Focus on what really matters

What is the issue?

Through a downturn, businesses must ensure their customers remain their number one priority. Those that support their customers through these challenging times will gain respect and benefit from mutual advantages.

This is a good time for businesses to consider which of its customers, products and channels are the most profitable. These volumes will be critical to driving the business through the economic turmoil and, ultimately, making it sustainable.

In contrast, investments in new customers and products tend to be expensive in the short to medium term, and businesses may find it best to limit these activities. Essential customer and product expenditure is important but businesses should be wary of engaging in this to the detriment of the underlying core of their business.

To be successful, businesses need to focus on what really matters and not on customers who may be gone tomorrow.

This is also a good time for businesses to consider the investments they are making – are there projects that could be deferred until the economic landscape becomes clearer? More fundamentally, businesses should consider whether there are plans for projects which are no longer relevant or critical to the business and could be stopped or delayed. Tough decisions may need to be taken to successfully manage businesses through this downturn.

What questions should I ask myself?

• Which customers have declining orders and how can I mitigate against this?
• Which products/new product development really matter to my profitability?
• How can I build more volume through my profitable channels to market?
• Which investment programs are critical to surviving the downturn and which can wait?
• If I must focus on the core, which products, customers and channels should I focus on?
• Am I really having a hard look at the projects we are undertaking or about to undertake? Are they critical to the business? Can they be scrapped or at least delayed?
• Am I really focusing on what really matters?