Why are you waiting?
During the past several months I have been done several sales presentations to organizations about the services my company, Knowledge Capital Advisors, can offer them. While they all agree we have a compelling story, and our services would help them enormously, they all stop short of signing on the “dotted line”. The mentality in today’s economy is that companies are only willing to invest in services and products that will become revenue generators for them. Companies are not willing to spend money on services or products they perceive to be an expense – even if those products and services have a proven ROI. In today’s world, companies are only investing in products that will enhance their top line growth, while at the same time they are cutting expenses to achieve bottom line growth. Unfortunately, you can’t save your way to prosperity.
From a sales perspective, I found it frustrating that companies wouldn’t spend money for products and services that would increase their bottom line by giving them more effective and efficient processes. But as I thought about it, my perspective on their reluctance to spend on these services went from frustrating to perplexing. I couldn’t understand why they wouldn’t invest in something that would increase their productivity and margins.
Then it dawned on me - companies are not interested in putting forth a concentrated effort that will give them more effective and efficient processes. While they are willing to do the “easy” stuff, like cut hours, reduce marketing costs, and stop investing in new equipment; they are very reluctant to invest time and energy in making fundamental changes to their workflow and processes that could make them more competitive and efficient. And the reason they are reluctant is the same reason people are reluctant to change – they don’t want to change – they don’t feel the need to change. In this economy they feel it’s safer to hunker down and play defense than to play offense.
I would argue that now is the perfect time for companies to reinvent themselves. Companies should change the adage, “Buy when there’s blood in the streets” to “Transform while the economy is slow”, and start transforming themselves for the next business cycle. If companies take the time and effort to optimize their employees, processes, strategies and communications when the economy is slow, and while the price of services and products are cheap, then they will be in a perfect position to excel when the economy turns around. If they wait until the economy turns around, then everyone will be doing the same thing and they will be paying a premium for the products and services. By transforming themselves now, companies will be three steps ahead of their competition when the economy turns around.
What’s most perplexing is that companies have more cash on hand than any time since the 1954. This means the money is there for investments, but the mentality to invest in the future isn’t there....