Business Management, Review and Planning

September 30, 2011 by  Filed under: Management 

As a consequence of the global economic downturn businesses have experienced reduced turnover, shrinking margins, decreased consumer confidence and in some instances, restricted access to finance. These challenges are placing pressure on business management to reassess how they position themselves in the market place and refine their operational activities to achieve a higher level of productivity.

While this type of business management review is daunting and relatively time consuming, it is extremely important to commence early and in a coordinated manner.

By adopting an approach that incorporates a review of the company’s strategic direction, corporate governance systems, resource bundle and operational performance a business will achieve an outcome that maximised future economic potential while mitigating risks. In addition, the business manager will be in a position to engage key stakeholders (i.e. accountant, financier, financial adviser and solicitor) to ensure their benefit to the business is maximised.

Given the huge changes in the business environment, revisiting the company strategy will enable the business to identify opportunities that may not have been evident six months ago. Expansion through mergers, acquisitions, joint ventures alliances or organic growth will be a viable strategic option for some businesses while maintenance of position or scaling down will suit others.

When making strategic decisions the principal decision makers have to take into account the feasibility of their options. This process includes understanding the corporate governance systems, resources and internal processes required to implement the strategies. It also requires an objective appraisal of the past and future financial performance of the business to ensure it is capable of achieving forward expectations within the current business environment.

In the recent past this process was undertaken in April or later however in times of volatility and uncertainty it is important to have an early and clear perspective of your future direction to ensure the businesses key stakeholders understand where it is going and what will drive the financial performance. Therefore it is strongly advised to commence this process in February or March to give your financier, accountant and financial planner sufficient time to understand the business management plan, including the operational assumptions and financial budgets, so they can add value to the business well in advance.

Risk mitigation is a major benefit to the business that arises from early planning. This is achieved through the alignment of the business strategy to the current business environment and the capability of the business. During the planning process TCB Solutions conducts a range of assessments that identify operating risks, develops mitigation strategies and promote business flexibility.
 
Remember:

Planning, Preparation and Presentation Prevents Poor Performance

Lloyd Russell commenced his business management career in 1986 with the Agri-Services company Primac Limited. During his tenure he successfully navigated the business through a major industry downturn in severe drought conditions by changing the branch’s business model and operating structures.

In 1995 he and his family relocated to Brisbane where Lloyd took a position with QRAA, a Queensland Government Statutory Authority. The main focus of this position was the management of numerous financial programs on behalf of the State and Federal governments targeting rural and regional Queensland.

Early in 2005 Lloyd completed his MBA and moved to the Department of Primary Industries and Fisheries holding responsibilities for industry development (horticulture industry) and specifically export expansion.

Article Source:
http://EzineArticles.com/?expert=Lloyd_Russell

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