How many of you are getting blasted by emails from everyone and anyone with a way to both cope with this challenging time and what you should be doing differently to survive it? I know I am. My email box is blowing up with “free offers,” “how to cope,” “how to survive when in isolation,” “and how to save your business” emails. While some are helpful, others are just plain sales techniques to play on our fear and uncertainty during this time.
There is a "Different" Approach
Some of this advice is what we heard back in 2008 and 2009 when we were attempting to come out of that great recession. The advice, which is sound, is to conserve cash and look for ways to conserve cash. But today, with this new challenge in our economy, there is a “New Approach” being discussed and put into place…one that is definitely worth exploring. What is this New Approach? First, let’s take a brief look back to see what we did in 2008/09 that worked…then look at some new approaches that can change your business in the short term but definitely into the long-term as well.
Focusing on Cash and Processes is Only Part of the Solution...there's MORE
How does a business conserve cash and “batten down the hatches” to weather out this storm? How does a company pick and choose what to do when everything seems to be pointing south and sales are dwindling or gone? In many ways, this is already very different than the 2008/09 recession. The economy is still strong, despite the “invisible enemy” that has attacked us. We can’t manage this one based on some economic mistakes or greed like we saw back in 08/09. But the results still seem to feel like the same outcome. But are they?
When we look at ways to free up cash and conserve cash, some would suggest ways to trick the tax system or other “quick fix” strategies. But two of the most effective ways back in 08/09 were (and still are) to stop the outflow of cash and make what you have more efficient so you can free up more cash.
The 08/09 recession was the era where “process improvement” was a hot topic…improve your processes, reduce headcount, and stop spending money on anything not directly related to generating revenue. In other words, if what you were doing or who you had as an employee wasn’t directly contributing to generating cash, they were out.
And everyone was looking at their “fat” processes and trying to figure out how to get leaner and remove excess cost from production, inventory, and a host of other functions. And while it worked for a while, many soon realized you can only cut the “fat” out until you hit the “muscle” of the organization…then you were done. This proved to be a salvation for many companies and they were able to get much leaner and operate more efficiently.
Where to Focus in 2020...and beyond
When we started 2020 with an incredibly robust economy flying along like nobody’s business, there was no doubt companies had added a little fat along the way. But nothing compared to the fat we had built up prior to 2008. Today, the fat might be a few pounds, but not hundreds like in 2008. So, the process of “cutting the fat” and improving the efficiencies of our processes doesn’t represent the big opportunity we were drawing from back in 2008. There just isn’t as much fat to cut today.
Without lots of “fat” to cut out of our businesses, how do we survive this and still either grow or position ourselves for growth? This is where the “EXCEPTION” comes in I eluded to in the beginning. There is one highly visible exception some companies are already taking advantage of and one that more need to take advantage of during this time. It is the one area where you might want to consider spending the lion’s share of your time and effort during this challenging time of COVID-19.
That area is INNOVATION…redefining their “WHY” and defining “WHO” they want to be going forward when this is all over…and it will be over.
What I am suggesting isn’t some “slight improvements” or “new features” on existing products or services. I’m suggesting investing time and energy into “whiteboarding” who you are, why you exist, and what is it you can do to truly differentiate yourself from your competitors in the market.
A “restart” and a true “reinvention” of why you are in business and “what matters most.” A “fresh look” through the eyes of your customers to see what they really need, not what we have to sell.
Who’s doing this right now? If you are, let’s hear about it. Share your thoughts, your process, your insights so everyone can learn from each other. Let’s help everyone out and it will accelerate our recovery when it comes in the near future. This is a time to band together, share what you are doing and let others translate it into their own business.
From a personal perspective, I live in a constant world of “REINVENTION” by helping organizations become “REMARK”able by being Customer Obsessed. Why wait for a crisis (like we are in with COVID-19) to build true differentiation and uniqueness? I get to do it every day and have done it every day for more than a decade. This isn’t new to me…it’s my everyday life.
I’m not here today to “sell” you on the need to be Customer Obsessed. That decision is always up to you should you decide to differentiate yourself with something more powerful than your products or services. This isn’t new because of the current crisis, it’s what I tell people every day.
Innovation and Reinvention...
I want to share with you a recipe and formula I use all the time to help companies move to a differentiated state which allows them to THRIVE, not just survive. For those of you who already know me and my approach, my goal is to always try to help you in any way I can because it’s the right thing to do…every day.
What is driving me nuts is (back to the beginning of this post) how many emails I get from people who are selling things (products, tools, and advice) who have never focused on innovatively reinventing themselves and redefining who they are and why they exist. They just want to sell more stuff and their normal channels are dead…so now they’re the expert in this new channel of crisis. Really?
So, putting that aside for the moment (and ignoring them as much as possible so we don’t follow them down their rabbit holes), let’s look at an approach I can guarantee you will help you Innovate and Reinvent your company. I would also encourage you to keep an eye open for some of the messages and people out there who are truly offering some insights worthy of listening to about helping you through all this with innovation and reinvention. Find those people and listen to them, they have some good stuff out there. I know of several. If you want to connect with their content, shoot me a message or an email and I can let you know who they are.
A Recipe and Formula for Moving Forward...
For now, let me give you some actions and thoughts I would suggest you take…immediately! These exercises can help you move forward aggressively…today and tomorrow. They will help you pull out some ideas and thoughts which can truly make a difference to your business. And they will move you from “tweaking” to “building” something incredibly powerful…for today and for the long-term.
Here’s a RECIPE and FORMULA you can follow to help you get there…it works. These are some initial steps I recommend you consider doing with your team. They are powerful and will really open up your thinking about what to do going forward. I will be sharing more in subsequent posts but for now, let’s get started with a few very specific steps you can follow…just like a recipe or formula…
What To Do Next...
I hate to leave you hanging here, but it works better if you take it one step at a time so you don’t short change yourself. Focus on what’s in front of you. At the end of a couple of days, you will have a goldmine of thinking from your leadership team. We’ll start assembling it for you starting next time.
Together, we can help you become an innovation machine. A company that is clearly differentiated from your competitors. Stay with me…this will help. If you have any questions or comments, leave them here or shoot me an email. Until next time…be safe and let’s do this…we’ve got it.
