After the crisis and ... before the next crisis

2009 has been, as expected, the year of indiscriminate cost cutting in many companies in the region. Indeed, due to the missing cash and to the time pressure, as well as to dramatic decreases in sales (more than 50% often in comparison with 2008), the companies had to act to survive.

If most companies have survived the hearthquake somehow by cutting mostly production employees and not realising the planed investment program, they are left in a very fragile state and would probably not survive a second tremor, even a lighter one.

What is missing, and has been recognised in 2010 by the leading companies, is a deep and far reaching analysis of the organisation and of the processes. Old habits that were not damageable during the boom phase have to be changed and control mechanisms implemented. Budget have to be prepared and key performance indicators selected.

New management rules and often new managers have to be put in place.

DO NOT LET THE NEXT HEARTHQUAKE SURPRISE YOU.