Find the silver lining in every cloud

11:04am Tuesday 3rd June 2008

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It may not be all plain sailing ahead, but savvy bosses who chart their future course now are more likely to be making waves than battling against them. RICHARD BOSWORTH, Harrogate chairman of Vistage International, reveals more.

WHILE the economic climate remains uncertain, the downturn may not be as severe as many pundits predict.

Those chief executives and managing directors who are already looking to the future are making changes to take advantage of new opportunities.

Our members at Vistage International, the world's leading chief executives' organisation, are continually sharpening their focus and honing their skills to maximise opportunities in these turbulent times. Our top six action points will help you map the future.

1. Track the future

Challenge yourself by setting in place forward-looking performance indicators or "predictors". Start the process by asking "where do sales come from?" Is it the number of calls your sales people make, the number of quotes they issue, your investment in advertising and promotions, the volume of telephone inquiries - or the hits and pages visited on your website?

Test and measure which activities generate sales and rigorously monitor the activities. This information enables your sales people to push the right button to get the future back on track if sales flag.

2. Track the numbers

Rolling Annual Total (RAT) charts are an invaluable performance review and planning tool to share with your key executives.

Chart the Rolling Annual Totals of sales, gross profit, overheads and net profit for the past 36 months, take heed of what it tells you, then project the trend lines forward (RATs remove the seasonality factors of holidays and short selling months).

Hold monthly one-to-one sessions with your key executives and ask their observations on the projections based on "if nothing changes", then ask the "what if?" questions and listen to their suggestions about what has to be done to get the lines moving in the right direction.

3. Listen hard

Make time to listen to your customers and suppliers, both large and small.

They are your best source of current revenue and future success.

Quiz them about their future plans and how they see things changing - remember many great successes are born during the downturns and your progressive customers and suppliers are seeking out new opportunities just like you.

4. Tune into your people

Listen to your people as you go around all the parts of your business - they know what is happening and what has to be done. They usually have the answers to most problems which are often cleverly disguised great opportunities.

5. Do it differently

"If you do what you've always done, you'll get what you've always got," is a well-known adage with Vistage International members, which prompts the question: what are you going to do differently?

Forward-looking CEOs and MDs know they need to be equipped for the new challenges ahead and their personal development is key.

At Vistage International, for example, we operate a local, confidential peergroup system of non-competing business leaders to enable them to develop their skills and company strategies on an ongoing monthly basis.

This means that our members are fully prepared to take advantage of new opportunities. If your core business is strong to begin with, and your business plan can be adapted to changing circumstances, you are primed to succeed in any climate.

6. Keep everyone in the loop

While your people, customers and suppliers are key to unearthing new opportunities and growth, don't overlook your other key major stakeholders: bankers, credit insurers, export financiers, property owners, lawyers and accountants.

You never know what gems of information and ideas they may hold which could provide the core of your next big success.