Challenge – Response Matrix

Challenge can be a Known or Unknown and so would be the response Known of Unknown. The entrepreneurs always deal with challenges in their normal business life. So Corona is only a new chapter. If we crystallize our thoughts along lines of the Challenge-Response matrix, it would be easier to prioritize our responses.

If there is a delay in payments from customers, as a first step we might increase our follow up efforts. But if it is an industry wide scenario – we might want to re-negotiate payment terms with our vendors or we might want to keep sanction of the higher working capital limit from our bank. 

Likewise, we might not know what are the new features that would be in vogue in a few days/weeks/months hence. And we might be under the impression that we would handle the unknown with our Known set of responses. 

To understand the matrix in a much better way, we can have a context of sales in mind.

Likewise, we can have this analysis done for ourselves in the context of HR, Production, Design, Finance. 

What we tend to focus on more is the Known Responses which are based on our strengths. Like for example – we are the lowest cost producer. But we may not realise that price may not remain relevant for a product / service. Customers may need a different feature – and for that they are ready to pay higher prices. Or “free after sales service for 5 years” may become a new industry norm, and we may not be in position to offer such labour intensive work.

Idea is to focus on the UnKnown – whether Challenge or Response. And check our own preparedness. The Known – Known quadrant is to be handled by the managers. 

Wherever Unknown aspect is there, the leadership / promoters / founders need to put their energy on. 

Via Negativa