Any journey must begin from where you currently are
Right Now. Yet, many owner/CEOs struggling with business transformations
frequently fail to really understand their current situation.[i]
The first step in any transition is a proper and realistic assessment of your current situation. Here are some examples of poor assessments.
- The new president of a software company believed that the path to success lay in the company becoming a systems integrator. But the company lacked the staffing and resources to take on such project work. The company’s roots, skills and reputation were in developing innovative software, which was then sold through value-added resellers (VARs).
- A sales-driven technology company saw higher profit margins in services but struggled to make money. The senior managers lacked experience in project or program management, which is essential to successfully completing complex projects.
- A real estate developer building retirement communities was cash flow negative while owing income taxes on its sales. Management did not understand the cash flow and tax implications of using land leases to keep unit prices competitive.
If you don’t know where you are, you won’t get to where
you want to go.
[i] This is the first in a series of articles illustrating techniques used in planning for profitable growth.
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