These companies whose stability can lead to a brutal decline
Some companies, having reached their cruising speed, show real stability for several years. However, this stability is often combined with a lack of innovation, a low internal challenge, and can therefore lead to a sudden and unexpected decline.
Any company, even a healthy one, must maintain a minimum level of strategic thinking and innovation to remain in a logic of growth and avoid long-term decline.
Stability in the medium term…
Some companies have shown remarkable stability for several years.
However, the market is itself in constant evolution :
- Entry of new concurrents
- Transformation of consumer habits
- Creation of a strong competitive advantage by a competitor
- Regulatory changes
The transformations that affect the market are not necessarily immediately perceived by the company.
However, it will necessarily be affected by these changes one day or another. The stable company can therefore be a “sleeping beauty”: healthy and strong in appearance but detached from the reality of a world in constant mutation.
…Which can lead to a sudden turnaround
The company becomes aware of the distance it has taken with its market, often in a rough manner :
Unexpected loss of a major customer;
Loss of gross margins due to a product deposition or the beginning of a price war.
Some managers when confronted with this type of turnaround call on VISCONTI’s business coaches. The business coach then assists the manager to quickly revive the company’s dynamism and avoid a collapse.
The boost plan: quickly relaunching the company
To do so, they lean on a structuring methodology (BOOST Plan) that allows the manager to regain control of his company and its market data while taking a step back. This Plan is deployed over a period of 3 to 6 months, depending on the type of company, the complexity of its situation, and the experience of the manager.
The BOOST Plan is divided into 5 phases :
- Rediscover your company through a complete business review of each of the company’s functions;
- Launch a STAP (Short Term Action Plan) implementing several low cost and high value-added actions, for example, an annual visit of sales representatives, the implementation of a newsletter;
- Control its calendar and focus its attention on strategic actions;
- Redefine its medium-term strategy (vision, business goals) and communicate it to employees;
- Launch a medium-term program covering several areas, for example :
– Redesigning the product portfolio;
– Reducing costs;
– Diversifying distribution channels.
Typical organization of a boost plan
The BOOST Plan should wake the sleeping beauty up as quickly as possible. This is why it is designed in a “program” format.