Is strategy the ‘risk-reducer’?
What is the biggest risk we all face in business? The answer must be: running out of cash!
So it’s important to think about how to reduce this risk. And perhaps surprisingly the answer is: create and implement an innovative strategy which gives a competitive advantage.
Why surprisingly? Well, a cash-flow crisis is often blamed on falling sales, or rising costs, or adverse weather conditions. There is never a shortage of ‘fall guys’ – but they are usually symptoms of a bad strategy.
Strategy is such a misunderstood word that it’s important to explain what it means. See if this definition makes sense.
“To make money, a business must choose where to compete and how to compete. Strategy analysis identifies the where and how options by reviewing the business (its products, services, and people for example) and its environment (its suppliers, customers, and competitors for example). The aim of this analysis is to create an innovative strategy which gives a competitive advantage – something which is different from competitors, attractive to customers, and maximises cash flow”.
Successful businesses have obviously created such a strategy – it’s not that difficult. What is difficult for business leaders, is finding the time to step back from the immediate pressures of running today’s business, and undertake the analysis which will help take the risk out of tomorrow’s business.
And this is where experienced help from The GB Group comes in – supplying fresh eyes and hands to undertake the strategy analysis undistracted by daily pressures. It’s a powerful partnership which can help produce the over-riding risk-reducer. Cash!
“Tony engaged with us at an extremely challenging time for the business. Despite the challenge that lay ahead of him he committed wholeheartedly to the Mulberry Square cause, building trust and creating a rapport with all of our team. He helped us to develop key measures and to set performance targets, to focus on eliminating waste and to identify and actions for specific improvement objectives; he ensured that we maintained focus on what the business needed. His extensive experience on leading business turnarounds has helped us to make a real difference to our business fortunes.”
Craig Johnstone, Mulberry Square Marketing Services