A CEO Plan For The 'New Normal' – Top 5 Recession Strategies
What is your business strategy in 2021?
Is it the best strategy for your business considering the pace and frequency of change in market trends post COVID-19?
How are you going to develop new skills required to plan and execute on these strategies?
What are the potential hurdles standing in the way of your company’s continued success?
If you are a CEO of a start-up or a MNC, it is daunting to address and answer these questions. Transforming work culture, product and the company is not an easy task, especially when your company has hit the lowest due to the global pandemic. However, it is your responsibility, as a CEO to be out in front with a planned cascade of possible actions, probably more aggressive than your team can imagine right now.
There are several footsteps that CEOs can take right now to minimize and overcome the effects of the outbreak and tackle these growing concerns.
Let’s go through top 6 decisive actions to emerge stronger in the‘next normal’.
- Make agility a part of your life: The current breakdown has drastically changed the consumption patterns across sectors. While non-essential purchases have temporarily ceased,essential commodities have seen ‘out of stock’ badge throughout the year.These conditions demand for implementing demand-driven solutions and encourage long-term behavior changes for more sustainable development.
- Build multichannel sales strategy: The more you juggle between sales channel – digital and physical – the more revenue streams your company has and the more resilient your company will be, especially during recession. Companies who had a well-defined digital framework to rely on, such as drone delivery or eateries offering online delivery services, were least affected during COVID-19.Having a multi-channel sales network drastically increases the chances of long-term survival and growth of your company.
- Maintain strong customer relationships and experiences: Improved customer-experience is always a competitive advantage for a business, despite of going through a recession or not. However, when you are preparing for a post-covid recession, it’s imperative that you address and focus on your customers not only in your marketing communication but also in product development and service designing. Use data-analytic tools, adapt to their needs and determine how your business can be crucial in your customers’ lives.
- Review and reassess supply chain: Recent changes in the environment (socio-political, changing demand,shifting needs, etc.) are the cause for increasing uncertainty and risk in the market place. It’s time for companies across sectors to consider how to reinforce supply chains and alter processes in order to recover from the economic damage done by COVID-19. The frequency and intensity of shocks to the global economy are increasing and the companies that begin investing today in a resilient Supply Chain will be best positioned to weather the next global supply crisis.
- Invest in digitisation and automation: The importance of automation is accelerated after the pandemic as businesses that are fully automated were less likely to be impacted byCOVID-19 outbreaks. During challenging times such as recession, relying solely on human workforce is proving to be relatively expensive, especially in an environment of declining revenues.
- Strategic inventory positioning: Inventory is one of the biggest assets in organisations, spanning multiple channels and tiers, and being the biggest determinant of cash flow and return on investment. Where to put stock-keeping units to ensure they’rein the right stores or facilities, at the right time and at the lowest cost is certainly a tricky task, especially during the global supply crisis. If executed properly, inventory optimisation eliminates the chances of out-of-stock products, minimizes carrying costs, increases consummation speeds and preserves gross profit margins.
COVID-19 has surely led major downfall for many organisations but it also reveals that start-ups, MNCs, governments and individuals are capable of taking strong and rapid action in the face of an overarching challenge. The decisions taken today will not only provide immediate relief, but also secure a lasting economic recovery, increased community resilience and ensure a long-term pathway to sustainable development. We surely shouldn’t let this opportunity of growth slip