Recession Plans Must Include Room for Recovery, Says Expert

Share Article

Companies who have been doing everything right during the recession might find they're not ready for things to get better. In order to survive recovery, strategic planning expert Erica Olsen suggests that organizations begin making preparing for things to get better.

M3 Planning's Recession Planning Toolkit

Many of the actions that companies are taking now to combat the recession could actually hurt them if they don't prepare for recovery

With many businesses finally getting around to recession planning, some are questioning whether too much focus on the economic downturn can be unhealthy for economic growth. Erica Olsen, Vice President of Marketing for M3 Planning, developers of MyStrategicPlan, believes that companies who have been putting efforts towards surviving the recession should make sure that they'll also be able to thrive during the recovery. All of this comes at a time when other experts at Bloomberg.com are claiming the US may be heading toward a recovery.

As profits from US companies have climbed for the second consecutive quarter, Bloomberg.com relays that economists have declared the US is poised for a possible end to the recession. According to Olsen, this could prove troubling for some companies who may feel they are responding exactly how they should to the current economic crisis. "Many of the actions that companies are taking now to combat the recession could actually hurt them if they don't prepare for recovery," says Olsen, "and they need to make plans now to make sure they'll be prepared when the clouds part."

By now, nearly every American has in some way experienced the effects of the recession. Organizations across every industry, both public and private have all been forced to adjust to tighter resources and fiercer competition. As businesses have seen lower earnings, management has needed to make tough decisions including layoffs, benefit cuts, closing locations and other cost-cutting measures that have had impact on their organizations' direction. With so many management decisions being focused on survival, Olsen says that being stuck in the trenches isn't preparing these companies for recovery as well as they may think. Says Olsen, "These organizations will need to be ready to change certain habits as the economy heats back up."

According to Olsen, organizations need to include recovery into their recession plans, citing the benefits of look in terms longer than the current slump. "Cutting costs may have made organizations more disciplined than they were in times of surplus, but once consumers are spending again cost-cutting won't help organizations meet rising demand. Olsen says that organizations need to be ready to invest into their businesses again. "Once spending begins climbing again, companies who have saved earnings due to their cost-cutting measures will be able to take advantage of opportunities even before the credit industry thaws."

Olsen's suggestion for insuring against the shock of recovery is better planning. As author of "Strategic Planning for Dummies," and VP for the strategic planning consultants at M3 Planning, Olsen has years of experience in looking forward. "Right now," she says, "companies can poise themselves to take advantage of the recovery, rather than being set back." Olsen's company recently published the popular recession planning toolkit titled, "Strategy on a Shoestring" on their site http://www.mystrategicplan.com.

In addition, she points to MyStrategicPlan as a powerful tool for preparing for the future. The site is a web based application that guides organizations through developing and implementing their plans. Olsen says that many organizations can build their plans using MyStrategicPlan in as little as one day, depending on their size and complexity. M3 Planning suggests that users read through their recession planning kit before starting their plans, in order to utilize both tools together.

About MyStrategicPlan
MyStrategicPlan is an easy-to-use software application that enables any organization, regardless of size and budget, to build a comprehensive plan, effectively and easily track goals, create professional reports for every stakeholder and monitor implementation all year long.

About M3 Planning
M3 Planning is a strategic planning firm that works with growth-oriented organizations to develop and execute their strategic plans. In addition to their online strategic planning system, the company is also a resource for other strategic planning tools, books, articles, workshops and facilitations.

About Erica Olsen
Through M3 Planning's online client base and onsite strategic planning facilitation work, Erica Olsen has developed and reviewed hundreds of strategic plans for organizations across the country. She has also authored several strategic planning books including "Strategic Planning for Dummies" and was named Entrepreneur of the Year by The Business Report of Northern Nevada in 2007.

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Ed Adkins
Visit website