| Managing a crisis | ||
| Read a paper, turn on the TV, browse the Internet – the message is clear: we are in the midst of a global financial crisis. All media outlets are dominated by stories on the impact of the crisis, the loss of jobs, and the potential downfall of companies. However, that is only one side of the story. As a manager; this should not distract you. If you panic or give up in the current climate, you have lost, before the battle has even begun. This is not another Great Depression It can be frustrating to see media pundits getting away with describing the current state of the global economy as something akin to the Great Depression of the 30s. Even the gloomiest of forecasts do not by any means justify such a comparison. Recession, yes, to various degrees – depression, a definite no. Innovation is the key That said, there is no doubt that the market place is futile. Some people doubtlessly feel that the ground is moving beneath their feet. However, a futile market is also a market in which there are great possibilities for innovative companies and managers. What was the right answer yesterday may prove to not be right answer today. Likewise, successful companies are the ones able to innovate and supply the demands of today. A prime example is the auto industry. Rising fuel costs and increased environmental concerns have increased the demand for smaller and more fuel efficient cars, whereas the demand for the big SUV’s is falling rapidly. No government rescue packages can change the fact that if a car manifacturer does not realise the change in popular demand, it will fail – sooner or later. Make the difference In other words, there is a positive side to all the doom and gloom. Strong companies with strong concepts, who re-innovate to match the demands of the market place, will not only survive but also prosper. As a manager, your primary role is to ensure that your company and your product or service range is in touch with the changing market place and adjust what needs adjustment. Even though the current climate might be challenging in a number of business areas, this is also a time in which you can really make a difference and take your company to the next level. Partially due to the credit freeze, many companies and individuals are more concerned with expenditures than they were a year ago. Hence, you will have to expect to fight somewhat harder to get the orders in. Despite the global financial crisis, it is our impression that orders are out there to be had. However, you need to make an effort. Stalling, panicking or doing nothing is not an option. | ||
| Date | 18-12-2008 | |||