What are today’s companies doing to attack the marketplace?
My clients are taking action in a number of ways. Gaining market share is one focus. Taking customers and clients away from the competition will help them get that natural lift when the market does return. Businesses shouldn’t expect huge revenue growth from this activity, but having more clients in their stable — in addition to clients currently on their books — will enable companies to enjoy a higher sales level when the economy rebounds.
Another strategy companies are employing is geographic expansion. Businesses take their current product set and go further from home to do business. In addition, some companies are expanding what they do for their existing client base by offering new services or products.
How are businesses succeeding with a leaner infrastructure?
One common theme I have seen is that businesses are taking this opportunity to improve the talent level of their current teams. If they had 10 employees and felt that they needed to eliminate three employees, they may have cut five instead and then hired two really top-notch new people.
Companies have really tried to upgrade their talent. They’re not just cutting people; they are looking at their whole work force and deciding who the best contributors are — and retaining those employees. Then they are actively searching for and finding people who can be top contributors to replace the capacity of those let go.
Business owners struggle with this issue because they sometimes find themselves in a position where they’ve had to let longtime employees go. Because those employees weren’t contributing, executives have had to make those tough decisions and hire someone that will be a more productive member of the team.
In addition, those companies that are in a position to make acquisitions are starting to gear up to do so. Much of the debt reduction they have made has been in an effort to invest in new products, new service offerings and gaining market share; however, some of the debt reduction was accomplished to make acquisitions when certain companies become available. There is a growing optimism among my clients, which has encouraged them to look for ways to thrive instead of just survive in today’s economy.
How can a company develop its own plan to thrive?
Business owners should challenge themselves to mentally make the shift. Learn how to thrive in a flat market, which means not being satisfied with ‘flat.’ Figure out how to grow. Make sure you’ve cut as much out of the organization as you can, and institutionalize those cuts by re-engineering all of the work processes to make those cuts sustainable, while still delivering on time.
Nicholas Browning is president and CEO of FirstMerit Bank’s Akron region. Reach him at [email protected] or (330) 384-7807.
