29 SEPTEMBER 2005
by Randal Godden, Chairman and CEO, at TEC South Africa
This article was first published in Real Business, a supplement to
Business Day which appears on the third Monday of every month.
A recent survey conducted by Management Today polled and identified
the top ten issues causing most concern for Chief Executives and Owner
Managers. The article did not, however, provide answers, so the following
summary will identify possible solutions.
1. BEING OVER-STRETCHED AND EXPECTED TO DEAL WITH A BROAD RANGE OF
BUSINESS AND RELATED ISSUES.
As the head of a business you are constantly confronted with a range
of issues, many of which you might not have experienced before or be
trained to handle.
Possible Solution: Ensure that your management team has a broad base
of skills, experience and styles, and draw on their views. Develop
a cadre of experienced external experts who can provide counseling
and guidance from a qualified and objective viewpoint. A mentor with
senior management or Chief Executive experience can be invaluable.
2. DEPENDANCE ON TECHNOLOGY AND RELIABILITY / EFFECTIVENESS OF TECHNOLOGY
IN THE BUSINESS.
Businesses are increasingly relying on technology for operational
improvements.
Possible Solution: Seek out external
experts who are technically skilled and who keep up to date with the
latest technology developments. Develop staff with training so they
can work alongside experts and manage implementation.
3. UNDERSTANING CUSTOMER BEHAVIOUR AND WHAT DRIVES BUYING DECISIONS.
As customer relationship management is the cornerstone of every business,
this is a critical aspect.
Possible Solution: Personally interact with your key customers on
a regular basis. Keep abreast of developments in your industry and
constantly focus on enhancing your competitive advantage. Also use
an independent entity to canvass your clients to obtain an objective
perspective, so ensuring you are kept informed and show real customer
care.
4.
HOW TO IMPROVE PRODUCTIVITY WHILE PROVIDING
EMPLOYEES / MANAGERS WITH BALANCED LIVES.
This is becoming more of a challenge as younger generations place
a higher value on “Life Balance”.
Possible Solution: Offer your employees more holistic prospects,
including community activities and learning opportunities not just
related to business. Support in external development activities will
usually be more appreciated than an equivalent pay increase.
5. ATTRACTING AND RETAINING THE RIGHT TALENT TO ENHANCE BUSINESS
RESULTS.
This is one of the key responsibilities of all senior executives.
If we recruit people with the right values, attitudes and skills, and
channel them to a common purpose, we have a successful formula.
Possible Solution: View staff recruitment as a 24/7 activity and
ensure you and your staff are constantly on the lookout for good people.
Spend quality time with your people and recognise their successes and
viewpoints.
6. THE RETENTION OF GOOD PEOPLE.
Too often, the good people leave and the mediocre remain.
Possible Solution: Our objective is to constantly improve the quality
and standard of our staff. Good employees like to work in a challenging
environment with talented people. Create opportunities for people that
match their skills and performances with their job profile. Also involve
employees in business problems and decisions and keep them informed.
7. PROTECTING OR ENHANCING YOUR BRAND AND COMPANY IMAGE.
The development and enhancement of your brand is a key determination
of shareholder value.
Possible Solution: Ensure that your marketing plan focuses on your
Brand as a key pillar. It is crucial to understand the deliverables
related to the brand and that these are constantly monitored.
8.
ADAPTING TO CHANGE STRATEGICALLY.
In today’s business environment change is an ever accelerating
phenomenon in every facet of the business as well as the outside world.
Possible Solution: Ensure that your regular or monthly management
meetings also consider strategy to combat change. Consider a day per
quarter devoted to change, strategy and brainstorming. At this session,
include an external facilitator/catalyst or specialist on a topic,
such as marketing, to challenge the group. At this workshop, develop
action plans with champions and agreed time lines.
9. NOT ENOUGH PEOPLE TO RELY UPON.
This falls into two broad categories: internal and external.
Possible Solutions: The internal challenge is to ensure that you
have the best people available within your budget. Then, ensure that
they are aligned to a common purpose while understanding their contribution.
Externally, develop a trusted group of “experts” who you
trust and respect. In the end, the decisions will remain yours, but
the advice and counsel will be invaluable.
10. COST CONTAINMENT.
The consistent balancing of costs and revenue is a primary requirement
in every business.
Possible Solution: The key is to constantly monitor and mange costs
across the spectrum, viewing it as a regular management activity. Try
to avoid the “emergency” cost cutting which puts the company
in a negative frame of mind. A winning style is to manage costs in
conjunction with sales and growth strategies.
I’m sure many of the these challenges are familiar and hope
the solutions can stimulate you to overcome
the pressure these issues can bring about.
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