Insights That Matter on Navigating Recessionary Headwinds
A note from Jason McDannold, Partner & Managing Director in our Private Equity Practice:
Uncertainty around the economy, raised geopolitical tensions, still-too-high inflation, burst industry bubbles…all of this and more is enough to give pause (and anxiety) to any executive navigating these disruptive times. Unsurprisingly, it’s natural for business leaders to focus on their company’s immediate needs to ensure survival. But disruption isn’t going anywhere, and while you may be equipped to merely survive whatever challenge hits next, do you have the proper strategy and groundwork in place to truly thrive?
Business-as-usual won’t cut it in unusual times. The storm is here, and we have to face it. In a recent publication, my AlixPartners colleagues and I explore how some companies are turning disruption into opportunity – including the steps you need to take when it comes to Facing Down the Storm and emerging stronger on the other side.
Below, we explore additional opportunities and actions businesses can take advantage of as we face the storm together, including quickly unlocking growth, leveraging your greatest assets (customers), strategic workforce planning, and growing your topline in a down market.
How to grow your top line in a down market
How can companies increase revenue in the face of changing market conditions? Business leaders should consider these high-impact opportunities to improve commercial effectiveness, increase marketing ROI, and optimize revenue in a down market.
Commercial transformation: Unlock growth fast
In the face of stalled growth, commercial functions often remain unchanged on the theory that the company can’t afford to disrupt revenue-producing activities. However, with the increasing use of advanced digital capabilities to gain insights and drive value, private equity firms and their portfolio companies are escalating requests for tactical and tangible improvements to their topline, often on accelerated timelines.
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CHROs: Make 2023 the year of strategic workforce planning
Facing recessionary headwinds, CHROs & business leaders need to double down on strategic workforce planning as a value-preservation lever. Today's rapidly evolving business environment is buffeted by uncertainty. It has increased the pressure on the HR function to ensure that their organizations have the requisite talent to support changing business priorities. A stubbornly tight labor market coupled with languishing inflation and high labor costs means that most companies don't have the runway to operate permanently in "react" mode when it comes to efficiently forecasting talent demand and bringing in the right quantity and quality of roles.
Customer success goes beyond customer service
Whether dealing with B2B clientele or everyday consumers, companies are finding that abrupt changes in consumption patterns, spending behavior, digital adoption, and workplace practices are rendering longtime customer-service strategies obsolete. Instead of just hiring more people or purchasing new technology, there needs to be a change of focus.
This is hardly a one-size-fits-all model – it requires tailoring your approach to individual needs and creating engagement models that smartly prioritize the needs of your entire band of customers. And when it comes to customer success, not every organization is the same.
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