KEY POINTS:
Katheren Leitner, director of TrainingPlus, gives tips on managing change in your business in today's volatile economic environment.
With markets tightening and wallets closing, how can cost-cutting be done effectively?
Reaching for quick fixes, such as returning the fancy coffee machine from the staffroom, can be like reaching for a bag of lollies when you're hungry - an instant hit that leaves you feeling ill and still hungry. Instead, look at all activities within your business: what
is costing you more than it is returning? Unprofitable products or services, under-performing staff, customers who cost more than they
return, ineffective purchasing, poor supplier contracts and distribution
channels eat into profit. Also, consider whether outsourcing is an option, whether business would decrease if you cut your advertising spend or whether well-planned training would reduce waste or improve
performance.
Should I be involving my staff and if so, to what extent?
Whether the person is a junior employee or a senior manager, people will
develop a stronger sense of ownership and desire to "see things right" if they are communicated to, listened to, feel appreciated and given the responsibility and autonomy to do their jobs.
Making changes is tough in the best of times, so what steps can we take to be more successful at it?
Support the need for change by communicating the benefits that will come
as a result so people recognise the value of buying in. Get quick wins
and communicate them to encourage people to keep going.
How can we reduce our exposure to a very volatile global environment?
As with any potential threat, by being prepared. What if a major customer collapses? How will you react if a competitor is taken out of the market? What if a contract is postponed or a pending order cancelled? What if key employees decide that moving to Australia is a
better option? We have little control over the global situation but we can control how we respond to it. Being too busy to plan now will be
costly in the long term.
Katheren Leitner is a change management facilitator for individuals,
corporates and state sector departments. Email: katheren@trainingplus.co.nz
