your organization is by Debt. …
A New Organizational Model
There is a new model that organizations need to consider in order to function successfully for the future; The model is summed up in two words- “Relationships” and “Collaboration”. Relationships are key for your success, whether a supply chain or wholesale, retail or services organization. The “relationship” you have with the stakeholders of your organization…
Traning-Investment or Expense
Organizations that frequently call their greatest asset their “people” should view the training of these critical skills as an investment in the future. Training is usually the last item added to the operating budget and the first item cut during a down cycle. Training should be increased in down cycles, not reduced. Training makes your…
Hibernate or Renovate
A recession is not a time to hibernate and wait for inevitable upturn of the business cycle. A recession is an ideal time to renovate your organization-addressing the current economic climate with a new operating strategy that positions you to perform more effectively in either an up or down business cycle. Create a Plan If…
