The document discusses how fear of economic crisis can paralyze organizations and discusses opportunities that can arise. It argues that fear makes the economic downturn worse but some executives are responding by reducing budgets, centralizing decision making, and creating communication vacuums. However, the crisis also creates opportunities for reduced costs, new engagement models with vendors, and capturing market share. It advocates for overcoming fear through creativity, determination, and bold action to make important changes and investments that will pay off more than later investments. Organizations using business intelligence better may emerge as winners.

1. Paralysis by Fear
or
How to Profit From the Crisis
Dr. Jan Mrazek
President, Adastra Group

2. Paralysis by Fear: History
People are often paralyzed by the fear of things
outside their normal experience.
1519: Hernán Cortés lands in Mexico. Surprised
and frightened by horsemen and cannon,
Montezuma, the emperor of Tenochtitlan, the
greatest city-state of the time, sent gifts and
refused to face the intruder until it was too late.
1910: Halley’s Comet makes one of its regular
visits to the Earth. After news reports of deadly
gases from the comet’s tail, there is widespread
panic: suicides, farmers and miners refusing to
work, people buying “comet pills” to counter any
effects of the comet…
2009: reacting to reports of an economic
recession…
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3. The New Economic Disorder
For many sectors, the news is alarming:
home foreclosures, bank failures,
unemployment, automotive industry
meltdown, etc.
Terms such as “downturn,” “recession,”
“depression” fill the daily news media.
Will the economy recover? When?
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4. How Executives Are Responding
Fear makes things worse
The fear of economic disaster has exacerbated the economic downturn
Reduced budgets, concentrated decision-making
Tighter internal budgets concentrate decision-making power into a few hands
Key positions eliminated or temporarily stripped of their decision-making power
Communication vacuum undermines productivity
For example, decisions on layoffs and restructuring are made by a limited circle,
and are released only at the last minute
Organizations are PARALYZED BY FEAR
Prone to making costly mistakes, they show signs of being unable to capitalize on
opportunities inherent to a shifting economic situation.
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5. New Economic Opportunities
Services cost less
Wider availability of skilled service
professionals
Consider new engagement models with
vendors:
offshoring
outsourcing
cost sharing
Forward-thinking, creative executives can
make a difference
capture market share
make important changes to business
processes and structures.
EXAMPLE: Wal-Mart’s continued success
through their competitive advantage, in part
due to robust Business Intelligence systems.
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6. Meeting the Challenge
How to sell a solution internally and get budget
approval in the face of cuts:
Reform the approval process
Traditional approval processes do not work well, even in
good times.
Develop responsive projects
Include end users in decisions
New alliances internally
Right-thinking leaders
New vendor alliances
Expertise and resources to develop solutions that will prove
value in the short term, and keep producing value into the
long term.
Cost effective alternative to costly internal teams
Fear must be met with creativity, grit and determination.
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7. Leadership Through Crisis
Leaders are made by meeting challenges, Many opportunities in
not by managing them. Business Intelligence
Bold and timely action is rewarded by: Benefits:
higher market share Sufficient, timely, and
quality data
higher value for new investments
Quality analysis
increased individual visibility
proactive BI
Return on investments made during the
Organizations harnessing
crisis will be much higher than on
better BI will emerge the
investments made later.
winners.
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8. Thank you…
ADASTRA GROUP North America ADASTRA GROUP Europe
8500 Leslie St., Suite 600 Karolinská 654/2
Markham, Ontario, L3T 7M8 186 00 Praha 8
Tel: +1 905 881 7946 Tel.: +420 271 733 303
info@adastragrp.com info@adastragrp.com
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