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Strategies for a Downturn
The big news these days is the economy.
No one really knows whether or when things will turn around. My own view is that this is indeed an inflection point, a serious break from the past, a wake-up call from old illusions.
For well-managed companies, this downturn offers the chance to re-examine fundamental value propositions and develop new strategies. It's not a matter of simply going into a holding pattern, or worse, cutting back, to protect earnings until things get better. Short-term thinking compounds the problem and lumps your company in with the herd.
Many business plans are simply based on past performance and approved ratios. They don't take into account significant changes-or if they do, they're usually pessimistic, generated by bean counters to protect the bottom line.
So, ditch old plans. This takes direct involvement by the chief executive and senior management; subordinates cannot initiate the drastic changes that will be needed to emerge stronger and better positioned to win.
Strive to thrive
Here are seven key strategies not just to survive, but to thrive, in the current difficult and uncertain business environment:
Upgrade human capital. Tough times can be a good focusing point to rally employees to set aside personal concerns and rally around a greater cause. Look around your organization. Who is rising to the current challenges? Look for leaders and support them...
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» Feed Forward: Manufacturing Matters
2008 was, overall, a good year for technology and product suppliers in the automation market sector.
We all knew that 2009 would probably be down. Alan Beaulieu, who writes the “Economy View” column for us, has been predicting that for more than a year. But then the banking crisis really drove the economy into the cellar. The popular media have been full of gloom and doom reportage for several months now-further driving down the public's attitude.
I devoted much of the end of December and the month of January reflecting on 2008 and what 2009 might hold for us. We have a new U.S. President, but no one knows what the Obama administration will really do. I don't believe that Presidents have as much power over the economy as they seem to think they do, anyway. But that hasn''t stopped pundits, economists and others from suggesting things that could be done.
Among the reading and listening (to podcasts) I've done over the past few weeks, I've noticed a consistent message that directly affects manufacturing. I've seen a couple of Thomas Friedman's syndicated columns in which he talks about the infrastructure deterioration in the United States, and how he hopes that a big chunk of the Washington "bailout"...
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