Feeds:
Posts
Comments

Posts Tagged ‘Business plan’

Norman Marks, VP of SAP, considers himself an evangelist for better run business. He is a practitioner and thought leader in internal audit, risk management, compliance and ethics, and has led large and small internal audit departments, been a Chief Risk Officer and Chief Compliance Officer, and managed IT Security and governance functions. The following article was written by Mr. Marks and was published in Sustainable Business Forum (click on this link to read more).

Related articles

Read Full Post »

Four Emerging Trends in Corporate Social Responsibility, published by TriplePundit, bringing you the latest thinking on CSR, social media, and more. Written by Alison Monahan who is a web developer, turned lawyer, turned entrepreneur. She runs The Girl’s Guide to Law School and co-founded the Law School Toolbox.

New Media and CSR: Communicating Corporate Good, moderated by TriplePundit’s very own Nick Aster, identified four major emerging trends in Corporate Social Responsibility in a free-wheeling discussion between:

It’s CSR 2.0 — rife with risks but full of opportunities.

Here’s the bottom line: Four Emerging Trends in Corporate Social Responsibility

Key notes:

  • Your brand is decreasingly under your control
  • Transparency is terrifying, but authenticity is the reward
  • CSR is a business imperative

Read Full Post »

Here are the 10 key issues that typically lead a CEO or business owner to decide to exit the business, usually through a sale, at less than desirable financial results.

•    The company is overly dependent on short-term debt. No cash reserves have been established to meet short-term cash situations. Also, cash shortages preclude funding essential business growth strategies. Serious cash needs can cause short-sighted actions.
•    Management structure is too thin. The CEO is so tied to the business that there are no resources for the CEO to share management responsibilities. Thus decision-making, sales, marketing, operations and growth are restricted to the CEO’s abilities and available time.
•    There is no succession planning. There is no training and grooming of a potential trusted successor. And, there is no active plan or resources to recruit from the outside if an internal candidate is not available.
•    Managers have no “ownership” in the business. Senior managers are vulnerable to outside offers when they have no real economic ties to the business. Equity incentives or bonus plans can support vested interest in business performance or solid, committed succession.
•    A specific business strategy is lacking. There is no strategic business plan to focus resources effectively toward goals and to increase profits. This is critical and rarely done consistently in small business today.
•    The CEO dies or is disabled. Being prepared for the calamities that can ruin a business is a responsibility a lot of business owners do not take seriously enough. Insufficient financial and management preparation for the death or disability of the CEO can create chaos for those left to sort out the issues.
•    There is disproportionate risk through personal guarantees. Because of personal financial guarantees required for the business, a major crisis could ruin the business owner. Overlooked are the opportunities to share the responsibility and liabilities of the business.
•    Family and other ownership issues exist. Family succession, majority shareholder issues including divorce, the death or departure of a shareholder, or even conflict between shareholders often precipitate non-economic exit decisions. More often than not, decisions are made with more emotion than reason. The opportunity most often neglected is to engage a business advisor to assist in sorting out the varied interests and prepare viable alternatives in advance.
•    The business is no longer enjoyable or CEO fatigue sets in. Many CEOs and business owners reach a point where they no longer wish to endure the pressures of the business. They have lost their enthusiasm and commitment. This condition is not only an impediment to growth, it often creates a lull that puts the business in a vulnerable position. An interim, part-time CEO/business advisor may be the alternative that works best outside of a sale of the
business.
•    The assets of the CEO or business owner are unbalanced. Most personal assets are in the value of the business. Little independent retirement savings have been established for the CEO/major shareholders in the event of a business downturn. In the absence of a strategic exit, the sale of the business is required as a retirement alternative.

Source: CEO Advisor Blog, This entry was posted on October 6, 2010. You can follow any responses to this entry through the RSS 2.0 feed. Retrieved: 30 November 2010

Source: Jarvis Business Solutions, LLC, © 2011, For services: www.JarvisBusinessSolutions.com

Read Full Post »

Date Line: 28 February 09

Change Now and Reap Rewards – Part 1 of 3

PRINCIPLE’S NOTE: In today’s business climate, the emphasis is on survival. Change is sourced from internal innovation, processes and procedures or from external influencers such as interest rates, competition or limited resources. As a leader, you have lemons in your enterprise and you need to make lemonade from them. In other words, you have an opportunity to take the next step in optimizing your organization and produce tangible rewards. JBS provides transformation solutions for business, IT and government arenas, from concept to reality, through people, ideas and technology.

Note that additional collateral is available for free download from the web site. Please feel free to pass along this information, to colleagues, you feel could benefit from our services and solutions. We also have over 50 free links of specialized web sites that provide policy direction from think tanks, sustainability issues, US and international initiatives, and various out-of-the-box thinking. Please browse these repositories and feel free to bookmark those of importance.

In today’s climate, very few news stories provide the consumer good information as to how one can act to minimize expenses and adapt their lifestyle. I believe we have choices, we are not helpless and we need to share information in order to evaluate our own personal needs and be proactive and adapt to our changing economic environment.

Part 1: The Approach During a Recession
Especially in today’s business environment, adaptability is a key characteristic of any successful business. That adaptability is also a reflection of the leadership of the company to be flexible during difficult times.

“In my view, adaptability is about managing your portfolio of businesses effectively, scanning the horizon for opportunities that may arise, and making decisions on a continuous basis about which of your businesses is best suited for carrying out a given activity.”
Source: Ralph Norris, CEO, Commonwealth Bank of Australia

External recession strategies for business: Simply think strategically, but execute tactically and adjust to the government, market and industry signals. Now is the perfect time to consider when that adaptability injects change it then can create opportunities for improvement, efficiency and productivity by refining your strategic thinking. Consider these external strategies:

1. Work with your investors [bankers, VCs, family, etc.] and share your recession strategies. Look for their endorsement and elicit their suggestions. Recognize that their buy-in may provide a bridge for future funds.

2. Investment and acquisition opportunities are more prevalent in a recession. Competitors may want to shed portfolios or product lines that would enhance and boost your core business.

3. Find out what are key satisfiers for your customers. Go out meet with your key customers, send out surveys, build relationships that provide insight.

4. What are existing competitive substitutions for your products and services? What are the startups that provide new approach that is faster, better, cheaper?

5. Look for business values that refine your product and service value. Look across industries where more value for less is apparent. Copy their success, but don’t sacrifice yours.

6. Look for alternatives to enhance your product or service lines by providing cheaper, less complex solutions.

7. Create new opportunities through networking your partners, suppliers, competitors and investors.

8. Go beyond the contract and handshake. Go beyond what you promise, build relationships and beat out the competition.

Internal recession strategies for business: Don’t be myopic and overlook opportunities internally. This is a time to pursue internal transformations, as well. Also, some of these seem they should be external points, but the defining characteristic is that those points originate within the company culture and internal mindset. Here are internal strategies to consider and promote sustainability:

1. Every customer is a diamond in the rough, potentially precious. Take GOOD care of each of them, especially the repeat customer.

2. Reevaluate your entire pricing structure. Maintain your margins by market testing increase or decrease pricing strategies.

3. Don’t rely solely on the web. Be proactive and meet the people loyal to your products and services.

4. Evaluate your core business needs. Assess and increase its value. Don’t loose your focus.

5. Managing resources are important and employees are usually the key resource often overlooked. Keep your employees in the communication loop regarding change and how the change process will be implemented.

6. Know your strategic value to the market. Do you provide products and services on cost, quality, flexibility, service timeliness, partner relationship or other areas?

7. A recession is an opportunity to increase the quality of your human resources. Hire quality people for open requirements. Be methodical. Take you time in assessing the candidates. Make the best decision for your company. Remember, change can be a catalyst to improve your organization and morale.

8. Refinement and prototyping extend your knowledge on how your business can be improved. During a recession, your efforts can quickly pay-off when the market opens up, when cost reductions are replaced with productivity, or when new product or service introductions have been postponed to take advantage of the uptick.

9. Cash flow is the heart beat of your company. Monitor it. Keep you accounts receivable, timely, current and limit bad debts.

10. Cost reduction is important in a recession, but understand the consequences. Know where to reduce. Look for efficiencies in processes. Increase your productivity through reduced costs, but recognize the downsides.

11. Look for strategic investments for they may get a price break during a recession. Focus on new processes, equipment or technology that produces efficiencies, productivity, quality and cost reduction. More importantly, recognize the project implementation’s lead-time and plan accordingly. Don’t rush into a quick fix or cause stress your organization cannot handle.

Next Blog: Let’s focus on your customer’s perspective. They are key to your survival and success. Survivability, in part, is due to your market presence and the value your products and services provide to your customer.

Source: Jarvis Business Solutions, LLC, © 2009, For services: http://www.jarvisbusinesssolutions.com

Read Full Post »

%d bloggers like this: