CEO Mike Hoffman oversees operations and aligns business functions with SBIbusiness strategy to achieve scaled growth and customer success
getty
During a closed group roundtable discussion I recently hosted, I heard firsthand from industry-leading CEOs that their business decisions are no longer dependent on the media or other outside reports. Instead, they make decisions based on the actions of their peers and their own company’s data.
Contents
An impulse from CEOs
Most CEOs approach the first half of the year with a hesitant but “business as usual” mindset. Their growth assumptions seem reliable and they stick to cost.
Most have detailed contingencies, shifting variables as much as possible and modestly shifting new investment horizons. Much of this is reflected in hiring practices and delaying additional staffing until the second quarter or later.
Specific takeaways from the roundtable include:
• CEOs are feeling the uncertainty of the market, as evidenced by slowing sales cycles.
• CEOs admitted that important decisions are being postponed, allowing us to observe how the first part of 2023 will play out. Most agreed that these first three months would lay the groundwork for the rest of the year.
• Many CEOs expect the year to be marked by margin expansion, regardless of how demand evolves. Price adjustments have been deployed to increase revenues, including those with strong demand.
• Despite the emphasis on increasing margins, they also think about acquisitions, provided they fit in with the value creation that the organization is aiming for.
• Many CEOs report decreased confidence in go-to-market functions. All agreed that possible causes could be a challenging market, a lack of direction or the fact that value creation shifts are driving the need for new and different capabilities.
It’s reassuring to hear that most, if not all, of these CEOs ignore market distractions and make bold decisions to take quick, decisive action. I believe that showing conviction and direction is key to maintaining investor confidence and employee morale in this environment.
Strategies for the future
For CEOs whose go-to-market teams feel stuck or insecure, I recommend the following strategies that focus on effective progress.
1. Resign yourself to taking action first. Too many companies have tried to hedge their bets by staying on the sidelines for too long.
2. Conduct a revenue growth analysis (RGA). The best way to deal with uncertainty without sacrificing growth is to take a planned approach to allocation sources. An RGA is critical to discovering the investments that will give you the best return.
3. Communicate your strategy to get employees to join you. Tough decisions can be made when you divert investments, so you want to make sure everyone understands why these decisions had to be made.
4. Make sure all workforce decisions are driven by productivity goals. Bringing in new talent can feel like an easy way to turn things around, but it can be expensive and time consuming. Be sure to exhaust options for maximizing efficiency with existing teams before setting up recruiting initiatives.
5. Proactively tighten your marketing belt and switch to initiatives to improve customer retention. Marketing is often one of the first places CFOs look to cut costs. Get ahead of them by looking at SEO conversion rates and the ratio of Market Qualified Leads (MQLs) to Sales Qualified Leads (SQLs) to close rates. Based on that data, you should find resources to direct to customer loyalty programs that will help deepen and grow existing customer relationships.
Ignore the chatter and focus on your business
Ignoring the chatter about uncertainty and moving forward with courage is harder than it sounds. I think the reason many companies fall behind is that they listen to an external chorus of uncertainty when they should be focusing on their company’s priorities and ignoring distractions.
By following the steps above and taking decisive steps, companies can prioritize cost-cutting measures to maximize the productivity of existing assets.
Thoughtful execution can restore employee and investor confidence, increase productivity and reduce costs. It can also deepen customer loyalty by emphasizing customer relationships through retention initiatives.
Best of all, when the recovery is in full swing, you’ll be even better positioned to take advantage of it than you were before the recession.
businesskinda.com Business Council is the leading growth and networking organization for entrepreneurs and leaders. Am I eligible?
Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.