The currently popular theme of how to manage a business during the recession is revisted at Fortune courtesy of senior editor at large Geoff Colvin.
As the author quite rightly points out, managing through any recession is difficult, but the current downturn offers unique challenges because it is different to previous recessions in many ways.
Not only is employment plummeting but consumer spending is falling sharply and to make matters worse, consumers are in more debt than ever.
So, says Colvin, the question is, what do we do next? "You have to act - yet you have no script." Helpfully, though, a ten-point guide to managing a business in the recession is provided. The points are as follows.
1) Reset your priorities to face up to the new reality.
2) Maintain investment in the core.
3) Communicate as much as you can and balance realism and optimism.
4) Your customers have new problems so offer them new solutions.
5) Don't be in too much of a rush to cut prices.
6) Focus on how you're getting capital and where you are using it.
7) Re-evaluate your people and look to steal some good ones.
8) Re-examine the compensation you provide and what incentives it offers.
9) Think carefully about offshoring because economics have changed drastically.
10) Be smart about acquisitions and mergers - it could be a great time to buy assets cheap if you're strong enough.
How to manage your business in a recession
Geoff Colvin, Christopher Tkaczyk and Yi-Wyn Yen, Fortune, 08/01/09
