Management Matters of Attention in order to get through the downturn

1. Managing through the downturn :
Prepare for a sustainable growth : Consider, Care, Cash, Cost
Alex Overfeldt
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overfeldt
DN: cn=alex overfeldt, o, ou,
overfeldt email=alex_overfeldt@me.com, c=BE
Datum: 2009.06.11 13:34:10 +02'00'
11‐06‐2009 kerngedachten alex overfeldt 1

2. Required management a;tudes :
ATTITUDE ACTIONS
Consider Take the opportunity to reconsider your business model and its operaHng modus ! Examples :
 Reconsider your supply chain and look for opportuni4es to enhance flexibility in your supply chain that will
allow you to operate more efficiently (same speed and quality of delivery at lower cost);
 Consider your present “Unique Selling Proposi4on” and reflect upon its sustainability through and aGer the
downturn (think ahead) and consider new developments;
Care Care for your relaHons on both :
 Asset and Liability side of your Balance Sheet;
 And, last but not least, Income and Expense side of your P&L account;
Examples :
 Keep in close touch with your client base/distribu4on channel and make sure you understand their problems
and see how you can contribute with the purpose of forging stronger 4es or with the inten4on to protect
against compe4tors approaching your client base;
 Enhance your rela4ons with your Bankers through i.e. Transparency with the purpose of “having them on
board” whenever opportu4es occur;
 Care for your talent !
Cash Cash (always was and) is King – examples :
 Be selec4ve in the opportuni4es that occur (i.e. In acquisi4on possibili4es : “do not spend money to buy
someone else’s problems);
 Manage your “Opera4onal” Balance Sheet building blocks (Client, Inventories) and minimise the funding 4ed
up in those items without endangering your efficient func4oning;
Cost Watch your cost base : in a downturn period it determines your break‐even point, your boRom
line as well as your cash posiHon !
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3. In a nutshell :
UlHmate goal :
• prepare yourself to be in the best posi1on for
new sustainable growth;
How can one prepare today :
• create a compe44ve advantage through efficient
downturn management;
Sustainability :
• will become and be a new key dimension in doing
business;
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