Managers should be thinking: How do we emerge stronger and reshape the business in a more sustainable way?
The answer may lie in taking bold actions on where energy and investments should be focused. Even in the face of continued uncertainty, businesses recognize fueling growth is essential, and many are reigniting capital investment initiatives. But they're being really disciplined in that capital allocation process. Companies are prioritizing investments that drive growth, whether in key products and services, key geographies or new client acquisition.1
Key actions that many businesses are taking include:
- Shifting from short-term liquidity actions to sustainable cash management.
- Taking a much more aggressive view of invested capital.
- Moving from a collection of ad hoc initiatives to a comprehensive and strategic portfolio of actions linked to a strategy to achieve growth.
Leaders should consider galvanizing their people around an optimistic view of the future with clarity of vision, purpose and impact, while conceding many must still deliver those messages on how the world has changed and the impact that now has on business decisions.
All assets on the books are coming under scrutiny. Now may be a good time to reshape the business in a holistic way, focused on sustainable cash management and invested capital.