Does the current economic turbulence create problems or opportunities? Both depend on your circumstances and your point of view. How can you affect both to your advantage?
The key here is to have flexibility and options, being able to act on an opportunity when you see one. That means businesses that have as much available cash and the least amount of debt as possible are positioned very well. Also, review your current investment plans, they were right for a market at a particular time, are they still right for this or future markets? Change them accordingly.
Developing A Point Of View
Businesses that haven’t thought about ‘what ifs’ and new approaches to the market, struggle to apply good judgement when an opportunity arises. This means they often get is completely wrong when quick decisions are required. Businesses that are constantly thinking about what they could do and what might happen are much more likely to spot an opening and exploit it effectively. This thinking about the market creates what we call a point of view, a particular perspective that takes a stance on what the change drivers and customer pain points are, and how developing new value propositions could answer those (as yet) unarticulated needs.
Taken together, Circumstance Management and Developing A Point Of View are the two criteria that distinguish management teams that seize opportunities rather than become victims of a difficult market-place. And these ways of thinking should be embedded in your management practice as a normal mode of behaving, rather than just dusted off when a recession looms.