ISDS Performance Management

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• Performance Management Opinion Paper (pdf)

Generating cash from managing 'real' business value

IF we listen to the ‘expert’ economic seers, who after all got us into this mess in the first place, we are in for a very tough ride over the coming year to 18 months. IF we also listen to media speculation we should all fear for the future.

The fact is that these so-called experts have got it badly wrong (even over the short term) recently so why should we be overly influenced by them now? Particularly as we can only directly influence the domain in which we operate. As leaders we are challenged to rise above the speculation, spin and hype around us and make the right decisions for our businesses and those who depend on us.

However, one thing is for sure; the current reality is that we are in a recession made worse by a severe credit squeeze and still diminishing consumer confidence.

So business conditions are tough and will continue to be so for some while yet with surviving through this crisis a priority for most enterprises. It’s at times like this that the tough stand up to be counted ……. and to Win!

Whilst appropriate corrective actions and decision making must be taken, we should certainly not be panicked into knee jerk actions or worse into stasis and procrastination from the fear of not knowing what to do. In any scenario there will be winners and losers.

I read a blog in a marketing mag recently which suggested that in such times history teaches us that very small and very large companies are the most likely to survive whilst those in the middle are the ones most open to being squeezed out.

There is some logic to this ‘assumption’, however, it seems to me that there is more logic in the fact that those with the determination to succeed AND the willingness to adapt and embrace necessary change will be best positioned to survive ………. as well as take advantage of the opportunities which such circumstances most often provides.

Sound business cases can still get investment and working capital funding but now, perhaps more than ever, these business cases must be based on clearly defined and communicated strategies which can be efficiently and effectively implemented and managed; thereby clearly demonstrating a proper understanding of risk and its management dynamics.

Furthermore, enterprises with sufficient cashflow strength so as to avoid the need for additional financing must also adapt to become much more efficient and effective in their own activities to remain competitive in an increasingly demanding marketplace.  

So, when you get right down to it, what has really changed??

OK … we have difficult trading conditions and it is more difficult to raise funding and financing.

BUT ….. the logic of a successful enterprise has not changed one iota and cash is still king!

Many of us have been here before, or in similar circumstances and know that the fittest can survive.

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