Managing business has only gotten tougher, as the domestic economic slowdown has added to the challenge of technological and trade disruptions. India’s economy has been slipping for a few quarters, and expectations for the future are tinged with Worry. Quite a few sectors are feeling the pinch, and it has become a challenge to achieve growth or even sustain performance. However, bad times are good for house-cleaning and reorganisation. The pressure to survive can be used to become fit for growth.
It is instinctive to retreat into a shell now, but it is not a safe option with the business environment changing fast. A scramble to save money only fulfils the prophecy of doom. Worse, it damages the organisation’s vitals. As Warren Buffet said: “When others are fearful, be greedy”.
A downturn is the time to streamline the organisation and invest in the future. When sales are growing, the aim is to produce more, but when the market stumbles, one can focus on improving products. A crisis brings a sense of discipline and urgency to the organisation, because the market no longer pays for sloppiness.
Organisations grow fat on growth, but need to get fit to compete for a shrinking pie. They must get the most out of their spending and create innovative products and deals to excite a moribund market. They must reinvent their business models to offer better value and convenience to the customer.
