Prepared for a Downturn
In order to be prepared for a downturn, a structural improvement plan is necessary!
Around ten years have passed since the economic crisis shook not just the financial sector, but the manufacturing industry too. Since the recovery, the German economy and industrial and high-tech companies in particular have been benefiting from the worldwide economic upturn. Many companies used the opportunities afforded them for growth – Personnel expansion, investments in new production facilities, digitization and new business models were made.
However, after the prolonged peak, many companies in the manufacturing industry are directly affected by an economic downturn. In order to soften the effects of the economic downturn on their own profitability, a structural profitability improvement plan is needed.
Executive manager and board members seeking to define a plan for structural profit improvement should therefore be able to answer the following questions:
- Scenarios of the future: What profit developments do we need to prepare for?
- Levers: Which levers and initiatives offer what potential and how quickly can these results be achieved?
- Timing: Which initiatives bundles should be started when?
- Anchoring: How should the plan for profit improvement be organized?
In this impulse paper, we will outline how these four questions can be answered in a structured way and how a plan for profit improvement can be developed pragmatically.
Kittelberger, D. / Dr. Sauter, R. / Zirkelbach, T.
Published in: White Paper, 2019