Downturn: Opportunity in adversity

M. Gautham Machaiah

The economic downturn has come as a bolt from the blue. The resultant negative sentiments and doomsday prophesies have cast a spell of gloom across the globe. But all is not lost. The world has not come to an end, nor will it.

It is up to us to sit back and brood or stand up and convert an adversity into an opportunity. You can either be a force for positive change or an advocate for negativity.

The downturn should be seen as a blessing in disguise. It has woken us up from our slumber…it has shaken our complacency…it has demolished the artificial highs reached by certain sectors of the economy… and, it has grounded us in reality. As the saying goes, “Sleep, riches and health, to be truly enjoyed, must be interrupted.”

The global meltdown, no doubt, has frightening prospects and it is a matter of time before it impacts us. Yet, the consequences on India may not be as disastrous as it has been in other parts of the world. We need to tackle this crisis with confidence, but at the same time, let not our vision be clouded due to over confidence.

In times such as these, our primary focus should be on our customers and viewers. It is not enough to merely retain, service and satisfy our existing customers. Let us give them more than their money’s worth. We can afford to ignore the customer at our own peril. The moment customer satisfaction becomes our priority, half the battle is won.

In any economic strife, cash flow management is the first casualty. This calls for financial prudence, optimum utilisation of resources, judicious capital investment and drastic rationalising of variable costs. A word of caution though…let us not cut the nose to spite the face…let us tighten the belts, not stifle the oxygen flow…let us cut costs, not corners. Instead, let us make each rupee work harder; let us make each rupee run that extra mile. After all, a rupee saved is a rupee earned.

This is also the time for stock taking. Let us get out of our cocoons and step down from our ivory towers. Let us view our businesses dispassionately. Let us not hesitate to restructure businesses that are not performing and revisit business plans that are not delivering. Above all, let us not stop innovating.

As individuals a great responsibility rests on each one of our shoulders. We have to make up with our hard work, what we may lack in resources. Let us put our best foot forward.

We can unitedly overcome the challenges that the coming days will throw up. As Franklin D. Roosevelt said, “There is nothing to fear, but fear itself.”

COMMENTS

Whatever goes up has to come down.The rule applies to business also and is termed Business Cycle. The Cause- Overstretching. Let me explain. During upswing, over optimism causes the businessmen to contemplate grandiose plans and he overshoots his budget manlfold. As soon as recession sets in, the potential customer as well his regular customers are not wiiling to pay the price he quotes for his product, because they themselves are caught in the throes of recession due to spending beyond thier means during the upswing. Almost everybody gets trapped in the vicious cycle. The solution- Let us all learn to curb extravagance at times of upswing and learn not to exceed our limits. We have to lay down certain parameters and learn work within these parameters.

-Prabhakar, Mumbai

This was indeed a very interesting, unique and may I say the humanitarian way of looking at the current slowdown. The popular belief across a lot of conversations today is that the tough times would last out for another 18-24 months and that new leaders would emerge at old levels. The idea is to prepare for that eventuality and work towards being a leader in that scenario. Thank you for sharing a very practical and clear way forward for the forthcoming troubled times.- Harsh Deep Chhabra, MumbaiA truly a breathtaking article!Just as products have a life-cycle, organisations too go through a similar phase.A paradigm shift is inevitable for most organisations at this stage and hence the global meltdown is a natural phenomenon in its own sense of developmental activity.Yes indeed, every individual needs to wake up, realise the change and move forward to make things better than the best.

- Ramkumar Gopisetty, Bangalore

I agree with you that Positive thoughts and actions are the neccesity at this time. Thanks for sending the link and congrats on a well-written piece.-Deeptie Ganapathy, MysoreIndeed, the present economic crisis is matter of concern for all. But, at the same time it is an opportunity for innovation and creativity. We should think positively and work out comprehensive long term strategies to over come this crisis. Ultimately, the consumer/viewer satisfaction is the sole mantra for success. How we do it is the challenge before us.

-Siddappa Kaloji, Bangalore