blog 5 creative
23/02/2017-12:48:20 PM

HOW TO MAINTAIN OPERATIONAL STABILITY AMIDST VOLATILITY?

Time based advantage can take the panic out of a manic Monday!

Situation

Why get alarmed about market mayhem when it has become a routine feature? Clients often make fun of the Business consultancy services in india stating that the consultants borrow their client’s watch to tell the time and charge a fee for doing so, and rightfully so. It is not as if the clients can’t tell time and the consultants are are stargazers. Enlightened consultants do know that windows for stable operations are far and few in between. Quite literally therefore, they urge their clients to make hay while the Sun shines. Moments of stability are brief in a volatile market. Hence timing is everything. Measurements drive behaviour. Good timing determines earnings when the market goes nose diving or the Rupee gets caught up on a tail spin.

Complexity

When a measure of daily cash surplus can serve as a true measure of the value added by the business, why would the clients continue to adopt outdated and unhelpful measures?

Challenge

The problem lies in holding on to erroneous assumptions. In an ascendent market with stable demand, it pays borrow more and sell on credit because money is cheap and bad debts are low. When the demand dries up and buyers are cash starved, it costs more to borrow and bad debts are a reality. Timely switch in trading policies can help reduce the ticket size of products to match the buyer power of loyal buyers with poor liquidity. Innovative executives rely flex the techniques of time management to score a larger number of quick wins than shoot for occasional blockbuster deals.

Question

How can busy executives time their decisions and generate daily cash surplus?

Symptoms:

Most top management teams allow problems to fester hoping that bad times, like dark clouds, would drift away leaving them unscathed. Junior management, oblivious to the cost of delays, would delegate their problems upwards and wait for decisions. Poor definition of accountability may render every one responsible meaning no one can  be held accountable. Either way the root cause may lie in the erroneous assumption that by doing nothing, one can avoid losses and survive by oneself. Consequently, by expecting someone to jump in and change and no one doing anything, everyone may be at risk!

Root cause

In the absence of an early warning alert system, people would await a formal instruction to act   and safely blame the top management for delaying their communication indefinitely.

Solution

The fortunes of the business consultancy services in india hinge on making a candid assessment and offer timely guidance on what the stakeholders should be expect to happen and brace themselves for consequences good and bad. Here is what the top team should ask themselves as they sit down to decide. Whether their decisions will:

  1. Take the sales revenue up?
  2. Improve the gross margins up.
  3. Take the operating expenses down.
  4. Take the inventory levels down.
  5. Take the receivable down and
  6. Take the payables up?

If the answer is a ‘yes’ to everyone of these questions, they are sure to bring home the cash flow in the short term and improve their retained earnings over a longer term.

EBQ : Why bleed in war when it is better to sweat in peace and stay battle ready?

CTA: Invest just 15 minutes day to learn the ‘tricks of trade.’ to get debt free, cash rich and risk savvy!