The elections in France and Greece have stirred unsettling reactions and debates across Europe and internationally. It wasn’t long ago that the German Chancellor and the outgoing French President, worked with determination and commitment, reached a fiscal pact for Europe’s debt crisis. Would the austerity measures be modified? No one could predict what the final outcome would look like.
Economic uncertainty is just one of many risks business faces. How prepared is your company in handling exogenous changes?
- Do you include in your strategic plan scenarios that could trigger dramatic impact on your business?
In strategic planning, companies normally include plans for the ideal state of the business and how they could achieve it. Do take into consideration the what-if scenarios, particularly the ones that are not favourable, and the course of action for them.
- Is your operating model flexible to accommodate change?
Cumbersome operations demand tremendous time and energy to support. Resources are constantly usurped by non-value added work. The administrative overhead places a burden on how well a company can introduce change. Look for opportunities to simplify work and eliminate unnecessary policies.
- How quickly can you implement change?
Do you have a clear action plan to roll out change? Does the plan have to be developed on the fly? While you might not have all the details of a change implementation plan, it is important that the basics on who to involve, key issues to address, ownership and accountability are known so that the right people and resources are made available and deployed as quickly as possible.
Successful companies do not rest on their laurels. They anticipate the good, the bad, and the ugly that could change their business dynamics. What’s more important, they have plans to steer themselves away from the turbulent situation, allowing them the flexibility to deal with the situation quickly.
© Connie Siu 2012. All rights reserved.