There are some challenges that Managing Directors and CEOs face constantly—increasing profits, retaining talent and keeping overheads down. But what are the new challenges MDs are facing in 2016?
A recent research study asked MDs and business experts to share their predictions on the challenges MDs will face throughout the rest of the year. And whether you are an MD yourself or a non-exec, it is likely that preparing properly for these hurdles will make a difference to your business’s success in the coming years.
1. Offering flexibility
"MDs will be challenged by an increasingly mobile and transient workforce. Young professionals are increasingly demanding greater flexibility in their work and personal lives. If MDs aren't willing or able to meet this demand, these younger professionals will look elsewhere for work. Similarly, these professionals are going to look for greater development opportunities within the company. MDs need to focus on engagement, development and fostering a flexible environment for people to work optimally. Instead of dictating the culture, CEOs should enable their staff to build it." – Carl Seidman, business strategist and CFO adviser
Tip?
Hosted business phone systems and cloud based business apps will allow you to offer flexible working cost effectively. Bria apps for mobile working and on-network office phones at home mean that you would never know employees weren’t in the office.
2. Expanding employee benefits
"Hiring and retaining employees and staff without giving away all of your profit. The demands of this workforce seem bloated. The perks add up and affect the bottom line. There is a sense of entitlement that is driven by the lead of some large companies' benefit packages. Most SME businesses cannot afford such perks." – Jennifer Garcia, partner and CEO, Red Bamboo Marketing
Tip?
Provide benefits that make a big difference to your employees’ day, but don’t cost the moon. For example, business mobiles, (which with the right service provider, need not be expensive) fresh fruit in the morning and subsidised gym memberships.
3. Moving fast enough
"Speed is becoming the biggest challenge in business — whether it's execution of ideas, changes in the market and consumer behaviour, or the 24-hour cycle of news and social media. Those that are fast to respond increase their chance of growth and success exponentially." – Tobias Wilhelm, business consultant and coach
Tip?
Ensure the highest level of efficiency by using technology to your advantage. Have meetings using video conferencing rather than delay them, instant chat rather than write lengthy emails using the latest apps like Slack, collaborate in real time using Microsoft 365 or Google for Business.
4. Cybersecurity and hackers
"Information security will continue to be a major concern for MDs in 2016. We've all seen a rise in increasingly sophisticated methods that hackers use to gain login credentials, sensitive data or — worse yet — money from their victims. Cyber security is no longer a concern solely for the IT department — everyone in an organisation, right up to the MD, must remain vigilant to protect against breaches." – BC Krishna, CEO, MineralTree
Tip?
Don’t skimp on your IT budget. Endpoint security is a must, as is employee education. Forrester research has shown the greatest volume of security breaches (36%) come from ignorant or careless user actions that inadvertently cause security breaches.
5. Managing growth expectations
"Managing growth expectations will be the biggest challenge for CEOs in 2016. CEOs should watch for signs of market weakness and be wary that normal business perturbations may actually mean a slide into a lower growth period." – Bonnie Crater, CEO, Full Circle Insights
Tip?
Consider revising forecasts often to account for changing variables, and communicate with stakeholders constantly as to what is happening both in and out of the business.
About VTSL
VTSL is a hosted communications service provider specialising in hosted business phone systems and high speed connectivity. VTSL serves over 8000 users across the UK & Ireland and is one of the leading providers of VoIP phone systems to SMEs, business centres and GP practices.
