pany. Value is created by generating incremental cash that can be
used to solidify existing positions
and fund new directions based on
organizational priorities. The company can become leaner and simpler but with a sharper roadmap for
the future. The investment risk profile can also improve, making the
company more attractive to lenders
and shareholders. Initiatives may
vary from attacking excessive consumption and rationalizing roles to
reducing wage and procurement
rates, working capital improve-
ments, eliminating cross-functional
redundancies and optimizing the
cost-value relationship.
On the strategic side, a recession
presents a buyer’s market, and consultants can help cash-rich companies scrutinize opportunities for
growth through mergers and
acquisitions. Bargains do become
available but need to be handled
with care.
In the best of economic times,
consultants still help companies
streamline processes and find cost
efficiencies, but put more emphasis on initiatives that drive long-term growth.
“2009 will be about taking swift action to improve the
top and bottom lines. There will be little time for
debate, brainstorming, theory, and trial and error...
It will be a year for surgical precision.”
— BRIAN GIROUARD, CAPGEMINI
“A recession presents
a buyer’s market, and
consultants can help
cash-rich companies
scrutinize opportunities for growth...”
— JAMES COLEMAN,
ACCENTURE
G I R O U A R D : 2009 will be about
taking swift action to improve the
top and bottom lines. There will be
little time for debate, brainstorming, theory and trial and error.
These are luxuries available only
during better times. It will be a year
for surgical precision.
Any project proposed during
2009 should clearly be able to
address the following questions:
•How much will the project
return in savings or top-line
growth?
•How soon will we realize
the return?
•How sure are we that we
will be successful?
Most companies have a difficult time taking their best people
away from their operational roles
to focus on new initiatives. Due
to legitimate distractions, they
have difficulty focusing on the
steps necessary to achieve the
end goal. Frequently they do not
have people possessing the right
skills or knowledge of best practices for the initiative. They often
struggle to enforce the change
required in the way things are
done to be successful.
These are many of the reasons
why projects fail to achieve the
expected return on investment.
Experienced consultants understand
the pitfalls and are adept at avoiding them. They are able to make difficult decisions even if those involve
killing a few sacred cows.
Unless a company is certain that
they have the skills, methods, experience and wherewithal necessary
to deliver the promised return on
investment, on time, it should
strongly consider collaborating with
an experienced consultant.
