3. Accelerate Digital Investments
A recession is a good time to accelerate digital investments.
A recent study by McKinsey found that companies that invested in digital transformation during the last recession outperformed their peers financially by 8 percent annually over the following five years.
Digital investments can help you drive top-line growth and improve operational efficiency – two essential ingredients for success during a recession.
This is because digital investments often have a direct impact on your company’s bottom line. By investing in digital initiatives now, you can position your company for long-term growth and success.
Here are three ways to accelerate digital investment and help your company thrive in the upcoming recession.
1. Develop a Future Vision of the Customer and Employee
In order to thrive in the upcoming recession, it’s important to develop a future vision of the customer and employee. What does the ideal customer look like? What does the ideal employee look like? How can you make your products and services more appealing to customers?
How can you make your workplace more attractive to employees? Answering these questions will help you develop a clear vision for your company’s future.
2. Invest in Predictive and Autonomous Digital Projects
Another way to accelerate digital investment is to invest in predictive and autonomous digital projects that will make the organization faster and leaner. This means investing in technologies such as artificial intelligence, machine learning, and data analytics.
These technologies will help you automate tasks, improve decision-making, and increase efficiency. In other words, they’ll help you do more with less.
3. Narrow the Metrics You Use
Finally, it’s important to narrow the metrics you use to measure and manage digital initiatives down to the few that align with outcomes. There’s no point in measuring metrics that don’t have a direct impact on your company’s bottom line. For example, website traffic is a popular metric that many companies track.
However, website traffic doesn’t necessarily equate to sales or leads. A better metric to focus on would be conversion rate (the percentage of website visitors who take a desired action).
By focusing on metrics that align with outcomes, you’ll be able to make better decisions about where to allocate your resources.
Taking early, decisive action is critical to weathering a recession successfully. By focusing on key areas like spend management, talent retention, and digital investments, you can set your company up for success during an economic downturn—and beyond.