Businesses can learn lessons from the past three US Presidents. If you invest in the infrastructure, it supports everyone and supports business growth. President Obama invested in the banks, airlines, roads, and social safety net for citizens President Trump invested in public health, mental health, and immigration and border security. President Biden has invested in roads, transportation, green energy futures, and the economy. Regardless of your political ideology, there’s a common thread here about how investments in infrastructure are keys to sustainability and progress.
For businesses, investments in infrastructure are critical to maintaining the health of any company, supporting your employees, and being strategic about your performance and goals. Companies who take their eye off of their infrastructure will find themselves with a crumbling foundation that will erode performance and culture. Each business should spend time focusing on some key areas that will provide a strong foundation for economic growth.
When I talk about infrastructure, I am referring to the areas of keeping the business operating and successful. These areas include human resources, finances, information technology, data, collection and reporting, marketing, customer experience and support, and board, investor, and partner relationships. For businesses with the resources to have staff in these key areas, there is an easier time managing the infrastructure, as long as the staff is confident to do so. For small businesses, they often have to make decisions where to invest in the infrastructure while investing in service delivery. Finding a balance between the two is hard, but necessary. When your resources are limited, this is a Sophie‘s choice scenario. The investment decisions you make will have a cause and effect on your business. How you secure and invest in your company infrastructure will determine your success.
The infrastructure list I provided is long. If your resources are limited, you may not be able to invest in all areas simultaneously. You will have to make some choices on three to four infrastructure areas to invest in year to year. This is where your business must be strategic in its decisions to maximize success.
For many, the three key areas that are critical are human resources, finance, and information technology. For others it may be human resources, finance, and marketing. I would argue the three key areas are finance, client experience, and board, investor, and partner relationships. This may surprise you because I often talked about the importance of employee support. I would agree and say my number four is human resources, although I have my own issues with Human Resources, but employee support is important. I digress the reason why I believe finances, the client experience, and board, investor, and partner relationships are more important is because without the financial resources, your impact is limited. When I am asked to consult to support a company with infrastructure improvement, my first conversation is around current revenue and new revenue opportunities. Therefore, when I see the budget the puzzle becomes more clear. Many do not have a plan for revenue diversity or new opportunities. I found a clear correlation between the lack of revenue and a crumbling infrastructure.
Once I understand revenue, debt, and contracts, I move on to understand how they are investing in their infrastructure. Where are they strong and weak in the areas of human resources, finances, information technology, data, collection and reporting, marketing, customer experience and support, and board, investor, and partner relationships. Lastly, what are the company goals and where do they want me to focus my energy? How can I lend my expertise to help them move their needle on business growth and impact?
If you are struggling with your company’s infrastructure, reflect on the questions below.
- Are all of your business licenses and contract deliverables in compliance?
- Are you in compliance with both your city, county, state, and federal requirements?
- Are you current on your billing?
- How are you on your accounts receivable aging?
- Are you in compliance with the department of labor standards and HR practices?
- Do you have the right business tools and place to manage your compliance and run your business?
- Do your employees have the right business tools to do their jobs?
- Do your employees feel supported?
- How would you describe your company culture?
If your company is struggling, there still may be time to turn things around. Having strategic conversations at the executive level, with investors, and with your board and employees is a great beginning to identify your opportunities and risk. Once you have some information, you can start putting together a strategy to make improvements to your infrastructure. The hardest part is allocating or finding resources to execute your strategy.
If your company needs additional guidance or support, contact us at Pensivetastic. Let’s collaborate to define your path forward. We’ll help you get there.