Base of Knowledge

What are the most effective ways to measure your strategy's success in the short term?

When a management team decides a strategic plan, this plan includes a specific business plan with financial goals regarding revenues, profit and business growth. But there are also non financial goals like the increase of productivity, automation of production, sustainability plans, new investments and more. Every goal has its action plan with short and long term goals and special indicators that should be considered in order to take decision concerning the percentage of completion and the need for reviewing the plans.

What are the risks of entering a joint venture?

When a business owner decides to share his business with an investor, it is very important to realise that a joint venture will probably boost growth and provide expertise but the decisions will be a result of all parties. Usually a joint venture is a result of a long period of negotiations when the partners agree all the terms of their partnership, the business plan, the management's objectives, the partner's rights and obligations, the exit plan and every possible case that could be a source of arguments. Of course all terms become part of their legal contract. 

How can you manage uncertainty when collaborating with others?

When you do business it is inevitable to deal with different types of uncertainty. Uncertainty that becomes from your collaboration with others can be reduced if you apply strict action plans with different reactions for every case. Action plan, interaction, audit, review and reaction can reduce uncertainty in collaboration.

How can you structure your budget to impress strategic investors?

In my experience I can assure that strategic investors sustain teams of analytics with great skills. They have the experience to recognize when your business has the characteristics to become an investing target. The key factors that can make your business attractive to strategic investors have to do with your product or service and your business plan. Excellent products, well organised company structure, continuous growth, significant EBITDA, sustainability and excellent management of cash flow are some key factors that can attract strategic investors.

How can you build a growth hacking team that complements your unique skills?

In order to succeed growth, you must always scan your current and your possible future target markets and make sure you can adapt to their needs. The markets needs can change due to many different factors. But inside your business you must have the maturity to recognize your weeknesses, define your advantages and develop a devoted team who believe in your vision and have the skills to boost growth for your business.

How can you effectively present budgeting and forecasting data?

In my opinion, if you wish to present a budget and make it acceptable so you can reach your goals, you should make scenarios and present the results for every different case. In this way you will prove that you have deep knowledge of your business and you can think a reaction for every case.

• The most believable story that could be used to make the budget more efficient, would be a story from the past with similar data, based on scientific rules and principles. In most cases the rules of market and economy tell the truth and there is always a proof of concept. Of course if you are a serious scientist you should always keep in mind the worst case scenario and project the most suitable reactions.

  No doubt it is inevitable to deal with questions regarding your budget so you need to be prepared for every possible question. It is very important to deal with the questions with respect and accept that there is always a possibility to miss an information. In that case it would be fair to accept that you could review a part of it and thank your audience for their contribution. In this way you will show that you are a team player, with respect. A selfish way to deal with your audience and their questions could bring the opposite results.

What are some effective strategies for keeping employees motivated during challenging times?

 When you become a manager it is important not to forget the time you were a lower level employee. An employee wants to feel that there is always an open communication with his manager. He needs to feel familiar enough to communicate for every personal and working issue. We should never forget that we spend more time with our team members than with our families.

For most of people there is nothing more important than a good word, a recognition of an achievement, public or not. Some times this is more important than a reward. Everyone needs to feel appreciated and this is the best motive to keep up the good work. A fair reward is always efficient as a motive in most cases,especially when it is combined with clear targets and specific results.

You're planning to start a new project. How can you ensure it stays on track?

When you start to plan a new project, first of all you need to define where you stand and where you want to be. You must decide the supplies, the team, the effort, the duration needed and the goals to succeed. The next step is a well organised action plan for the team members, a specific time schedule and the project's budget with different case studies. 

How can you improve your forecasting skills to better anticipate industry changes?

The first step to prepare an efficient and accurate budget is to analyse the historical data of the organisation, calculate the rate of change year over year for all critical indicators and set up scenarios for every possible case. 

In order to choose the right forecasting method and make scenarios and time schedules, it is necessary to identify the external factors that can affect your forecasts and what results they can cause. It is very important to get information regarding the markets, the products and the trends but also you need to have the experience to see the consequences of what is going on in the world and how it can affect the markets.

An efficient forecast should always be revised periodically. You should always make corrections when you define some mistakes or miscalculations. The best way to improve forecasts and budgets over the periods is to create connected archives and conclude into a rolling estimation according to every critical indicator. In this way you will have the chance to see the effects of your budget's forecasting mistakes on your budget's results. You should always remember that you should always indicate the assumptions and their affection. Noone will blame you if some of your assumptions are wrong but they will blame you if you do not make corrections and adjustments.