Now is the time for U.S. businesses to make sure their houses are in order.

In these uncertain economic times – with credit tightening, continued cost increases and unabated foreign competition – now is the time for U.S. businesses to make sure their houses are in order.

Undoubtedly, business conditions are a lot tougher than they were five years ago – and they are unlikely to get much easier in the future. Nevertheless, this should not be cause for panic for U.S. CEOs or shareholders. There are many things businesses can do to counteract the tough conditions.
The following are five things all U.S. businesses can do to ensure they not only survive, but also thrive, even in the most challenging times.

Steer Toward Downhill Rides
If the Tour de France offered riders two choices – racing uphill or downhill – even an accomplished, world-class athlete like Lance Armstrong would likely not win if he chose the uphill route while his competitors chose the downhill ride.

Businesses also give themselves a better chance of success if they choose a downhill ride, or an external environment that is conducive to the company’s success. Factors that impact a downhill ride in the business world include growing markets, strong market leverage (where customers, suppliers and competitors do not have significant power or leverage over the company), and strong market stability (predictable, stable markets and attractive margins). There are many things businesses can do to steer away from uphill rides toward downhill rides.
 
Develop Reasons to Thrive
Reasons to thrive are internal strengths or capabilities the business has that cause more customers to want to do business with it. The most important reasons to thrive are:

• A lower cost structure – This allows a business to provide its customers with consistently lower prices, something that Wal-Mart has enjoyed for many years.
• Superior service – Dell built its business on this reason to thrive. Recently, service levels have declined and this has had an adverse impact on Dell’s financial performance.
• Superior quality – Honda and Toyota have achieved huge gains in U.S. market share by delivering products that are consistently more reliable and better quality than U.S. brands.
• Innovation and technology – The iPhone is another home run product that demonstrates Apple’s success due to product innovation.
• Superior intangible qualities – Lexus’ popularity is substantially tied to the status it brings to its customers.

Companies that have one or more reasons to thrive give themselves a significantly better chance of succeeding.

Generate Buy-In
The best strategy has little chance of success if it is not communicated to, understood by and endorsed by managers and employees throughout the business. Its chances of success are increased if managers and employees have an opportunity to contribute to the development of the plans and are empowered to play a significant role in its execution. This buy-in generates feelings of ownership and caring – key catalysts for business success.

Management often downplays the need for buy-in, putting the onus on boards to ensure that such buy-in is taking place. The best way to generate buy-in is to involve people throughout the organization in the development of the company’s vision and strategic plan, and empower them to take an active role in developing and implementing the plans to turn the vision into reality.

Live the Value Proposition
A company’s strategy should be built on its value proposition, defined as compelling reasons why customers should do business with your company. Value propositions are built on establishing and meeting customers’ needs in ways that provide value and are not readily available elsewhere.

Without a compelling value proposition, companies are doomed to mediocrity. Southwest Airlines has become one of the largest airlines in the U.S. by delivering on its value proposition to provide low-cost, reliable transportation.

Create a Culture of Accountability
Things don’t get done well without a culture of accountability. People throughout the company need to understand that sloppiness, procrastination, denial and lack of attention to detail can seriously hurt a company’s ability to succeed. Creating a culture whereby everybody works hard to complete projects on time, accurately and on budget is a very important catalyst for business success.

Too many businesses that are struggling assume they are doomed to failure. For most companies, this is simply not true – no matter how competitive an environment they operate in. Start today to get your company’s house in order.

Larry Goddard is president of The Parkland Group Inc., a Cleveland-based consulting firm focused on helping businesses improve their performance and profitability. He is the inventor of the SOAR to Strategic Excellence process – a tool to help businesses improve their performance and profitability. He can be contacted at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it