Recession - Threat or Opportunity?

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Recession - Threat or Opportunity?

  1. 1. Recession – Threat or Opportunity Pam Kennett Chiswick Consulting
  2. 2. What are people expecting? Comparison of early 90’s with today – actual and forecast UK GDP growth Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 “ 81% of business leaders expect the UK to make a full recovery from this slowdown and return to business as usual ” Percentage Source: Hay Group Centre for Economics and Business Research 2008/09 1987–93 2004–10
  3. 3. Businesses are slow to respond “ Just 13% of companies in the UK are making plans for the upturn.” Are you? Source: Hay Group Centre for Economics and Business Research 2008/09 Adjusted targets but not strategy No changes New strategy for downturn New strategy for downturn and upturn All firms Financial services Other commercial Business response
  4. 4. How is UK plc responding? Launch aggressive sales drive Reduce sales force numbers Reduce investment in innovation Increase investment in innovation Invest in growth markets Halt expansion Reduce costs in low margin business Cut costs across the board
  5. 5. What we can learn from the best companies Stay close to the customer Innovation Managing Cost
  6. 6. <ul><li>Who are my high value customers that I must keep? </li></ul><ul><li>Which products/services do my customers really value? </li></ul><ul><li>Which products/services are most profitable? </li></ul><ul><li>How can I build long term relationships between my most profitable products/services and my most profitable customers? </li></ul>Staying close to the customer
  7. 7. Loyalty <ul><li>Build in interaction between front line staff and customer </li></ul><ul><li>It’s about the discretionary effort of your staff </li></ul><ul><li>Supported by your business processes </li></ul>Staying close to the customer
  8. 8. <ul><li>Invest in good costs, prune bad </li></ul><ul><li>Manage people better </li></ul>1 2 Managing costs
  9. 9. Performance and productivity <ul><li>29% of firms will use the recession as a chance to weed out underperformance </li></ul><ul><li>10% will focus on recruiting talent at lower costs </li></ul><ul><li>24% will do both </li></ul>Managing costs
  10. 10. Managing in a recession <ul><li>Provide clarity , direction and resources to enable people to do their job </li></ul><ul><li>Recessionary leaders need two things: </li></ul><ul><ul><li>Ego maturity – “don’t panic” </li></ul></ul><ul><ul><li>Conceptual thinking – “thinking outside the box” </li></ul></ul>Managing costs
  11. 11. <ul><li>Companies that invest in innovation during tough times come out of recession better and maintain market competitiveness (Accenture) </li></ul>Innovation
  12. 12. If you can’t spend money on innovation… spend time <ul><li>Scanning. Activities of your competitors, suppliers, policy makers and opinion formers </li></ul><ul><li>Partnering. Work with other organisations to tap into what they do/how they work </li></ul><ul><li>Researching customer. Pay attention to changes in customers’ lives and businesses </li></ul><ul><li>Prioritising. Focus on two or three key areas for development </li></ul>Innovation
  13. 13. Finally… <ul><li>Take this time to get close to your customer . Research your high value customers, invest heavily in what they like </li></ul><ul><li>Think beyond the recession . You need to be positioned for success (the right people, the right ways of working, develop customer handling skills, learn to delegate) </li></ul><ul><li>Continue to invest in innovation, communication and marketing </li></ul>
  14. 14. <ul><li>Thank you </li></ul><ul><li>[email_address] </li></ul>

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