In a recession, stopping the leakage must become priority #1, because the bottom line must be protected at all costs as revenue growth stalls and other sources of financing dry up.
In this perfect storm, executives are challenged to follow a clear strategic path: should they continue to contain cost at the expense of new products? Should they pivot to address new demand, without knowing if it will evaporate when things return to normal? How can they move in-person customer service excellence online?
“In a crisis, metrics suddenly become a rare and precious commodity. Under pressure and faced with greater uncertainty, executives need data to manage risk; without the right metrics, they are forced to make decisions based on incomplete information.”
Market discipline starts at the top: the leadership team must define the mission (why do customers buy from us versus the competition), vision (what needs to be done to deliver the value proposition), and strategic intent of the organization. Only then can processes, infrastructure, and assets be aligned.
