Gold Magazine February - March 2013, Issue 23 | Page 70

opinion Change is no longer an option Growth in Cyprus will only come from new thinking and entrepreneurship H uman nature’s natural response to change is to fight it. This is especially true in Cyprus where great efforts are made to protect the status quo. Pressures from various sources conspire to make change and progress difficult; leading to an acceptance of “it has always been this way, so it will always be this way”. The classic example is Cyprus Airways. During the period 2011-2013, the government will have poured €149.9m in various forms into the airline to preserve it – the equivalent of €179 for every single individual in Cyprus. It is obvious that change has to happen so why is that imperative still being ignored? How much longer will the airline continue be bailed out when the need for a radical overhaul of its business model is blindingly obvious? The problem with protectionism of past processes and institutions is that it is inherently inefficient and damages the economy. Today’s global forces mean that, if any aspect of a business isn’t optimised, sooner or later competition will take it out. This isn’t something to put to one side for tomorrow. The realities of business in Cyprus in 2013 make it an imperative for today. Cyprus needs growth – and that growth will only come from new thinking and entrepreneurship. Protecting the past will only result in decline – and that can no longer be an option. The important point wrapped up in this is that one business doesn’t have to die for another to succeed – business es can go for growth by being entrepreneurial themselves. Opening minds to new possibilities opens up new opportunities. The changes required may result in a very different business at the end of the process but the business itself will flourish A business needs to adapt to its customers, not the other way around By Mike McCormac and grow instead of contracting and dying. The new thinking that will lead to growth comes about when a business thinks about three important questions. The process of asking and then answering the questions does not have to be time-consuming. With the right focus and will it can be extremely rapid. The three questions are: What do we sell? What problems do our customers have and how can we be better at helping them solve those problems? What extra value can we create for them that in turn will create value for us? Who do we sell to? Are there new customers with new needs we can fulfil? Can we fulfil our existing customers’ needs in ways that are better for them and us? Do our existing customers have other needs that we are not addressing today but we could? How do we work with customers? What else can we do to make it easier and better for our customers to work with us? How can we be in the right place at the right time to serve our customers in the way they want to be served? Answering these three questions from the perspective of customers is a very valuable activity. The challenge is to do it in an openminded way that puts the customer’s needs first and the business’ existing situation second. A business needs to adapt to its customers, not the other way around. An imperative throughout the process is to know one’s customers and their needs intimately. Traditionally, this has not been an activity that businesses in Cyprus are good at. It may need some basic research to obtain the facts that a business can take action on but the resulting information will be invaluable. What are our options? Should we continue to protect what we have while we watch sales and margins spiral downwards, or should we take action to be part of the new economy Cyprus so desperately needs? info: Mike McCormac is a freelance business consultant working with companies in Cyprus, Europe and the USA to help them grow their businesses. [email protected] 68 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS