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Weathering the Economic Downturn

A Time of Opportunity: Preparing for the Future

When there is a downturn in the economy, what is the first thing most companies do? They cut jobs, costs, and streamline operations. The current economic crisis is no exception. Right now, North American companies are in the midst of cutting jobs and costs with the hopes of weathering the economic storm. Some of this streamlining is the product of re-structuring that has probably been in the works for a long time. But, there are other ways to ensure an organization’s survival. Ultimately, it’s possible to prepare to emerge from the downturn stronger, better able to adapt, and more prepared to meet consumers’ needs. Unfortunately, a lot of companies are taking to negative cost-cutting activities in reaction to the current economic situation instead of seeing this as a time of opportunity. We are seeing companies dismissing valuable human resources and cutting out segments of their operations that really set them apart from their competitors.

Instead, organizations should be focusing on strengthening relationships with their customers, improving the quality of the services they provide, and involving themselves in activities that will encourage consumers’ to have confidence in the organization and to have hope for the future. If we are to learn anything from the battering the economy has taken in recent months, it’s that anything can happen. The more prepared an organization is to deal with internal and external changes, the better that organization will be able to adapt to those changes and to serve its shareholders. It’s a novel thought – when most are rushing to cut out whatever isn’t integral to their core product or service, that’s when it’s the most beneficial to invest in ourselves and our organizations’ future. With such investments, the future can mean having money saved, time saved, and operations simplified – without jeopardizing future success.

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Topics: economic downturn strategies for recession recession