Crisis and what it eats
Today we asked Alexey Shuvaev, Director of the company "Logicon" (formerly "DK-Expert") about his vision of the current economic situation and ways out of the prevailing conditions.
Today it is no secret that the scale systemic crisis hit as the global and Russian economy. If there are companies that are not yet directly felt its symptoms, it only means that they are at the far ends of the chain of relationships, of which woven economy. In this article we will not discuss the causes and even the dates of the beginning and the passing of the crisis, because the subject is a thankless and today economists predicting some time and perspective, more like astrologers than serious analysts. Too many factors, too many reasons, both political and economic.
Today, I would like to discuss more mundane topic, namely, how to react to economic conditions occurred as owners and managers of small and medium-sized businesses? After all, big business, one way or another, by restructuring or other means, with significant resources, the crisis will not disappear, many companies simply will not do, even for social reasons. And small and medium business, despite all the reassuring comments of the Government, is now under threat. Suffice it to recall that, in contrast to the central banks of all European countries that are trying to boost up their economies and reduce the refinancing rate, our the Central Bank for some strange reason, referring to some vague reasoning goes exactly the opposite. The refinancing rate is raised, it also drags along the increase of rates on all other loans. The competitiveness of Russian business falls.
For many companies today are already experiencing a shortage of working capital, lower sales volumes (I'm not talking about the production) and other unpleasant symptoms of the crisis. How to act in this situation? In my opinion, every manager or owner of the business today need to realize that in the foreseeable future will not be easier. Whatever optimists talked of the economy, often with slight idea of it, and the crisis of the system in a short time can not be overcome. External conditions have changed, as they say, the freebie is over, and successful business for today and tomorrow is the second kind of a non-trivial task, which have to solve each of the market participants.
And, in fact, reduced speed, the narrowing of many markets, reducing the overall level of consumption will inevitably lead to increased competition. If you have previously enabled the customer base without much effort (even the good and credits were available) to exist in some market niche 7-10 companies, today and tomorrow will fight for every customer, every transaction, every ruble of revenue. The least prepared for such a turn of events the company will go to the first market. The rest of the long lead positional struggle. In this situation, in addition, will capture large market players that having the resources, will be able to put the less developed competitors in such conditions that they will have no choice but to sell their assets to big business. In general, the usual market processes, only aggravated and accelerated by the crisis significantly. I believe that these ideas do not need to prove to anyone, they are obvious and lie on the surface.
My impression is that today in the heads of many companies come state of some confusion. That is, the awareness of the problem has already come, and awareness of the ways and timing to overcome yet. Select only the most banal and simple way - reducing costs. Let us urgently all proinventariziruem and maximum sekvestiruem! No doubt, the way to reduce costs in times of crisis is very important, but only use it one - is simply to defer (not very long) offensive problems. Of course, along with the reduction of costs, needed ways to increase business efficiency.
So, if you are the head of the enterprise, which is faced with a drop in demand for your products, you should consider the following: demand for your products has not disappeared, but has decreased the purchasing power of your customers. So, in the first place will go the price of goods - customers will be more sensitive to price and more thoroughly than before, make a choice of suppliers. Requirements for the quality of products or services, the delivery date or projects, after-sales service at the same time will also increase - in times of crisis clients find the money and think about the most effective. Nobody wants to wait for the delivery of goods paid for 1-2 months (at that condescending looked before) or wait weeks service repair equipment. Whoever understands this first, he will have made the first step towards the preservation of market positions. It is possible to compensate for the natural decline in demand overflow of clients from your competitors and even increase its volume.
In the hands of the head of each there is a certain set of resources, in terms that it controls the business. Set this common knowledge, from business to business varies in one direction or another, but all businesses have in common is the most notorious of those business processes that are essential to the functioning of the company. And if earlier, at the time, by today's standards, business can and should be developed in a extensive way, now that time has passed. In fact, earlier in the presence of low-cost loans it has been more profitable to invest in capital construction, acquisition of more and more new sites, expansion of the network, etc., in every business in their own way. And even under those conditions, when the work was primarily to increase the volume, if not in the first place, but got up the problem of correct alignment and automation of business processes, without it was becoming difficult to pass through the volumes themselves. Today, in the conditions of falling volumes and increasing competition, the way to increase business efficiency through proper alignment and automation of business processes becomes the primary. And if big companies have already done much in this direction today, the small and medium business that paid much less attention, and no movement in this direction he faces bleak prospects.
Now is the best time to think about their business processes. If six months ago, this "luxury" can afford the few companies with a balanced development strategy, in which attention was paid not only to expand, but also the development of control, but now it has become almost the only means of survival, and development in times of crisis. Previously, you could not find the time and understand why you have 10 managers are 50 clients on sales, as it had planned to hire another 10 managers for the following 50 clients, now do not worry - there is time.
After realizing the head of the need to analyze and optimize business processes, he was faced with a choice. Certainly that manage the optimization of the company itself should Manager as to the extent, as he is, no one is interested. However, often, the scale and complexity of such an activity requires the use of resources. This then is a choice - either to attract to this work of middle managers / most competent employees, or use third-party services. Immediately say, effectively bring to this work only professionals who already have experience in solving similar problems in the relevant subject area, that is, the logistics - logistics, to the service - servisnikov etc. Time consultants, knowledgeable and the Council in virtually every area of business, fortunately, passed.
Each of these options has its pluses and minuses. I'll try to disassemble them.
So, the pros and cons of engaging its staff
Pros:
- Excellent knowledge of the business, there is no need to study and understand;
- Ability to perform tasks with little or no additional pay or with minimal costs.
Minuses:
- Inability to select the solution of all staff time - often this is the main negative factor;
- Poor qualification of employees in the formalization of business processes;
- "Inattention" look at many things due to long-established habits;
- It is not excluded a direct lack of interest of employees in non-transparency of business processes, for various reasons;
- The absence of a wide experience of similar works, examples of the knowledge of alternative solutions.
Pros and cons of outsourcing consultants
Pros:
- Competence in the field of formalization and optimization of processes;
- In addition to general domain knowledge, experience in solving similar problems in other clients;
- Full and irrevocable employment process;
- An objective look at the business side, not weighed down by a load of habits and history;
- Interest in the result of the lack of demotivating factors.
Minuses:
- The need to raise funds to pay for the work;
- More time needed to study specific business nuances;
- Non-obviousness competence.
