Business In Rough Waters? Key Indicators You Need a Consultant
From the threat of a recession, rising interest rates and supply chain problems, there are countless pressures that companies are facing in today’s business environment.
A recent report from Paychex revealed that 70% of business leaders expect their revenues to increase over the next year. Nevertheless, the leaders said that they’ve experienced ongoing stress due to challenges related to the pandemic and challenges doing business over the past three years.
Oftentimes, it takes a major event that affects their finances or leaves their company vulnerable for business leaders to seek guidance or advice. A growing number of business owners, CEOs, and leadership teams are seeking help to address challenges they haven’t faced before and navigate their organizations forward. At RVR, we’ve been hearing from clients who are concerned about inflation, talent issues, and supply chain problems.
Our message is that business leaders have an opportunity to develop strategies to manage these challenges and uncertainties. In this article, we’ll discuss the top concerns facing business leaders and how RVR helps clients use accurate data to make strong decisions in driving their businesses forward.
Inflation and economic uncertainty
In light of the IMF’s warnings of financial instability and recession, many business owners worry about an economic slowdown.
Regardless of company size, 72% of business leaders said inflation was their top concern, according to Paychex. Meanwhile, 57% said the threat of an economic downturn was their top worry and 44% pointed to rising costs due to interest rate hikes.
RVR helps companies gain a clear understanding of their spending through a business assessment that helps them develop strategies to combat these concerns.
Supply chain challenges
Supply chain challenges are another key concern for business owners. The issues started with COVID-related product backlogs, raw material shortages, and rising freight costs.
These issues have persisted with labor shortages due to workers voluntarily quitting their jobs in the wake of the pandemic — known as the Great Resignation. As a result, it’s been more difficult to obtain supplies in some sectors, causing prices to rise and forcing businesses to change their pricing, inventory and cash management strategies.
In the Paychex report, 38% of leaders cited supply chain issues as the top operational challenge. It’s critical for companies to learn from the lessons that the pandemic brought us, focus on long-term recovery, and manage real-time operational and financial data to reduce the risk of future issues.
RVR guides clients to review indicators consistently and frequently to plan for a variety of potential scenarios instead of monthly, quarterly, or even annually.
Competing for staff
As a result of the pandemic, many people have reexamined their jobs and their life priorities, which has led to mass resignations in a variety of industries. On top of that, worker burnout is at a record high, according to a survey from Future Forum. As a result of business operational challenges, employees were working harder, longer and trying to deal with pandemic challenges at home, which led to higher burnout rates.
In order to draw top talent, employers must offer job flexibility, authentic leadership, and a positive work environment. Leaders predict it will become more difficult to attract and retain top talent in the next year. They were also concerned about managing the hiring process and improving operational efficiency, according to Paychex.
Meanwhile, companies that outsourced HR administration last year saw a higher level of accuracy, increased productivity, improved analytics and reporting, as well as better compliance, according to the report.
RVR helps clients gain a thorough understanding of their businesses from a market, company, and team perspective. We examine the metrics around a team’s weekly activities, their performance and the impact on the company’s financial health.
Staying up-to-date with new technology
Technological developments and emerging trends can quickly affect your industry before you even have time to understand them. Because of labor shortages, most companies are forced to turn to automation to complete tasks that remain unfilled due to talent shortages.
Artificial intelligence (AI) has started to augment a bulk of business processes, and the trend will continue to accelerate. Even though technology will require a large capital investment in most cases, it can definitely replace the missing labor force and the company’s inability to meet its clients demands. It’s easy to feel overwhelmed by the latest advancements, and a consultant who is knowledgeable about your industry and evolving developments can help.
RVR works with companies to understand the importance of upgrading their processes, selecting the right technology, implementing it successfully and ensuring their teams are able to work alongside new digital tools with maximum efficiency and utilization.
Advantages of a management consultant
At RVR, we’ve been in your shoes so we can help you navigate any uncertainty you may be experiencing, whether it’s inflation, supply chain challenges, hiring issues or technology.
A large number of CEOs need the most assistance with business strategy development and talent management, according to a report from The Predictive Index. As company owners and executives, we understand the day-to-day pressures facing your organization, as well as the necessary steps required to improve your operations immediately.
Perhaps you don’t know how you’re going to pay your employees next month. Maybe your business isn’t growing, and you aren’t sure why. It might be the opposite: you’re overwhelmed with your booming business and you don’t know how to manage it. Or you think that your business is performing well, but the metrics don’t show it.
Rather than relying on yourself or your team to solve a problem, it’s best to hire experts. With a fresh outside perspective and deep internal expertise, RVR can help leaders reshape their views and confront challenges head on, advancing their strategy and accelerating growth.
RVR’s experts can provide an objective viewpoint, identify issues, and serve as catalysts for change. Additionally, we can help maintain timelines and goals, as well as provide focus, accountability, and discipline.
Engaging with a management consultant
At RVR, we offer flexible, skilled support to assist your organization in achieving its goals. Our team works to understand how our clients’ businesses are performing, what they’re aiming to achieve, their overall goals and the roadblocks keeping them from achieving their goals.
That all starts with a business assessment. First, we’ll meet with your key executives and together, we’ll identify any obstacles impeding your progress. While companies typically track a variety of metrics, they may not have enough information to pinpoint the root issue. Fixing a problem effectively requires identifying its underlying cause. It is possible that the true cause is not what they think it is.
At RVR, our team analyzes our clients’ metrics and key performance indicators (KPIs) to single out the real drivers of their business. They’re able to figure out where your business stands and make more informed decisions as a result.
Companies need solid financial information and timely reporting capabilities to successfully navigate concerns about inflation or supply chain issues. As a result, we might improve reporting first, and then figure out what the problems are and where they lie based on the right information.
But financial data doesn’t always tell the underlying reason for the challenge. If a company has problems with technology or staff, we look at its operational KPIs to find the true problem and solution. It is more difficult to move a business forward when processes are ineffective, technology is outdated, or manual processes are too long or time consuming.
Put your information into perspective
A majority of CEOs said they’re more likely to hire a consultant who helps them adopt a proven system, according to The Predictive Index. However, 41% preferred a consultant who could provide a customized strategy.
At RVR, we do not offer a one-size-fits-all solution. Through open communication and review of relevant financial and operational data, we work with your team to construct a business strategy outlining the key objectives and initiatives required for your company’s success.
We outfit clients with tailored reports and dashboards that serve as your information center to not only get your business back on track but keep your staff, stakeholders and executives on the same page. As a result, we’re able to provide customized recommendations and carry out projects according to your business needs.
We generate a repository of reports, and we continue to capture key metrics to unlock critical insights based on historical data. With benchmarks and targets, we’ll help your business collect better data. Accurate and timely information is essential for making informed decisions and having your company successfully navigate any economic climate.
If you’re interested in learning more about what RVR can do for you, give us a call at 407-677-0400.
By: Joe Raymond, Managing Partner of RVR Consulting Group
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RVR Consulting Group provides your company with resources to support your vision and generate faster returns. By operating from both a strategic and tactical position, we protect clients during critical periods of uncertainty. Our services include advising, talent acquisition, sourcing fractional employees, exit planning, and selling your business. Regardless of your challenges, our firm’s experience is structured to make the road to your objectives faster, simpler, and more profitable. Our goal is simple: help you maximize the value of your business.
We are motivated to foster growth and develop opportunities for companies and their internal staff. Those economic impacts transcend into communities when our clients succeed and have invaluable, lasting effects.
For more information, visit https://rvrteam.com/contact/
