In South Africa we face many socio-economic challenges.
As important is how we respond to a rapidly changing world where some experts are predicting that two thirds of the top 500 U.S. companies will be out of business in twenty years.
Address these 6 action plan items now
1. Long Term Strategy
It is vital that you have a sound long-term strategy in place. If you don’t know what you are aiming for, it is going to be extremely difficult to make successful adjustments.
2. Be Outward Looking
Keep close contact with customers and suppliers. Know what your competitors are doing and keep track of overseas trends. The sooner you know of potential threats, the better placed you are to react.
3. Align Risk Strategy
In disruptive times, risks increase. A fundamental risk all businesses face is reputational risk – see below under communications. In addition, needing to respond quickly to events inevitably involves heightened risk. Ensure you have appropriate risk parameters – for example, set management incentives based on your appetite for risk.
This is two-fold:
5. Human Resources
It will be difficult to swiftly change strategy without an empowered staff. They need to be confident and motivated so they can communicate effectively and execute any changes to strategy. Key staff positions should be filled with people who have the talent to innovate.
6. Organisational Capacity
The business needs to be flexible and agile in its business processes so that changes to strategy can be rapidly rolled out.
2016 and future years are going to be demanding. Make sure your business is equipped to handle this environment. Speak to your external accountant who will be seeing many organisations and will almost certainly be able to help you.