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Hidden Opportunities in Economic Downturns

Written by: Harvey Schiller

Article Overview: Despite the economic conditions, or more appropriately because of the economic downturn, now is the time to seize the advantage. It may sound counter-intuitive, but a downturn opens up rare opportunities to outmaneuver rivals. Many companies simply fail to see the opportunities hidden in economic downturns.

Hidden Opportunities in Economic Downturns

With the economic turndown, business today is extremely volatile with rapidly shifting success factors. We are now facing extreme pressure on pricing and profit margins, demanding customers and aggressive competitors. Too many organizations today are sitting back , waiting and hoping to achieve desired results. They rely on familiar “crutches of hope”:

i) The economy will improve.

ii) Reasonable customers will return

iii) The weak will go bankrupt, and we’ll pick up the spoils

But hope is neither a strategy nor methodology. These “crutches of hope” all rely on factors outside of the organizations control.

Despite the economic conditions, or more appropriately because of the economic downturn, now is the time to seize the advantage. It may sound counterintuitive, but a downturn opens up rare opportunities to outmaneuver rivals. Many companies simply fail to see the opportunities hidden in economic downturns.

But first you need to put your house in order, understand your current state and situation and focus the organization.

All of us have done “Strategic Planning”. It usually consists of an annual off-site event, lots of flip charts and usually ends with a sigh of relief when it’s over because now we can get back to the real work. And what happens to the “plan”……….it collects dust on a shelf! Strategic planning still has the connotation of a process that is discrete, separate, and independent from the business of an organization.

Versus “Strategic Planning” we advocate a “Strategic Management” approach that undertakes to rapidly but thoroughly assess your organization to determine vulnerabilities, challenges and opportunities. A Strategic Management approach is preferred because it not only plans for what we would like to accomplish but also focuses on the critical elements of execution and implementation.

“Strategic Management” builds commitment, secures accountability and aligns the organization around a compelling, concise and clear strategic focus. It directs leaders to winning strategies and execution so that breakthrough performance and desired business results are achieved and surpassed. Strategic Management is an integral aspect of an organization's business.

Ultimately, a “Strategic Management” approach is vital and essential in addressing the business challenges, the changing customer requirements and managing the things that need to happen.

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Article Tags: aggressive competitors, business today, connotation, crutches, desired results, economic conditions, economic downturn, economic downturns, extreme pressure, flip charts, nbsp nbsp nbsp nbsp nbsp, profit margins, rare opportunities, sigh of relief, spoils, strategic planning, style text, success factors, text decoration, turndown
Referred by: http://www.marshallnorthcott.com



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