SME Business News

The Surrey snows have forced me to get some serious reading done. This weekend I read a fascinating business book with a fairly uncompromising title that promised much and to an extent at least delivered it: “The Upside of the Downturn: Ten Management Strategies to Prevail in the Recession and Thrive in the Aftermath.”

Its premise is that some businesses - and some people - will emerge from this downturn stronger and more dominant than when it started. Others will weaken and fade. It all depends on critical choices they make right now.

Geoff Colvin, one of America’s most respected business journalists, says even the deepest recession has an upside. The best managers know conventional thinking won’t help them win in tough times. They’re taking smart, practical steps that will not only keep them strong, but will also distance them from the pack for years to come.

The dozens of top-performing leaders Colvin interviewed reject the common view that slashing costs and firing employees are all that matter. They see the recession as a rich opportunity to reinvent their organisations and lay the groundwork for future growth.

Colvin’s ten solidly grounded strategies are designed to increase competitiveness and build  long-term value.

Here are some highlights:

* Reset priorities. Easy to say, harder to do. Pursuing the lofty goals set in good times can be disastrous now.
* Reevaluate people and steal some good ones. Mass layoffs are a tempting way to cut costs, but great companies often find smarter alternatives. And if your competitors are dumb enough to fire their best people, grab them.
* Keep investing in the core. Trim the fat from your budgets but not the muscle. The best companies actually increase some spending in a recession, funding the areas that make them unique and valuable.
* Don’t rush to cut prices. Many companies assume they must - yet the long-term damage often outweighs the short-term boost.

Colvin shows how these strategies work, using examples of major companies that have applied them with inspiring results.

There are obviously many more strategies that are being adopted with real success right now. We’d be really interested to hear more about your success stories as well as any great business books that you’ve read lately that have inspired you or talk to your particular situation.

See how invoice discounting can help your business survive and thrive in 2010.