3 Crucial Mistakes Companies Make In Slumps

With the economy is on its way back up, now is the time to evaluate how we’ve done, what mistakes were made and how to establish the foundation for the coming growth spurt.

Companies make mistakes. All the time. This is an undeniable reality and especially in an economically sluggish period, avoiding big errors is even more crucial. CEOs might react impulsively to appear as a decisive and courageous leader, but maybe paced approach be more beneficial in the long run.

To uphold a financially healthy organisation, CEOs need to avoid some key mistakes. And when it’s already too late, a strong course-correction is vital. Below are some of these important don’ts for CEOs.

  1. Quick hires
    Become confident of the people you work with: try them out as independent contractors before you give them a permanent contract. When there’s too much going on, making mistakes in the hiring process is easy.
  2. Wasting time on improfitable sales leads
    Form a disqualification process, allowing you to quicly get rid of prospective sales contacts that will most likely never purchase what you have to offer, nor have any intention to do so in the near future. Especially in an economic downfall, the focus should be on productive revenue opportunities.
  3. Skipping the Six-Month Plan
    It’s better to map out the next six months, and if a new project comes up, swap it out with one of equal complexity that is already on your plan.  Entrepreneurial CEOs can be excessive idea generators. With a six-month plan, you will have mapped out the projects for the immediate, foreseeable future and can skillfully avoid manic distractions with poor results. Consider the perils of one company, with the painful “strategy of the second” plan.  Each time its mercurial CEO returned from a conference, he’d have a new idea. Were they good ones? Often. But his already stretched staff had no spare energy. Since they had not learned to communicate clearly with one another, they would take on the new project, but all sorts of key tasks would (of course) get dropped or delayed, and no one was happy. Ultimately, you need a gatekeeper for the six-month plan if you want your company to run efficiently. This is someone who will ensure the new projects are either scheduled later or will replace existing project(s) of equal size. Someone who will constantly see the big picture, tackle the small details, and facilitate real results every step of the way is key.

We have all made mistakes in business. The point is to course-correct constantly. Spot a mistake and take action to correct it. What are you grappling with right now? What mistakes did I miss mentioning?

  1. No comments yet.
(will not be published)