KPMG has released a report entitled “Recession-related risks” a top concern for audit committees in 2008’’
How companies deal with recession–related risks will either destroy their fine reputations or enhance them.
Recession-related risks include not just financial risks – such as liquidity, access to capital, ageing receivables, and cash management – but also strategic, operational, and third-party risks such as reliance on suppliers and other business partners.
Since reputation can be seen as a strategic risk, what you do and how you do it should form an important part of the decisionmaking process in dealing with recession related issues. I wrote an article on this called Lay-offs:The Reputable Way in last month Powerlines (83) that deals with the human component in a recession.
Perhaps, now is the time for innovative cost-cutting campaigns.
Ever thought of enlisting your people’s minds and ideas in such a process?
Andrew O Manzini wrote in the book – Organisational Diagnosis- a Practical Approach to Company Problem Solving and Growth that "The solution to many organisational problems lie within the company – itself – with its own people. If you create an environment that encourages people to communicate their perceptions about problems and issues that prevent the company from being as effective as it can possibly be, and then solicit their input about what can be done, you tap a reservoir of talent that is more than adequate"
In a recession, the time to listen to your employees and other stakeholders about how to do things faster and better, has never been more paramount.
So, let me ask you. Does your company have a suggestion scheme, THAT works?
If it doesn’t , it just has no listening capability for capturing ideas!
Footnote: Send me an email for a white paper on how to implement an effective suggestion scheme.