Needless to say, it’s been a challenging time for most organizations, and there is no certainty yet that a turnaround is imminent. Generally speaking, companies are right to be cautious and thrifty; however, that doesn’t mean you shouldn’t be forward-thinking, make lasting improvements and capitalize on opportunity. Here are a few things that companies should be thinking about as they go through, and eventually emerge from, this tough period.

1. Right-Size

It’s very difficult to make the decision to downsize an organization, but it’s especially difficult to ask employees to cut back – on not only pay, but also on perks, travel, expenses – when they’ve grown accustomed to a certain standard. By making smart resource decisions before an economic crisis hits, you can avoid being stuck in the uncomfortable situation of needing to justify why cuts are suddenly being implemented.

So, what do you do when the economy and your company rebound? The smart thing would be to take a very critical look at what is necessary to put back in place. Perhaps it’s not necessary to re-fill all old positions. Perhaps some of the efficiencies, new policies and new paradigms necessitated by lower revenue should remain, since they represent an improved way of managing the organization in both good times and bad.

2. Improve Processes

In order to do more with less, organizations need to improve the way they work. Process improvement opportunities exist across the organization, from core processes like manufacturing or distribution, to support or administrative processes like finance, human resources or IT. In doing so, you’ll be looking to eliminate unnecessary work, streamline your processes and make better use of your technology – oftentimes a technology that’s already in place. Formal process improvement efforts are mandatory to meet your right-sizing objectives. Without changing the way that the work is performed, it will be difficult to sustain permanent and positive change for your resources.

3. Plan

Planning is cheap. Even if you do have funds to spend or invest in right now, it makes more sense to think about the projects and initiatives that you would want to undertake when additional capital or budget become available. The time to plan is now, so that there’s little delay when the situation improves.

Create strategic plans that translate to business plans, and focus on the more tactical initiatives and projects that support those plans. Now is a good time to do research in advance of funding, to pre-qualify vendors and consultants as necessary and to gain alignment in the organization. When things begin to turn around, you’ll be ready to go.

4. Develop Better Information

It’s a pretty widely-held view that leading-edge executives have the job of providing their business partners with the strategic and operating information necessary to make the right business decisions. Many organizations have a lot of data but not enough information. While it may take some investment, the processes of organizing, delivering and presenting strategic business information to the organization are much less costly efforts than the implementation of the underlying systems, but they also yield a significantly higher ROI.

As we begin to emerge from the recession, take the time to ask yourself if you will make the investment to understand the sources of profitability in the organization so that the proper investments can be made to ensure long-term success. Now is a good time to develop those constructs, to think about your technology portfolio and to begin putting the measures, reports and tools in place.

5. Spend

WHAT!?! This may sound crazy, but not every company is teetering on the edge of bankruptcy. If you are fortunate enough to be in a stable, if not healthy, financial position, now might be a good time to flex that financial muscle in order to improve your competitive position.

Deals can be had on almost anything from software and services to add-on acquisitions. If your organization has the resources, now is a good time to negotiate with vendors, make investments, buy real estate, hire available talent and even seek to buy companies.

And in these uncertain times, always remember that recessions come and recessions go – so get ahead now so that your firm is ready to reap the rewards when things get back on track.

Jay Weiss leads the Management Consulting and Lawson Professional Services practices at JGI, a leading managed service provider that offers cost-effective solutions to integrate people, processes and technology while streamlining operations and the bottom line.

Comments:

Add Your Comment

Name: Company name:

Email:

(We will never sell your name or e-mail address to anyone)

Comment:

Remember my personal information
Notify me of follow-up comments?

Please enter the word you see in the image below: