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Recession solution
Demand reduction, scarcity of cash and confidence: any organisation in recession conditions:
- The problem in recession conditions is negatively geared confidence and investments, resulting in a lack of funding and, consequently, demand.
- The intuitive solution is to cut costs, cut back on advertising, reduce staff and, in some industries stop trading all together.
- The consequences are a vicious cycle of diminishing confidence, cash and cash flows.
- The counter-intuitive solution is to reduce the investment batch size, increase the cycle speed and redeploy resources and capital to advance synergistic ingenuity in meeting the changed customer needs – using option-rich frameworks, solutions and building blocks, of course!
- The prosequence (inevitable good result) is dramatically higher productivity and ingenuity resulting in dramatically increased profitability which can be capitalised on as the recession eases.
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