Strategic thinking in tough times

If you’re one of the millions of business owners or entrepreneurs who’s put long hours into building a business only to find that the economy, the credit markets and a whole bunch of other issues beyond your control have put a wrench in your plans, then you may be feeling a little powerless and out of control at the moment. So what can you do about it?

Well, the first thing to realise is that you do have a choice. And you can get back in control of things again. One of the reasons most businesses fail in a recession like the one we’re experiencing is that they use the same business strategies – especially the same marketing strategies – they used when the economy was in a boom cycle. That’s like wearing your summer thongs with your smooth soles in winter while trying to walk across snow and ice. It won’t work, and you’re likely to fall and hurt yourself.

To succeed in this economy, you need proven strategies that reliably generate leads, sales and higher profits. Without them, you could lose your profits – and your business.

Here are some tried-and-tested strategies to help you through the times.

The quality of thoughtfulness

The ability to think and plan strategically is perhaps the most important single skill of the effective executive. In a longitudinal study of leaders the single quality that stood out from all others was the quality of “thoughtfulness”. Thoughtfulness is defined as a careful concern for the secondary consequences of each decision and each action. It is the essence of strategic thinking.

Using your most powerful tool

The most powerful tool that you as an executive have to bring to bear on your work is your mind – your thinking ability. Everything you do that sharpens and hones your ability to think with greater clarity before acting will benefit you and help you to move upward and onward more rapidly in your career or business.

Using a two pronged approach

The best way to approach strategic thinking is a two-pronged one. This means to work simultaneously on the personal and the corporate, rather than just on the corporate.

Increase your 'return on energy'

In personal terms, strategic planning is an exercise in increasing ‘return on energy’. Your greatest single asset is your earning ability. And your earning ability is nothing more than the total of the mental, emotional and physical energies that you can apply toward getting valuable results for yourself and your company. Anything that you can do to increase your return on energy invested will increase your overall levels of effectiveness and contribution in every area of your life, especially, and most importantly, in your work.

Action Exercises

Here are two things you can do immediately to increase your return on equity and your return on energy. Firstly, think about everything that you are doing in terms of its financial return to your organization. What are the things that you do that yield the highest return on equity? Whatever they are, do more of them.

Secondly, think in personal terms about the things you do that give you the highest return on energy. Where do you contribute the greatest value and achieve the greatest satisfaction? Whatever they are, do more of these things.

Andrew Phillips is the CEO of Brian Tracy International Australia/
New Zealand.