Brexit – immediate actions for UK Manufacturing Leadership

Manufacturing clients that we’ve been working with at a strategic level already have well-rehearsed plans in place for Brexit. For those who are still reeling with shock here are some of the short-term actions that Manufacturing Leaders might consider – the “Six R’s”:

Reassure: the first essential role of Leadership in turbulent times. Ramp up the communication, make yourself available, get out and about in the workplace. Let people know that despite recent rhetoric no-one’s job will be lost this month or next. In particular, reassure migrant workers that they are valued and wanted and will continue to be so.

Resilience – time to update your business risk assessments and make sure that you have robust plans in place and contingencies for the things that won’t go to plan! In particular, consider broader supply chain risks (see below).

Rates 1 – Exchange Rates: the pound will be weaker for a while so ramp up the exports and continue to use Lean to in-source materials and components. De-risk the Supply Chain and take manufacture and control in-house.

Rates 2 – Interest Rates: we simply don’t know if interest rates will go higher or¬†lower so shorten your payback periods slightly but keep on investing. Short-term turbulence often leads to cheaper asset prices so look out for bargains – don’t put off that acquistion but instead go flat out and bargain for a lower price.

Routine: now is the time to reinforce Standard Work, One Best Way and all of the “boring but important” daily disciplines that make for successful long-term business.

Remember: turbulence doesn’t change the world but it makes for bigger opportunities and bigger threats – update your SWOT review, spot the opportunities and act decisively.

Courage mon brave!

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