Rugby was the loser

Two losses in a row! Heads should roll; sack the Coach, the Players, the Captain and the hanger-on.

As I alluded to after the Bledisloe win, rugby is part of our psyche to the extent that if the All Blacks win, lose or draw, then the economy is affected.

But memories are short, in both sport and business.

If a company makes losses after years of success, sack the Board, the CEO, the staff? Well, it's just the same as the rugby isn't it?

Let's not focus on excuses, the ball, the ref, the crowd, jet lag; or the economy, skill shortages, the market, the competition.

What's missing, from a logical perspective, is what has changed?

Is the company well managed, with a good product, with a ready market, with presence in that market; and is it well capitalised? If it is, then why look for scapegoats?

Anyone can make money in the good times; to the extent that bad businesses can look good. Only the good businesses make money in the bad times. But good businesses lose money sometimes too; though the reasons aren't always obvious.

Even a simple SWOT analysis will help (Strengths, Weaknesses, Opportunities, Threats). This will assist in isolating issues. It may not be any one person's fault why the company struggles; it may indeed be the right thing to close the company down, and cut your losses. It may be that a change in focus will mean a return to profit, or that a well capitalised company can ride out the economic downturn; it may be that certain heads should roll.

Generally, if you have the right people for the job, they are doing it to the best of their ability, then, as long as there is a market, you should keep going as it will come right.

But if the tough decisions need to be made; make them. Business is not a game.

If the team is the best we have and it's playing to the best of its ability and the opposition is better than us; and we can't improve, then we won't win every time.

Perhaps it's a good time to focus on getting the basics right and the profits will start to outweigh the losses.

Adam Davy is Managing Partner of the Wellington Office of BDO.