ECMOD 2008 Preview
Time to tidy
International adviser and M&A
intermediary Don Libey is chairing
ECMOD’s “Entrepreneurs’
Exchange” on 2nd October. Here
he discusses an issue critical for all
entrepreneurs and managers: the
difference between “tidying up” and
“remodelling” your business, and
Don Libey
how to go about the former
G
iven the current economic uncertainty, the prudent strategy manager’s projects and taking a rag to those that are not essential.
is to tightly manage your business while investing in At any given moment in any given company, about 20 percent of
projects that will put you in a better position when the the projects are “nice to do” but not essential. These are not the
economic cycle returns to growth. months for “nice to do” projects.
That means going through the closets and getting rid of stuff After you dust and send all the untidy bits onto the floor, it is
you don’t need. Although it’s nearly autumn, “spring cleaning” time to sweep. And here we mean “sweep out of the house”.
is a useful metaphor for simplifying our businesses. Get inside The act of sweeping is the final removal of the unwanted items,
the closets and drawers, find all the things that no longer serve a and—unfortunately—this includes people as well as projects,
purpose and lighten the load. For some companies, this means procedures, inefficiencies and redundancies.
obsolete inventory; for some, obsolete people; for some, obsolete Once you’ve cleaned out the closets and done the dusting
projects; for others, obsolete market segments. and the sweeping up, it is time to scrub the floors and to wash
Face it: When the economy is as unsettled as this one is, you the accumulated grime off the doors, the windows and the
make sure the business runs as efficiently as possible and you walls. “Washing” is a metaphor for purifying and disinfecting. It
try to grow the “sure thing” sector of your universe. This isn’t the may require stricter operating procedures, reduction of costs,
time to carry the weak or marginal performers. This isn’t the time to elimination of nonessential benefits, surgical removal of negativity
experiment with untested businesses or sectors. This isn’t the time or any of dozens of other purifying actions. What is wanted at the
to be munificent; it is the time to be cautious with your resources. end of washing is a clean strategic and tactical environment in
The most difficult part of tidying up a business is the closet which 100 percent of the activity is focused on profitability, growth
cleaning. Once that is done, a new efficiency standard emerges. and stability.
The closet cleaning, however, requires that you hold up each item
in the closet and honestly evaluate it for keeping or discarding. My Tidying versus remodelling
personal mantra for getting rid of stuff: “If it hasn’t produced for me Tidying up is inexpensive and is a housecleaning process.
in the past 30 days, I don’t need it”. Once I get past the emotion and Remodelling is expensive and is a major event. This is not the time
focus on the measurements, cleaning house gets easier. for remodelling.
After the closets are cleaned and all the nonuseful, Tidying up costs nothing. Remodelling is nothing but costs. This
unproductive stuff is hauled out, the next thing to be done is is not the time for remodelling.
dusting and sweeping. You have to go through the business and Tidying up removes unneeded stuff. Remodelling adds new
pick things up and wipe them clean, and you have to dust under stuff. This is not the time for remodelling.
and behind each item. And that means you have to dust the When the economic outlook is for slower growth and increased
attitudes and productivity of people and the effectiveness of the costs, and when the marketplace is more likely to contract than
systems they operate. expand, that is when you get out the rags, brooms and mops and
“Dusting” may well be a metaphor for closely looking at every go to work. Here are places to concentrate on as you tidy:
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