How Companies Should Invest in Downturn / Recession

With rising inflation , fluctuating fuel prices and persistent supply chain issues, so far, 2022 is turning out to be gloomier than anyone’s expectations . A natural impulse is to cut costs across the board by postponing new projects; reducing discretionary expenditures like research and development, marketing, and employee training; freezing new hiring; and reducing headcounts etc.

Is it the right approach to sustain? probably , when this phase will be over , how long will it take us to make the pace and grow? can we strategize and plan for development even in recession? is it good idea or by doing so , we will take uncalculated risk?

Here are three ways we can benefit from and even plan for growth in this volatile environment.

1. Study success cases.

Let's have a look on history , every recession phase is followed by prolong growth period because recession separate wheat from the chaff, the winners from the losers.

Opportunities are more for those who are ready to grab. This is perfect phase to re-organize like choosing core products , focus on profitability and efficiency could be few parameters to get prepare for big opportunities resulting from recession. Dream big to separate yourself from the crowd, and plan for the next expansionary phase. In Recession , purpose should not be only to sustain , it also require preparation to rise up as winner.

2. Expand While Competition is Cutting Back.

The biggest and most important resource — talent — is more readily available now as we’re beginning to see? massive lay offs due to cost cutting. Similarly , it’s the right time to gain market share by attracting dissatisfied customers from competitors as they cut down on customer services.

3. Accelerate Digital Transformation

Digital transformation is need , the benefits of a well-thought-out digital strategy is much needed as it improves visibility of resources , enhance flexibility and organization agility, lower costs, smoother supply chain management, better customer experience, improve productivity, faster product development, and superior human resource planning. It is investment which certainly pay off in multiplying effect.

The winners emerge during these challenging times are those that capitalize on the opportunities and acquire the right assets, customers, talent, and competencies at the right prices.

"Don't Slow Down , Its Time to Plan and Execute to Stand Out."

Nazia Tabassum

(HR & OD Professional)