How does the business impact of COVID-19 compare to the 2008 recession?
Both caused a deep slowdown in business and put extreme pressure on companies trying to stay in business. There are many lessons learned from the 2008 Recession that apply to minimizing today’s COVID-19 business challenge. Most financial analysis agree the US economy will recover, but not all companies will survive. Progressive companies are in the best position to jockey towards a successful recovery. An article published in the Harvard Business Review analyzed the 2008 recession and explains how the balance between making defensive and aggressive moves provide shelter through a storm while capturing opportunity in the future.
There are four classifications for managing a company through difficult times.
- Make primarily defensive moves and are more concerned than their rivals with avoiding losses and minimizing downside risks.
- Invest more in offensive moves that provide more upside benefits than their peers.
- Combine some level of defensive and offensive moves.
- Deploy the optimal combination of defense and offense.
What classification does your business favor in the current COVID-19 slowdown?
Bottom line, Progressive companies have the greatest likelihood of producing post-recession/COVID-19 success. These companies’ defensive moves are more employee friendly. Costs cutting is primarily achieved by improving operational efficiency rather than slashing the same level of employees, relative to peers. Offensive moves are selective and comprehensive. In most cases, new business opportunities are realized by making significantly greater investments than their rivals in R&D, marketing, and capital expenditures.
Source – Harvard Business Review
Morale also tends to be better at companies who stress operational efficiency. This is because fewer layoffs are necessary. Today, many companies are pivoting towards document management as a core improvement. Turning paper documents into electronic files improves local and remote operational efficiencies. These gains are across multiple departments and at multiple levels. Because of the immediate and long-term benefits, investing in running a company with less paper is a strategic and tactical maneuver.
While it may seem intimidating at first, eBizDocs will walk you through the entire process. Our 20 years’ experience and consultative approach means you only implement what is necessary and in the proper sequence for your business. This saves you time, money, and lets you concentrate on other defensive and offensive actions.
Contact eBizDocs and learn how minimizing the use of paper will improve your operational efficiency during this challenging cycle.