How to tackle next recessions?

 

If you answer one of these following questions with NO, yourself as CXO and your company is in danger during recession and when the economy is doing better!

  • Do we have better products or services than our competitors?
  • Did we accomplish reducing our operating costs at least by 1% every year within last years, compared with the years before? Even as our sector year-on-year costs were growing?
  • Did we maintain and expanded our cost lead at and after last recession in 2008 and 2009, to achieve earnings advantage?
  • In the past, were our company owners and all stakeholders willing to move, to change, to be prepared to successfully weather economic shocks?
  • Do we focus on building more flexibility into our investment-planning and operations in addition to sustain earnings expansion?
  • By the time the economy was in recession, did we reduce our debt by more than $1 for every $1 of total capital on our balance sheet? And have we continued up to now?
  • Did we reduce depts by divesting businesses and other assets more often than our competitors and industry peers?
  • Do we entering the upcoming recession in better shape than our industry peers by bringing far more cash into battle?
  • Are we able to use our cash to acquire assets or companies?
  • Are we maintaining our loyalty with high-value customers, who were responsible for our company’s growth after last recession?
  • Did we avoid sending mixed marketing messages, e.g. to prevent applying price reductions haphazardly to products and services?
  • Do we balance cutting costs with employee activism, income inequality, company moral, even range branding strategy?
  • Do we have knowledge and cash flow to bolster productivity and profit growth by simplifying the supply chain process?
  • Do we use analytic data and digital tools to reduce quality issues and error rate in manufacturing our products inhouse and at our supplier’s plants?
  • Do we use digital platforms to promote and enable self-service options for potential customers?
  • To stay competitive, do we focus on balance-sheet optimization, portfolio changes (divestments as well as acquisitions), and organizational simplification?
  • Did we evaluate the degree of slowdown and did we identify initiatives to counterbalance? If yes, have we already installed someone to monitor the progress of those initiatives?

For details, please see hbr.org/2019/05/what-companies-should-do-to-prepare-for-a-recession">hbr.org/2019/05/what-companies-should-do-to-prepare-for-a-recession.

Be prepared and let us discuss. If you need any support to solve your open issues, please get in contact with Karlheinz Zuerl as a professional Interim Manager in Asian markets and have a look at www.gtec.asia.