Using Uncertainty to Drive Change by Dan Feely, TSI – Managing Partner
As we enter the third quarter of 2023, the global economic outlook is less promising than we would like. Like many of you, we at TSI are just as frustrated that we are facing the threat of yet another economic recession which will be followed by slower economic growth. Global growth is expected to slow from 3% to 1.7% due to rising inflation and higher interest rates (https://www.worldbank.org/en/news/press-release/2023/01/10/global-economic-prospects ). The Federal Reserve is expected to continue to adjust interest rates, while there is more volatility expected in the banking sector. Further, global growth will not likely return to pre-pandemic levels until well after 2024.
The current conditions and those we experienced during the Covid-19 Pandemic have, in some ways, facilitated our analysis of the status quo so we can question the validity of the strategies and tactics that have seemingly worked for years. Or is there a responsible way to use this opportunity to improve, or clean up, some practices within your organization?
At TSI, we have an opportunity to participate on several boards, participate in focus groups and surveys and analyze improvement opportunities with our clients. In this whitepaper, we list a number of pragmatic opportunities that have been discussed in recent weeks. Many of these relate to the questions above. As you will read, some of the experts that TSI greatly respects suggest taking a slight contrarian approach and using this turmoil as a burning platform to drive needed organizational changes. Simply put, do not waste a disaster by failing to drive requisite change throughout your organization.
Based on our research, consulting practice, and discussions with experts, shared below are the changes we are seeing our most forward-thinking organizations consider throughout 2023.
DRIVE REVENUE – Now is the time to have a sense of urgency and move the opportunities that have been lingering in the pipeline to a closed/won status. Next, look for ways to expand the presence you have with existing clients, with the mindset that there may be more bumps in the road ahead.
REDUCE OPEX – Nearly every organization we see has unused or duplicate applications that are being paid for and are not used or can be replaced by another. Now is the time to prune the application inventory and save the unnecessary OPEX.
PROVE YOUR LOYALTY – Your most important employees, vendors and customers need to know you are “in it for the long haul.” Utilize tailor communications strategies and tactics to reconnect with them and let them know you will be there for them.
MITIGATE RISK – What does your AR aging report look like? Is it time to take action NOW on that AR that is 90+ days old? Yes, it is and now is the time to get moving on these old accounts.
FINISH WHAT YOU START – what is your organization’s ratio of started projects to finished projects? Chances are it mirrors my ratio of started home improvement projects to finished ones. Now is the time to implement demonstrable change, not just start another improvement project that loses steam part of the way through. Pick something small, visible, and achievable within 30 days. Give key project members some time to get the work done, then provide them with the other resources they need.
ELIMINATE unnecessary business practices – how essential are those four spreadsheets that your previous VP-Sales required from you before you implemented SF.com? How about the redundant data entry you consistently perform between that legacy system and Oracle? Arguably, there is no better time than now to scrutinize the work being performed relative to the end results your organization needs to achieve in 2023.
UPGRADE talent – at the risk of stating the obvious, the volume of talented, motivated professionals seeking to work with a stable, thriving organization is increasing. Slowly, we are turning back towards a hiring manager’s market. Take advantage of the surplus in talent by attracting and hiring key personnel to help move your organization ahead in the top 2-3 underperforming areas of your organization.
EVALUATE your Real Estate needs – Do you have a lease coming up for renewal? Can you proactively begin the renegotiation process, as real estate values have fallen, and occupancy rates are very low? Organizations that do have the capital are starting to look at acquiring properties versus leasing as the lease versus buy dynamics have changed significantly.
In summary, when you consider recent events that dramatically alter our view of normalcy and reality – events like the Covid-19 pandemic, current extreme market volatility, the constant worry of another recession, and threats to our investment strategies, many of our long-standing paradigms are no longer valid. Yet many organizations and individuals have not fundamentally evaluated how they operate. So, regardless of whether you require an “outsider” to assist you, we would suggest that now is the right time for your organization to do that!
Click these links to learn more about TSI’s services, TSI’s experienced consulting team, and how they can help your organization plan for, work around, and thrive in the face of market volatility.
