Financial Planning | Leadership / Management | Technology & Social Media

3 keys to succeeding in the new economic environment

When will we see the economy return to normal?New Normal

Everything I have been reading says this is the wrong question.

The right questions are, what will the "new" normal look like and what do we do to succeed in this "new" economic environment?

I came across a whitepaper by Saul Berman, Steven Davidson, Sara Longworth and Amy Blitz with the IBM Institute for Business Value that offers some great insights into how we might deal with the "new" normal.

The report states, "The final months of 2008 unleashed sudden and sweeping economic change in the global economy. Amid debates over how long and broad this period of change will be, one thing is clear –- a major transformation is under way and 'business as usual' responses are not likely to succeed. ...This growing uncertainty and widening impact create an urgent need for action."

I think they are onto something here.

Here are their three keys to success:

  1. Focus on Value
    1. Do more with less
    2. Focus on the core
    3. Understand your customers

Exploit opportunities

  1. Capture share
  2. Build future capabilities
  3. Change your industry

Act with speed

  1. Manage change
  2. Empower leaders
  3. Manage risk

As I read the report, I saw lots of opportunities for CPAs to really make a difference for the businesses we serve. All of this starts with a real objective understanding of the business, the ability to model various scenarios, cutting costs strategically, and just good financial managememt. This could be a manifesto for CFOs and CPAs who consult with their small business clients.

Download the full report here and their special supplement for CFOs.

What are you doing to help your employer, clients, etc?