On the other hand, in previous bearish economic cycles, it is observed that the companies with the best performance during the recession managed to maintain their operating margins and achieved absolute growth above the market average, the result of a redesign of their strategic goals. The key in these organizations was the promotion of a highly receptive culture towards the creation of value based on five guiding principles:
1. Interpret market trends and adapt the appropriate growth strategy
Opportunities to generate value first require studying all the externalities that may impact the business and defining the engine that drives the projected growth strategy. With the union of both unknowns, it is possible to precisely direct the efforts that support this process. Therefore, it is necessary to ask what is driving the search for growth? Is there pressure from shareholders to raise the share price? Is there a growing threat of competition for market share? , among other points. The answers to these questions help to more accurately inventory those trends that affect the competitive environment and determine the initial bases on which the value creation initiative is built.
2. Quantify opportunities
Subsequently, it is important to quantify the value generation opportunities initially identified, as well as to examine the information at the transactional level that can be extracted for each endogenous possibility to the company, and match it with external data from reliable market sources. The purpose of this stage is to build an intelligent knowledge map that supports the assignment of an objective value to be captured for each of the detected opportunities.
3. Prioritize the alternatives
Once the inventory of opportunities has been developed, the organization must meditate, based on its actual execution capacity, on which alternatives to create value to face, with what resources and in what terms. It is extremely important to find an adequate balance between the achievement of objectives in the short, medium and long term, aspiring that obtaining the first helps to finance those whose realization expectation extends over a longer time frame.
4. Speed up execution
Once the previous stages have been completed, more focused on the design and strategy of the initiative, it is time to promote an agile and urgent implementation exercise, which is becoming more challenging every day due to the current changing situation.
However, to ensure success in the change, a project government must be set up to watch over and promote the interests of the initiative and have final responsibility for its result. Additionally, the executive body of the project, commonly called the transformation office, must be made up of company profiles that prove the skills and abilities necessary to direct and promote change.