How corporate values can be increased even in times of downturn

In recent months, investment risks for companies have increased sharply. Industries and sectors have been transformed by economic uncertainties and a whole range of disruptive trends. This makes it increasingly difficult for managers to make future-proof investment decisions. More and more unforeseen effects have to be taken into account in corresponding strategies, which makes decision-making even more difficult.

Before making an investment decision, decision-makers therefore want to be able to assess as well as possible how current trends will affect their business strategy. They want to be able to identify opportunities and risks and assess their impact. You want to formulate measures that can be used to achieve savings in order to be able to finance changes. Of course, you want to know whether the set value enhancement goals can be achieved with the help of your strategy.

In our white paper "Securing value in a slowdown", we take an in-depth look at how to secure and increase value even in times of a downturn. The white paper looks at some of the economic trends that influence decision-making. And it explores the reasons why managers make and adjust their decisions. 

We present five points that can help companies make better investment decisions.

1. Assess economic trends and their impact

Companies should answer the questions of how trends can develop and what influence this has on the business strategy. The next step is to define what the goals of the business strategy are. Is the business purpose-driven or is profit enhancement the driving force? In addition, decision-makers should be able to clearly determine what triggers the change in the company - an economic, existential threat, or the company's own objective to create additional value. 

2 The key performance indicators

Companies should know which metrics and data are really important. The available data should be used to cast the effects of various trends into provable figures in order to be able to realistically evaluate scenarios. The goal should be to be able to assign a workable number to the economic opportunities.

3. Set priorities

Once ideas and strategies have been drafted and put on paper, they should be prioritised. It is important to strike a balance between short- and long-term actions. The result of this step should be a practical and achievable list of desired actions.

4 Implementation

During implementation, companies should ensure that they have the right skills and talent to achieve the defined goals. To this end, an ideally staffed team should be assembled. Training should be provided as needed to acquire any skills. In addition, a clear governance model should be in place to keep up the pace during implementation, but also to be able to react to changes as needed.

5. Measure goals

Implementation is not the end of the story. It is important to keep an eye on whether the goals can be achieved. If in doubt, course corrections should be made. For example, if new economic trends or disruptions become apparent. A results analysis should also be carried out on the basis of the key figures and shared with the company's staff.