Recession Strategy - Part 2: Introduction

Past recessions have shown that companies did a poor job of preparing for an economic downturn. Managers felt the situation was out of their control and, therefor, could not do any meaningful work. Since World War Two there have been eight recessions. Managers, supervisors, or business owners will experience several economic slow-downs in their career. If we factor in a downturn in specific industries, it is possible for a manager to experience several financially challenging periods each decade. The volatile chip manufacturing industry is a prime example. Makers of electronic chips fluctuate from downturns in the general economy and from a drop in plant capacity or unintended consequences related to technology.

While recession planning is unpleasant, it is vital that it not be put off. Financial reversals must be anticipated and prepared for. Though some of the actions may be painful, it is important that managers and owners not allow themselves to feel as if their hands are tied.

A consulting firm, the Forum Corp. (www.forum.com), and training company, Paradigm Learning, have teamed up to examine 10 steps that can help managers focus in a recession environment. The 10 steps cover three areas, financial, people, and organizational climate.