Financial Crisis or Opportunity?

Who isn’t thinking about the financial situation from both a personal and business viewpoint? Many companies are shutting down normal operations and waiting to see what the markets are going to do. Others are completely revising their strategies and some are looking for those bargain opportunities. What are you doing?

While there is not one right answer, there are probably some prudent steps that should be taken. And quite frankly, should be taken continuously.

In the good times, businesses like people will become lax over their finances. And it is easy to see how when money is available and flowing well, most view the future through the glasses of today. Simply put, most of us see the future and base our decisions on what our economics are doing at the present.

Remember the markets of 2001? It was crisis time for all and the mantra was “we must never let this happen again” and “we will never see double digit market growth again”. Then, the markets recovered, corporations began making record profits, oil prices took off, everyone was buying a house…Life was good. And yes, we began to see this as the norm for the future.

So, where am I heading with all this? Simply put, risks are part of business; we all need/want to make solid profits. However, putting time proven basics into practice during good times help to prepare for the not so good times. And yes, there will continue to be good and bad times form an economic point of view.

One of the basics that I firmly believe in relates to continuous process improvement. Companies are constantly reorganizing, mergers and acquisitions are occurring, new systems are replacing legacy systems, new technologies are emerging, customers’ demands are evolving…change is constant.

If change is constant, process by definition must constantly be reviewed and optimized. Can change be managed internally? Of course it can, but I would offer that a change agent is most effective when they have a neutral or unbiased stake in the process.

Change is also uncomfortable and process owners/users can be protective and not see or embrace the need to review a process or change.

An independent party such as a consultant can assess the current environment without bias and determine the path to change and then lead the execution of that change. Many companies find it easier to simply ask the existing manager to add process improvement and project management to their already full platter of work. And are stunned when morale drops, benefits were not as robust as predicted and resistance to change becomes evident.

Someone that has experience mapping processes, charting the roadmap to change and having project management certification and is independent from the normal day to day work flow can be worth their weight in gold. Independence provides focus, shortens time lines and can provide management realistic reporting on status and issues.

These practices are needed every day and should be a part of normal operations in a company, and are needed in this economic market now more than ever.