How to speed up financial performance ?

How does the habit of saving help ? What are the ways to improve financial performance in this crisis moment ?

When my daughter reported to me her first salary , my first thought was , she needs to buy LIC policy and small savings in SIP.In Asia , specially in India we have a peculiar habit and that's saving. How small we earn , we save.That's what our ancestors did , and now we do.We regret if we spend beyond our pocket on credit cards.The reason for such culture is the fact that we are always of our own to protect our health or any contingencies as such.This cultural habit , we call it stingy or wise spending , will pay off immensely in present virus crisis. 

Post Covid-19 there is huge stress in the industry globally , India is no exception.The ecosystem which is pretty complex in India , however the foundation of aggregate savings and resilience will help India rise above the occasion .We cannot see it , but it is there.

For improving financial performance I will largely emphasise here ,revisiting time tested principles and quick implementation.SMEs in India are pretty large( 30% of GDP) and has a huge employment promise.As a leader you need to be tough and determined at this moment, as your stand of today will guarantee the employment of so many at a later stage.I am pretty sure that the conversation I will make , it will not only help SMEs but other industries in India and other countries. Every SME ,I speak they are thinking to close down their current operation and branch out to make sanitisers or medical uniforms.This is a blunder you are doing.I am not against encashing opportunities. But that's a pretty short term view.

Revisiting certain old principles is something like visiting an old friend , when we feel pretty low at life and recharge our values , strengths , competencies.Old trusted friends always make us feel so better on our hard days.

My powerful request will be to have a process view of the organisation again.Do not get carried away by the technicality of rigid systems you have built.Use them as facilitator than taking it granted for a vehicle.Bring enough flexibility to rematch the needs of your redefined customer base.Ask a dead honest question to yourself. Am I providing a right product timely at a much lower cost , the customer perceives ? Spend hours , days if your answer does not satisfy you. Break up the process in various subgroups to find a correct answer.

Order process   - From the receipt of an order to delivery finally to the customer.

Production -  From the receipt of raw material to finished product inventory.

Supply chain - From the warehouse customers door.

Shipping -  from the warehouse to customers' doors.

New Product development - Ideas to commercial production

Customer service - From customer engagement till you get feedback after delivery.

Cash flow - Income and the expenses to sustain business.

Leadership Audit - Collaborative , flexibility , competency. Look for these traits.

Revisit each of the above processes  , keeping a single fact in mind. Am I providing real value to customers at a lower cost than he/she  perceives ? Be aware that such a simplistic view will call for huge teamwork ,engagement, competencies, optimisation.Scale up gradually looking to the market.This is the reason I have shared why one needs to be tough and uncompromising.This is the work lying in front of us.

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