By Pieter Scholtz and Harry Welby-Cooke (ActionCOACH SA)
The Business Confidence stats show that South Africa is at the same level as a few months into the pandemic[1]. It would be human to submit to the overwhelm and despair, yet our responsibility as leaders is to guide and inspire our teams through these stormy waters while preventing external pressures from determining success.
The urge to throw the baby out with the bath water and embark on radical action may be tempting, understandable and, in some cases, necessary. However, many of the tried and tested business processes that we’ve always relied on, are still critical today.
The power is in your hands.
Whilst we cannot control load-shedding schedules or geopolitical tensions on the other side of the world, we can choose not to obsess about it and, instead, spend time and energy on what we can control.
A run-through of the following is helpful. Are you spending your time on the allocation of resources and budget, generating operational processes to respond to adversity and surveying the current state of staff and customer relations? Or are spending your time trying to change your entire existing business structure overnight? If the latter, it’s a good idea to first assess what is working or not and then check what improves without radical change. Whilst innovation is important, total reinvention might come at the cost of your existing business.
This leads to the second point; what you are evaluating and why.
Evaluate – constantly.
As a business owner and leader, what areas of your business do you test and measure? How do you know which strategies or processes are working? Keeping your finger on the pulse of activity prevents making changes to fix what isn’t broken. Similarly, be open to evolving and changing (or even discarding) what needs to be changed.
A ‘process’ document that details how each activity takes place identifies gaps, over or under-resourced areas as well as areas that can be streamlined. It also helps to identify the business’ efficiencies and shortfalls.
Communicate. Communicate. Communicate.
Clear and effective communication builds meaningful relationships across all stakeholders, including customers, suppliers, financial service providers and, most essentially, employees. Now, and always, a clear and well-thought-out communication plan is vital for a positive and productive business.
Humanity – now more than ever!
Employees are human beings needing human experiences. The need to be authentic has never been bigger. A recent article stressed that ‘humanity’ should be a top priority for business leaders in 2023. [2] It went on to say, “The pandemic triggered a seismic shift in the way we work. It shone a spotlight on employees’ challenges and springboarded platforms for them to voice their unhappiness. Today, people culture can no longer be put on the backburner … business leaders need to focus on creating a super-personalised employee experience, listen to the ‘heartbeat’ of the teams working for them and deliver a lasting positive impact within and beyond their organisational boundaries to remain competitive. “
Know who you are and know your WHY!
Know your business’ value (offering) and the pain and/or challenge it aims to resolve. Know what sets you apart from your competitors. Be clear on the WHY, which is your passion and the reason you chose to start the business. Most importantly, know who needs your product or services. Be clear on who your desired target market is – why they need you and how to reach them (and don’t forget to include all of these insights into your communication plan).
Cashflow is KING.
The greatest business ideas can, far too often, fall into oblivion due to badly managed cash flow. Businesses do not go out of business because of a lack of profit, they go out of business because of a lack of cashflow. An organisation’s cash flow is key to business survival and growth. Therefore, it needs to be constantly and vigilantly monitored.
Check your financial reporting mechanisms. Make sure that you know what your overheads are, your profit margins and your expenditure per month. Put monitoring systems into place to make sure that you’ve always got your finger on this pulse. Ensure that you have strong processes in place for collection.
Repeat business – the gold nugget.
It costs five times as much to attract a new customer than to keep an existing one. Similarly, existing customers are 50% more likely to try new products and spend 31% more, when compared to new customers. [3] To help achieve this, a strict focus on customer service that exceeds expectations is essential.
ALL energy is contagious
As a leader, make sure that your energy is positive. Find the PLUS in every situation and communicate it to your team, many of whom may be looking to you for inspiration. It’s not about being unrealistic, it’s about choosing to focus on the light instead of the dark.
South Africa is a resilient nation, proven time and again. As business leaders, we have the opportunity to lead teams who thrive in lieu of teams who simply survive. We also have the choice to continue building businesses that deliver a positive impact across our communities and our country at large. If you’re reading this you’re also one of the privileged South Africans and therefore despite your aforementioned choice, you also have a responsibility to be part of the growth solution. The tried and tested business processes of yesterday do still apply today and the more we implement them, the more chance we have to choose whether that glass is half-full or half-empty.
[3] Customer Acquisition Vs.Retention Costs [Infographic] (invespcro.com)
