by Rick Baker
On Sep 18, 2013
Some businesses have slipped away into unprofitable territory.
Some businesses have taken a serious hit and are sinking.
Some business are doing OK, but/and face an opportunity to climb to the next level.
Some of these businesses will gain advantage under a turnaround; all of these businesses will gain advantage under a TurnAhead.
What's a TurnAhead?
The first step in a TurnAhead is getting control of Cashflow and tied to this, solidifying Gross Margin. With the 80/20 Rule in mind, what things have the greatest impact on Gross Margin - particularly, what Revenue pieces have the greatest impact on Gross Margin? Focus on those pieces. Solidify them. Expand them. Duplicate them.
This first step involves clear and accurate communication with the most-trusted people available in the organization. This means a series of simple questions followed by simple answers. Questions beyond simple ones are the wrong questions. Answers beyond simple ones are signals of confusion and unhelpful thinking.
The roots of big problems are simple roots.
The keys to big opportunities are simple keys.
The challenge you will always face is: simple does not mean evident or obvious...in foresight. Simple means simple in hindsight and, if you are really skilled, simple means common sense in real-time.
So, when you are working on a TurnAhead:
- concentrate on trusted people who think accurately,
- focus on Gross Margin and Cashflow,
- ask and repeat simple, clear questions, &
- act only on the simple, clear answers.