How do we improve performance in a slow growth environment?

There is no doubt about it we are still in challenging times. Even though the economy has been growing and is continuing to grow, that growth is sluggish. For example, second quarter GDP growth was 1.7%, much slower than the 3%+ growth rate that we have historically experienced here in the U.S. With the political campaigns fully engaged it is creating a mood that is not putting our consumers in a growth orientated type of mood. So what as business leaders can we do?

Since we can’t control the political aspect of the economy (the perceptions of consumers reactions to the political environment), we need to control the aspect of our organization that will support the growth of our businesses and enterprises, the level of engagement of our customers and our employees.

I was reading recently what one Chief Financial Officer gave as his strategy to deal with a slow economy. His answer was to place tight control on costs and to keep a lid on the hiring of new personnel. He also said in the story that his main motivator to keep his employees happy is to give them overtime. With wages not growing as they used to, there is no doubt that his employees will appreciate the additional income. But this CFO is directing his company in a way that leaves money on the table.

What this CFO needs to do in addition to controlling his costs and managing his head count, is make sure that his customers and team members are fully engaged. Because engaged customers buy more often, spend more money on their purchases and afford us a higher margin on the products we sell. It’s all about growing our businesses organically in the emotional economy.

One 30 branch retail bank put this strategy in place and actually increased their earnings by 2% while the average of their peer’s earnings declined by 8% in this sluggish and slow growth economy.

To discuss or request a talk be given about this topic, call
Amos B Robinson, Practice Leader (Article Author)
“We help work places become more profitable, productive and happy”
(804)651-5400
www.robinsonbc.com