Improving financial planning and controls is among the critical actions that business owners and senior managers can implement to turbo-charge their productivity and profitability – especially as weakening business confidence sparks concerns that the UK economy could be on the verge of contracting.
In my vast experience as a business strategist and performance coach, making the transformation from a family-run culture, where long-term friendships are made and nurtured inside and outside of the business, to a more hard-edge culture, in which commerciality and delivering numbers is all pervasive, is a tough journey to undergo.
Going down this route demands mental toughness, discipline and perseverance. Once embarked on, there is no turning back. Before taking the plunge, I urge you to consider the following questions:
Have you got what it takes to carry this through?
- It will make the adage: ‘It’s lonely at the top’ more relevant than ever.
- It requires relentless testing and measuring.
- It demands being consistently tough – remember there’s no turning back.
What does this mean for you and your managers?
- Are they up to taking more responsibility and accountability?
- Do they have the mind set to be proactive rather than reactive?
- Are they willing to apply tough love more often to under-performers?
How will you use the improved financial information?
- Is the aim to make better operational and strategic decisions?
- Will you prepare more carefully considered plans?
- Will you implement better, tighter controls?
Once in place – can you sustain the following?
- Be more disciplined and hold your team to account?
- Release good friends who are holding the business back?
- Seek out and recruit top talent who could be more able than you?
- Step back and give up some control?
Committing to the above to make the often perceived contentious changes entails the following four- pronged attack which we’ll get to grips with in subsequent blogs:
- Planning the Future of the Business
- The People, Financial and Mental Preparation
- Changing Your Leadership Style
- Executing the Cultural Change Strategy
If you have any queries before we get the process under-way, e-mail me via firstname.lastname@example.org, go to @RichardWhatIf on Twitter, Richard Bosworth on LinkedIn or post on www.whatifforums.com.