Core strategies to tackle the crisis

We are all facing the financial crisis, and the question on many leaders and managers lips is; what can we do to survive the downturn? A lack of an effective strategy here could mean the organisation suffocates and fails. Arinya Talerngsri, managing director of APMGroup, the organisational development consulting firm, suggests some core strategies.

First of all survival: everyone sees cutting costs as unavoidable, but cost-cutting is not the only solution. Sometimes cutting costs works, sometimes it doesn't.

The organisation should involve its people in cost-cutting; let them know they are important. Try to keep them and make them a part of the solution and they will maximise their potential and improve performance.

It's also essential to collaborate with suppliers and attempt to reduce shared costs. We must negotiate harder and leverage underused capacity. Making cuts or changes to the way we do business to stay afloat and developing a plan to spend less, results in more money for your organisation to save and invest.

It is essential to re-design the business plan frequently in the recession. If we stop changing we will fail. Frequent re-plans are a must. Conduct economic forecasting to predict future business trends and plan for the different scenarios to prepare for unforeseen events.

We should seek support and advice from all potential resources such as alliances, consulting firms, clients, researchers and advisory groups, to achieve the organisation's goal/objective.

Customers are the key for every single business and should be the ONLY priority. Serve them, please them, satisfy them - whatever it takes to keep them loyal. Put greater effort into creating positive relationships with potential customers.

Keep an eye on customer changes. Are they buying less? Are they slow paying bills? Stay in touch with them to spot changes and offer them help to develop long-term relationships.

 The global financial crisis is far from over and its effects will be long lasting. Creating new up-to-date business plans as the situation changes becomes invaluable.

Again think of your customer; understand the market base and evaluate product and pricing strategies to help customers save money and review pricing to reflect changing patterns.

Conduct a competitive assessment by taking a look at all surrounding factors such as the target market, employee recognition and the business model. Once you finish evaluating and understand your infrastructure, you will find it easier to realign and restructure your organisation to focus on key goals and objectives in times of challenge. Do it before you MUST do it!

We can turn uncertainty into opportunity. Expand relationships with existing clients, seek and recognise opportunities.

The heart of any business is connection. It's all about relationships and how people perceive your talents. Your clients are a vast resource.

The organisation should put a great effort into expanding its current business to meet other needs that clients may have. Find more opportunities to service clients and product lines they may need while seeking alliances to increase your ability to satisfy existing client needs.

The organisation should find its contributors and eliminate non-contributing units and select and retain the right people for the right jobs. In economic downturns people's importance becomes more powerful than ever. "If the organisation fails to choose and use the right calibre of people, the organisation may be doomed."

To keep a step ahead of the competition, pay close attention to examining the supply chain, minimising costs, adjusting accounting in line with the situation, identifying obsolete merchandise categories and adjusting processes accordingly.

Upgrade your people by using effective tools to build a culture of accountability. Connect people to the mission, identify talent and restructure compensation. By developing your people you show a commitment to them that gains their loyalty and increases their competency

We have to recognise that recessions are part of the natural business cycle. No matter what, we should accept that we all live in a competitive world. Most importantly, we must build our responsive business models, so we will understand how to turn uncertainty into opportunity.

Arinya said she was very surprised when she attended the American Management Association CEO Forum with the Fortune 100. Most of the companies present chose to use growth strategies to fight the global recession.

However we should all be concerned about the fundamental structures of the organisation and the manpower that will lead to a more responsive business structure.

The economic downturn is hurting many organisations. What is the best solution? What will help us survive during this financial crisis? Every organisation is different and requires different types of decisions to be made.

The organisation should find the strategy that suits its expectations and long-term goals. With a more effective, tailored strategy, the organisation will find it much easier to conduct business in any economic downturn.