Rethink, Redesign, Rebuild

At the end of January the World Economic Forum Annual Meeting took place against a more encouraging backdrop than the previous year and the theme was ‘rethink, redesign and rebuild.’  At this time last year we all had concerns about how severe the economic downturn would be - deep recession or something even worse?  Following worldwide fiscal intervention on a massive scale most economies have recovered more quickly than expected; however, there remains a large question mark on the sustainability of the recovery.

Twelve months ago we presented our ‘Hot Tips for Survival’ - having managed to survive one of the most difficult years in economic history, what can you do to ‘rethink, redesign and rebuild?’  In order to have the best chance of survival you should carefully plan your strategies and activities and then put those plans into action. The Institute of Chartered Accountants in England and Wales (ICAEW) have produced an excellent guide which covers eight strategies to help directors manage through difficult times:

• Manage risk and uncertainty
• Think cash
• Secure your funding
• Review your structure and cost base
• Seek advice and support early
• Manage your year end
• Recognise the value of employees
• Plan ahead

For a copy of the guide visit the ICAEW website at www.icaew.com

The temptation in a crisis is to focus solely on the financial side of the business.  Whilst we find cash control is key to obtaining stability, when we work with businesses in financial distress it is important also to think about the other areas of your business - such as staff and customers.  Once the financial building blocks are in place revisit your survival strategy and start to ‘rethink, redesign and rebuild.’

• Customer service
• New product development
• Corporate social responsibility
• Competitive analysis
• Customer relationships
• Building and protecting your brand
• Internal marketing
• Staff welfare and development

If you have concerns about current economic conditions or want to discuss ways you can improve your buoyancy in the market contact corporate recovery partner Diane Hill at dhill@clbcoopers.co.uk or call 0161 245 1000.