Time for Spring Business Cleaning: What got it here won’t get it there

Global, regional, and country economic growth forecasts have been revised downwards over the past several months. Businesses have to brace themselves for an impending storm. In my first article, I shared ideas on re-energising the team. Now I turn my attention to the organisation. Organisations start with a great mission, management capabilities, and supporting business models. Over time, these accumulate sludge and also need retooling. Business leaders cannot regularly review the basics of their business - why and how the company started due to the fast-paced nature of business. This check-in is a valuable gift for any business. In the case of Delta Airlines, a crisis allowed them to examine their mission and values, management capabilities, and business model. This process led to a corporate revival.

Be mission-driven and make bold moves.
Leaders must have the courage to pursue the organisation's missions. The business may need more time to enter new markets as planned due to the challenges of the moment. However, there are other options besides shelving the company's overall mission. The crisis may be an opportunity to progress on other important metrics that leaders might have ignored. In some cases, expanding in existing and new markets is still possible. Motor racing legend Ayrton Senna once said, "You cannot overtake 15 cars in sunny weather…but you can when it's raining." Courage to take the proper steps after careful analysis of the situation, which takes into consideration the current harsh economic realities and tomorrow's prospects, is the only competitive advantage your organisation will have over others in the marketplace. You can spring-clean your organisation by taking these three actions.

Refresh corporate aspirations, spring clean the lighthouse:
Its mission and core values define every organisation. These give the organisation light even in the darkest night, hence the right place to start your organisation's spring cleaning. You have to clean up the lighthouse (the organisation's aspirations) so it shines brightly for all stakeholders to see no matter how far adrift at sea they may be. Leaders should support team members to renew their commitment to the organisation's mission. Doing this requires hosting deliberate conversations with teams. Nothing should stop leaders from discussing the organisation's purpose, except they must do this differently and bring their best energy. Needing inspiration in a time of crisis, a manufacturer of medical devices unusually approached the issue. The leaders invited patients who use their products and services to come in and share with staff how their products have transformed their lives. These engagements were very moving for the team. These engagements drove home the point that their work is meaningful and supports many families. The company's financial fortunes improved significantly due to a renewed sense of purpose. Helping teams find meaning in their work makes business sense.

A storm may create discomfort and low energy in organisations. However, vigour and energy are vital resources leaders must bring to their leadership every day, regardless of the weather, so start reminding people of the mission, why the organisation exists, and what makes it even more relevant in this time of crisis. These conversations can be the rallying cry needed for the organisation to surmount the challenges of today. Embracing the mission ameliorates the distress associated with the situation and enables teams to do more with what they have.

The organisation's values are also essential and require spring cleaning. However, leaders must do differently. Values are very personal and show up in what people do daily. Leaders must emphasise relevant behaviours and the culture that team members must develop to enable the organisation to go through this. What does integrity, customer first, etc., mean in current circumstances? Teams must be encouraged to reflect on how they can show up with these values at this critical moment. Regular conversations about the values driving the value in the organisation will change how team members create value in the organisation in a remarkable way. Leaders must lead by example on this.

Rebuild management capabilities, spring clean the software
Organisations cannot avoid investing today in capabilities that are needed tomorrow, even though the challenges of today weigh heavy on the mind. Every organisation can only continue to exist by renewing its capabilities. Sometimes, organisations undertake these changes when they are brought to their knees by competitor events. With a limited budget, you may not be able to undertake critical investments today, but you can always review the management capabilities in place for delivering on your mission. Management theory posits that management capabilities influence the implementation of strategies and the search for new options for growth and innovation in organisations. Leaders must create and utilise management capabilities consciously. Some of the capabilities developed some time ago may need retooling to make them more suitable in today's environment. For example, you can review the firm's meetings, decision-making, and information dissemination processes to ensure they generate the expected results without unintended consequences. Enhancing the organisation's diversity quotient, level of cooperation, and trust, acknowledged as critical elements of management capabilities, prevents groupthink and enables different perspectives and ideas to surface. These are the capabilities organisations need in today's challenging environment.

Reinvent the value creation process, spring clean the machine
The current economic crisis may have exposed flaws in your business model. You need to review your business model, reconfigure and make it fit for purpose and boldly explore new opportunities. A key supplier has shut down due to economic challenges, or the cost of a critical raw material has become prohibitive. Accepting the current situation's reality and its ineffectiveness, you can make way for the new. There is no need to hold on to a model that's broken. Cut your losses and explore new areas of opportunity using the organisation's management capabilities and other resources.

No one can guarantee that the next couple of months will be smooth. No matter what happens, you can fix internal talent issues, serve customers better, review the business model, and even pursue your growth aspirations. Leaders can follow the above actions in good and bad times. The vital skill is the flexibility to practice a balanced mix of strategic speed and slowing down to review the situation and then quickly accelerate the implementation of ideas and repeat the cycle. Research on corporate activity during the recent economic crisis confirms that organisations that adopted this approach were ahead of their competitors, who were slow in initiating and implementing ideas. Actions taken in the first few months of any crisis are critical to an effective and speedy recovery. Take the opportunity and act now.

Robert M. Bennin - (CFA, CPTD, FIoD)
Chief Learning Strategist, TEMPLE Advisory