Recovery Planning: Best Practices to Stay in Business
There’s no denying that the current economic downturn continues. But companies who meet today’s economic challenges with shrewd pragmatism (and long-term optimism) can spot a silver lining around every looming cloud. We need smart strategies in today’s turbulent economy. Companies that emerged strongest from the economic downturn have achieved the elusive balance of improving operational efficiency. Economic downturn is a regular cleansing market mechanism and it forces the company to make hard decisions and accelerate market competitiveness.
- Conserve Money. Money provides the flexibility that companies need now to make acquisitions expand into new areas, invest in new ideas or technology, and hire new employees. By eliminating excess inventory, optimizing collection efforts, and improving forecasting processes while utilizing best practices and advanced collection tools, companies could be able to conserve money.
- Risk and Performance Management. Mitigating risk from the credit crunch and managing new compliance and regulatory requirements are today’s top business issues. Adopt a consolidated approach to compliance and a flexible approach to planning to better manage risk and performance.
- Workforce Performance Optimization. During economic downturns, an engaged and productive workforce is especially important. It’s played a critical role in companies' business. By taking an active approach to talent management, and using learning and performance systems to engage, develop and optimize their workforce, companies stay focused in developing employees' talents. People are the key to holding the company together. Rotating top performers into new roles focused on the company’s current challenges will bring fresh thinking into key areas.
Drive down cost of all goods sold. Rather than cut general expenses across the board, companies instead should improve supply chain efficiencies and reduce operational complexity. High impact strategies include minimizing product costs and risk, reducing spending on goods and services, and lowering logistics costs. Cost reduction is critical during downturns; however, not all are good and useful. The most useful approach is truly sustainable. The real focus of cost reduction is sustainable change Continued on the next page