It is no secret that Brazil has been going through a difficult time. Although the first half of 2018 showed signs of an acceleration, the feeling is that we are still living in a delicate moment. The increase in inflation, the dollar, price adjustments and taxes have directly impacted the management of companies across the country. And with political instability, everything becomes very uncertain, and the economy contracts. Initially, it is necessary to understand that living through times like these is part of the reality of organizations. If we consider that risks and opportunities are part of the routine of every business and that both arise, most of the time, from external agents (government, shareholders, society, customers, suppliers, etc.), it can be said that the current crisis does not offer new threats, even if they are critical. At this point, those who are most prepared to go through phases of instability will differentiate themselves in the market.
Below are some tips to prevent business management from being harmed during times of uncertainty.
Don't just focus on financial management
The company's finances are most impacted during times of crisis, and all attention tends to turn to budgets during this period. However, if a company defines all its steps in terms of costs, it may forgo some resources essential for the long-term health of the business.
Therefore, it is important for the company to have a reserve box that can support it and cover expenses during times of crisis. However, if the reserve is not sufficient, it is important to work on cost reduction, but with care.
When thinking about reducing costs, the first option suggested to managers is to Staff cut or a reduction in benefits. Caution is needed regarding these changes, as they may work immediately, however, they could also bring negative impacts in the long run. It should be remembered that the operating cycle is one of the factors that most retains capital in the company.
Therefore, instead of working on cost reduction in people management, there are other measures that can bring more results, such as focusing more on increasing productivity and the teams' results, measuring and tracking more closely.
One path is to involve company employees in the process, seeking the best channels for cost reduction. The results can be surprising. Involving employees in times of crisis, bringing responsibility to everyone, can change the teams' posture and guide them to achieve results and innovate in production.
Don't give up on Strategic Management
The economic aspect cannot be the only resource used by the organization to overcome the crisis. The company must have its strategic planning and must not give it up at all in times of instability. Therefore, it is so important that this planning it should be done realistically and flexibly. If necessary, new deadlines can be adapted, resources can be reallocated, or processes can be innovated.
Setting goals and rigorously monitoring them functions as a thermometer indicating the impact of the crisis on your results. In situations of insecurity, organizations that have the capacity to reinvent themselves and adapt to new realities in a short period are the ones that will stand out. In this way, innovation is the greatest ally of managers in change processes.
In this context, innovation is understood as a means of creating new mental maps that will lead to improvements in business processes, reducing the time spent on each operation and thus freeing up working capital that was previously tied up in the company.
Companies that invest in effective systems for planning, cost management, risk management, and strategic and logistical performance tracking that can support decision-making will certainly have an easier time adapting to the current landscape.
Conclusion
Para uma boa gestão em tempos de crise, será de suma importância usar a gestão estratégica como aliada nos próximos anos, além de ter um cuidado especial com as finanças e a gestão de pessoas. Cortar gastos, realocar recursos, mudar prazos, inovar, cada uma destas soluções podem ajudar a driblar a crise que ainda persiste. Ao mesmo tempo, as decisões da organização devem estar alinhadas com sua visão de futuro e objetivos estratégicos. Sem recursos e sem tempo, a missão de inovar fica mais complicada, porém, investir em ações criativas é essencial para transpor esse período.
Crises are temporary, and overcoming them will make your company more mature and prepared to grow. Do you have any other suggestions for companies to overcome their challenges during a crisis? Leave your contribution in the comments.
