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5 Ways Businesses Can Effect Radical Change During an Economic Downturn

Stefano M

Everyone knows that the business world is constantly changing. New technology, new markets, and competitors are just some of the challenges businesses face. Change is one constant that you can always expect. But how does this impact companies during an economic downturn? What changes do businesses need to make to continue to thrive in these uncertain times? The reality is that uncertain times could be the perfect opportunity for your business to radically change for the better. Here are five ways to effect radical change during an economic downturn.

 

Review Your Processes and Practices

Businesses rely on their tried and tested processes and practices when times are good. But during a downturn, these are the first things that get cut. What businesses may not realise, though, is that they also need to keep an eye on their most valuable resource – their people. It could include HR policies, ways of working, the skills and abilities of your people, and the ways that you interact with your customers. By doing this, you can ensure that your business remains agile, adapts to change, and keeps up with the competition.

 

Change Your Technology and Systems

If you are experiencing a downturn, it’s tempting to save money by not investing in new technology and systems. But technology is an essential part of any business. It can help you to save time and money, increase customer satisfaction, streamline your processes, and make your business run more efficiently. So, if you are experiencing an economic downturn, now is the perfect time to invest in new technologies and systems. It will save time and money and make your business run more efficiently.

However, you shouldn’t look at any technology, no matter how much it is in fashion, for the sake of it: you first need to determine your business needs. Once you’ve done that, you need to find a technology partner who can provide you with the right solutions. The next step is to ensure that they can help you implement these solutions quickly, efficiently, and cost-effectively.

 

Change How You Hire

As a result of the two points above, businesses often must hire people, and it’s tempting to do it as quickly as possible. This problem is that you are likely to hire the wrong people, which can be extremely costly and have a significant negative impact on your company. Instead of rushing the recruitment process, you should change your hiring practices. It could include changing the way you screen candidates, the kind of positions you are hiring for, how you interview candidates, and how you onboard new team members. It will ensure you make better hiring decisions and help you save time and money in the long run. Unfortunately, many businesses fail to change their hiring practices during an economic downturn, which often leads to problems and wasted money.

 

Develop New Skills and Talent

If your business is experiencing a downturn, the last thing you want to do is lose your most valuable asset – your team. Instead, you must ensure you have what it takes to get through the downturn. You can do this by developing new skills and talents within your team. It could include developing new skills in your most valuable employees and helping other employees discover their strengths and what they love doing. It’s a great way to build morale, engage your employees and help to retain your most valuable team members, and it will  help to make your business more resilient.

 

Change Your Organisational Structure

One of the easiest ways for businesses to change during an economic downturn is by changing their organisational structure. It could include changing your leadership team, and reporting relationships. It can be an extremely effective way to change your business during an economic downturn. But it is essential to do it right. You must select the right people to take on these new roles and you need to provide clear direction and expectations. Doing so will ensure that your business continues to operate effectively.

 

Bottom Line – Be Proactive, Not Reactive!

This article has looked at five ways businesses can effect radical change during an economic downturn. Starting with a clear vision, you can reassess processes, technology, skills, people, and the whole organisation. But if you think it through, wouldn’t you say that it is what successful entrepreneurs do or are ready to do all the time? Yes, there is no need to wait for a downturn to drive change, and companies should be proactive, not reactive.

You need to change or be ready to change your strategy and business plan ahead of the downturn. It will help you position your business for success and help you withstand the effects of an economic slump. It’s because, during an economic downturn, companies often experience much change, so, it is crucial to be prepared. Ultimately, the best way to do this is to be proactive and always ready to change your strategy and business plan.

 

Biography

Action- and delivery-focused “efficiency geek” with an entrepreneurial spirit, able to link thoughts and actions, can anticipate and manage the tornado caused in operations by a butterfly flapping its wings in sales. Aware of the boundary between disciplined operations and bureaucracy, he can work “one level up and two down” if needed without fear of getting his hands dirty.

He has a background in the ICT industry, where he worked for blue chips and FTSE250 companies. Subsequently, He further developed and diversified his experience working closely with a portfolio of growing companies and start-ups in technology-intensive and innovative sectors, such as IT, Technology Manufacturing, Drones, IoT, AI, GreenTech and Insure/FinTech.

Stefano is the Founder of Eggcelerate. If you are a CEO of a small B2B business experiencing flat-lined results, Eggcelerate’s FlexCOO service will help you achieve focus and sustainable growth and bring your business back on track.

He has P&L management, international expansion experience, and international and intercultural expertise in managing, developing and leading cross-functional teams in complex environments.

Stefano is an Executive MBA graduate of the London Business School and a published author (Forbes, The Guardian, The Telegraph, and various SME-focused publications) on topics from Strategy to People and Operations.

Home – Strategy Activation for B2B SMEs and Start-Ups (eggcelerate.com)

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