How to avoid ‘fire-fighting syndrome’

Fire-fighting?  Then strong leadership, backed by strategic vision is what your business should focus on.

A ‘think tank’ of experts at PricewaterhouseCoopers believe the speed of the recession’s onset has led some local companies to resort to short-termism, as they are forced to tackle pressing business issues in a reactive way. In some instances, medium or longer term strategic considerations are overlooked.

Paul Norbury, partner in the Midlands and a member of the firm’s Midlands Think Tank, says:

“As the recession continues, business managers are feeling the pressure. Some are fire-fighting by reacting to whoever shouts the loudest, rather than taking decisions in a more strategic and considered way. While this is understandable, it could undermine the sustainability of the business.”

It is important for managers to keep a close eye on all areas of the business, rather than prioritising one aspect. For example, some may be investing their time making sure their customer service is second to none. But it is equally important to make sure key staff are happy and not about to take their skills and knowledge elsewhere. Focusing efforts in the wrong place at the wrong time could have a serious impact on the company’s ability to deliver customer orders when the upturn arrives.

“Most businesses have a strategy or five-year plan in place. But when was it last reviewed? Is it still appropriate in the current marketplace?

These are important considerations that need to be at the centre of every management team’s thinking during the downturn,” adds Paul Norbury.

According to the firm’s Midlands Think Tank, effective leadership is especially important during the downturn because decision-making is even more critical - requiring a clear head and strategic vision.

To assist managers in taking the decisions in the current climate, the firm has devised a check-list of considerations as follows:

• Take time out to think – all decisions should be carefully considered and you should avoid feeling pressured into taking decisions ‘on the hoof’.
• Review risk profile of the business – you may think you know what the biggest risks facing your business are – but have they changed recently? Make sure you know what risks you are facing on a monthly, weekly or even daily basis if necessary.
• Know your means – it is important to have a clear view of the cost-base of the business. This should inform all decision-making during the downturn.
• Consider the workforce – fewer people are changing jobs at the moment, so it is more important that you retain knowledge and skills. Before taking a decision, consider how it could affect the workforce.
• Act decisively – once you have made a decision, act decisively. Indecision could mean you miss out on opportunities.

Contact details
Email: Paul Norbury
Tel: +44 (0)1908 353051