Coping with turbulent times and tough economic conditions

In recent years the rate of economic growth has varied in different parts of the world. Some countries have experienced a slowdown and others a recession. Many corporate organizations and individual citizens have faced severe pressures, while banking systems and particular countries have had to seek external “bail out” support. Pain first experienced in the private sector can be later felt in the public sector as Governments take action to cut spending and reduce borrowing. Certain countries and particular sectors are experiencing recovery, while for others future scenarios include “bumping along the bottom” or “double dip” recession. For some public bodies the worst may be yet to come. In the UK, the NHS Confederation (2009) has suggested that the downturn represents the health service’s “greatest ever leadership challenge”. In this article, we will consider action company directors and others can take to benefit from adversity during tough and uncertain times. During an economic downturn boards can secure competitive advantage by taking practical steps to reduce costs and improve corporate performance. Savings should be made at first in areas that are not critical success factors for key corporate activities. A smaller number of people who are better supported can represent a preferable, achievable and cost-effective option. Giving key workgroups the performance support they need to excel at activities that are vital for corporate success can generate multiple returns on investment within the first year alone