Economic pressure does not change strategy.
But it can reveal a lack thereof.
When conditions tighten, organizations are forced to make choices that were previously deferred. What becomes visible very quickly is whether there was true clarity on priorities to begin with.
The challenge is not in making reductions. It is in making them coherently.
Without a clear understanding of what must be protected, decisions become reactive. Signals to management become inconsistent. Confidence begins to erode.
This inconsistency and confidence erosion goes both ways…signals from management seem inconsistent, and their confidence in the future, the confidence they can give their teams, also begins to erode.
Yet, in tough times, one of the strongest signals management can provide to employees, to customers, and to stakeholders, is to be vocal in its support of the vision, mission, and values.
The strategy must be reviewed with those as paramount. The vision, mission and values are not bargaining chips when things get tough.
They are the company’s anchor, the reason people are there, and the reason people do business with it.
Scenario planning must absolutely be done, and done properly. Strategic assumptions must be reviewed. Capital allocation, in these moments, is not simply a financial exercise.
These elements: focus on vision, mission and values; scenario planning, review of strategic assumtions and capital allocation are a direct reflection of the strategic discipline that will see a company through to the other side of the economic challenges.
If you have successfully used these tools to ensure the health of your organisation during difficult times, I would love to hear from you.
If you are curious about how to get started, drop me a line at lesley@lesleyantoun.com.
Written by Lesley Antoun
Lesley Antoun advises C-suite executives and boards on strategy, alignment, and decision-making in complex, high-stakes environments.