PwC Private Company Services / Let’s talk Thinking strategically

PwC Private Company Services / Let’s talk / Thinking strategically
about the future is vital for private companies. How do you start focusing
on what’s really important?
Making time to grow
your business
Business owners are use to being involved in all
aspects of their business. It’s the hallmark of being an
entrepreneur. But it also means running the risk of losing
out on opportunities to grow your business because
you are more focused on the day-to-day than thinking
strategically about tomorrow.
Finding the time to think strategically
40%
40% of participants*
said that strategy would
be the area of their
business that would
benefit most from taking
more time to reflect.
It’s a point private company leaders acknowledge.
During PwC’s webinar Maximizing your impact: Finding
the time to think strategically, 40% of participants* said
that strategy would be the area of their business that
would benefit most from taking more time to reflect.
“In order to optimize operations and take your business
to the next level, you have to empower others. You
can’t do everything yourself,” says Scott Fitzsimmons,
a partner in PwC’s Consulting & Deals practice in
Vancouver. “You need your team to help you stay
successful.”
This is much more than a time-management exercise.
It’s really about making the distinction between
what’s urgent and what’s important. Understanding
that difference is what will allow you to move from
being reactive to being proactive. “It’s easy for an
owner to get caught up in putting out fires, but it also
means you lose the opportunity to think strategically.
Put simply, the urgent are things that are done to
you, while the important are the things that you
do, that you put in motion,” says Fitzsimmons.
*109 individuals responded to this polling question
Private Company Services
www.pwc.com/ca/private
Let’s talk / Making time to grow your business
So how do you start focusing on what’s important? Fitzsimmons
identifies a few key steps to doing more by taking on less:
Understand the consequences of your actions.
If you’re always in firefighting mode, are you taking care of the
customers that help you grow the business? In many instances, the
consequence isn’t immediate. It may be that when you go to sell your
business, you don’t get the multiple you want because you haven’t set
the business up to succeed without you.
Create a process/philosophy playbook to document how things
should be done and why.
This will prepare others to step in and maintain the entrepreneurial
spirit that has allowed you to grow the business to this point.
This isn’t about giving step-by-step directions. It’s about creating
a framework for what needs to happen. Once in place, it will
give you the confidence to delegate and will give your people a
clear understanding of how and why their roles align to strategic
objectives. They will be more invested in achieving those objectives
and take ownership of their role.
Create simple, straightforward, strategic projects to drive the
business and build momentum with small quick wins, while
reinforcing alignment.
“I worked with a business that wanted to streamline their returns
process, as opposed to dealing with the fact there were returns in
the first place”, explains Fitzsimmons. “A strategic project asks the
question: What is the real problem we are trying to solve here versus
the problem that exists? And perhaps more important, what are the
consequences of our current behaviour versus a new behaviour?”
These projects don’t break the bank but are proactively helping
the business get better and smarter. They improve the bottom line
through more effective business practices.
Build off your successes.
People traditionally think the business will always stay the same,
especially in businesses where there are frustrations. If you can use
a strategic project to show how to overcome obstacles and achieve
success, then people see the benefit and will want to pursue future
strategic projects.
Create internal benchmarks and share them with your staff.
When you develop an annual plan, make sure people know the
targets and how you’re performing against those targets through
monthly updates. This way people can see what’s working and what
isn’t. If you have a really good month, you can use that information
to maintain the momentum. If you’re meeting all your targets, then
the next step is to start benchmarking yourself against other highperforming companies.
“You’ll be able to take time off and recharge. You’re building value
and making the business more attractive to potential buyers. And
you’re building employee engagement because you’re opening the
door for them to play a bigger role. Plus, there’s a sense of satisfaction
that the business is running on all cylinders.”
“Setting time aside to work on the business
and focus on what’s important will help you
drive growth and increase profitability.”
Contact Tahir Ayub
Canadian Private Company Services Leader
604 806 7502
[email protected]
Contact Scott Fitzimmons
Partner, Consulting & Deals
604 806 7112
[email protected]
Private Company Services
www.pwc.com/ca/private
© 2013 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability
partnership, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. 2222-31-10.23.2013