It’s official, the recession is over and the economy has returned to growth, albeit only by 0.3 per cent but it’s a start! Even more important, those perennial indicators of economic well being, house prices and car sales are also up so it must be OK!
But although the worst appears to be over, unemployment is still rising and business failures remain high. So what are the challenges facing businesses as the economy starts to grow? How are they ensuring they not only stay in business but shape up to meet a new set of challenges that will arise from the aftermath?
When asked what are the key challenges facing their organisation, the respondents to our poll conducted in August 2009, mentioned the following. (The percentage figures refer to the percentage of respondents reporting this issue as a challenge.)
- Management skills and competence 55%
- Employee Capability 45%
- Developing Vision and Values 39%
- Re-structuring 35%
- Re-sizing 16%
As a result most of our respondents (58 per cent) were reviewing their processes with a view to improving efficiency and effectiveness and strengthening the link between process and performance. They were also concerned to ensure effective knowledge sharing, re-thinking their communications strategy and looking at role design to make sure they were making the most effective use of the talent available.
An overwhelming 47 per cent thought that the single biggest lasting impact of the recession would be a re-focus and re-affirmation of core priorities. 23 per cent thought developing new capability would have the biggest impact, with another 23 per cent citing the development of new products or markets and 7 per cent thought a merger or take over would have the biggest impact on their organisation.
It would appear that companies are re-energising for the future. A future in which they have to know what they want and grow the capability to achieve it. A future where sustainable performance is going to be around enabling vision and leveraging talent through efficient and effective process.