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"No one has to change; survival is Optional"

W Edwards Deming

Generating cash by managing 'real' business value (cont)

What HAS changed is that enterprises can now no longer survive by relying on outdated and inefficient traditional management structures, processes and techniques.

This change has been taking place for some while, but market conditions are now unforgiving with no safety net to fund inefficiencies, errors, mistakes or failures so the ‘option’ of whether to change or not has been removed. I therefore believe this change requirement is now an imperative.

Aligning your total enterprise resources with the consistent delivery of maximised internal and external value, thereby maximising cash generation …. and maintaining the flexibility to evolve and adapt quickly is very much a business imperative. ‘Of course; we all do this’ I hear you say ……. even though research suggests that c80% of enterprises are still managed by financially dominated performance metrics driven by an annualised budgeting process.

These statistics mean that most enterprises have an imbalanced management focus dominated by financial metrics such that they do not properly understand and therefore manage, the true (and therefore real) drivers of value in their business?

When you really think about it, these drivers are most often (if not always) non-financial which provide financial benefit as an outcome. Without this understanding and balance how can an enterprise properly align all of its resources for the delivery of maximum value; consistently …. for al ofl its stakeholders?

IF this is the case for you; how much money, time and effort are you wasting at a time when you can least afford to continue with such an approach? The fact however is that such change should be embraced as a business imperative even without the current economic and recessionary pressures.

That all said, change, particularly enforced change, is difficult to embrace even in less challenging times. But to those bold enough to engage fully with this necessary change and grasp the associated opportunities, will go the spoils.

Perhaps the real fear should be; ‘IF we don’t grasp the opportunity to change now and our competitors do, what ……..??!’

Please Give me a call IF you are interested, without obligation, to know more about how this can be achieved in a common sense manner properly aligned to your own business environment and context.

After all, IF change is being enforced, you might as well appreciate the options for maximising the derived benefit and the associated processes involved. It may be a challenge, enforced change often is, but it need not be complicated.