Here's another way to think about cash flow in a recession: what's new with your company?
James Ellis, dean of the Marshall School of Business at USC, urged companies to think about "what new things are coming out of your company" when he spoke to business owners, employees and consultants gathered for a Los Angeles Chamber of Commerce Power Hour on June 16.
Dean Ellis spoke about changing corporate thinking from survival mode to an optimistic view "to look at everything positively including change."
He said that innovation and creativity doesn't just have to focus on products but to say instead everything is fair game.
"We need to review all critical areas of our business," he said as he mentioned that creative ideas come from process. Ellis said it's possible to take a dumb idea and improve it through a process that involves input from everyone in a company.
He also stressed the need for constant communication.
"We have to be smart managers focused on the future and over-communicate. Communication of any type is critical to facilitate change and help build a positive environment."
The advice contains basic business fundamentals to succeed and generate the cash flow that companies need to make profits and keep a workforce employed.
"Focus on the core competencies and ask 'what are we good at doing?'" he advised.
Ellis mentioned people in Human Resources (HR) should especially be good listeners since they come into contact with executives, managers and hourly employees.
He also mentioned it's important to benchmark the successful practices of competitors and non-competitors. "Go outside the world you're competing in and find good companies to benchmark. What do they do well?"
Ellis said it's worth the time to benchmark even though many ideas and practices may get thrown out in order to adapt select practices.
He gave this summary of advice:
- Focus on the core business
- Protect it
- Invest in it
- Benchmark
- Think about people
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