Posts Tagged ‘economy’
You know the saying about assumptions. Why are you still making them?
Posted by Jane Adamson on March 2nd, 2010
Assumption testing has always been important in organizations. Right now, however, it’s more critical than ever. Markets are evolving so fast that the wrong assumptions can be fatal.
Worse yet, an organization’s inability to routinely identify and test assumptions is a cultural defect that can be very difficult to correct.
Rick and I often see this problem when we participate in leadership meetings held by our clients. During these meetings, we frequently hear executives mistakenly state assumptions as if they were facts.
How To Fix A BOTW Business Model
Posted by Rick McPartlin on November 3rd, 2009
It’s strategic planning and budgeting season. The end of a difficult 2009 and possibly a new beginning for your business. What are you thinking about doing differently next year? Are you setting more ambitious revenue goals, or are you trying to slash costs as much as humanly possible? Are you launching a new product or service, or are you contracting your offerings? Will you fix small nagging problems, or will you reinvent your business model?
In this post, I’ll address your business model and how you can change it this next year to evolve from Best of the Worst (“BOTW”) to Best of the Best (“BOTB”).
Are You a “Best of the Worst” Company?
Posted by Rick McPartlin on September 1st, 2009
Lately I’ve been talking with a lot of CEOs about a concept I call “Best of the Worst” (BOTW). The term is harsh, but many executives quickly realize that yes, their organizations have a lot in common with BOTW companies like, say, GM.
In boom times, BOTW companies are enormously confident in and proud of their performance. They’re meeting Wall Street’s projections and their internal short-term metrics. They think they’re invaluable to their customers and are immune to the whims of the market. In other words, they think they’re doing everything right.
But then the environment changes. The market sours, the economy tanks, new competitors show up, legislation kicks in, or some other external variable shifts. Sales and profits plummet.
What do BOTW companies do? They blame these uncontrollable external variables for their woes. Then they just try to survive until the boom times return.
