Over the past couple of years, disruption has been no stranger to businesses as COVID-19 impacted staffing, cybersecurity, supply chain, and much more. During turbulent times, it’s natural for a business to stop and re-examine its structure and processes. Where can we become more efficient? When a business wants to tackle questions such as this, considering “core vs. context” is a great approach.
We sat down with Ken Zimmer and Brian Young, principals of technology solutions at Rehmann, to better understand the concept of core vs. context and how businesses can put it into practice. Here is what we learned:
Know your secret sauce. When working through core vs. context, you’re focusing on what makes your business unique – this is the core of your business. Manufacturers are a perfect example because they produce products in a way that is unique to their business. The entire focus of the organization is on those products and making them the best they can be for their customers. This manufacturer may have other necessary jobs that need to be done, but these jobs don’t support their core – their “secret sauce.” For example, they may have an onsite lawn that requires maintenance, but does it make sense to hire an employee internally to oversee the maintenance of that lawn? This is where context comes into play. It’s likely that the manufacturer would outsource this job, so that their employees can focus on the mission and vision of the business. You can start to apply this concept to other areas of your business, such as your IT environment. Consider a recent Harvard Business Review study, which found that ransomware attacks increased by 150% in 2020. Do you want to spend exorbitant hours internally building and maintaining a cybersecurity plan to keep up with this increase, or would that job be better suited for an outsourced expert?
Identify your first steps. Core vs. context is a management strategy, and a great leadership tool as well. Organizations looking to use this formula should be urging leaders to take initiative. Leaders should examine the areas they oversee within the business and ask themselves if they’re set up internally to be handling processes properly. Budgeting discussions and goal setting at the beginning of the year can be great times to start this process – you’re actively looking at your business needs and what’s upcoming. Speaking of the future, it’s best to revisit this process at least every five years. A study done by Pew Research Center found that nearly half of Americans credit technology with improving life the most in the past 50 years. Businesses that embrace innovation and new technology are going to stand out. You don’t want to do this process once and wipe your hands clean of it – you want to continue to innovate, which brings us to our next point.
Be wary of “We’ve always done it this way.” In any conversation where you’re discussing making changes in a business, you must consider the naysayers – there will always being some. They may use the phrase, “We’ve always done it this way,” which is a dangerous statement. The business landscape is always changing. If you’re not willing to look at your processes and evolve, it will backfire on you. Businesses should urge their leaders to be bold and make decisions that may be different from what’s been done historically. Ultimately, this helps the business focus in on their mission and vision.
Core vs. context is a formula to help you begin moving the dial and making effective changes to your business processes. Start by asking what the core of your business is – what makes it unique? Then, urge leaders to start assessing processes and looking at what could be outsourced to allow more focus on your core. Finally, keep your foot down on the gas pedal, don’t shy away from change, and be sure you’re revisiting this process at least every five years. Rehmann advisors like Ken and Brian work constantly with businesses to understand what core vs. context can mean for them. Rehmann offers a variety of outsourcing services. Contact a Rehmann advisor today to start empowering your business.
get rehmann expertise to drive your business in your inbox every week
Guide: Estate Planning Strategies
Guide: Employee Retention Credit
Guide: Keeping your cashflow on point
Contact Us Today
5 Ways to Start Empowering Your Planning Today
Financial Institutions Board Insights Download
Empowered Planning: Your Quarterly Update
Key learning objectives:
Federal Tax provisions
International Tax Proposals
How to capitalize on your corporate retirement plan
5 Steps toward empowering your operations
Empowered Planning: Your Business Transition
Key learning objectives:
How to determine the right time to sell. We’ll talk through the essential questions to ask yourself about your business, the importance of knowing what your organization is worth (and is it enough to retire on or to move on to another venture?), and identifying the people to surround yourself with during this critical, and likely emotional, time in your life.
The right next steps once you decide to sell. From financial due diligence to valuation and more, we’ll cover what to do once you decide the time to sell is now, or sometime in the near future.
Essential tax considerations. Our experts will break down the critical components of tax planning when going through a business transition, so you’re prepared for the sale itself as well as the days following.
From our CEO
At Rehmann, we strive to be The Firm of Choice not only for our clients, but for our associates as well. As our company grows – our team numbers 800 and counting – we continue to focus on training and development, to provide our clients the best solutions from the most knowledgeable team.
Here’s what Rehmann delivers: an outstanding environment full of professional challenge and reward; a culture based on putting people first and celebrating an entrepreneurial spirit; and opportunities to enrich the lives of those we serve. Passion, collaboration, and trust drive everything we do. If this sounds like you, we hope you connect with us for your next opportunity.
Kind Regards,
Randy Rupp, CPA CEO
Your Essential Estate Planning Guide
Cybersecurity at a Crossroads
Key learning objectives:
Find your footing in a shifting technology landscape. Your workforce has gone remote, attack vectors have grown, and the use of cloud applications is on the rise. Are you confident your security has kept pace with all the changes?
Get real about your risks. Increasingly sophisticated attacks and rising recovery costs are putting pressure on organizations. Learn how to quickly calculate your risk.
Strengthen your security. We’ll share the foundational elements every organization needs in place for a strong cybersecurity program, as well as pinpoint the questions your security team should have answers to.
Empowered Planning: Preparing for Your Year Ahead
Key learning objectives:
Navigate critical changes in tax legislation. Understanding the potential impact of the Build Back Better Act and planning opportunities to consider.
Take advantage of cashflow improvement. Tactics to build visibility, engagement, planning strategies and focus into your projections.
Assess your workplace. Proactive ideas to evaluate if you have the right people, technology, and other resources in place.