Forrester: The Best Defense For Business Leaders During The 2023 Economic Downturn Is A Proactive Offense
To navigate this downturn, CEOs will need to simultaneously reduce spending while continuing to invest in their organizations’ long-term strategy
New research from
- Stay focused on long-term strategy by making smart cuts and smart investments. When facing prior recessions, many leaders imposed cuts across the board. This brute-force approach is likely to hurt more than help, however. Many leaders also assume that, as they make cuts, they can’t pursue new investments, but in reality, this moment is ripe for CEOs to do exactly that. In addition to establishing a customer-obsessed objective and then making smart cuts with that objective in mind, leaders should move forward by investing in technologies that can improve customer experience, employee experience, and productivity, even as others choose to stand still.
Put talent at the center of the long-term strategy. Currently, 54% of US workers and 43% of both
UKand French workers believe that their organization will make personnel decisions in a careful and human-centric way. When considering cuts, CEOs should identify the individual contributions and skills that will take their company into the future and invest in a talent intelligence program that thoroughly tracks worker skills and performance capacities.
- Choose the right customers to obsess over. During this downturn, CEOs must realize that it’s equally important to decide which customers not to serve as it is who to serve now and in the future. Ultimately, underperforming markets lead to underutilized operations, neglected technical debt, and the waste of valuable resources that can be aligned to better opportunities.
“This economic downturn is unlike any other recession businesses have experienced so far,” said
- Read Forrester’s report, The CEO’s Guide To Navigating A Turbulent 2023.
- Explore Forrester’s budget guidance for 2023, outlining where business leaders should invest, divest, and experiment to ensure long-term success.
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