“Preparing for the next downturn,” was the title of a McKinsey report, published last year, I had archived it as possible content for this blog. Realsing it was now passé I deleted it, though not before taking a quick look. It started of, “In a buoyant economy, the next recession seems far off. But managers who prepare during good times can improve their companies’ chances to endure–or thrive in–the eventual downturn.”
So what, on entering a downturn, did the article suggest were the things to do?
1) Maintain lower leverage on the balance sheets
2) Control operating costs
3) Diversify product offerings and business geographies
Controlling costs is relevant to this posting as it is an opportunity to show Collaboration technology’s ability to reduce cost. There’s a recent report by Infoedge on IT trends and spending that might help.