We have been hearing about it for quite sometime. We are due for a recession and is your company ready for the downturn? Do you have a playbook ready to win during an economic downturn? Or will your company either go bankrupt or lose significant market share because your company has oversubscribed in areas that are money losers? The recent economic models show that there is a potential downturn brewing. So what is your playbook to prepare for a potential downturn?
Source: IHS Markit
Well, from my experience the first thing that gets cut is talent. This is a major mistake in my opinion. The three areas of invest particularly in a downturn are talent, strategy and costs.
Strategy: Prepare to act confidently amid uncertainty.
Cost: Guard growth and elevate innovation funding.
Talent: Identify and install your workforce of the future.
I witnessed a catastrophic mistake by a large enterprise company when they decided to let go of the competitive intelligence team. The entire team of 12 was let go and the company no longer had a team that informed the sales and executive teams what the competition was doing. Most of the competition hired the recently laid-off competitive team members. During the next 12 months, the large enterprise lost nearly 75% of market share because of the mistake they made.
When the large enterprise went into reactive mode and started cutting talent, the competitors were doubling down on hiring talent and utilized the talent against the large enterprise. To avoid such a folly, companies must have an action plan to be ready when the downturn happens. Competitive intelligence is a talent pool that is nearly impossible to replace because of the special skill-set and experience the CI analysts possess. Also, a hidden secret. CI analysts know a lot about your company just as much as the competition. That is not information you do not want your competitors to know. Albeit, even with an NDA disclosure, it is still information and intelligence you do not want to be leaked.
Have a playbook
Double down on your CI team
View Free, Relevant Gartner Research
Gartner's research helps you cut through the complexity and deliver the knowledge you need to make the right decisions quickly, and with confidence.Read Free Gartner Research
Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes, with attribution to Gartner. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.