Now is NOT the time to cut back on quality!

Well, it’s finally hit.

There have been warning signs for the last nine months that the economy was likely to bite us all. We have seen continued pressure on energy prices, food prices, and wage inflation, with Consumer prices index v retail prices index being like a basketball score. We have started to see job cuts in larger firms, struggling to cope with reduced consumer spending, and from over-aggressive growth in the last two years.

From my perspective, what I have seen is a real slowdown in decision-making. February was almost at a decision-making standstill for businesses, as they took time to ratify budgets, with a focus on the truly important initiatives.

In turn, what CIOs have been prioritising, is a real drive to business efficiency and operational cost-cutting through technology. This is a real shift from the last two years, where the main focus has been on growth, playing catch up after Brexit and Covid. In comparison to 12 months ago, it’s a bit like chalk and cheese.

I speak to lots of other business owners, across many industries, and most are feeling the same impact. The majority remain optimistic that this is just a small bump in the road. What is hard to judge though, is whether eternal optimism will outweigh the realities. The truth is, it will probably land somewhere in the middle, and as always some will benefit more than others.

Don’t let lightning strike twice

However, if we look back at recent history, within technology, I strongly urge decision-makers to really think carefully about making the same mistakes as before, such as:. 

• Huge corner cutting on processes and best practices,
• waves of decisions to move towards cheap labour,
• a one-supplier-to-kick mentality.

All these key types of  decisions were made back in the financial crisis of 2008/09. I know, I lived and breathed it and that is when we started Roq.

And for the last 14 years, we have been helping organisations rescue themselves from these bad decisions; using their own war wounds and scars to play back to help them towards a righteous path.

And that is my message in this article. For any C-suite decision makers, now is not the time to cut back on quality, particularly in technology. Consumer expectations remain high – in fact higher, as they are generally paying more for a service/product. They expect the experience to be better, from supply chain to delivery; from manufacture to consumption.  

According to Zendesk CX Trends 2023 report, 80% of customers say they’d switch to a competitor after more than one bad experience.

More Quality than quantity

The industry is on an amazing trajectory, with advancements moving at a great pace. So, now is the time for smart decision-making. Now is the time to focus on expectation setting internally that investment needs to be made, but quantity may need to be reduced. Whether you are driving operational efficiencies through M&A, or technology consolidation, don’t compromise on the target operating model. Think beyond the pinch the next 12 months is likely to provide.

There needs to be an operating model from which organisations can build back and flourish, so consider things like:

• Keep technical debt to a minimum
• Drive efficiencies through quality process and people, not cheap and inconsistent methods
• Keep team morale high, by initiatives that drive creativity and innovation, not redundancy

I understand it’s not easy, and I am fortunate that I don’t have FTSE pressure driving our behaviours, but leaders need to be strong in the toughest of times.

The cost of poor decisions and quality not at the heart of any solutions – no matter its intention (driving revenue, cutting costs, meeting legislation) – will ultimately be an expensive mistake. The expense might not be felt in this budget cycle but certainly will take a proportion of future budgets to resolve or replace. And that may put you at a competitive disadvantage in future years.

I don’t normally like to make my posts as serious as this. I am by no means a leading economic authority. However, I have been around the block a few times, feeling an economic pinch first-hand on about five times during my 25-year career.

I have seen so many organisations recklessly make significant decisions, with less than a 12-month impact assessment done. All I encourage is for decision-makers to think of the baton you are handing over in the next 12-18 months. Take the bold step, to focus on the things that you know are right and that leaves the organisation in a much better place. Nobody really cares that you only did 10 strategic initiatives this year, if they are all done well. But they will care if you try 20 on a shoestring and leave a legacy of disaster.

As always, happy to have any conversations on the topic. It’s close to my heart.