The five business dimensions organizations should pay attention to during a downturnManaging in volatile times |
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The current economic downturn has forced organizations to actively reassess their business and its priorities. Volatile times challenge managers to make decisions that balance risks and rewards in the face of great uncertainty. By making appropriate financial, operational, governance and risk management changes now, businesses can better position themselves to maintain cash flow and to effectively weather the current economic storm.
Our new article, "Managing in Volatile Times," identifies key business practice areas that call for attention during times of economic uncertainty. It highlights and discusses five business dimensions that organizations should pay particular attention to managing effectively:
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Revenue
Pricing, growth, customer insights, revenue assurance and sales force optimization -
Cost
Cost reduction, contract compliance, tax planning and optimization, sourcing/procurement and supplier reviews, supply chain and people cost -
Assets
Cash generation and conservation, fair value accounting/due diligence, treasury risk management, cash forecasting and modeling, capital management, debt advisory and turnaround, portfolio strategy and execution -
Expectations
Issue and crisis management, communication in an uncertain economy, M&A strategy and execution, business and scenario planning -
Foundations
Board and executive reporting and governance, enterprise risk management, talent management, performance-based remuneration and reward, fraud risk management and forensic review Adjustments made in these areas help organizations to assess, plan, and stay ahead of the game — ultimately providing the opportunity for enhanced performance when the economic environment stabilizes. By adapting now, businesses have the opportunity to lay the foundation for renewed growth and greater competitive advantage when the economy rebounds.
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Managing in volatile times
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