Are you facing challenges in achieving your goals?
Is it essential for you to achieve your financial goals in just half the time this year?
In these uncertain times, life is changing & so is our business. It’s been more than a year when Lockdown was announced due to Covid; where initially, people enjoyed it as a vacation but with the extensions majority of the industries started panicking on how to survive in this situation except few players of essential industry. As the economies opened after 2 months, there were many restrictions which impacted the businesses a lot. Even though markets opened but cash rotation took its own time to revive of almost 2- 3 months. People started hoping that things will be back to normal; but in 1st quarter of FY 2021-22, we faced second lockdown. Although, restrictions were at ease compared to 1st lock down which but was not enough for economies to revive.
Between both the lockdowns, companies were in dilemma on how to plan for the remaining year? Shall we chase our revenue goals? Shall we plan inventory as per the revenue goals? As on today, everyone is skeptical about the 3rd wave, if it comes how will we achieve annual goal in half year? How will we survive with the fixed overheads? It’s time for Businesses to revisit the benchmarks they have taken especially with the Fixed overheads. Businesses should rethink on the strategies they have adopted. Below are some thoughts that should be kept in mind while redesigning the strategies:
We would like to share a game changing Strategy that was proposed to one of our clients, where they had a sales team of 100+ who were serving 5000+ customers. As we dig into the revenue, we identified that only 1000 of such customers can actually help us achieve annual revenue goals, rest of them were there for the sake of expansion. A small tweak in the model, where we identified 1000 resellers which can be served by only 40% Sales force as Fixed overheads who will serve Premium Resellers & rest 60% sales force were transferred to the sales team of distribution hubs where they will be paid on Variable partnership model. Any contribution brought by other 60% sales force; it will be a bonus to the company. This Strategy not only helped the company in achieving the targets but also reduced the cost & multiplied the energy.
In these uncertain times, companies are thinking to shrink the cost rather than optimizing the cost. It is better to create innovative strategies which gives a revenue booster (not just cost reduction).
Drop your challenges in the comment section & we are happy to help.
Author:
Parth Hirani, is leading a strategic advisory practice at J.Hirani & has helped various organizations align strategies across continents. A social & collaborative sapien by nature. He enjoys being a full time “dreamer” & loves challenging “possibilities”.
Success mantra- “We believe it’s possible; while maintaining flexibility on “How” we are “Rigid” on our “Goals”
Saloni Surani, Manager – Strategic Consulting who pursued her Masters in Management & has an eclectic experience in J.Hirani with various industries like Manufacturing, Real Estates, Hospitality, FinTech, etc. She is a keen observer who silently achieves her goals and happily surprises everyone with the results. Adapting & learning new things has been her forte, which helps her in getting new idea always, anyone who wants to refresh their values – just look at her.
About J.hirani: J.hirani is a Strategic Transformation team which works as a growth partner for different organisations in various industries by providing services like Agile transformation, Scenario mapping, Strategic alignment, Balance scorecard, Digital transformation, Incubating new ventures, Operation excellence and Aligning human capital.
©J.hirani, Time to strategize with the new mindset, August 2021. All rights reserved
