Proactive vs Reactive Business Practices

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Proactive vs Reactive Business Practices

Being proactive is the art and science of designing a reaction to a situation that has yet to occur. Proactive individuals strategically anticipate problems, complications, unforeseen circumstances and seek to develop a contingency plan for these scenarios. These leaders take the time to see the possible obstacles on their roadmap to success. Today we’ll look at proactive versus reactive business practices.
Maintain the Advantage
Proactive organizations maintain an advantage over their competitors by taking the initiative during the planning and preparation stage. Proactive teams build space into the project planning timeline to strategize for failure. Preparing for a piece of equipment to go down, anticipating a critical software failure, or projecting a change in public opinion is key to risk management and successful contingency planning. Reactive companies, on the other hand, scramble to respond to shifts in the industry. They go into project planning ill-equipped to deal with the unexpected and often function in a crisis mode. Reactive organizations are often fighting to create a workaround for issues or struggling to keep a project on the correct timeline. This heightens stress and leaves employees feeling insecure.
Improved Customer Experience
Proactive organizations position themselves to continually move toward better customer service. They apply a strategy that will assist them in achieving their customer satisfaction goals. A hotel manager might have staff check guest satisfaction by asking how their stay is or whether they are in need of anything. This question can be asked unobtrusively as the guest passes through the lobby. An independent contractor can keep an updated list of previous customers who have given permission to be used as references. In this way, the list is handy and accessible when a potential client requests references. Reactive businesses are often found waiting to respond to a complaint from a guest or request for information. The time required to develop an appropriate response to such inquiries can be the difference in a repeat customer or a negative review.
Employee Relations
Proactive companies utilize the depth of their talent pool to create and implement positive processes and procedures. Leveraging suggestions, communicating expectations clearly and inviting feedback keeps proactive companies relevant to both their clients and employees. Like clients, 21st Century employees are exposed to diverse training and experience, they may well have an innovative idea that will move the company forward. Traditional top-down management issuing outdated protocols can undermine the ingenuity of core personnel. A constant feeling of not being heard by management, being bogged down with fighting fires, and not having an appropriate response to complaints from customers can eventually lead to a high employee turnover rate.
Admittedly, creating a contingency plan for every single issue that might possibly occur is not only unrealistic, but also time-consuming. Nevertheless, preparing for as many issues as may arise provides the business with an added sense of confidence when executing on the plan. Give your business a better chance of success by taking a proactive approach to your business strategies, human resources department, and project planning. Contact At Your Service Consulting for more on ideas on how to create a proactive environment in your organization.


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