RECESSION – Shortage of Ideas

Recession can also be looked upon as an environment, in which industries have stopped causing enough value addition to its client base.

Recession is, where the value of your services go down drastically and the premium that you were once expecting, same products and services are now being sold at discount and at some level, are not even being sold at discount, they have become of very less utility in the current environment.

Maybe recession is a function of an industry not having been innovating rapidly enough and the customers have now not been finding enough value for money or as critical.

Client Centric Innovation, moving 1 curve ahead of the industry is what would allow the company to be able to serve the customers in their tough times, and thus avoid the tough times for oneself.

Most of the times, customers do not stop needing things, they just need the same things in a little different way:

1. Special Rates 2. Special Packages 3. Special Combos 4. Special Product range 5. Economy product range 6. Products / Services which the customers would be interested to buy even now by the virtue of effective cost of ownership and cost of usage.

e.g. Low cost housing in the  Construction Industry, High fuel efficient cars at the same price points as the low mileage cars

THE NEW CLIENTS:

Innovation is also required for making your products available to the customer bases that you have not been targeting initially.

Some new applications, some modifications, some new paradigms can create a once in a blue moon idea, which will alter the future of the company.

All the brains in the company need to be tapped for such innovations or possibilities exploration.

Top Management involvement and commitment is critical for developing such a culture, where people are not operating from the recession of ideas.

May be recession of ideas lead to recession of possibilities lead to recession in the markets.

And a new wave of ideas is going to create a new wave of possibilities and a set of new opportunities in the market.

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Cost Cutting – How and Why? Are you cutting your flab or your arm?

Cost Cutting is very important in a slow down but at the same time, one has to ask oneself are you cutting down costs or are you cutting down your muscle, your strengths.

Right Sizing is important. Are you cutting down the non- productive people, or are you cutting the non-political people?

Are you cutting people or are you cutting the wastage in the processes?

Is your efficiency increasing or are you just increasing the stress on the current people?

Are you firing people in a way that leaves the existing people searching for their jobs, even when you wanted to retain some of those key people.

System and Processes fine tuning and powerful implementation is important for sustained growth right now and over time.

For guidelines on cost control and recession management, talk to us:

managementinnovations2020@gmail.com; 919375970812

Old Customer Relationships for dealing with the Economic Slowdown

STRENGTHEN YOUR RELATIONSHIPS WITH THE OLD CUSTOMERS:

In a growing economy, you can focus on the new business and can survive and even grow without having to fully serve the old customers. The Customer Relationships and the Loyal Customer Base becomes the lifeline for surviving the Recession.

If you have been maintaining great sustained well managed relationships with your current and old clients – great, fantastic. If not, wake up, before it gets too late.

Call up all your old clients. You call up. Do not delegate to some new sales person. You have to provide the best space to make this work. Find out who in the company has the maximum rapport with this old client and have them help you create the bridge.

Talk to the clients, find out what are they upto, findout new opportunities to serve them. Give Positive energy to all of them, irrespective of their immediate business opportunities and build rapport which will not only last you something in the next month but will help you to not only survive the recession, but will also help you grow phenomenally, the moment the market starts opening up.

 

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812