If you got a chance to speak with some of the world's top leaders in various organizations today, there is a simple but complex question that is one everybody's mind. That question is "What are some tactics other leaders are employing these days in their organizations to cope with the soft economy?"
Why is this question important? Simply because many of these leaders understand that it can give them a more rounded global perspective so they themselves can make better decision in these unstable economic times.
Here's the answer...
In a recent corporate survey by the Ken Blanchard Group which included more than 1700 business leaders, it was found that many of the world's top leaders them were doing 7 specific things within their organizations to give them an edge.
1. Over 60% of the group was investing in more productivity and performance-maximizing strategies...(they understood that to stay ahead, they would have to find newer ways to increase the productivity of their people)
2. Over 50% of the group was cutting company travel cost...(If travel was not necessary for attracting new business or expanding, there was a possibility that the activity that was connected to traveling could be handled in a more cost effective manner i.e phone conference calls, video conferencing etc)
3. Over 45% of the group was increasing its focus on branding and differentiation...(To gain even more of a competitive advantage, leaders understood that their products and services would really have to stand out from the crowded marketplace).
4. Almost 30% of the group was implementing personnel cuts and layoffs...(As difficult as the decision is to make in sending people home, many leaders had to walk this tough road to streamline their organizations by reassessing who was adding value to the company and who wasn't).
5. Almost 15% of the group was cutting marketing costs...(A number of leaders saw this as a way to save a few bucks - many other disagreed on the grounds that if you weren't adding new customers to your business, you were in trouble).
6. Almost 15% of the group was hiring new salespeople...(A small number of these leaders pushed in different ways to increase sales in their organizations and believe that the cost of hiring new salespeople, would be offset by the increased revenue they brought in)
7. Almost 10% of the group was increasing marketing expenditures.
What this means to you as a leader is, while it is important to reduce operational cost within your organization, at the same time, you should be formulating a plan to improve the productivity and performance strategies within your organization if you truly want a competitive advantage in today's marketplace.
Posted in Uncategorized.