http://www.charlestoncurrents.com/issue/09_issues/09.0226.htm#focus

The text-to-speech feature allows Kindle owners to have books read to them in a male or female computerized voice. My new book, A Journey with Mac: Rediscovering the Fundamentals of Business that is helping businesses and organization get back to basics and survive this recession, is now available in Kindle on Amazon.com.

In the majority of the businesses I have coached, I have observed how the owners or managers are focusing only on the symptoms of their business.  While treating these symptoms they are only experiencing temporary relief or in many cases no relief at all.

Why?  The symptom is not the cause of any given problem; it is only the indicator of what lies underneath the surface.  While discussing business with a potential client I hear frequently how sales are off, profits are falling, and/or morale is poor. By no means are these the problems or issues—only the symptoms of the “root cause.”

Peeling the layers back and digging into the situation one can begin to uncover the issue causing the pain.  What is causing my headache is the same question that should be asked in business, what is causing poor sales and profits or low morale?  These are the headaches.

Morale can be the result of many events in a company.  Poor communications, disrespect of employees/employers, not understanding what is expected, and poor working conditions can be a few of the issues leading to low morale.

Falling sales are often blamed on the economy.  Upon closer examination poor sales could be the result of not having the right product, pricing issues, poor product knowledge, ineffective advertising, lack of training of the sales staff or not understanding the competitive situation. 

When a principal or manager or supervisor is working in a crisis environment any immediate help is welcomed.  Multiple concerns hitting these individuals from all directions often lead to “just get it done.”  “I don’t have the time to deal with this right now,” becomes a mantra.  But these same individuals somehow find the time to correct the things they didn’t do right the first time.  This is far more costly and time consuming. The result typically leads to a downward spiral that can impact sales, profits and morale all at once.

What should I do?

Look at the symptoms as just that: symptoms.  They are not the problem or the issue. Physicians have lab tests, X-rays, and EKGs to evaluate the symptoms of their patients and then can prescribe accordingly.  Business leaders need to learn the techniques to define their “root causes” and spend their time and resources on addressing the real problem or issue.  Remember:  It is the issue not the symptom that is the target that needs the attention and focus.  Take care of the issue and the symptoms will likely disappear. 

We are in the throws of a recession that I have not experienced in my business career. Black Monday in October of 1985 was the economic nosedive prior to what we are experiencing today—but it was not as severe.

I have noticed that many businesses are electing to take the reactive-negative approach to dealing with the times. Dramatic discounts are being taken to stimulate sales and/or excessive cuts are being made in expenses particularly payroll and advertising; these are occurring far too often.

I am working with my clients to take a more positive approach: determining what can be accomplished in 2009 to minimize overhead, increase market share and prepare for the turnaround predicted for early 2010. How to survive in 2009 and be properly positioned for better times in 2010 is the short and long-term strategic plan of today.

I encourage the companies I coach not to take a “knee-jerk” approach but to analyze how to be more productive with less people and not make cuts that in the long term will cost more than the short term gain. 2009 is a year of reckoning. It is a year to force us to answer the hard questions that we so conveniently put off. Questions such as: Can I afford to keep an under producer because he has been with the company so long? Can I continue not to hold people accountable for their actions? Will I continue to allow my employees to delegate upwardly to me? Will I make sales only to swap dollars with no intent to make a profit? These and other pertinent questions must be answered. But it is essential to ask the right questions to achieve the proper solutions.

The competition of any business is going through the same dilemmas. But the smart ones are positioning themselves for the better times that lie ahead. How to capture increased market share in 2009 is at the top of the agenda.

These companies are not being overly aggressive in slashing expenses but are examining where the “fat” is and how to become “lean and mean.” Under producers are being asked to leave and being replaced with energetic, creative and most of all accountable individuals. Attention is being given to competitive weaknesses to gain market penetration and customer service to create “raving fans” is paramount in the thoughts of forward thinking entrepreneurs.

So I leave you with this question. Will you succumb to the “dire straits” of today, put your head in the sand hoping all this will go away, or are you willing to take a stand and strengthen and position your business for your future, your family’s and that of the business?

D. Maybank Hagood

President/CEO Southern Diversified Distributors, Inc.

“In today’s world where many get wrapped up in the “concept-of-the-day” we loose sight of what common sense would require. (I suggest that some of today’s economic problems are a result of this blindness). ”A Journey with Mac” presents business basics in an interesting story that not only allows us to grasp and be reminded of these basic concepts but affords a means to actually employ them.

James J. Kerr, Sr.

President

Asset Management & Consulting Services