There are many attributes to great leadership. Four of them include:
- Understanding the drivers of developing trends
- Setting the vision of the company
- Investing in the customer offer to drive revenue and customer retention
- Managing the cost base to preserve a respectable margin
Much has changed in the global markets over the past twelve months, and much continues to change. But whatever the general economic conditions, continuous investment in your customer offer and your people are both crucial to generating and maintaining a sustainable competitive advantage for your business.
All industries are dynamic; they all have changing trends and technology. Consequently leaders must hold themselves accountable to ensure they are getting the best strategic and creative solutions for these changes. Only by doing this will you continue to gain market share.
The other half of the profit equation is the operating cost.
Closely managing your cost base in line with projected revenue is essential at any stage of a company's life cycle. One must never fall into a comfort zone and allow the company to become FDH (fat, dumb and happy). But cutting costs simply to maintain a profit as opposed to increasing efficiency, usually ends in a poorer level of service or customer offering, reducing revenue and consequently a vicious downward spiral that can be difficult to break.
But there is no doubt that a company needs to make a profit. Profit generates cash flow, money to invest in the business, dividends to retain the confidence of the shareholders and therefore a healthier company. This is why "Never losing money" must be Rule #1, and Rule #2 must be"Not to forget Rule #1"!
Leading your company in troubled times is testing. When operating costs are under pressure leadership must try to embody all that is being asked from your staff; if you are asking your people to make sacrifices, then it is essential that you demonstrate a willingness to make similar sacrifices.
Perhaps the most important leadership attribute in these times is confidence. Confident leadership will continue to focus on the customer offer and the ongoing and future changes in the industry.
This will help ensure that your company leads the competition during the tough times and is fully prepared for the start of the eventual recovery.
For More Information Contact:
JHA Consult Inc
Sussex Centre, 50 Burnhamthorpe Rd. West, Mississauga, Ontario, L5B 3C2
Tel: +1 416 301 7279