Where must we focus our efforts on?

Thinking RFID
Image by @boetter via Flickr

Nowadays, companies need to improve their performances, but the resources that a manager can use are limited. The selection of the investments is now a key factor, and the directorate of a company needs to know where they will produce a higher improvement.

Classical strategy gives us several options to do the right thing. The selection of investment must follow the strategy of the company. For instance, if we are leading a market, probably we want to improve product innovation, and if we are followers, probably we want to improve the extended product (associated services like customer service) to provide better solutions to the clients of the market leader.

But, in a crisis period, are these ones the better options for managers?

In a crisis period, our strategy must be revised, because targets could be different. A company in a growing period of the economy must focus on its positioning, but in a crisis period of the economy, the target of the strategy must be the survival and the conservation of the portfolio of clients. Then leading companies should not forget their customer service.

The best way to understand this issue is to analyze their process from a complexity point of view. A change in the economic environment can alter the business model, for instance, clients could prefer a better and cheaper service rather than new products because in a crisis the capability to generate incomes is being reduced for them.

This kind of change could be detected by complexity analysis tools easily before a lot of clients were lost.


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