To surf the wave, the important thing is the balance
Taking care of each other, adapting quickly, ensuring the sustainability of the business and building the future.
To achieve this balance,
The Leader’s Agenda Must Secure the Economic and Financial Livelihood of the Business
1. ENHANCING INCOME RETENTION AND REGENERATION.
Securing revenue is the starting point for business sustainability. This means taking steps to retain and regenerate revenue by applying operational efficiencies, reducing leakage points and ensuring that revenue is generated.
To achieve a great impact in the commercial management cycle, it is required the development of Programs that ensure the standardization of products/services and the adequate application of discounts and promotions, avoiding potential losses. Additionally, the activation, acceleration and recovery management of collections are key actions to ensure that revenues are maximized and occur in a timely manner.
2. MANAGING THE CASH FLOW ON A DAILY BASIS AND TAKING CARE OF THE CASH BOX AS MUCH AS POSSIBLE.
The optimization of collection and payment cycles, as well as the development and improvement of analytical models for cash flow projection, are the main tools for extreme care of the cashbox.
In periods of economic and financial contraction, when priorities for the care and liquidity of economic resources are at their highest, adequate cash flow management makes the difference between achieving business sustainability or not.
3. RETHINKING THE ZERO BUSINESS BASIS – ZBBusiness – ELIMINATING ALL NON-ESSENTIAL EXPENDITURE.
It is necessary to take a comprehensive look at the business, rethinking and reviewing every concept (Zero Based Business). This approach includes not only the already known methods of Zero Based Budget but also incorporates the redesign of the organization (Zero Based Organization) with a focus on structure, activities, skills, metrics and their dimensioning.
Some relevant levers to consider are: the revision and improved management of current contracts, the granularity and correct allocation of costs based on activities, the use of simulations to anticipate decision making, among others.
4. REORIENTING INVESTMENTS AND OPTIMIZING WORKING CAPITAL
There are contexts where it is necessary to question the investment portfolio and its alignment with new corporate strategies, analyzing degrees of progress and readjusting the original plans (savings vs. new setup vs. loss).
The optimization of stock levels, fixed assets and work make it possible to reduce the need for economic resources, improving the overall profitability of the business.
5. HYPER-ACCELERATING PROCESS TRANSFORMATION AND DIGITAL ADOPTION.
The new information technologies allow to leverage or generate competitive advantages, contributing to cost reduction, improvement in service levels and mitigation of operational risks.
An adequate digital adoption allows to improve the information flow, the synchronization and integration of processes, the collaboration between parties and the quick availability and reliability of information for a correct decision making.
Some of the main technologies that make these benefits viable are Robot Process Automation, Analytics for predictive models, Document image recognition, digital collection/payment means, etc.
6. PRESERVING THE RELATIONSHIP WITH COLLABORATORS AND STRATEGIC PARTNERS, AND ENSURING A POSITIVE IMPACT ON THE COMMUNITY
A comprehensive approach to ensure the sustainability of the business seeks not only the design of optimized operations that maximize economic profitability, but also must provide a positive impact on the preservation of the links with collaborators and strategic partners, in the community in general and the environment.
7. CREATING COMMITMENT, CULTURE OF OPTIMIZATION AND CONTINUOUS IMPROVEMENT.
It is essential to develop Optimization and Continuous Improvement Programs that allow to obtain the necessary commitment, responsibility and involvement from all the collaborators, aligning them towards the business results and the expected performance levels.
The Program management model must have structural actions implemented in an agile way to allow flexibility and refinement of the optimizations, and fast impact initiatives to capture results early, promoting a culture of evolution and continuous improvement.
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