(MENAFN- Khaleej Times) "What got you here, doesn't take you there" is quite a common adage you get to hear in boardrooms, and that is quite appropriate when the times are changing and contexts alter. With oil prices realigning to a new state of equilibrium, and governments responding to the new paradigm differently - the need for businesses to also respond to the new context is critical. Establishing the appropriate strategic theme, helps set the tone for aligning strategic priorities as well.
When the market indicators suggest a flat economic outlook ahead, there are four strategic themes are relevant for organisations across the spectrum - quite independent of whether they are large or mid-size, and these principles are quite ubiquitous across industry sectors. The themes are inspired by the balanced scorecard framework, considered to be most effective in driving enterprise performance, built around the four perspectives of financial, customer, process and organisation. Shareholders seek financial results, which are best obtained when customers patronize your services. And in order to meet one's customer expectations, the process framework needs to produce the results effectively, and that is well delivered by its people, enabled by technology. When an organisation is successful in identifying the key success factors across each of those dimensions, and build a set of strategic themes around the same which is relevant and keeping with the times, the strategic priorities can be considered to be well aligned. Here are four critical themes that we find successful organisations have imbibed and looking to institutionalise: 1. Financial: Focus on profitable revenue 2. Customer: Key accounts are key 3. Process: Efficiency and first-time-right 4. Organisation: Lean and smart Let's explore each of these themes a little deeper: 1. Focus on profitable revenue While growth in revenue is important, and the general refrain is to get the business to keep the lights on in tougher market conditions, successful business houses do well to internalise the spirit of 'profitable' revenue as a general sales ethos. You cannot grow both revenue and profit at the same time at the same rate. It is therefore important to recognize that revenue growth is important and remains to be the primary focus, as long as it is profitable. Protecting margins is more critical than growing them, in a flat market backdrop. 2. Key accounts are key No matter what industry you belong to, what products you sell or what services you render, it is always inevitably the case that 80 per cent of the value of the sales turnover comes from 20 per cent of customers, quite independent of how big or small your business is. And there lies the magic wand. Identifying the key relationships and nurturing them not only helps to insulate an all-weather partnership with key accounts, but also helps in driving very high sales effectiveness. The return on sales investment is best obtained by organisations that do well in managing key accounts. 3. Efficiency: first-time-right If there a way to reduce the cost structures significantly without having to do a long-winded process re-engineering or stressful headcount reduction, then it is clearly in getting the formula of first-time-right in place. The pilferage costs of inefficiencies and cascaded support systems can be brought down by at least 50 per cent, if the processes are made to be effective to be first-time-right: be in the sales process, or product development or in its delivery. Philosophically speaking, there may be infinite ways to connect two dots, but there is only one shortest connect - and that is always a straight line, and staying focused on that can be quite helpful. 4. Organisation: Lean and smart Building a successful organisation and team is not limited to just having the right structure and the related compensations. It is also important that there is a sense of 'right-sizing' spirit driven by a constant endeavor to build in technology enabled efficiencies. Hence the mantra is to have both a lean and smart organisation, providing for an environment of learning and growth. It's no longer just about being lean or mean, but also all about being 'smart'. When these themes get to become a part of the DNA of the organisation and the performance culture - it helps both at an enterprise level and also at an individual level to becoming significantly more focused. At the end of the day, clarity brings focus, and focus drives attention, and ultimately, attention delivers the results.