In this tough economic times what can top management or owners can do to avoid business sinking?

1.Top Management/Owners should always be positive that as long as there are people there are customers ,as long as there is Competition there is someone to work for your product in the market,so there is no question of business sinking.

It may only be a Product at the end of its Life Cycle needing an up dation or up gradation to suit the present market/Customer needs

2.Reduce the variable factors like New Customer inflows(Increase/Widen the Sales Funnel)New market demand inflow of orders(Increase the product or company reach)Production Forecast not based on hearsay facts and assumption from our sales team(Be specific on facts and figure ,past history trends,etc and assign the job to more analytical person if required,so that it is more of actual data based-Good Honest mathematics /statistics will never fail you)

3.Review your Constants like Manpower& its fixed Costs (their ROI and possible rearrangement of organisation & responsibilities),Input raw material and its costs,Market Pricing and its discount structures(See and prune the pricing to get the best profit out of the business

4.Better Finance management- Receivable,Working Capital,debt management costs(if any) Changing Govt statutory policies etc.Evne if we are able to collect our old outstandings properly and review the existing credit terms with customer and suppliers this will give a huge and better cash flow and increase in profits

5.Better organisation time management in terms of lead time for complete sales cycle,service time,Customer requirement fulfillment etc-HONESTLY TELL WHAT YOU CAN DO AS A COMPANY and DO WHAT YOU TELL,THE SECRET OF SUCCESS.

6.Look for Product Re engineering,New USPs for our products,Niche markets,Product up gradations,new synergistic tie ups ,some product or market piggy bagging,etc

7.Ensure each one of them in the organisation are able to understand the situation(sales team controlling their expenditure,Production team reducing the wastage,Maintenance team making the machinery to 100% utilisation,Supply and logistics team ensuring timely supply,Accounts and others in finance work for better finance management for each and every cheque /Payment company gives or owes) and positively work every bit in them to give the best out of each of them and also motivate others around them,.

8.In all,inculcate the Business leader mentality with clear roles and responsibilities in each one of our employees /staff domain so that we can get the best for keeping the business afloat and move ahead to reach our brighter shores ,which would be a healthy Bottom and top P&L FY year end statement.

A ship need to face some rough seas sometimes, Be prepared and put that in practise and then row over the situation to reach your destination - a Good Captain will always know this or acquires this on job every time ,every situation teaches him and crew and makes them tougher and finally RICHER both personally and professionally.

So a Business cannot sink it can either die & regrow or it can be  reborn in a different form.

 

    

    

 

    

Change Management

 

 

Change Management’s Critical Success Factors

 

Introduction

What is change management?

 

Change management is a well thought out approach that change the whole systematic processes of the organization which means it transfers the old states to a known new states because of the internal and external forces and business conditions. Hence, the individuals need to accept the change and work in teams that are homogenous and consistent to achieve the objectives) Levy, S. (2011). The Internal and external forces have strong implications on pushing the organizations to change and control the entire situation to stay competitive in the market place. The competitive forces among the organizations in the business environment formed the practices of the change management. The organizations need to highlight four dimensions which are they; quality, efficiency, innovation and customer responsiveness) LIEBHART, M. and GARCIA-LORENZO, L., 2010(.

The various forces that can impose change on organizations

 

There is no organization can survive, reproduce and has support unless the originators of change are carefully diagnosed and monitored to find a competitive advantage for their products and services, it must identify environmental changes and try to anticipate competitors , So if the managers are slow to respond to change forces, this will lead to a doubling of the competitive place of the organization and its inefficiency the external forces that generate the need for change are: Economic forces, technical and technological forces, Natural (ecological) forces, Political forces, Legal forces and Socio-cultural forces. Means those forces outside the scope and control of the Organization and such forces cannot be controlled by the management of the Organization, but they must monitor their environment and take appropriate steps to maintain compatibility and adaptation to external conditions (Mariana, P. and Nadina, R. (2014).

 

 

Change Management   Strategic Management

 

Strategic management is the management that sets simple and easy goals in the organization and needs to be met in order to motivate workers to work and get their satisfaction. Strategic leadership (John Antonakis & Robert J. House, 2014) said is different from other leaders because it is based on understanding the way of working and understanding its nature The establishment of clear objectives and strategies for the organization and the staff and the structure of the tasks that the institution relies on, because of the establishment of partnerships with other institutions and the care of external work environments and because it is based on monitoring the capabilities of the institution and works to support the visions of the institution.

Strategic management has evolved in corporation in all the successive periods that are only referring to the historical scientists such as, Kaufman, Walleck and Gluck. The strategies that companies apply within the branches are the most important things to be considered in order to increase the company's profits. The strategy can be defined as a means used by organizations and institutions to challenge their competitors by undertaking new operations not performed by competitors or by conducting better and more innovative processes. Developments throughout the organization help to increase the changes and complexities in the external work environment (Porter). It has been concluded that all the changes that have taken place in the organization have been since the first stage, so that this stage focuses on directing towards the goals as well as towards the external goals. With regard to the last phase of management strategies, there is a strong need for increased support and guidance in addition to the need to focus on both the internal and external environment that surrounds the entire administrative system (Durand&Rodolphe, 2006).

 

Change Management’s Critical Success Factors

 

Critical success factor is one of the characteristics of the internal or external environment of the organization which has a great impact to achieve the objectives of the organization. KPI is a quantitative measure used by the organization to measure performance and to achieve critical success factors. There may be 1 key performance indicators for each critical success factor. Key performance indicators can also be financial or non-financial.

To identify critical success factors, we must know the objectives of the organization and the mission to deliver them, the areas that the institution must work on in order to achieve the success of the institution, and then it must ensure the proper functioning of the information systems plan and those related to the many indicators and ways to succeed and sell it We will be able to manage change at the institution (Andrew&Michael&Robert, 2016).

One of the most important principles that scientists have discovered in the 20th century to manage corporate change is the "Winning Edge concept" which means: "A little difference in capacity will inevitably result in a huge difference in results. A very small difference in your work over the years, it will result in huge results on the level of results for others, as well as for companies. This also means that successful people make a difference of only 3% from the others, only 3% of the day-to-day performance, making you far away from the results and evaluating other ordinary employees. Another remarkable factor discovered by human development experts in the twentieth-century, the Critical Success Factor, based on research conducted at Harvard University in the 20th century, found that success factors in any business were only 5-7 factors, if you can identify from the start you can succeed in any work. Critical success factors for the manager are task allocation, effective delegation, organization, planning, creativity, evaluation and measurement. In my opinion, in the opinion that the most important factor of change management in the institution is the measurement and that there are clear criteria for measurement to determine the achievement of goals or shortcomings and deviations cannot develop what cannot be measured (nd, 2011).

According to Rocket, there are 4 basic types of critical success factors:

1. Industry.

2. Strategy.

3. Environment.

4. Timer.

These four areas, of course, have one of the strategic concerns that regulation needs to deal with. In essence, critical success factors have been devised to deal with business strategy and strategic goal levels. In general, the idea of ​​critical success factors has proven to be so useful that their use has extended to less regulated levels. For example, these who are towards organizational departments, and even towards departments and individuals. The phrase: Critical is associated with the origin of the chance of catastrophic failure regulation if the associated goals do not achieve. For each critical success factor there should be at least one measurement (KPI) and a target for the current or impending budget. According to this technique, the purpose (tactical purpose) consists of critical success factor and performance indicator keys in addition to the target (Quinn, 2017).

 

Training as change Management’s Critical Success Factors

 

Training is a word which is a very important term which is widely distributed among the various organizations. It also concerned with the increase in the membership of the organization. It is concerned not only with acquiring the different skills but also by focusing on the full development of individuals. As most companies and organizations believed that this process was limited in providing individuals with the required skills in order to achieve the organization's objectives. However, this is not true, as the training and development process contributes greatly to the development of the whole organization. Therefore, these organizations must develop their culture to become clear, to contribute in strengthening the relationship between organizational performance measures and different training practices (Elsheikh&El-Zanaty&Zeid, 2018)..

 

 

Motivation as change Management’s Critical Success Factors

 

Motivation is an important factor for the development and development of the organization, so managers must resort to a set of measures to keep employees in the work environment.

First, the provision of material incentives should be given bonuses to individuals based on the performance of each individual. These bonuses are divided into higher wages or bonuses, which reward employees and thus motivate them to work.

Second, provide moral incentives. Moral incentives are more important to employees than physical incentives because they remain in our minds.

International Remuneration, managing performance and rewards is one of the most important issues for managers as it is an important critical success factor that all managers use to improve the human chain of factors. This method is based on increasing wages and rewards that improve customer psychology (Raschke&Lee, 2016).

Ethics as change Management’s Critical Success Factors

 

The most important things that individuals must adhere to in companies are ethics and because of: (Bhattacharyya, 2016)

1. In order to build better relationships in companies and make life for the better because life without morality is miserable

2 - In order to achieve justice and equality among employees, where equality is a major concern, especially for democratic countries and when everyone has the same rights to achieve justice, but the problem facing the company is that some individuals do not follow ethical behaviour

3 - The application of ethical behaviour ensures the success of individuals in work, for example, if the employee deals with ethical conduct with others and was dealing with ethical behaviour, it will be the success of this relationship content

4 - Works to ease the pressures in companies because the decisions of immoral increase the tension and anxiety that people feel when taking moral decisions

 

 

 

Tough economy always let smart people smart human mind to work how we can solve that. How we can minimizing the loss that what expected in such business field.

let me share my experience that  business owner or Top Management must dig down inside and out side of the firm  to find out how we can avoid the depression on all company staff and motivate them to come with solution and move forward to make the business run safely till the economy correct him self agin.( i have done that talking to the stuff let me analyzing that they all afraid whats going to happen soon, they did not thought how they can avoid it. 

So what i did is I invite all the staff out for one day trip for fun thin at the end of the day all what i did just talked to them encourage them to stand out and be something to run the business  again. believe it or not it work out from the second week after that trip.

when i said the economy correcting him self again cause many people who deserve to be in top management will act to move the economy little by little with out they knows, but the fact is they are one of many reasons correction the economy situation.