Once again the squeeze is on as renewed inflation worries slow the economy's growth and many companies resort to believing that cost cutting is the best means to scramble back to profitability in an uncertain economy. The problem with this classic approach is that it sends the clear message to your brightest and best talent that no matter how well they perform, today there is no job security. Not only does such a move have a serious impact on morale, but as the economy improves we will find ourselves once again in a very tight labor market. It will be next to impossible to replace laid-off workers and worse yet, your current work force, especially those brightest and best, may well decide that it is time to move on to greener and possibly more secure pastures before the next downturn hits. Is there a better approach than cutting off your nose today and spite your face tomorrow? Absolutely!
The way for any organization to beat this cycle, especially in an economy that may well in this decade experience several see-saw periods of growth and contraction, is to adopt synergistic innovation as its model for continuous expansion despite short term economic declines. Most corporate leaders know that productivity increases provide the best way to increase profits quickly without increasing prices. What is less well understood is that continuous innovation is the most effective means to improving productivity over the long term. Internally generated innovation in products, services, processes and methods provides an endless series of new opportunities to make rapid productivity increases for both the organization and its customers an on-going reality.
Innovation channels the creativity of the organization's greatest asset, its people and puts it to work in practical ways that are "real world market" driven and directed. Far too often we immediately look outside of our organization for "new solutions", when instead we should rather be looking within, especially in times of economic downturn. New ventures and other outside opportunities, while potentially profitable for the long term future, typically take a significant period of time and frequently much additional capital to bring them to the point of being substantial profit contributors. Meanwhile opportunities often abound internally to enhance our market offerings, streamline our operations and save money through creative approaches and best of all, these capabilities exist today within the minds and hearts of our present employees. If we will endeavor to unlock these potent assets rather than choose the typical knee-jerk reactions of cost cutting and down-sizing as our first response, we will find our people willing and capable to respond in frequently unimagined ways to grow our productivity and profitability. Later, when the economy rebounds, we will not need to replace down-sized workers and will find we have built a deeper allegiance and sense of ownership within our people.
Once we have initiated a culture of innovation, then it is the primary responsibility of the leadership to ensure synergistic outcomes. The power of synergy, although simple in concept, is the most overlooked responsibility of today's senior executive corporate leaders. Large organizations are like campfires that periodically burn down until mainly embers remain. The initial fuel is mostly spent and therefore the first reaction is that we need new fuel, new resources, new investment, acquisitions, etc. to build the fire back up. Yet when out camping and the fire burns down, the first thing we do is stoke the existing fire and mound up the glowing embers. Almost immediately the flame erupts again without adding new fuel.
All we needed to do to go from dying embers to a raging campfire was to integrate the existing embers so that rather than each burning alone, they burned synergistically, combining their individual heat. So too, the careful integration of all of our products, services, processes and methodologies, in short, everything the organization is and does to achieve the greatest bang for the buck is no more than the organizational form of stoking the fire. Unlike adding new wood to the fire, the synergistic result of stoking is virtually immediate and without the need to invest capital in additional resources. Synergy is the ultimate multiplier, as it opens the door to exponential results again and again!
Copyright 2005 by John Di Frances
John Di Frances is an internationally recognized organizational legacy expert and keynote speaker. www.difrances.com
I'm convinced that asking the right questions is one of... Read More
Successful entrepreneurs have many traits in common. Here are ten... Read More
Many people have the professed desire to be their own... Read More
What's a niche?Dictionary.com provides a great, twofold definition:"A situation or... Read More
7 Financial Strategies for Transitioning from Salaried to SoloA 40's... Read More
Isn't enthusiasm a good thing? Aren't we urged to be... Read More
If that sounds like you, here's what you may be... Read More
Successful business owners and managers need to be very clear... Read More
Have you ever heard that only a small part (5%)... Read More
It's very important to get your business name right. You... Read More
When's the last time someone asked you: "What's new?" If... Read More
Living in the twilight zone has its advantages. In the... Read More
How you think, your relationship with yourself is what decides... Read More
What are the unique gifts that differentiate you from other... Read More
Dwight Payne and Gary Heap reside in Santa Barbara, CA,... Read More
All franchised companies must have Territory Limitations to maintain the... Read More
In "The Incredible Hulk", mild-mannered scientist Bruce Banner discovered that... Read More
Have you ever heard of an ultramarathon? A standard marathon... Read More
You should wait until you're older and have more business... Read More
Life as an entrepreneur is the American Dream. To be... Read More
Does A Franchise Meet Your Needs?When you think of becoming... Read More
Want to know why certain people succeed and others don't.... Read More
I love bargains. And there's no better place to find... Read More
Anyone who is serious about making some money is already... Read More
There are a whole range of reasons why customers buy... Read More
If you look up the definition of hero in Webster's,... Read More
When I got into business I wanted to build a... Read More
If you believe that every little bit helps then keep... Read More
Summary: Even with a wide variety of sources available, coming... Read More
If you want to grow your micro-business (defined as a... Read More
Entrepreneurs are a special breed of high achievers. They create... Read More
About 6 years ago I started to notice that certain... Read More
Venture capital firms are comprised of individual partners. These partners... Read More
All franchised companies must have Territory Limitations to maintain the... Read More
The most important function of a business plan is to... Read More
It never ceases to amaze me. Almost everyone peers into... Read More
I recently conducted a lil' survey asking my colleagues what... Read More
In "The Incredible Hulk", mild-mannered scientist Bruce Banner discovered that... Read More
Having built a business from a bucket of water and... Read More
1. Why should I not compete with others?The very concept... Read More
You should wait until you're older and have more business... Read More
Running a one-person business is a creative, flexible and challenging... Read More
More and more students, both in undergraduate and graduate institutions,... Read More
If that sounds like you, here's what you may be... Read More
It's important to understand when to add individuals to your... Read More
The latest series in "The Apprentice" features 2 distinct group... Read More
Franchise business is being part of a successfully proven business... Read More
A number of economic changes are magnifying the role of... Read More
Bootstrapping a business startup does not necessarily mean that you... Read More
EntrepreneurAn entrepreneur is a man who organizes and manages the... Read More
Business opportunities are often based on broad trends, such as:?... Read More
Not everyone is cut out to run a business. Not... Read More
Jim and Sally run a successful auto business, which they... Read More
Have you ever heard of an ultramarathon? A standard marathon... Read More
If you believe that every little bit helps then keep... Read More
Business plans continue to be an essential element of the... Read More
How long should a business plan be? A business plan... Read More
When it comes to a startup, the luxuries shared with... Read More
So you had that fantastic business idea, the one that's... Read More
I was reminded of my own mortality today. I guess... Read More
The long-term outlook for the Mobile Car Washing industry is... Read More
Start your own business, and soon enough, you find yourself... Read More
Isn't it funny how people think that being self-employed is... Read More
DON'T talk to me about education for entrepreneurs. They're pouring... Read More
Starting your own private label clothing company is not as... Read More
Q: I am interested in starting my own business. I... Read More
Entrepreneur |