European leaders have warned of a difficult year ahead, as many economists predict recession in 2012... so the BBC reports. They go on to say that growth in Europe has stalled as the debt crisis has forced governments to slash spending. The leaders' New Year messages came as leading economists polled by the BBC said they expected a return to recession in Europe in the first half of 2012.
However, it doesn't have to be all doom and gloom.
Whilst the inevitable chaos caused by recession has a tendency to push organisations into retreat this is not always the case. Did you know that iconic companies like:
Disney, CNN, MTV, Hyatt, Burger King, FedEx, Microsoft, Apple, Gillette, AT&T, Texas Instruments, 20th Century Fox, IBM, Merck, Hersheys, IHOP, Eli Lilly, Coors, Bristol-Meyers, Sun, Amgen, The Jim Henderson Company, LexiNexis, Autodesk, Adobe, Symantec, Electronic Arts, Fort une, GE, and Hewlett-Packard
were all founded during periods of economic recession.
One definition of chaos suggests that it is the uncertainty sparked by uncharted territory, economic recession, and bubbles of opportunity. We seem to phase in and out of this chaotic state... a state of randomness and disorder. The ebb and flow happens in an almost natural way, almost mimicking what occurs in the natural world. This system of natural governance that blends the characteristics of chaos and order is known as the chaordic state.
The good news is that we can use the significant power of these chaordic forces to help with generating revenue and growth, so important for our future economic survival.
One such way could be to embark upon a business transformation programme, another might be to merge with or acquire another company. All of these require change... something that we have to accept is a permanent feature of the world in which we all live.
S o what is business transformation - well, it's all about aligning people, process and technology to achieve some previously agreed significant change. These three areas also feature as being important when considering an integrated approach to the associated areas of governance, risk and compliance within an organisation.
Our Business Transformation Consultant comments on the importance of making sure your desired significant change is relevant and appropriate ie is your business strategy "fit-for-purpose" and correctly aligned with what is going on in at the operational level? It could be that in order to achieve your strategic objectives you need to merge with and/or acquire another company... or it could be that organic growth is what is needed.
The conclusions from a recent Economist Intelligence Unit report on business transformation highlighted that the ability to manage change effectively is a great competitive advantage. It goes on to make the point that external crises such as what we are experiencing at present help to drive change in organisation and provide a "burning platform" for change, but emphasises the importance of the people-related challenges.
Several years ago, an earlier white paper from our own consultancy promoted the benefits of using a ten-step approach for generating prosperity from the deteriorating economic conditions at that time. It is encouraging to see that recently, the Kepner-Tregoe consultancy has been recommending a similar approach in their paper about coping with uncertainty in the business environment. The key message from both approaches is the importance of developing a clear business strategy and then maintaining strategic directions and integrity when times get tough.
Working with an experienced Business Transformation Consultant will enable you to take advantage of well-proven, tools and techniques to help you survive and prosper from the continuing economic uncertainty.
< P>Ben Austin is a trained copywriter and employee of Internet Marketing Ltd, SEO Specialists and Web Designers in Leeds. Ben writes insightful articles on behalf of clients across all industry sectors. This article has been written for Chaordic Solutions, the owner of which being a specialist Business Transformation Consultant.