The current economic crisis – its severity and breadth of impact – is outside the experience of anyone working in business today. With neither historical guidance nor established models to depend on, surviving this recession will require a radically different approach. On the other side of the recession, the corporate landscape will have changed dramatically and permanently. There will be winners and losers. The question is, who will win and who will lose?
The challenge of positioning your business both to survive and to exploit the opportunities ahead will not be easy. In this most unstable economy, unprecedented action is needed. Every business leader will have to work hard to find a course that ensures their organisation survives (and if possible, thrives) in this new, harsher climate.
PA Consulting Group believe the steps to emerging as a winner are:
secure liquidity – the availability of hard cash is the key requirement for businesses to endure the downturn. How liquid is your organisation?
adjust your business mix – your business will not survive if it continues to support lines of business, products, customers and geographies that are diluting the value of your overall organisation, and eating away at liquidity.
improve performance – relying only on traditional cost-cutting approaches will not be sufficient on this occasion. A number of drastic business transformation options need considering.
take bold steps to secure the future – leaders that are paralysed by caution will miss out on opportunities, including competitor fire sales and changing customer demands.
This economic crisis will polarise companies into winners and losers. Our expertise can set out the strategies your organisation needs to be among the winners by advising you and your managers through the four steps proposed above. Our consultants can help you manage the required changes in management focus, investment, culture and strategic vision. Most importantly, we will work with you to ensure you take the right bold action.
To have any questions answered on the issues raised here or to request a copy of "Surviving and thriving in the economic crisis: a handbook for corporate leaders", contact us now.