2009-07-08
We are currently in a turbulent time with the worst global recession since the 1930s. This challenge requires leadership in the companies.
An issue that I am personally passionate about.
I think the important thing is to be knowledgeable about the situation around the world; to try to see where things are heading conjunction wise, internationally and to have knowledge about your industry.
With this information, it will be easier to take the measures necessary in your own operation. The current situation requires that you look over the company's strategies and test whether they are right in order to face the changes in the outside world. Strategies that have been successful during booms may have to be reconsidered now.
Review what the company´s actual core business is and what does not belong there such as adjustments in the business and investment decisions to support the core business in order to reach success in the long term.
It is important to spend time on relationships with strategic customers, suppliers and employees. Cherish relationships so that you know where you got each other now in recession.
Because of the crisis, it is much more difficult for businesses to receive credits. Therefore, it is important to maintain a strong relationship with the bank and to have a dialogue about what is happening in the business at an early stage, how you think and what you do.
The bank wants to see relevant decision-making and not only matched performance reports. In addition, they want to see the the cash flow and liquidity prognosis. Dare to take the discussion on how the funding of the company can be resolved in the best way!