The Certainty of Economic Uncertainty

The temperament of the broader economy has a pretty decent track record of being quixotic, rather than docile and static. And yet, as feared as economic downtrends are, they form the basis of unprecedented opportunities.

Oftentimes, these downtrends allow companies to move in and capture the market share that was previously unattainable as stalwart companies in those sectors either fold up or retreat to more peaceful waters.

Instead of being dreadful about the uncertain landscape that surrounds us, we need to see the situation for what it is – a goldmine of potential that needs to be exploited.

In a Harvard Business Review article, the author asserts that downturns are opportunities to seize the advantages that were beyond the corporate grasp just weeks or months prior.

While it is a fact that recessions and downturns are laden with opportunity, we have to be postured to take advantage of them. This can mean several things but at the heart of the matter is the need to innovate.

From reducing expenses that are not directly tied to economic value, to launching new products and services in areas and markets not yet explored, this is the time to invest in core strengths and capabilities to ensure the company can navigate the tumultuous environment.

It is also paramount to begin doing research on those market segments that the company should now consider competing in as the customer and corporate demographics undergo change and upheavals.

It is paramount that senior leaders enlist the help of all staff in identifying opportunities of innovating across all corners of the company. This should a phased approach such that, ultimately, all line personnel in the trenches can help in everything from cost cutting efforts, launching new products/services to hiring additional staff in the right places and with needed skill sets to posture the company to take on new opportunities.

Perhaps the more important benefit this will provide is in helping assuage the visceral emotions employees at all levels in the company will be undergoing as they wonder if they will still have a job going forward. Allowing employees to participate in the effort to ensure the company not only survives but thrives is paramount to keep employee turnover low and to tap into the invaluable resources and insight at the company’s disposal. 

This is a time to prioritize investing available resources back into the company such that core competencies are fortified to the maximum extent possible to 1) safeguard and insulate the company defensively, and 2) further arm the company offensively so it can judiciously target opportunities and have the means of capturing profits in those areas.

This is also a critical time to revisit company-wide risks and reassess if they are now shifting due to the economic downturn. This will allow the company to mitigate the shift in risks that are certain to take place and identify new, emerging risks. The aim of these reviews is to help the organization formulate a strategic plan of attack that is adjusted to the risks that are germane to the shifts taking place around the company so that the organization can tackle them on, in strength rather than reactive, knee-jerk defense mechanisms.

The bottom-line is that the most dangerous aspect of a downturn is not the economic upheavals it creates, it is the act of not acting and/or acting out of desperation versus a prioritized course of action.

What steps are you taking to ensure your company prospers in this economic downturn?

What are the 3 largest targets of opportunity that have presented themselves as a result of economic upheaval and what are you doing to exploit them?

When is the last time your company tried to enlist the help of employees, at all levels, to identify means of innovation and how to take advantage of the shifts in the marketplace?

Are you excited about the changes taking place around the organization or are you frightened that they portend impending calamity, instead?