The current economic environment impacts everyone and it is predicted to get even tougher, but businesses with a clear focus should still continue to succeed through the downturn.
During the last recession, companies that took methodical steps to develop and implement growth strategy were able to continue to meet both short and long-term goals, even during challenging times.
Management consultancy Cairnforth argues that by having the right strategies and internal business structures in place, companies can still capitalise on immediate market opportunities and customer demands.
Firstly, it’s essential to resist the urge to cut costs too hard – Businesses should be looking for efficiency gains and will inevitably trim costs however, cutting costs too heavily could significantly impact medium term and longer term growth opportunities. Moreover, the most successful organisations often invest more heavily in tough times to lay strong foundations for future growth.
Jamie Dickinson, head of strategy practice at Cairnforth says: “Almost 95% of discussions in UK boardrooms at the moment are around short term tactical issues. By failing to plan more strategically you could be missing greater market opportunities. It’s vital to maintain focus on the longer-term.
“Fundamentally, firms that succeed are highly focused and clear about which market opportunities are right for them. They re-engineer their business in order to take advantage of these markets and customers, and have clear plans in place for how they will deliver their ambitions.”
Being as clear about markets that will not be developed is equally as important. Businesses must focus time, effort and energy in the areas that will offer the best chances for growth. This can mean making tough decisions on whether to exit certain business streams, or whether to discontinue certain services or product lines that will not support your strategic goals.
“Finally, and perhaps most crucially, the only way to succeed in taking market share from competitors is by offering a product or service that is better and different,” added Dickinson. “Simply being as good as the market is not enough - to drive long-term sustainable growth, businesses have to differentiate.”
Cairnforth advises companies to be bold and not lose sight of longer-term ambitions in favour of short-term cost savings. The key is to ensure the correct strategies are in place to allow the business to grow.
