We are experiencing a global economic surge due in many ways to the pent-up demand from the pandemic. Most businesses are in “recalibration” mode. The US consumer is driving this economic boom and no matter what business you are in, you need to consider changes to your business model and approach to capitalize on this economic recovery.
The good news is that US companies, large and small, quickly took steps to reduce costs to keep ahead of the impact from the pandemic. As discussed in previous AlbuonStrategy publications, restoring top line growth and bottom-line profits, particularly in this unprecedented economic environment, is more important than ever.
Business recalibration requires a disciplined, no-nonsense approach that will drive change and reset your business model. Consider these three essential steps
- Validate Your Value Proposition – Is your “way to play” still relevant? Assess the new industry conditions and reevaluate your current capabilities. What changes to your business model should you consider to create value for your customers? Make sure the changes you make to your business model will maintain or enhance your competitive advantage and that these changes leverage your strengths to make your recalibration more feasible.
- Forget The Past Selectively – This is not a new idea, but often one of the most difficult concepts for business owners to embrace. The concept is simple—there are some parts of your business that you should probably consider exiting. Mature, stagnant products and services draw resources away from new and growing opportunities. Apply “Strategic Thinking” to dive into the heart of the business to find, redefine, and commit resources to the most promising growth opportunities now and into the future. Make the tough choices by abandoning the past selectively.
- Don’t Expect Perfection – It is an uncertain global market and predicting the future is more difficult than ever. This is where our strategic management framework plays such an important role. There are four parts to successfully beating the odds in this changing world: get a strategic plan in place; translate the strategy to action: monitor and refresh the strategy regularly; and manage resistance to change, which can have a material negative impact on achieving the results you want.
The economic recovery is providing business owners and CEOs an opportunity to thrive. Are you ready to recalibrate your business to maximize your growth opportunities? We welcome your comments and questions. Please share this article with friends and associates as you see fit.
“I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.” Jimmy Dean
Dick Albu is the founder and president of Albu consulting LLC, a strategy management consulting firm focused on engaging and energizing leadership teams of middle market private and family businesses. With offices in Stamford, CT, the firm is dedicated to helping its clients formulate robust business strategies and follow through on execution of key strategic initiatives. Dick Albu can be reached at 203-355-3784 or RAlbu@albuconsulting.com. Rob Krist, Managing Director can be reached at RKrist@albuconsulting.com. Please visit Albu Consulting’s website for more information at www.albuconsulting.com.