On the Cusp of a Recession ... Are you Ready? Is Your Company Ready?
Business has been robust the past 10+ years. This business growth has been fueled by new technologies, the emergence of cloud and hybrid cloud, the explosion of social media and information, and a high-growth economy. The stock market is tumbling. Fears of a recession are growing. As a business executive, I have witnessed incredible change and growth – and weathered economic down times and recessions. We are on the cusp of a new recession. Are you ready? Is your Company ready?
Economic down times often are characterized by a reduction of available capital and credit; companies canceling and/or postponing purchases, fewer investments, roadblocks in the supply chain, and uncertainty. I have mused the behavior of executives who ‘batten down the hatches’ of business during economic down times. Recessions can also be a time of opportunity for companies that embrace change and are agile/flexible.
The keys to companies rising stronger from a recession are the ability to continue to market, control costs, and working smarter. What must your company do? I can point to the obvious. Do not panic. Let’s explore the 7 strategies/tactics companies must implement to not just weather economic down times, but to emerge stronger than their competitors?
Develop your plan right now. Run 3 ‘what-if’ scenarios and determine the implications of cash in each of these scenarios. Identify operational costs your team can pare. Think out of the box. Staff reduction is too obvious. (However, what a great time to prune the garden.) Do not jettison employees who possess key skills or knowledge of your business. The recession will not last forever.
Identify technologies that can make your people more efficient. Leverage data analytics and AI to help staff do more. Reduce costs by streamlining and simplifying the processes within your organization.
Do not stop marketing. In fact, re-invent your marketing engine. Target Market. Target weaker competitors. Use this time to become a marketing-driven company rather than a sales-driven of engineering-driven company.
Change your sales approach. Use portfolio management and train your sales team to bring ‘insight’ to your targeted customers and prospects. How can your products/services make your customers more successful during a recession?
Make doing business with your company easier and become a more responsive organization. Your customers and prospects do not stop purchasing. Their purchasing behavior becomes more judicious. Ease of doing business with your organization and being more responsive become even more important as competitive advantages in tighter economic times.
Develop and implement performance-based employee evaluation processes. Include opportunities for professional growth. Make your good employees even better.
Transform your business into a flexible, responsive, flat organization built for speed.
