Set Goals Before You Develop Recession Contingency Plan

Companies create contingency plans in case of a downturn. Goals are one key point that some people fail to address. If the downturn ends up being an extreme one, then the only key is survival. But, in the more probably event of a mild to moderate downturn, then you have room for additional goals that will help you.

Key Takeaways:

  • More companies are doing contingency plans for a downturn, a trend I heartily applaud and have encouraged. One key point not often addressed is goals.
  • The classic example is Caterpillar’s trough plans for the 2008-09 recession, in which the company began with goals.
  • A wood products company that was a client of mine mostly worked on large, custom projects. They also did a small amount of business in standard moldings

“Cat sells most of its equipment through dealers, and it would be shortsighted to protect company profits only to see its dealer network falter.”

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