Strategy | Savjet Management Group

8 June 20238 June 2023

Leadership in tough economic times

Mentoring: A Key to Leadership Success in Tough Economic Times

As businesses face unprecedented challenges during economic downturns, strong leadership becomes even more critical to ensure survival and eventual growth. One often underestimated factor that contributes to effective leadership is the power of mentoring. This article will explore the role of mentoring in navigating tough economic times, focusing on expert guidance, advisory boards, and independent advice.

The Importance of Mentoring in Economic Uncertainty

Building Resilience Through Expert Guidance

During periods of economic uncertainty, it is essential for leaders to remain adaptable and resilient. This is where the value of expert guidance comes into play. By seeking advice from experienced mentors who have navigated similar challenges, leaders can gain insights and strategies to help their organizations weather the storm.

Mentoring provides a sounding board for leaders to discuss their concerns, formulate plans, and receive feedback on their ideas. This expert guidance can help leaders make better-informed decisions, maintain focus on the long-term vision, and ensure their teams remain motivated and engaged.

Leveraging Advisory Boards for Strategic Decision-Making

In addition to one-on-one mentoring relationships, leaders can also benefit from the collective wisdom of advisory boards. These boards, composed of experienced professionals and industry experts, can provide valuable perspectives and independent advice on strategic decision-making.

During tough economic times, advisory boards can help leaders identify new opportunities, assess risks, and make critical adjustments to their business strategies. By tapping into the diverse expertise of board members, leaders can make more informed decisions and better navigate the challenges of an uncertain economic landscape.

Seeking Independent Advice for Objective Perspectives

While internal support from colleagues and team members is important, leaders should also seek outside perspectives to ensure they are considering all angles and potential solutions. Independent advice can provide an objective viewpoint, free from organizational biases and internal politics.

By engaging with mentors and advisors outside their organization, leaders can gain fresh insights, challenge their assumptions, and ultimately make better decisions. This independent advice can be particularly valuable during difficult economic periods, as leaders must continually adapt and innovate to stay ahead of the competition.

How Mentoring Supports Essential Leadership Skills

Navigating Economic Uncertainty with Strategic Thinking

One crucial skill for leaders during economic downturns is the ability to think strategically. Mentors can help leaders develop this skill by guiding them through scenario planning, risk assessment, and resource allocation.

By discussing potential challenges and opportunities with mentors, leaders can better anticipate market shifts and make proactive decisions. This strategic thinking enables organizations to be more agile and responsive during times of economic uncertainty.

Fostering Authentic Leadership and Emotional Intelligence

During tough economic times, authentic leadership and emotional intelligence are essential for maintaining employee morale and engagement. Mentors can help leaders cultivate these qualities by modeling vulnerability, empathy, and effective communication.

Through mentoring, leaders can learn to navigate difficult conversations, provide reassurance to their teams, and create an environment of trust and collaboration. By demonstrating authentic leadership and emotional intelligence, leaders can help their organizations thrive even in the face of adversity.

Enhancing Financial Acumen and Resource Prioritization

Mentors can also support leaders in developing their financial acumen and ability to prioritize resources effectively. By sharing their knowledge and experience, mentors can help leaders make data-driven decisions, assess the return on investment for various initiatives, and adapt their strategies in response to changing economic conditions.

Through mentoring, leaders can learn to balance short-term needs with long-term goals, ensuring their organizations remain resilient and well-positioned for future growth.

Implementing Mentoring Programs in Organizations

Establishing a Formal Mentoring Program

To maximize the benefits of mentoring, organizations should consider establishing a formal mentoring program. This program should be designed to match leaders with experienced mentors who can provide guidance, support, and expertise in navigating economic challenges.

A well-structured mentoring program should include clear objectives, regular meetings between mentors and mentees, and opportunities for feedback and reflection. By formalizing the mentoring process, organizations can ensure that leaders receive consistent support and guidance in their development.

Encouraging Cross-Functional Mentoring

In addition to traditional mentoring relationships within the same department or function, organizations should also encourage cross-functional mentoring. This approach can help leaders gain a broader perspective on the organization and its challenges, fostering collaboration and innovation across departments.

By engaging with mentors from different functions, leaders can break down silos, share best practices, and identify new opportunities for growth. This cross-functional mentoring can be particularly valuable during tough economic times, as it promotes a more agile and adaptable organization.

Leveraging Technology to Facilitate Mentoring

With advances in technology, organizations can now leverage digital platforms to facilitate mentoring relationships. These platforms can help match mentors and mentees, provide tools for communication and collaboration, and track progress towards mentoring goals.

By embracing technology, organizations can make mentoring more accessible and efficient, ensuring that leaders receive the support they need to guide their teams through economic uncertainty.

The Long-Term Benefits of Mentoring for Leaders and Organizations

Developing a Strong Leadership Pipeline

By investing in mentoring, organizations can develop a strong pipeline of future leaders who are well-equipped to navigate economic challenges. Mentoring helps to identify high-potential individuals, nurture their leadership skills, and prepare them for more significant responsibilities.

As a result, organizations with robust mentoring programs are more likely to have a deep pool of talented leaders who can drive success and growth even during tough economic times.

Fostering a Culture of Learning and Continuous Improvement

Mentoring also contributes to a culture of learning and continuous improvement within organizations. By fostering open communication, collaboration, and knowledge sharing, mentoring helps to create an environment where leaders and employees alike are committed to ongoing growth and development.

This culture of learning can be a significant competitive advantage during economic downturns, as organizations that continually adapt and innovate are more likely to succeed in the face of adversity.

Building a Resilient and Agile Organization

Finally, mentoring plays a critical role in building organizational resilience and agility. By supporting leaders in their development and decision-making, mentoring helps to ensure that organizations can respond effectively to economic challenges and seize new opportunities as they arise.

In conclusion, mentoring is a powerful tool for leaders navigating tough economic times. By providing expert guidance, advisory boards, and independent advice, mentoring can help leaders develop the skills and strategies needed to guide their organizations through uncertainty and emerge stronger on the other side. By investing in mentoring programs and fostering a culture of learning, organizations can build a resilient and agile foundation for long-term success.

23 May 202322 May 2023

The Role of Strategic Management in Surviving Tough Economic Times

close up photography of yellow green red and brown plastic cones on white lined surface

The Role of Strategic Management in Surviving Tougher Economic Times

As a business owner, I understand the importance of strategic management in navigating economic downturns. In times of crisis, it is critical to have a solid plan in place that can help your company weather the storm. In this article, I will discuss the essential elements of strategic management, cost management and sales growth strategies, and technology’s role in navigating economic downturns. I will also discuss the challenges businesses may face when implementing strategic management during challenging times.

Introduction to Strategic Management

Strategic management involves formulating and implementing strategies to help a business achieve its long-term goals and objectives. It consists of analyzing the company’s strengths, weaknesses, opportunities, and threats and developing strategies to leverage those strengths and opportunities while mitigating the weaknesses and threats. A strategic management plan should be flexible and adaptable, able to respond to changing market conditions and emerging trends.

In times of economic downturn, strategic management becomes even more critical. Businesses that fail to adapt to changing market conditions will struggle to survive, while those that can pivot quickly and effectively will be better positioned for long-term success. By developing a strategic management plan that includes cost management and sales growth strategies, businesses can mitigate the impact of economic downturns and emerge stronger on the other side.

The Importance of Strategic Management in Economic Downturns

During economic downturns, businesses face various challenges, including decreased demand, increased competition, and reduced profitability. As a result, companies must respond quickly and effectively to changing market conditions to survive in this environment. A strategic management plan can help businesses navigate these challenges by providing a framework for decision-making and resource allocation.

One of the key benefits of strategic management during economic downturns is that it helps businesses prioritize their resources. By focusing on the most essential areas of the company, such as cost management and sales growth, businesses can make the most of their limited resources and maximize their chances of success. Additionally, strategic management helps companies identify emerging trends and opportunities, allowing them to capitalize on them before their competitors.

Key Elements of Strategic Management – Leadership, Mentoring, and Culture

Effective strategic management requires strong leadership, mentoring, and a positive culture. Leaders must clearly communicate the company’s vision and goals and inspire their teams to work towards them. Mentoring is also essential, as it allows employees to develop new skills and knowledge that can be applied to the business. Finally, a positive culture is critical, as it fosters innovation, collaboration, and a sense of shared purpose.

To develop a strong culture of strategic management, businesses must focus on developing their leaders and employees. This can involve providing training and development opportunities, mentoring programs, and incentives for innovation and collaboration. In addition, by investing in their employees, businesses can create a culture focused on continuous improvement and growth.

Cost Management Strategies for Surviving Economic Downturns

During economic downturns, businesses must manage their costs effectively to remain profitable. This can involve a range of strategies, including reducing overhead costs, renegotiating contracts with suppliers, and outsourcing non-core functions. Additionally, businesses can consider implementing lean manufacturing principles to reduce waste and improve efficiency.

Another critical cost management strategy is prioritizing investments that will impact the business the most. This can involve investing in recent technologies to improve efficiency and reduce costs or marketing and sales initiatives to drive revenue growth.

Sales Growth Strategies for Economic Downturns

In addition to cost management strategies, businesses must focus on driving sales growth during economic downturns. This can involve various methods, including diversifying the product or service offering, expanding into new markets, and investing in marketing and sales initiatives.

One effective sales growth strategy is to focus on customer retention. Businesses can improve customer loyalty and drive repeat business by providing exceptional customer service and building strong relationships with existing customers. Additionally, companies can consider offering discounts or promotions to incentivize customers to continue doing business with them.

The Role of Technology in Strategic Management during Economic Downturns

Technology plays an increasingly significant role in strategic management during economic downturns. By leveraging recent technologies such as artificial intelligence, machine learning, and data analytics, businesses can gain insights into emerging trends and opportunities and make more informed decisions about resource allocation and strategic priorities.

Additionally, technology can help businesses streamline their operations and reduce costs. For example, companies can implement cloud-based software solutions to manage their finances, HR, and other functions, reducing the need for expensive on-premises infrastructure. They can also use automation tools to streamline repetitive tasks and improve efficiency.

Challenges in Implementing Strategic Management during Economic Downturns

Implementing strategic management during economic downturns can be challenging, as businesses may face various obstacles and constraints. These can include limited resources, resistance to change, and a lack of buy-in from key stakeholders.

To overcome these challenges, businesses must be willing to adapt and be flexible. They must also be willing to take risks and make bold decisions, even in the face of uncertainty. By focusing on the most essential areas of the business and prioritizing their resources, companies can overcome these challenges and emerge stronger on the other side.

Conclusion – The Benefits of Strategic Management during Economic Downturns

In conclusion, strategic management is critical to surviving economic downturns. By developing a solid plan focusing on cost management and sales growth, businesses can mitigate the impact of economic downturns and emerge stronger on the other side. Additionally, by investing in their employees and leveraging recent technologies, companies can create a continuous improvement and growth culture that will help them succeed in any economic environment.

16 May 202316 May 2023

Succession Planning 2

Succession Planning -2

Businesses of all sizes and within all industries often suffer from poor planning. Therefore, succession planning for ownership and management is a critical area that needs consideration.

IT IS THE RESPONSIBILITY OF EVERY BUSINESS OWNER TO PLAN FOR THE DAY WHEN THEY WILL NO LONGER BE INVOLVED IN THEIR BUSINESS ON A FULL-TIME BASIS.

Often, we hear of small to medium-sized businesses built primarily on the drive and enthusiasm of a critical individual, only to falter when that person is no longer there. Similarly, larger public companies can experience great turmoil if their management and ownership criteria are not clearly defined and allowed to develop correctly.

We are not simply talking about small businesses or personal financial planning within succession planning. We are looking for a company to be planning for its future success – and for that success to be facilitated by a transfer of ownership and management responsibility to successors who are ready and prepared for the duties involved.

CONSIDER THESE QUESTIONS TO HELP YOU WITH SUCCESSION PLANNING:

Does anyone else really want this business (or position)?

Succession planning requires you to be quite honest with yourself as to just what style of business you have, whether it has value to outsiders, and whether it can be made more valuable. Much of your other work without addressing this question may be pointless.

Can the business survive without me?

One of the keys to good management is to enable a business or position to operate without you. Here we are talking about the functions and processes that you or the company might undertake, not necessarily the visions and ideas that you might have.

To facilitate your business operating without you, you will need to consider business and operation plans, financial factors, staff selection and assessment procedures, training, the systematisation of processes and the maintenance of a management environment that encourages others to participate within the business.

Are there clear lines of separation between ownership and management?

While one individual might happen to be both the owner and CEO of a business, there is no reason why that needs to continue. Instead, you should identify the roles required of the owners and managers of the company and deal with each of those.

In terms of looking at succession, three general questions should be asked for both ownership and management. They are:

Who, When and How?

– Who is the appropriate or proper person to take over your responsibilities?

– When is the appropriate time for them to assume those responsibilities?

– And how will that change-over be implemented?

Are your business structures appropriate to allow for change?

Start considering the legal structures within which you operate. For example, are the business assets adequately located in eligible entities to allow for future changes between ownership and management of the business? What operating systems can be changed to facilitate succession? What arrangements can be made with partners and fellow shareholders to protect them without jeopardising your interests? Are your business partners prepared for the changes involved?

Have you planned personally for a change in role?

Very often, successful business people cannot fully let go and have no arrangements to occupy themselves once they step back from complete business activities. This is often one of the critical causes of the failure of succession – the old management group fails to let go.

Have you adequately planned for your own retirement and lifestyle needs?

This involves consideration of financial requirements and investment decisions. These matters cannot be fixed with short notice. Instead, they require you to consider what action you can take to make the future more controllable.

Have you adequately allowed your family’s needs through retirement and estate planning?

Consider the disposition of assets under your Will. Your family should know how the business works and how your investments are held. When major family businesses are involved, proper wealth creation and estate planning techniques must be considered so different assets can be left to other family members without jeopardising the company.

Are you prepared to do something now?

The longer you have to implement different strategies, the more likely you will be comfortable with the results.

While succession planning is usually not an urgent issue facing a company, it is essential. The longer an owner or CEO waits to begin the planning process, the more acute the problem becomes.

12 May 20239 May 2023

Four Tips to Build Your Organisation’s Resilience

Four Tips to Build Your Organisation's Resilience

In today’s world, businesses are operating under constant uncertainty. We see it with the rise of digital disruption, cyberattacks, inflation and fake news, many forces that can hurt a company anytime.

This unrelenting uncertainty has created an environment where resilience is now more important than ever before. That’s because as a company’s resilience decreases, so does its ability to adapt and succeed in this new digital world.

Every business must understand the importance of building resilience in their organisation. Following these four tips will help you do just that:

Build an evidence-based culture.

First and foremost, you need an evidence-based culture. This means from top to bottom; you have an organisational framework based on facts and data. At the individual level, employees need the confidence to act on what they see, feel, and know has worked for other companies and individuals. You can’t teach people to be resilient if they don’t trust the system or themselves. Managers, too, can’t be resilient if they don’t have a solid foundation based on data. Managers need to know what’s expected of their people and why it’s essential to the organisation. They also need confidence in the ability of their team members to respond to these expectations.

Build a transparent organisation.

Business leaders and managers can’t be resilient without being open with their people. Transparency and accountability are at the heart of resilience. In a resilient organisation, information must be shared widely and often. Transparency fosters accountability and, in turn, helps people feel free to take responsibility for their actions. Managers aren’t resilient if they don’t trust their staff to do the right thing—even if it’s uncomfortable. Transparency is vital because it allows teams to work through issues, identify solutions, and find creative solutions that might not be on the grid.

Continual learning and improvement

Resilience depends on the ability to learn from mistakes and experiences. Leaders and managers must be willing to improve themselves and their organisations continually. This means being open to feedback, adapting your approach based on your learning, and innovating to stay ahead of changing markets. It also means building a culture where people feel comfortable identifying and addressing weaknesses in their skills and abilities.

Create shared values and transparency.

In a resilient organisation, people understand what “good” is and what behaviours are expected of them. That starts with creating a clear set of values reflected in your organisational structure, processes, and culture. Resilient organisations also have shared values that cover a broad range of subjects, including ethics, honesty, respect, and trust. Shared values make employees feel safe in their working environment and inspire them to do their best work every day.

Bottom line

Business leaders, managers, and executives can’t be resilient unless they show their people the way. They need to be visible and open to the needs of their staff, which includes communicating expectations, delivering training, and taking time for one-on-one conversations. Resilient leaders also look for opportunities to get out of their offices and into the field with employees. Handling these small steps can lead to significant benefits because people get to know their leaders and managers well enough to trust them when they need help.

The best way to stay resilient in business is to plan for overcoming difficult times. This means having a game plan for when things go awry. It also means having a plan for growth and development. You may find that it helps to create a resilience formula that you can use to measure and boost your resilience levels. Whether you use a procedure or a more informal method, these tips will help you keep your company resilient.

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