Implementing a New Strategy Without Disrupting your Company
If your organization wants to make a strategic move, such as entering a new market or offering a new product or service, there is a lot of planning involved. You’ll need to do your market research, you’ll need to see if the new idea is viable, and you’ll need to make sure you have the resources available to accomplish the move successfully.
That said, it’s difficult to pull money out of your operating budget and allocate it to your newest project. If you do that without a plan, you could leave departments or projects underfunded and hurt your core business.
However, if you don’t give yourself enough resources, your new strategic decision may not work out as planned, and you’ll be left wondering if the decision itself was the wrong one, or if it was just implemented incorrectly. Don’t do this to your business.
Here are some tips for how you can free up enough business resources to make a big strategic move.
Start Planning Early
Coming up with a plan for a big strategic move takes time. From the very early stages, it’s critical that you don’t just think about the strategy itself, but that you also come up with a plan to fund it. There are many different ways to get resources for a new project (capital injections, divesting of resources, reallocating spending within the company, etc.) but you’ll need to make these plans well in advance. Imagine telling a department in your company that they need to reduce their budget by 20% in the next 30 days. That could be disastrous. However, if you give them a year to accomplish the same task, they’ll stand a much better chance at accomplishing this goal without harming the business.
Make Sure You Have the People
Big strategic moves take money, but they also require people. Your team is a resource that you’ll need to apply properly, just like you’ll need to manage your budget.
If you’re opening in a new market, for example, are you planning on having all new staff at the new location, or will you be moving some of your team from their current projects onto the new venture? This is what many organizations do, but you’ll need to make sure you don’t leave a hole in your core business when you attempt this.
Work with your team to explain the changes as well as what is required and expected from them. Get feedback from your employees to make sure they understand the strategy, that they’re on board, and that they haven’t noticed any big roadblocks in their departments.
It’s also important to request feedback from customers if at all possible. You don’t want your big strategic move to adversely affect customer satisfaction.
How We Help
The team at Ralevic & Ralevic LLP offer financial advisory services that can help you determine if your business is ready to take on a big strategic move. We can also help you develop your strategy, giving you a better chance of success. Our experienced team uses use up-to-date research and industry trends to give your business the information it needs to grow. For more information, please contact us today.