Leading in the zombie economy

Repositioning for success

Businesses need to secure their short-term survival while ensuring they are well positioned to succeed in the zombie economy. Some CEOs are waiting for a return to business as before but, in the current climate, this is a high-risk strategy. There are two key dangers that leaders must avoid.

One is illiquidity. Zombie banks cannot provide the support that businesses need for growth – or even for survival. In this environment, capital ceases to be a commodity and becomes a powerful competitive weapon.

The other is irrelevance. Zombie consumers are unable to spend in the same way as in the past. Quantitatively, total spend is down, but qualitatively, buyers are making different choices and trade-offs. Businesses whose products and services are still focused on last year’s customers will struggle badly.

Thriving in the zombie world

For organisations to succeed and thrive in this difficult new economic climate, their CEOs must take action now. While few businesses will find the next few years easy, some will be better placed than others. There are four steps to thriving in the zombie world:

1. Secure liquidity

2. Create a portfolio of potentially winning businesses

3. Remodel each business to ensure that it will perform strongly in the new world

4. Subject to the success of the first three steps, take bold action to stake out a massively enhanced market position in the new world

For those that are able to grasp the extent of the change in the business environment, the next two to three years could be a time of major opportunity.

Read more about how best to lead in the zombie economy.

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