The current economic downturn impacts businesses around the world. At times like these, it is important to remember that even the most dramatic upheavals are part of the business cycle.
If companies focus on the basics and make informed decisions, they can manage their way through the current volatility to emerge stronger and more competitive.
Companies that keep pace with market changes, staying one step ahead and managing through volatile times, will emerge as leaders.
Deloitte client service professionals offer tested and proven insights and perspectives to arm you with ideas, strategies, and best practices that will help you progress through the downturn to sustainable success.
Deloitte South Africa has developed and will continue to develop a series of podcasts addressing several economic downturn matters
The importance of managing Working Capital in the downturn
As part of a strategy to counteract the effects on the bottom line of depressed revenue, companies are actively seeking ways to cut costs and improve cash flow. Improving working capital sits at the core of such an efficiency drive. One of the hurdles in effectively managing working capital is the disconnect between the treasury department and operating businesses. Click here to find out what the red flags of working capital are and how a company can address them.
CFO Lens Survey
Deloitte South Africa commissioned a benchmarking study in April 2009 to examine the economic outlook and corporate responses as seen through a CFO-focused lens. This survey captures a snapshot, spanning the national government elections, the declaration of the first official recession in 17 years and a mixed bag of local and global economic news. Nevertheless, the results of this first such study topically capture CFO reactions to the economic downturn and serve as a reference point for subsequent shifts in perception and behaviour. Please click here to open the formal feedback on the survey.
Cutting costs in Application Management Services without effecting quality and efficiency.
CIO’s are under immense pressure to cut costs during this economic downturn. Non essential activities need to be identified and more efficient saving tools need to be implemented. The option of outsourcing non core business activities needs to be considered in terms of service quality and the long term applicability to the company. click here to listen to the podcast.
Nick Icely Podcast
Executive remuneration during the economic downturn.
As a result of pay and allocation decisions made some time ago, there has not been a considerable reduction in executive remuneration displayed in reports. However, due to the current economic times, a more balanced remuneration approach needs to be considered in order to better a line the interests of shareholders and managers. Click the to listen the podcast
The importance of re-evaluating the strategic plan vs. cutting costs during the economic downturn.
After a decade of growth in markets and returns, the economy is now in a downturn and strategic planning needs to be reconsidered. The risk of re budgeting instead of adjusting the strategic plan may result in a short term action mode with the focus on cutting cost and customer service and thus hindering future growth. Effective strategic planning can shield an organisation from the long term effects of the economic downturn. To find out more about re-strategising vs. cutting costs click here.