By Sir Ken Stevens, KNZM,Chairman, Glidepath Group.

If you haven’t got the message yet – you may have missed the bus.

2011 has dealt us some hearty blows and some poignant messages. I think that we’ve all seen tightening margins and increased competition for what is a smaller pot.

My guess is that 2012 will be even tougher and that a great shake out will be seen. My strategy will be: doing what we do – better for less – and that’s what we all want as consumers, do we not!

I’m in the commercial aviation industry. 16 years ago I could fly roundtrip to Brisbane for $1040.

Today, it costs just $570 with advance purchase. See the pressure that we the consumers are driving into our markets? We all need a strategy to deal with this. The airlines must have found one as they are still in business.

And that’s where we need to be this time next year – still in business.

While you are at the beach this New Year consider this:-

Plan to reduce your overall costs of goods – if not you will suffer in 2012

Can you trim your overhead by 1/3 and still get by?

Are your processes and technologies truly world class – someone else’s will be.

How are your sales processes – are you connecting effectively – providing real value – what’s your follow up like – do you truly listen to your customer or give them what you think best?

These are simple thoughts and are well capable of being implemented in 2012.

There are no tangible reasons for us to expect an uplift in business confidence in 2012. Export markets will be doubly tough but then exporters are resilient creatures and will get through. The rest of you will be price takers in 2012 and many may struggle to hang in.

Look at those costs and get them in line.