Two EOS Tools for Tough Economic Times
Dear Reader,
There is increased pressure on our businesses right now.
Three factors are at play. The first one is that the interest rates are rising and that puts extra pressure on margins. The second is that there is such a competition for talent right now, with not enough people coming into the marketplace, qualified people, replacing the baby boomers, and also incredible competition from these ginormous companies coming into town, hiring away our best talent with ridiculous salaries. The third reason is that the supply chain is so convoluted, that it's driving prices up all the time.
These three factors put pressure on the bottom line. Some of my clients have come back and said, we are now in a place where we really have to think about our cash flow.
How can we make this better, find a better situation?
What we've done is we've refreshed or started the EOS® exercise called The 8 Cash Flow Drivers for their companies. We look at what those cashflow drivers in the company are and how the leadership team can rally around those. With each leadership team member taking at least one driver and becoming the champion for it, driving it day and night, so that we can optimize income, bring the cash in. Also make sure that the bare minimum is spent on expenses, so that we save money all the time.
That's the one exercise.
The second exercise is to look at their structure. Are they lean, are they mean? Do they have the right people in the right seats and are they really, really focused there?
With those two exercises, we are able to set them up for success, even in this difficult economic time.
There you have it. If this is of interest to you, or you know someone that you care enough about that you want this to be in their life, let me know and I'll reach out to discuss this further.
Thank you so much.
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