Maintaining a growth focus
in times of uncertainty

Wherever you go in the region, it feels like the Coronavirus (COVID-19) is the only topic of conversation. 

Very understandably, we are all concerned with the health implications, the very proximate risks around travel, and the second-order risks to the economy. People have reacted in a range of ways with varying levels of rationality and organisation. Health warnings have been issued. Travel restrictions have been introduced. Medical facilities have been overwhelmed with demand. Consumers have started stockpiling various items from face masks and sanitisers to toilet paper and pasta.
 
There are more qualified sources to consult on some of the immediate risks about the pandemic. We would prefer not to add to the confusion other than to suggest that washing your hands well and often is a good idea and perhaps hoarding toilet paper is not entirely necessary. However, what has concerned us are the predictions of an imminent recession caused by the disruptions to global trade from the Coronavirus. When the market turns as a result of a black swan event and the bubble bursts, organisations often turn their attention from long-range growth plans to immediate cost-reductions.
 
The danger of focusing exclusively on the bottom line is that as well as removing fat, organisations may remove a lot of the healthy muscle required to grow once the downturn is over. Perhaps presciently, we recently posted on this very topic, recommending a simple recipe that takes a more nuanced view of cost reductions. By working back from the customer to identify the growth capabilities that will be needed long-term to make the organisation future fit, organisations can reduce cost in the short-term while leaving the capacity to grow once good times return.
 
Written by Abhik Sengupta - Executive Director, Client Solutions
 

Watch this video to learn more about how to get the most out of your customer and channel investments, while reducing-cost: