10 Business Drivers for 2010

Posted By Anthony Wilkinson-Denny

Henry Ford once said, “There ain’t no rules round here. We’re trying to achieve something.” At the risk of upsetting Henry – who did know a thing or two – we’ve got to say that there are some things, or rules, that do work. What used to work in the past doesn’t necessarily work now and here are some rules that will drive the way business people think and what they are focusing on for 2010:

1. Staying lean: The Credit Crunch forced businesses to cut costs and review efficiency. The recession is not over yet and businesses should continue to look for efficient delivery systems and resist the temptation to “add fat” yet.

2. Oldies rule! In UK/Europe (and USA), 25% or more of the workforce (and customers) will be over 50 within ten years. In 2012 the over-45 customer group becomes 40+% larger than the 20-45 range and they will have the most money to spend. Don’t forget your older customers and staff. Research shows the over-50s have good or better skills than their younger peers.

3. Global village: Globalisation is here to stay. People will continue to be more mobile and business methods and products/services move from country to country more quickly now. Watch what’s happening overseas – it will soon be here!

4. Caring for people and planet: Social responsibility and green issues will not go away, with customers, suppliers, lenders and investors comparing your business with others on these measures.

5. Change is not changing: The pace of change will only increase. Creating a clear vision for everyone in your business will give staff (and you) something to base their decisions on (whatever change occurs) and a sense of security in a changing world.

6. Narrow the bulls-eye: Reduce, reduce and reduce, yet again, the number of targets that people need to aim for. Where effort is aligned to a small number of key deliverables the benefits are significant.

7. Keep it simple, sweetheart: With the world becoming more complex, it’s easy to add complexity. Customers and staff prefer simplicity while complexity hampers a company’s ability to respond.

8. The customer is always right: With more access to information and rising consumer assertiveness, customers are liable to be more discerning about your products, promises and performance. With growing customer choices, it’s easier for them to switch away from you. Keep in contact with them and let them know what you’re up to and why. Their knowledge is your power.

9. Nurture successors: With the mobility of people (the global village, above), many of your staff will leave your business at some time. Keep a look-out for those who shine and who show promise. Tell them they are valued and do it with tangible proof – give them training and bigger responsibilities. If they feel valued, they will likely add more value to your business and stay longer.

10.  Leadership: There are very few heroes in our world today. Leaders in politics, religion, entertainment, science and in business have all had bad press. We have very few people we trust any more. So, this is your chance to fill the void as people are looking for mentors and others they can trust. Find your vision and integrity and think about the attributes you’d like to see in a leader – develop those and become a magnet for greatness.

Effective Leadership and Vision

Posted by Anthony Wilkinson-Denny

Where there is no vision, the people perish ~ The Book of Proverbs.

The above quote is as true in business as in life … and as true today as it was 3,000 years ago. Without vision, there is nowhere to go, no direction to work towards. Organizations with no vision are run by people who think, “If it ain’t broke, don’t fix it.” They stay with what they’ve always done and get what they’ve always got. However, true leaders think, “If it ain’t broke, you aren’t looking hard enough!” These leaders are always looking for better and more effective ways to do things.

True leaders change the organisations around them – they make a difference to the business. Leadership is about what you do and how you do it. It involves learnable skills that can be applied to the tasks that occur in every business. The characteristics of True Leaders are:

They are untidy

Because they are constantly evolving their organizations and their teams, constantly improving and fine-tuning things, little is ever the same as it was. Some people are uncomfortable with this constant state of flux but this is where true leaders flourish.

They lead by example

These leaders make a point of getting “down” with their team and doing what they’re asking others to do. David Ogilvy and James Caan are two English examples of these types of leaders. They come to work earlier and leave later than everyone else, they act rather than preach and, because of that, they usually have empathy with those who are struggling. They are great at listening and helping the fallen rise again, because they’ve done it themselves!

They enjoy creating leaders

An army of sheep lead by a lion would only defeat an army of lions lead by sheep ~ Arab proverb. They are secure enough in their own leadership and their strengths that they purposely foster and train others for leadership roles, knowing that any organisation is not strong unless everyone in it is strong.

They have a sense of purpose that others believe in

A team is a group of people who may not be equal in experience, talent or education but in commitment ~ Les Brown. True Leaders have a vision that:

1.    They share with others, and

2.    Others believe in.

True leaders know that their organisation does not run by only their efforts and so they create a believable vision that everyone wants to join in and move towards. They are clear about what their vision is, they make sure everyone else is clear about that and they encourage others towards it.

They understand that leadership is a relationship, not an action

They are action-oriented people, yes, but they also know that to lead, they must also relate strongly with the people they lead. They may change and adapt to changing circumstances but they always remain true to themselves and true to their expressed vision. By their constancy, they engender trust and a following.

What Business Actions Are Succeeding In Today’s Economic Climate

Posted by Anthony Wilkinson-Denny

We advise CEOs and business leaders to focus more than ever on value, to exploit opportunities presented by the current situation and to act on both quickly ~ Centre for CIO Leadership, USA. [CIO = Chief Information Officer]

Value

There are two aspects to value.

The first is staying with your core vision or beliefs. For example, Dutch Rabobank Group, along with several other commercial banks, performed well by avoiding high profit, high-risk offerings such as sub-prime mortgages. Instead they held to low-risk lending principles. So here you create value for clients by consistency and trust.
The second is sharing your vision (your value) and having others buy into it. If customers can see a tangible benefit – not just the “same old” in new packaging – they will support you. For example, Netflix and Strayer Education (an online service) use technology in clever ways to slash prices by introducing revolutionary new business models.

Exploit opportunities

Shawna Martin used to be part-owner of an antique store in Mesa, Arizona – “In the summer months we would sometimes have days where less than ten people walked through the store, and even fewer bought anything. Then we went to work selling our items on ebay, where we made enough to at least pay the overhead, allowing us to keep the shop afloat during the bad months.” What other ways do you have for selling your services and/or products?

Act quickly
Barclays acted quickly – leaping regulatory and other hurdles – to acquire Lehman Brothers assets by September 23, 2008, just days after Lehman’s September 14 collapse. Within hours of the acquisition, the screens wrapped around Lehman Brothers headquarters at 745 Seventh Avenue in Manhattan switched from the Lehman name to Barclays’ blue logo. Equally decisive was Tesco’s move in 2008 to introduce a new Discount Brand line to avoid losing customers to lower-cost competitors.

Ten simple and practical success strategies:

1.     If your leased office is too expensive, consider working from home.

2.     Focus on the 20% of customers who provide you with 80% of your income.

3.     Reduce advertising and spend more time contacting existing customers – it’s seven times more expensive to get a new customer than to get an existing one to buy.

4.     Do your budgeting and know exactly where you are, every day. The truth may hurt, sometimes, but working on it will yield more results than working on an illusion.

5.     Don’t let the news media influence your business decisions. Take stock of your own financial climate. You might be doing great despite this economic downturn

6.     Shop around for everything – stationery supplies, fuel, accountant, lawyer, cleaner … every expense you have.

7.     Talk to your banker – it’s free and your success is his/hers. If they are of no help, find another one who has constructive and practical business ideas.

8.     Don’t give up.

9.     Still, don’t give up.

10.  Don’t ever give up!