It’s near impossible to plan anything when you don’t know what tomorrow will bring. The environment is so disruptive, uncertain and stressful. Flexibility is key in this time of uncertainty.
What’s the right mindset in approaching such an environment? We cannot accept the status quo or the reality and do nothing about it. It may be a problem which you have not been a party to yet you are required to own it and do something about it.
Our lives have to go on and we still need to take care of the needs and wants of our loved ones and create a future for us.
It does not make any sense to keep on blaming others and not take control over your own life.
You have no control over many adverse developments that are happening around us in the given environment. The only thing you can control is how you react to this. The right mindset can help teams to better coordinate, innovate, and own their own futures, making it possible not only to weather the crisis, but to come out of it stronger.
How can one do this? You got to move away from a fixed mindset to a growth mindset. Fixed mindset is a fixed mentality in the midst of a crisis. This is the last thing we want if our goal is to move forward. Their minds will be closed to new changes and upgrades that could slow down recovery.
On the contrary, a growth mindset can provide you the direction to navigate the challenges more effectively. People with a growth mindset are resilient to changes. They can accept change and are dedicated to putting in hard work even when it means sacrificing their comfort zone.
This is the kind of mindset we need to cope with the current economic and business challenges. Mindset shifts that would help you better manage the crisis would be; Forget about yourself - Focus on others. Forget about your losses - Focus on your opportunities. Forget about your difficulties - Focus on your progress. Forget about the future - Focus on your today. Forget about events - Focus on your responses. Forget about what’s missing - Focus on what’s available. Forget about your complaints - Focus on your gratitude.
Cash-flow is key
In situations of this nature, a successful turnaround really comes down to one thing, which is a focus on cash and cash returns. That means bringing a business back to its basic element of cash-flow positive situation. Is it generating cash or burning it? And, even more specifically, which investments in the business are generating or burning cash? What activities are burning cash and ask if we can eliminate those activities in the short term.
I think about this in the same way one would if running a village grocery shop. By that, I mean asking fundamental questions, such as whether there is enough cash in the drawer to pay the utility bill, or to pay for the milk powder that will arrive next week, or how much more cash I can make by investing in a fridge to stock frozen food?.
When you bring a business back to those basic elements, the action you need to take to get back on track becomes pretty clear.
In many of the cases you see, the management team focused on complex metrics related to earnings before interest and taxes and return on investment that exclude major use of cash.
High level KPIs are good but nasty surprises await when a business is not focused on cash.
Keeping track of cash isn’t only about watching your bank balance. To avoid surprises, companies also need a good forecast that keeps a midterm and longer view.
Failing to pay attention to the cash component of capital investments routinely gets companies into trouble.
But if you are not focusing on the cash that goes out the door while you are waiting for that long term infusion, you can suddenly find yourself with very little cash left to run the business, sending you into a spiral you may not recover from.
Try these few tricks; teach the growth mindset to others - reset expectations and revisit established practices - use a crisis as an opportunity to know teammates better and more. Work together as one team to weather the crisis with a short-term plan with aggression.
Focus on today which will naturally create the future for you.