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  • Writer's pictureFalls River Group

Do You Have Enough “Intelligence” to Seize the Moment?

Updated: Oct 23, 2020

Do you have enough “Intelligence” to seize the moment?

If you are waiting for the federal government or the news media or some genius to tell you the “new normal” has begun, then you are already behind your competition. The business landscape has fundamentally changed forever. For many businesses, survival is the only goal, for others, the world will become a rich mosaic of opportunity. What will define the winners and losers? An analysis of your company’s strengths and weaknesses based on “Intelligence”:

Strategic Intelligence: This is the collection, processing, analysis and dissemination of the internal components of your business. The term is used primarily by the military and is required for forming policy and military plans. Guess what? You are at war, the battle lines are being drawn globally for a restructuring of the economic order and you need to be prepared. Think strategically! Identify trends that present threats or opportunities; conceptualize a vision for your company and create a path for you and others to implement it; think about what the common goal and purpose is and integrate the elements to help your team achieve a common purpose.

Operational business Intelligence: This is the process of reviewing, evaluating activities, data and operations so you can make tactical and dynamic business decisions. This real-time information can be used to avoid bottlenecks or offensively help you make changes mid-stream. The goal is to provide business analytics with real time data related to business processes and practices as they are implemented. This intelligence provides current, historical and predictive views of the business and the operations.

Financial Intelligence:

This has emerged as a best practice and a measurement metric for core compentencies in many organizations producing improved financial results, better employee morale and reduced turnover. Financial intelligence constitutes skills gained from understanding accounting principals and finance and understanding how money is being used in the organization and why. Many companies include this type of training in their leadership development curriculum. Simply put, financial intelligence is a learned set of skills that will help ensure key employees have the skills to protect or add value to your business.

Primary intelligence:

If your strategy is to go on the defense, it will be more difficult to grow your business and survive. You need to be on the offense. Think about companies, product lines or distribution you can acquire that add strategic value; spend the money to market your brand or hire a great marketing person; focus on your customers, find out what they are thinking and how they are doing; think strategically about how you can be a better leader, you will need to give a clear directive to your team.

Emotional Intelligence:

(EQ) is the ability to identify, use, understand, and manage emotions in positive ways to relieve stress, communicate effectively, be empathetic with others, overcome challenges, and defuse conflict. The pandemic has caused enormous stress and fault lines in most businesses globally. Think about how your employees, customers and you are coping. Consider hiring experts to help you gain more “intelligence” into your company.

What can you expect in the next 12 months?

  • Technological innovation will continue at a rapid pace.

  • There will be more government influence in our lives (healthcare and financial).

  • There could be a new era of financial protectionism limiting companies from entering new markets dampening growth in developing countries.

  • There will be less leverage for businesses and those relying on high leverage will see diminished financial returns.

  • Companies seeking higher rates of consumption growth will look to Asia; the US cannot continue to be the global growth engine.

  • Investors will continue to look for high growth opportunities in genetic engineering, software to advance telemedicine and conferencing capabilities, clean energy, and remote working and learning options.

  • The Federal debt will continue to increase due to the Covid-19 virus spending and reduced tax revenues. It is now over $28 trillion. The U.S. debt-to-GDP ratio is 130%. It’s above the 77% tipping point recommended by the International Monetary Fund.

  • The Federal Reserve has warned (2019) that global warming could impact the financial system. Climate change is forcing farms, utilities, and other companies to declare bankruptcy. If these loans go under, it will damage banks' balance sheets just like subprime mortgages did during the financial crisis.

  • US Health care expenditures are expected to reach $6 trillion by 2027, and its share of the GDP is projected to reach 19.4% in that same year. This number could dramatically increase depending on this election and who becomes eligible for government benefits.

  • Foreign investors may decide to diversify their portfolios with more non-dollar-denominated assets, such as the euro, concerned that the US may want the dollar to decline. Why? The relative value of the debt becomes less.

  • If China’s exports decline, it could buy fewer U.S. Treasury’s. Since China is the second biggest purchaser of U.S. debt, as its demand for Treasury’s declines, interest rates could rise (Kimberly Amadeo).

  • The Federal Reserve reported Friday that industrial production — including output at factories, mines and utilities — climbed 3% in July after surging 5.7% in June. Production may stagnate if the virus continues its surge shutting down factories again.

As you factor in current market dynamics, ask yourself if your company has the “Intelligence” to create your own new normal? The opportunities are out there waiting to be seized in spite of mercurial economic news. CARPE DIEM! Translation? Get moving - your competition already is!

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