Achieve faster recovery from the Downturn

Looking back at the history of previous downturns, there is overwhelming evidence that the businesses that emerged the strongest and best placed to take advantage of the recovery were those that acted quickly and with determination. Often, instead of holding back and entering a form of enforced hibernation, these companies accelerated plans and intentions that were already in existence. And here too, a clear process to ensure the rapid and sustainable implementation of any plans is a key success factor. In addition to gathering and using knowledge for optimum decision-making, the need is to harness the collective energy of the people in the business. This starts at the management team; achieving clear, unambiguous and visible alignment is essential to create the right context within which to realise the plans. But a well-managed, structured process is also crucial to engage staff throughout the execution of planned actions, especially when, as is often unavoidable in a downturn, enforced redundancies are part of the actions.

A further, but often overlooked, part of this phase is to ensure that the plans and actions being undertaken as part of cost control do not harm the organisation to the extent that recovery and growth becomes impossible. For example, it may be that one element of cost control involves a reduction in headcount; it is essential that this is done with a keen eye on the roles and skills needed for the future so that the baby is not thrown out with the bathwater.

PSM is well placed to help you prepare for the upturn by developing and deploying a clear process to ensuring rapid and sustainable delivery:

• Helping you make the right choices
  It is key to identify those opportunities for growth, new products/services, new markets etc with the best potential and realistic chance of success, and that those choices made in the cost control phase are made with growth and recovery in mind as well as short term survival. For example:
  • Review of the 3 or 4 operational business processes that are key for the future to ensure they are fit for purpose. In particular, new product definition and development, sales & marketing and the supply (or service delivery) chain. 
  • A fundamental review of the organisation structure, together with roles and responsibilities to ensure these support any revisions in business processes
  • Reviewing and improving ‘support' processes such as strategic planning, annual budgeting, the short & medium term planning and control cycle and people performance management
• Helping you to execute growth plans and ensuring they continue to deliver
  Here the challenge is to harness available insights and turn these into the tangible delivery of successful projects through proper programme management and governance with effective communication.

We indicated in the cost control article that our experience, independence and skills at engaging managers and staff in dealing with the more immediate needs has been very successful. The rigour of PSM's approaches extends into these activities of planning for the future, enabling the emerging issues/opportunities to be dealt with more effectively.

To reiterate, success in rising out of an economic downturn is strongly correlated with two factors: making the right choices, together with speedy and effective execution. This is a crucial element in reshaping the business to take advantage of opportunities for growth. Doing so according to a well-defined, structured process will ensure you're on the right track.

For more information please e-mail info@psmconsulting.co.uk