We are still in the middle of an unpredictable financial crisis far outside the experience of anyone working today. The crisis has dramatically affected the four major economic groups, creating half dead, half alive zombies: banks, governments, companies and consumers. These groups have lost their ability to function normally.
'The zombie economy', a book written by PA's Mark Thomas, discusses these groups and the challenges that they present. It outlines some uncomfortable actions that business leaders need to take to survive.
To discuss the actions business leaders need to take in this zombie economy or to order the book, please contact us now.
The four key steps to survival
The companies which continue to prosper in a zombie economy will be those which act now to reposition. They must take four key steps:
Step 1: Secure adequate liquidity to ensure survival: There are many ways of doing this and though all are unpleasant, none is as bad as insolvency.
Step 2: Create a portfolio of potential winners: managers need to identify the baggage and stop pouring capital into these parts of the business
Step 3: Remodel each business to fit the new world: winners in the zombie economy will be those who build new business models to meet the needs of today’s customers
Step 4: Finally, if you have been able to complete the first three steps, stake out a massively improved position in the market of the future: with weakened competitors, your business will be well-positioned both to take market share organically and to drive consolidation in the sector.
These are daunting steps and not all managers will feel ready to take them, but in many cases their survival depends on it. Our research shows that those who planned to win and followed these steps performed far more strongly.
To discuss how to steer your business successfully through the zombie economy or order the book, please contact us now.