If you are a business leader, you are probably well-aware of the fact that the challenges organizations face today are increasingly more complex, and developing at a rapid pace. Geopolitical shifts, new industrial platforms, global competition and changing consumer habits, are just a few of the challenges faced by organizations today, and each are in a constant state of flux themselves.
Some businesses will falter in the face of these difficulties, resulting in declining revenue, lack of profit, and poor products. However, it is important to remember that these are symptoms, and often not an indication that the business itself is inherently and irrevocably flawed. Indeed, in spite of all of these external challenges more often than not it is the internal problems that are inhibiting growth, and with the right management strategy these problems can be identified and solved.
Working for multinationals in the telecommunications sector over three decades, industry executive Hanif Lalani became known for his ability to transform struggling sectors of the business for the better. He started his career at the company as a graduate trainee fresh out of university and eventually went on to hold a number of high-level executive positions.
Throughout his time at the company, Lalani became known for his ability to turn around struggling aspects of the business, and many of his job appointments were done so with the intention of having him correct the course. Below, we explore his life and career trajectory, as well as his advice on how to approach a business facing difficulties.
A life and career learning flexibility
Lalani was born in Uganda, growing up in an affluent household in the country where his parents both were successful entrepreneurs. However, political tensions within the country saw his family forced to flee in the night when he was just ten years old, and they traveled to the United Kingdom with just a single suitcase of their belongings between all of them. They settled in a council house in Yorkshire, England, entering a life that was a far cry from the one they had left behind. Lalani has called attention to how challenging those first few years in a new country were but has pointed to them as a crucial learning experience in which he developed adaptability.
In his first senior role, Lalani improved efficiencies for the company by reducing costs while still increasing output and was able to see the business’s turnover increase by 5.8 percent within just a year. Lalani went onto reducing costs of the entire organisation by £65 million and streamline its operational structure
Lalani’s insights for turning around a business
According to Lalani, challenges are a central part of running a business, and mistakes in that process will be inevitable. However, just because you have found yourself in a difficult situation does not mean that your business is unsalvageable. While he emphasizes that no two businesses are alike and therefore there is no “one-size-fits-all” strategy that will turn around a struggling business, Lalani says these are the most important steps one should take in the process.
Step back and assess before making changes
When you are floundering, it can be instinctual to start rapidly making changes in order to try and get your head back above water. However, Lalani cautions business leaders to not confuse urgency with rushing through the turnaround process. For example, upon first glance it may appear that staff is the problem and a less seasoned leader may decide to start letting heads roll to try and cut costs while eliminating “dead weight.” However, if in fact it is the culture of the business itself that needs correcting, no matter how many people you let go you will inevitably soon find yourself with the same problems of high turnover and low morale as before.
Take small but purposeful steps forward
Another common mistake Hanif Lalani points out is setting lofty goals and setting unrealistic expectations for recovery. This can create impossible standards that will not only be difficult to reach, but also lower morale as a result. Instead, Lalani says that after a thorough assessment one should be able to come up with a roadmap that uses small but incremental changes to make a large difference over time. Done effectively, this can create a stronger foundation for the business in the long run.
Keep people at the center
As a “finance guy” Lalani says that they often get a bad rap at being all about the numbers and nothing else. However, he emphasizes that a finance leader is still a leader, and the definition of leadership is bringing people together toward a common cause. Your stakeholders – the employees, customers, and communities in which you operate – should always be your number one priority, and Lalani says that keeping this in mind is the best way to ensure the decisions you are making moving forward are the right ones.
Sweet and Sour
Just sour Chinese or sweet Chinese doesn’t taste as well as Sweet and Sour and in business you can’t cut your way to success and need to focus both on revenue growth and cost reduction. All large multination organisations have been built so that there is an element of redundancy, complexity and reducing manpower costs is easy but identifying ways to grow business much harder.
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