weathering the downturn
- How do we ride out the downturn?
- How do we prepare ourselves to take advantage of the upturn?
Of course, there is a built-in conflict - we know that to survive and succeed in a downturn requires careful cash management, cost-cutting and generally “battening down the hatches” - but this can be damaging in the mid to long term unless done carefully.
Do we threaten key customer relationships by becoming more inwardly focused on our profits than customer value? In downsizing, do some of our key assets walk out of the door forever? In cutting projects, do we cripple our future chances of valuable growth when the economic winter recedes?
So how do we balance these seemingly contradictory imperatives?
- Firstly, you need to have a very clear view of where you have a right to succeed and where you are marginally competitive.
- Secondly, you need to refocus your business on your areas of greatest strength, and ensure you have the most cost-effective business processes and organisation to deliver.
- Thirdly, you need to be able to take your people on the change journey to navigate the stormy weather ahead.
- Finally, you need to be identifying growth opportunities in the background, being ready to execute when the time is right.