|You’ve lived through the big losses lately: 8 weeks and counting of quarantine; many millions unemployed; and ongoing anxiety about controlling the coronavirus. You could go on.
What good comes from going on that way? You can, instead, decide to move forward.
The way I see it, there are some significant gains to be made because of the coronavirus pandemic.
Private business owners and chief executives have absorbed the sudden shock to the system and their companies. Now, 8 weeks in, it’s clear that life as we knew it has changed for the long term. It’s not unlike the permanent changes following the terrorist attacks of Sept. 11, 2001. An unknown threat descended upon us and shortly after there began a build up of permanent anti-terrorist measures that are now routine. We are in a period of creating responses to the coronavirus threat that will seem strange at first and then will become routine.
The companies that adjust for the long-term will rebound and grow over the coming years. They will look for the gains that can be had. It’s up to you to choose permanent responses that will create growth.
Five Opportunities for Growth
We’ve identified five permanent changes that produce long term gains. We are working with private services companies to develop all of these.
- Redefine the work environment permanently. What goals are met by the configuration of your company’s work environment? What permanent changes will support those (or new) goals?
- Redefine productivity. You have such an enormous opportunity now! Far too often productivity in services firms is measured by hours worked. The old saying “time is money” permeates the culture; for example by the pressure to have billable phones calls while driving, to taking red-eye flights so as not to miss a billable hour during the day. Now is the time to permanently measure productivity in terms of outputs. How many services were delivered to paying customers and clients? How many solutions were created and implemented? How much time was saved.
- Redefine your value proposition. Redefine your value proposition to emphasize value as perceived by the buyer. Then charge for value instead of time or costs. You’ll then create higher value offerings because you know you’ll get compensated for that higher value. Higher value, higher prices, higher profits.
- Redefine your HR policies and procedures. If the work environment, productivity, and value proposition have changed, your HR policies must reflect those changes. A largely remote workforce and a company that sells outputs and value needs HR policies that support those changes. These are permanent and HR needs permanent changes too.
- Redefine your financials and reports. Your financials and reports will need to reflect the changes in your work environment, your productivity measures, your value proposition, and your HR policies.
- Profit and Loss: Immediately revise your current year’s pro forma P&L. The company reflected in the pre-pandemic financials is not coming back.
- The first year will be hard because so much is unknown. Your CPA and/or CFO should use their best information, informed by their expertise. Schedule monthly reviews and keep track of variances as you get current data. Do not be afraid of this. It will be your foundational blueprint for the future.
- Cash flow reports: This report gives you the critical information you need to evaluate all the changes you’ve made and those you are contemplating. Since the cash flow statement reflects timing of both cash coming and cash going out, you‘ll want to review it weekly if not daily. The more you know the more you can respond and the better your responses.
- Flash reports: Flash reports can report on any specific data you deem necessary for analysis and decision-making. You could track productivity as you’ve redefined it. You can track sales closed; customer service requests and remediations; or the development of new products and services.
Be the Leader in Your Field
There’s a lot of external uncertainty and there is a lot that is in your control! You can take immediate steps to create permanent changes to your work environment, productivity, value proposition, HR policies, and financials. While others are focusing on compensating for losses, your company can be focusing on growth. Isn’t that the place you want to be?
Twenty-One Years Making Permanent Changes
Trivers Consulting Group has been through the ups and downs of the past 21 years, including the aftermath of 9/11 and the impacts of the great recession. We’ve worked with our clients to come out stronger from those periods as well. We know what this current situation calls for and are ready to share that with your private services company. If you wonder how you can get our support, take a look at our Services/Options page. A call is always welcomed. 703-801-0345.